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Discounts, bundling and shopping the market.
Anti-theft device discountA premium reduction, usually on comprehensive coverage, for cars with alarms, immobilizers, tracking systems or other theft deterrents.Autopay discountA small premium reduction some insurers give when you pay by automatic withdrawal from a bank account or card.Defensive driving courseA state-approved driving safety class that can earn an insurance discount and, in some states, reduce points or dismiss a ticket.Good driver discountA premium reduction for drivers with no recent at-fault accidents or significant violations, mandated at 20% or more in California.Good student discountA discount for young drivers, usually full-time students, who keep a B average (3.0 GPA) or similar academic standing.Multi-car discountA price cut for insuring two or more vehicles with the same company, usually on one policy, applied to each car's premium.Paid-in-full discountA lower price for paying the whole six- or 12-month premium up front instead of in monthly installments.Paperless discountA small price cut for agreeing to get policy documents, bills and notices by email or online account instead of by mail.Safe driver discountA lower rate for drivers with no recent at-fault accidents, major violations or claims, usually measured over three to five years.BundlingBuying two or more insurance policies, such as auto and homeowners, from the same company, usually in exchange for a discount on each.Multi-policy discountA reduction for buying more than one type of insurance, such as auto plus home or renters coverage, from the same company.Car insurance quoteAn insurer's estimate of what a specific policy would cost you, based on the drivers, vehicles, coverage and discounts you describe.Continuous coverageAn unbroken history of car insurance with no gaps, which many insurers reward with lower rates and some require for discounts.Grace periodExtra time after a missed premium due date, or after buying a car, during which coverage continues before a lapse or a reporting deadline.Independent agentAn insurance agent who represents several insurers and can quote and place your policy with whichever one fits your needs best.Insurance binderA temporary written agreement that puts coverage in force immediately while the insurer finishes issuing the formal policy.Lapse in coverageA period when a vehicle or driver has no active auto insurance, often from missed payments, which can bring penalties and higher future rates.NonrenewalAn insurer's decision not to offer a new term when the current one ends, regulated by states through advance notice requirements.Policy cancellationEnding an insurance policy before its term is over, either by you or by the insurer, as opposed to letting it expire or not renew.Policy renewalThe start of a new policy term with the same insurer when the current one expires, often with an updated price and terms.Prior insuranceYour record of having been insured before you apply, which insurers use to set rates and which can earn a discount when unbroken.Pro rata cancellationA cancellation in which the insurer refunds exactly the unused share of the premium, with no penalty for ending the policy early.ReinstatementRestoring a car insurance policy after it was cancelled, usually for a missed payment, sometimes with a gap in coverage and a fee.Short-rate cancellationA cancellation in which the insurer refunds less than the full unused premium, keeping an early-termination charge when you end a policy mid-term.Annual mileageHow many miles a car is driven in a year, a rating factor because more time on the road means more chances of a claim.Pay-per-mile insuranceA policy priced as a monthly base rate plus a few cents for each mile driven, tracked by an app, plug-in device or the car itself.TelematicsTechnology that records how, when and how much a car is driven, through an app, plug-in device or the car itself, so insurers can price on behavior.Usage-based insuranceCar insurance priced partly on how and how much you actually drive, measured by an app, plug-in device or the car's connected services.