2015 BMW 528 Sedan
 ( 38 year old male , Single , Greenville ) |
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| Year/Make Model: 2015 BMW 528 Sedan |
| Ownership Status: less than a month |
| Discounts: Automatic Card Payments, Continuous Insurance, Paperless, and Three-Year Safe Driving |
| Selected Coverages With Progressive |
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| Bodily Injury Liability: $25,000 each person/ $50,000 each accident |
| Property Damage Liability: $25,000 each accident |
| Uninsured Motorist Bodily Injury: $25,000 each person/ $50,000 each accident Comprehensive: $500 deductible Collision: $500 deductible |
| Other Rejected Coverages: Medical Payments |
One of our Greenville clients was in need of the cheapest full coverage plan he could find. He had previous insurance with another carrier but wanted to shop around due to his premium going up. As we looked around we found that Progressive came in at the cheapest with a monthly payment of $273.83! He was able to obtain this rate with discounts such as Automatic Card Payments, Continuous Insurance, Paperless, and Three-Year Safe Driving !
Total 6 Month Premium: $1,643.00
Monthly Installments: $273.83
Insurance companies often offer discounts for various payment methods as part of their overall pricing strategy. Here are some reasons why pay methods might result in discounts for auto insurance:
- Cost Savings for the Insurance Company: Certain payment methods, such as electronic funds transfer (EFT) or automatic payments, can streamline the billing process for insurance companies. This can reduce administrative costs associated with processing paper checks or manual payments.
- Improved Predictability: When customers opt for automatic payments, insurance companies have a more predictable cash flow. This predictability allows insurers to manage their finances more effectively and potentially offer discounts as an incentive for customers to choose these methods.
- Reduced Administrative Burden: Automatic payment methods require less administrative effort and resources for both the customer and the insurance company. This reduction in administrative burden can result in cost savings, and these savings may be passed on to customers in the form of discounts.
- Enhanced Retention and Loyalty: Insurance companies may use discounts as a way to encourage customers to enroll in automatic payment programs. This can lead to higher customer retention and loyalty, as customers are less likely to switch insurers if they are receiving a discount for their loyalty.
- Risk Mitigation: Some insurance companies believe that customers who opt for automatic payments are more responsible and pose a lower risk of missed payments. This perception may lead insurers to offer discounts to customers who choose these payment methods.
- Competitive Advantage: Offering discounts for specific payment methods can also be a competitive strategy. Insurance companies may use these discounts as a way to attract new customers or retain existing ones, especially if other companies in the market are doing the same.