Discount

It is the abatement of premiums of the insured for meeting up certain requirements or criteria. The policyholder may be entitled for some benefits and coverage which may not be generally issued to others covered under the same policy.

The reduction rate of premiums is mostly different from one insurer to the other, and depends on the type of policy of the assured.

Most insurers would grant the benefits of high loss reduction rate and increased policy limits or claim for their assured.

Some auto insurance companies may have specific period when they offer to reduce the premiums of their policyholders when these qualify or meet up to the requirement.

Posted in: Glossary of Auto Insurance (D)