Most people are looking for any way they can to save money on their car insurance monthly premium payments. The good news is that there are plenty of car insurance discounts you can take advantage of if you are eligible. One of those is known as an Early Signing discount.
While not offered by all auto insurance companies, an early signing discount is often used as an incentive by your insurance company to keep you as their customer. This could lead to some additional savings for you so let’s learn all about early signing car insurance discounts.
What is an Early Signing Car Insurance Discount?
If you keep up on when your car insurance policy expires, you could use this information to snag yourself a nice little discount. Some companies will give you a discount off the total premium if you renew your policy with them before the expiration date. If you are thinking of switching insurance companies, you may be able to get the same discount if you purchase your new policy before your old policy expires.
An Early Signing discount is a good way for companies to retain customers, as well as to attract new customers.
Early Signing discounts can be up to 15 percent and do often have some time restrictions. You’ll probably have to sign up for your new policy at least a week before your current policy ends. You may want to get a few quotes to compare companies, since each auto insurance carrier has their own discount rules.
By signing up for a policy before your current policy ends, you are also making sure that you avoid a gap in coverage. If you let your policy expire without putting a new one in its place, you could run into issues when you do go to sign up for a new policy. Usually, this means you will have to pay more money.
What is a Lapse in Coverage?
Since we are talking about saving money, its’ worth explaining what happens if you have a lapse in your auto insurance coverage.
Insurance companies do not like to see gaps in insurance coverage. A lapse in coverage brings up all kinds of issues for an insurer. Were you not able to pay your premiums? Was your insurance cancelled by your previous company? Have you been in any accidents without insurance?
When you go to purchase insurance again, you will likely be faced with penalties and higher rates.
As you can see, your life will be easier if you put new auto insurance in place before your current insurance expires. And, you could get a nice discount too.
Every company will be different so before you purchase a new policy, find one with an Early Signing discount. You can use the InsuranceWins form to shop around, receive quotes and find the best company for you.
