An early signing or advance purchase car insurance discount is usually 3 to 10% of the total premium, and it’s designed to incentivize new customers to secure coverage a few days prior to their current policy expires. Advance purchase vehicle insurance discount is one of the lesser known and promoted savings that is available from a few companies. This saving may not be offered in every state and motorists are required to buy the policy typically 7 to 14 days in advance to qualify for it.
The best way of getting this discount is to shop around well in advance of your renewal date. Automobile insurers normally send the renewal quotes around 30 days before the car insurance policy expiry date. And it really doesn’t take long to get a few quotes and see where your current insurer stands this time around in terms of competitiveness.
Once you find better coverage, price and decide on the company, it is worth checking if they would offer an advance purchase vehicle insurance discount. If you cannot find any reference to it in their website, it may be worth calling them. Companies usually don’t advertise this offering but it is a known practice and some companies do advertise it.
For example, purchasing a policy at least 7 days in advance with Allstate can qualify you for a 10% Early Signing Discount. Other companies offering this discount are Farmers, Travelers, Auto-Owners, Erie, Nationwide and Progressive. Usually the earlier the better and motorists may need to purchase automobile insurance between 7 to 14 days in advance to qualify for the savings. Travelers offer the discount up to 3 days before your current policy expires but the savings may be less.
Interestingly, it is also known as the early quote discount because a handful of companies may offer you cheaper quotes by incorporating the discount upfront to enhance their likelihood of attracting your business when you shop for car insurance early. And the favorable price they offered may only be available when you purchase the policy in advance. If you leave it to the last minute, you may find that they have taken away the discount. It is worth noting that this practice isn’t widespread. Vehicle insurance companies are different in the way they determine their prices and offer discounts.
The primary objective for car insurers offering an early signing discount is to seize the opportunity while it’s still fresh. Frequently, customers might feel enthusiastic about discovering a more affordable auto insurance option with another provider. However, over time, their enthusiasm might wane, leading to a renewal of their existing insurance policy. By providing a modest discount, insurers motivate prospective policyholders to take prompt action and make the switch there and then.
Also, shopping around early for automobile insurance is a sign of conscientious and meticulous nature of a vehicle owner who is proactive in maintaining their car and promptly fixing any issues. This approach not only averts potential breakdowns but also serves as a preventive measure against accidents and potential insurance claims.
Motorists can also benefit from this discount. If they are already contemplating a switch, they have the opportunity to enhance their savings by setting up their new policy well in time for a seamless switch. Furthermore, this discount can simplify decision-making when several companies vie for your attention with similar pricing. In such a scenario, a slight additional discount offered by one of them for early signing can effectively tip the balance in their favor.
And getting a few vehicle insurance quotes in a timely manner and setting up a switch means that your current expensive policy won’t auto renew due to oversight. Many individuals often express dissatisfaction with high premiums yet inadvertently renew their policies for this very reason. Then, they are inclined to leave it until the next renewal.
To optimize your car insurance shopping experience, it’s advisable to initiate the process early and thoroughly compare your options. Collect quotes from multiple companies to gauge the pricing and coverage spectrum available. This informed approach allows you to pinpoint the insurer offering the most competitive rates for your needs.
Obtaining periodic auto insurance quotes for the purpose of cost comparison has the potential to lead to potential savings. Commencing your search well in advance grants you the opportunity to deliberate not only on pricing but also on coverage details and policy alternatives. This enables you to contemplate the array of discounts available, such as those for signing the policy online, paying the premium in full, going paperless and deciding to switch in advance of your renewal.