Why Car Insurance Companies Offer More Discounts Than Other Insurers
Insurance discounts are something that all drivers want, and it is a well-known fact that car insurance companies are the most likely to offer such insurance discounts. Other types of insurance - home, life or health - do not offer the same kind or level of discounts that car insurance companies are able to provide, and there are a number of reasons for this.
First, car insurance providers are able to offer a far wider range of discounts than other insurance types can offer, simply based on the nature of their business. Home insurance typically deals in properties and items that are collectively worth hundreds of thousands or even millions of dollars to replace, and both health and life insurance are fighting the inevitable - people will get sick, and they will die. Car insurance providers are able to provider a wider array of discounts because while accidents do happen, it is possible to significantly lower the chance that they will happen, and their costs, with only a few minor adjustments to driving patterns or the car being used.
Take, for example, a discount for a safe driving record. If an insured has had no accidents for a long period of time, an insurer will often offer a discount to their premium. This provides almost no risk for the company - they have already had years of premium payouts with no accidents to pay for - and the driver has shown a consistent pattern of safety. If an accident does occur, the company can pay out the claim and put the premium rates back where they were or even higher, all with a minimal amount of loss. Discounts for safety features in a car work much the same way. If a car comes with back-up cameras, anti-theft alarms and multiple airbags, both the possibility of an accident and the potential for serious injury for those inside the vehicle goes down. This means that an insurance company will have to pay less in the event of an accident, and is thus willing to offer a discount. Multiple driver discounts are also available, and for the same reasons. In a family that has a good driving record, another car means another premium, and with a low assumption of risk.
Because accidents are, in many ways, preventable, and because it is easy to mitigate the amount of property and personal damage that an accident will cause, car insurance companies are able to offer more discounts than other insurers. This only holds, however, so long as a driver maintains a good safety record and is willing to keep their car in excellent running condition and ensure that it has up to date safety features.