When an auto insurance company looks to offer a discount, they will usually take the personal circumstances of the potential policyholder into account before providing a final premium figure. There are a number of factors that insurers will consider and when combined, these can have a direct influence on the price consumers have to pay.
Perhaps the biggest factor an insurance company will take into account is credit history. A record of prompt payments will be looked upon favorably by most carriers and consumers should always check their credit histories on a regular basis to make sure the information contained on a file is up-to-date and correct.
Good driving histories are also imperative to discounts. A motorist with an accident-free record will be more likely to receive a top level of discount than a driver with a string of accidents against their name or DWI/DUI convictions. Further discounts can be applied if the projected annual mileage figure is low or if a vehicle carries a number of security and safety features that will reduce the likelihood of a future claim.
Although many insurers now advertise their discounts nationally, there are still a significant number of carriers that only use discounts as a means of securing business when a policy is applied for. If a consumer is prepared to take the risk, the threat of withdrawing from a potential insurance purchase to go with a rival company can often see the carrier respond with the promise of lower costs. Very few companies will allow price to come between themselves and a possible sale.