Lately, it seems everything is getting more expensive by the minute. The rent, groceries, gas, electricity, and even car insurance are now more costly to afford. Due to the high insurance rates, drivers are on the lookout for other ways to save money. One of the ways to save on car insurance is through Continuous Insurance Discount.
Discounts are one of the most reliable and easiest ways of saving money on car insurance. Continuous insurance discounts offer rewards to drivers for maintaining their insurance over an undeniable period. Most insurers render this discount to drivers who qualify for it. However, the amount of discounts given varies depending on the time the driver qualifies for the discount.
What is a Continuous Insurance Discount?
Just as it is called, continuous insurance is the time a policyholder has been continuously insured. Continuous insurance discount is rendered to policyholders who have remained insured over a period. Some insurance company renders this continuous discount on a categorized scale so that drivers who have been in continuous insurance for about 5 years can be discounted 5%.
Drivers who have remained on continuous insurance for over 10 years may be discounted 10% or more. If there are no lapses in your coverage between policies, the time you have spent with your insurer and, most times, your previous insurer may result in continuous insurance discounts.
Who is Eligible?
The continuous insurance discounts are not earned by every policyholder. Only specific policyholders can qualify for a continuous discount. Below are explanations of policyholders who are eligible for a discount.
- Primary Insured:
The owner of the car insurance policy gets all the credits and loyalty. This credit also gets extended to the partner of the policyholder, and they are considered a primary insured.
- Young Drivers:
For teenagers still under their parent’s roof, chances are that they are assigned to their parent’s insurance policy until they get a license. Even after they get into college, they are covered by their parents’ insurance coverage. However, they also get to benefit from the continuous insurance coverage discounts of their parents.
- Adult Drivers:
Adults, whether young or older, can be under your policy as long as they are under your roof. Most insurers require policyholders to include everyone under their roof in their car insurance coverage for access to your vehicle.
After these adults get their insurance coverage, they will be excluded from your continuous coverage and begin from scratch. However, drivers need to establish their insurance policy as early as they can because it can lead to difficulties when adjusting a policy if they get to a certain age before doing so.
Why do Insurance Companies Render Continuous insurance discounts?
This is based on the policyholder’s experience. The more experienced a policyholder is, the more they are likely to get discounts. Insurance companies believe that over the years, policyholders who have remained on continuous insurance should have gotten good driving behavior and can handle little damage themselves.
If you newly got an insurance policy, getting a discount will not be possible because there’s a chance that you are young and a little experienced driver. You are considered to likely file a claim against damages. Having a healthy, unbroken insurance record shows the insurer that you are a responsible driver with a low risk and are knowledgeable about the importance of car insurance.
This does not just qualify you for a discount, but it goes beyond that. It qualifies you for more coverage from an encircled range of insurers. Since cancellation and a lapse in coverage can tramp your rates, having a good insurance report can qualify you for better rates. However, if in any case, you need to change insurers due to one reason or the other, it is advisable to get another insurer immediately to avoid a lapse in your coverage.
Why is Continuous Insurance Discount Important?
Having a continuous, unbroken insurance history gets you rewarded with lower insurance rates. It offers protection over unforeseen events. Insurers consider giving a policyholder discounts after considering their consistency and experience. While continuous insurance discounts are given, penalties are also given to policyholders who have a continuous bad insurance history. If you have a strong insurance report, there is a high chance you will be granted an insurance discount.
