The primary thing that’s on the mind of every person shopping for auto insurance is what type of rate they can get. For many, car insurance costs can be cut through the application of one or more discounts. Luckily, many insurance carriers offer discounts because car insurance is legally mandated, and companies want to remain competitive in the insurance industry. This leaves drivers with multiple options for insurance companies and types of discounts for which they can apply.
While auto insurance premiums should be a consideration when choosing a policy, make sure you consider each policy’s coverage. By only having the legally required amount of coverage, you may expose yourself to financial trouble if you cause a terrible accident.
Tips for Examining Auto Insurance Discounts
Before getting into the different types of discounts available to drivers, it’s important to note some possible stipulations attached to each one. Here are things to consider and speak to your insurance provider about when researching car insurance discounts:
Maximum Amounts May Apply:
Pay attention to language like “up to _% off,” as there may be specific requirements to qualify for the highest discount offered. However, you may still receive a portion of the discount, so it is essential to ask before banking on it.
You may also notice that you could qualify for several of the discounts we will discuss below. But, many insurance companies have a maximum value you may receive overall.
Discounts May Vary:
The type of discounts offered can vary from company to company, as well as from state to state. Some state laws mandate specific discounts, while others do not.
Pay Attention to How Discounts are Applied:
You may need to ask for your discounts to be applied, as some are not automatic. Also, some discounts may apply to your insurance bill overall, while some may only apply to specific aspects of your coverage. Be sure to ask for clarification on how your discounts are applied.
Types of Auto Insurance Discounts
Cutting car insurance costs is possible with auto discounts. The first step is assessing your current policy to understand your current coverage and car insurance premium.
Next, check out the following auto insurance discounts and consider the values for which you may qualify. For more information, contact our agents today. They can assess your needs and check for possible deals.
Good student discount:
It pays to be a good student. Aside from maintaining good grades (at least a B average,) you must supply your insurer with your grades and be a full-time student to qualify.
Accident-free driver discount:
A clean driving record can help you save significantly. Drivers that have not been in accidents typically have lower premiums and may be eligible for accident-free driver discounts. Some carriers will automatically apply this discount after a certain amount of time has passed where you are accident-free, giving you further incentive to drive safely!
You’re less likely to be in an accident if you don’t often drive, as this decreases your chances for a collision. Low-mileage drivers often are rewarded for this with insurance discounts.
Teachers, firefighters, police officers, college alumni, and military members may qualify for specific discounts due to their affiliations. Some employer-specific deals exist as well. Ask one of our agents for more information and to see if you are eligible.
Defensive driving discount:
A driver that takes a certified defensive driving course will typically receive a 10-15% discount on their car insurance. Not only will the course prepare you to be a better driver and keep you safe from harm, but it will also save you money in the long run. Check with your insurance company before signing up for a class and see if there are any classes they specifically require to receive the discount.
Some car insurance companies offer bundle discounts if you have multiple cars insured with them. For homeowners, you may be able to bundle your home and car insurance with the same company for a discount as well. Some carriers will even allow you to bundle your policy with life insurance too.
Anti-theft devices discount:
Stolen vehicles can be difficult to recover. Safety features such as GPS systems, car alarms, VIN etching, and trackers can help recover stolen vehicles. Insurance companies reward the installation of these features through discounts, anywhere from 5-25% off.
Car Safety discount:
Depending on your carrier, you may qualify for a discount if you have anti-lock brakes, daytime running lights, or extra airbags in your vehicle. If your car has any added safety features, notify your insurer to see if you qualify for a discount.
Electric vehicles have proven to be less likely to be involved in accidents. Owning a hybrid or electric vehicle can save you up to 10% on your car insurance, providing further incentive to go green!
Safe driver discount:
Your driving habits can directly impact the amount of money you will save on your car insurance. Drivers who find themselves being pulled over and ticketed frequently will not qualify for this discount. The more claims you file and the more tickets you receive, the more your car insurance rate will increase.
If you choose to pay your auto insurance premium in full and up-front, many carriers are happy to give you a discount. The discounted premium option will often be listed on the bill you receive, showing you how much you could save if you pay in full instead of paying in installments throughout the year.
Paperless billing discount:
While paperless billing discounts are usually smaller in size, they still may help you cut costs. Helping your carrier save money on paper and printing is excellent for not only the environment but for your wallet as well.
New car discount:
Newer cars generally have the most up-to-date safety features installed, resulting in new car discounts. Sometimes, you can save 10-15% on your insurance premium if your car is less than three years old.
College student discount:
Young drivers, often college students, may leave their vehicles at home when they go to college, significantly reducing the risk of a car insurance claim. Policies with this discount applied may see reductions of up to 25%.
Customer loyalty discount:
Customer retention is vital for any business, and the insurance industry is not exempt. Many carriers offer customer loyalty discounts when you renew your policy.
Credit stability discount:
Insurers like to see stability with your credit score. A credit score is often important when purchasing a house or a car or trying to qualify for a loan, but your credit score may also benefit your car insurance rates. Studies show that people with lower credit scores tend to have a higher rate of claims.
Some carriers offer a discount specifically for seniors. If you’re a senior citizen, contact our agency for more information.
How Independent Insurance Agents Can Help
Shopping for car insurance can feel like a hassle, especially if cutting costs is at the forefront of your mind. Independent insurance agencies can find you the best insurance coverage at the lowest prices because they can compare policies from multiple carriers. Where you may not qualify for a discount with one carrier, you may be eligible with another.
Our agents can find a car insurance policy that fits your needs and is priced competitively. Discounts vary depending on your carrier. We may even be able to offer you a deal for which you didn’t know you qualified! Give us a call for a free car insurance quote and learn more about lowering your insurance premium.