Car Insurance Discounts
Car insurance is an absolute necessity, but it can also be a burden on your wallet. That's why experts recommend shopping around before you buy a policy and comparing quotes from as many companies as possible.
Another smart way to save money on auto insurance is to take advantage of discounts that different companies offer. Learn more about various car insurance discounts before you shop for a new policy so that you can save the most money possible.
Discounts Based on You
Many of the common car insurance discounts for which you might qualify are related to your driving habits and characteristics. These types of discounts that insurance companies offer include:
- Good driver discounts.
- If you have a clean driving record with no tickets or accidents, you will likely qualify for a good driver discount.
- Defensive driving course discounts.
- Many insurance companies offer a discount if you complete a defensive driving course. Some of these courses are even offered online.
- Military discounts.
- Active duty and retired military members as well as members of the reserves often qualify for special military discounts on car insurance. If you're on active duty and are deployed, your insurance company may also steeply discount your rate or freeze your policy until your tour of duty is over.
- Affinity group discounts.
- Individuals who work in certain professions may qualify for car insurance discounts. Teachers, lawyers and union members can often get these types of discounts.
- Good student discounts.
- 'If you're a student in high school or college who maintains a good GPA, ask your insurance agent if you're eligible for a discount. You can also get this discount if you have a teenager on your policy who qualifies.
- Organization member discounts.
- Membership in some professional or social organizations can translate into insurance savings. Fraternities, sororities and alumni associations are often qualifying organizations.
- Senior discounts.
- In general, insurance companies believe that drivers at or over the age of 65 are safer and more cautious than younger drivers. If you're a senior, you may qualify for a discount based on your age alone.
- Low mileage discounts.
- If you don't drive your car much, you might qualify for a low mileage discount. This is a great discount to ask for if your family has multiple cars and uses one only for leisure travel or during certain times of year.
Discounts Based on Your Car
Some auto insurance discounts are based on the qualities and safety features of your vehicle instead of your driving habits. Hybrids, electric cars and vehicles that use alternative fuels may qualify for discounts as well.
The most common of these equipment-related discounts include discounts for:
- Passive restraint systems, such as air bags
- Anti-lock brakes
- Rearview cameras
- Blind spot detection systems
- Daytime running lights
- Anti-theft systems
- Remote emergency response systems
Discounts Related to Your Insurance-Buying Behavior
In addition to car insurance discounts related to you and your vehicle, you may also qualify for discounts based on how you buy and pay for insurance. These discounts include:
- Multi-line or multi-policy discounts.
- Purchasing homeowner's insurance, life insurance, renter's insurance or recreational vehicle insurance through the same company that holds your car insurance policy can be a great way to save across the board.
- Electronic Funds Transfer discounts.
- Signing up for automatic payments via EFT will often result in at least a small reduction in your overall insurance rate.
- Full payment discounts.
- Paying for your entire policy term up front may land you a significant discount. Some companies don't offer direct discounts for upfront payment but do eliminate fees tacked on to monthly payments.
- Loyalty discounts.
- Staying with the same insurance company can result in a small discount that rewards you both for loyalty and for paying your bills on time.
- Car ownership discounts.
- Though they aren't as common as other discounts, auto insurance rate deductions for individuals who own their vehicles outright do exist and are worth asking about.
Discounts offer an easy way to save on the cost of car insurance. As you shop for a policy, don't hesitate to ask about discounts for which you might qualify. You may be surprised by all the savings options that different companies offer to help make auto insurance more affordable.