Preferred Auto Insurance in 2024 (Coverage Explained)

Preferred auto insurance offers great coverage to drivers who remain clean and perfect in their performance.  For most, their premium tends to be almost $55 per month, so their premiums are on the lesser side for driving safely.

Insurance companies will offer discounted premiums and supplemental coverage, such as roadside assistance coverage, including lower deductibles to qualified drivers. Drivers over 25 with no accidents or violations and a solid credit score usually qualify for the best rates.

Preferred auto insurance rewards you for your safe driving, giving you more coverage for less money. This type of insurance is ideal if you want to save while still getting strong protection for your vehicle. With preferred auto insurance, you get better coverage options and lower rates for being a low-risk driver.

Enter your ZIP code into our free quote tool to find the best auto insurance providers for your needs and budget.

Preferred Auto Insurance Explained

Preferred auto insurance is a type of insurance offered to drivers who are considered low-risk. If you have a clean driving record and good credit, you may qualify for preferred auto insurance companies that offer better coverage options and lower rates.

These insurance companies see you as a safer driver and give you deals that might be more affordable than others. For example, Liberty Mutual preferred auto insurance offers good options for drivers who qualify for this category, giving them better coverage for accidents and repairs.

Some companies, like preferred risk insurance services, provide coverage to these low-risk drivers. Preferred car insurance often includes additional benefits such as lower deductibles and better customer support. If you meet certain qualifications, preferred auto insurance can help you save money while offering more options.

Whether with Liberty Mutual’s preferred auto insurance or another company, you get better protection and lower costs because of your safe driving history.

Read more: How much does it cost to add someone to your auto insurance policy?

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How to Get a Preferred Risk Auto Insurance Policy

There are some simple means to improve your chances of becoming a preferred risk driver, many within your control and some that are not:

• You must have a minimum number (and ideally none) of moving violations. A moving violation is when you receive a ticket for breaking the legal rules of the road whilst your vehicle is in motion. For example, speeding tickets, DUI, reckless driving, illegal U-turns, dangerously switching lanes, driving without due care and attention, etc are all considered moving violations. Essentially, it’s anything that an external observer considers unsafe, and if you get caught, you’ll lose your preferred risk status.
• You’ll probably have to be over the age of 25, and that’s because younger drivers have more accidents. It doesn’t mean that every young driver is reckless or incompetent in their approach to the road, but the insurer doesn’t have the resources to work out whether or not you are. You may well have to be under the age of 70, too. That’s because health problems for this age group can increase the risk of accidents.
• It’s also possible that the insurer may look at your area and other external factors up to and including your credit score (though this is usually because they can’t determine from everything else quite whether or not you are a low-risk driver).

To qualify as a preferred risk driver, you must have a clean driving record, meaning no moving violations like speeding or reckless driving. Being over 25 is also important since younger drivers have more accidents.

Where you live and your credit score might also affect your eligibility. If you drive safely and avoid violations, you’ll have a better chance of getting lower rates and better coverage.

Types of Coverage Offered by Preferred Auto Insurance

Preferred insurance coverage typically includes liability, collision, and comprehensive coverage. Liability covers the cost if you’re at fault in an accident, while collision and comprehensive cover damages to your own vehicle, whether from an accident or other events like theft.

Preferred Auto Insurance Monthly Rates by Provider

You can also get uninsured motorist coverage to protect yourself if you’re in an accident with someone who doesn’t have enough insurance. To learn more, you can call the preferred auto insurance phone number for more details on what’s available. A good example is Preferred Mutual car insurance, which offers different options for drivers with a safe driving record.

Preferred insurance for American drivers helps you get coverage that fits your needs and gives you better rates for being a low-risk driver. With preferred auto insurance, you can find a plan that provides reliable and affordable coverage, no matter what you need for protection.

Read more: Affordable Comprehensive Auto Insurance Coverage

How to Qualify for Preferred Auto Insurance

To qualify for preferred auto insurance, you’ll need to meet certain requirements that insurance companies look for. A preferred auto insurance company will check your driving history, credit score, and the type of car you drive. You’re more likely to get better rates if you have a clean driving record with no accidents or major violations.

Economy Preferred Insurance Company is a good choice for low-risk drivers, meaning they’ve driven safely for a long time and don’t have a history of accidents or claims. For example, Liberty Mutual’s preferred insurance reviews mention that the company offers better deals for drivers considered “preferred risk.”

If you’ve been a safe driver with no major issues, you’ll likely qualify for cheaper rates and more coverage options. Choosing preferred risk auto insurance can save you money because it rewards safe driving. To increase your chances of qualifying, drive carefully, maintain good credit, and avoid accidents.

Read more: Good Driver Auto Insurance Discount: Save on Auto Insurance

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Understanding Deductibles and Premiums in Preferred Auto Insurance

When choosing the right coverage, understanding deductibles and premiums in preferred auto insurance is important. Your premium is the amount you pay for your insurance each month or year, and it depends on things like your driving history, the type of car you drive, and where you live.

Travelers announces Stay-at-Home Auto Premium Credit Program – personal auto insurance customers will receive a 15% credit on April and May auto premiums. pic.twitter.com/88YWduIcHS

— Travelers (@Travelers) April 8, 2020

You might get a lower premium if you have a clean driving record and are considered a low-risk driver. On the other hand, the deductible is the amount you pay before your insurance covers the rest. For example, if you have a $500 deductible, you pay the first $500 of any claim, and then your insurance will pay the rest.

When picking your coverage, you’ll need to think about how your deductible and premium work together. A lower premium usually means a higher deductible, and vice versa.

Some insurance providers, like Liberty Mutual preferred auto insurance, let you choose the right balance to fit your budget, depending on whether you want lower monthly payments or less out-of-pocket cost when you file a claim.

Explore our guide to better understand the difference between a deductible and a premium in auto insurance and how to choose the right balance for your budget and coverage needs.

The Advantage of Being a Preferred Risk Driver

Being a preferred risk driver has a lot of advantages. Insurance companies rate drivers as “standard” or “preferred”, and if you fall under the “preferred” category, it means you’re considered a low-risk driver. This usually means you pay less for your insurance.

As a preferred driver, you are seen as less likely to be in accidents, so insurance companies reward you with lower rates and better coverage options. For example, if you maintain a clean driving record, you’ll have access to discounts and extras like roadside assistance or higher coverage limits.

If you check preferred insurance reviews, you’ll see many people are happy about the savings they get. Drivers who are premium drivers benefit the most, paying less than those who are in the “standard” risk category.

Whether you’re in a state like California or anywhere else in the country, getting preferred insurance in the state of America can help you save on your premiums while getting great coverage.

Read more: Auto Insurance Premiums Explained 

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