You can make considerable savings on your auto insurance policy simply by taking advantage of the diverse range of discounts that is offered by auto insurance providers in general. Sometimes, it’s not about finding the cheapest coverage, but the coverage you need for your own individual circumstance.
Note that you will need to be proactive and ask your insurance agent about which discounts you qualify for because they are under no obligation to tell you what you may qualify for.
Here are some of the biggest money savers available.
Getting a multi policy discount is one of the best ways to get the best insurance price possible. You can get this discount when you package all of your policies such as your home insurance policy and auto insurance policy to the same insurance carrier. To get this discount, you need to look for an insurance company that offers coverage for all of your policies.
In some cases, the Multi-Policy Discount can mean other coverage like life insurance or umbrella policies are discounted due to the multiple policies being purchased from the same carrier. If your current car insurance provider doesn’t offer home insurance and you are in the market for a new home, you may want to consider switching your car insurance to a carrier that offers both auto and home to qualify for the discount.
This discount applies if you have more than one vehicle registered to the same address. You could get up to a third off by going for a multi-car insurance policy, while there is also the potential benefit of everyone in the group having just one renewal date and one premium to worry about. So, if you live in a household of flat-sharing young professionals with up to five cars registered to the same address, you could make some big savings here.
Good Driver Discount
If you’ve had no tickets or accidents in a 3-year period, most insurance companies will give you a good driver discount. If you’ve been in an accident that wasn’t your fault, be sure to double check with your insurance agent if this will affect your discount.
Good Student Discount
If you are a young, full-time student with a good academic record could be eligible for up to a 15% good student discount on certain coverages for being a good student. If you maintain a certain grade point average, insurance companies see you as being more responsible and thus, less likely to get into an accident. This is how you can qualify you for the discount.
If you’re a young driver, the best way to overcome high insurance premiums is through the so-called driver’s education discount. This will however depend on your carrier, and can significantly reduce your insurance premiums. In fact, some providers may offer credits of up to 20 percent for qualifying driver’s education programs. The exact value of your driver’s education discount will depend upon the policies of your insurance carrier.
It’s important to note that in order to get the best deal possible, you’ll need to install security features on your car. Many insurance companies give substantial discounts if your car has safety features such as airbags and automatic seat belts. Generally, the safer a car will keep its driver and passengers, the more affordable it will be to insure. This is because you are reducing the risk of injury to you or your passengers in case of an accident.
Installing anti-theft devices such as burglar alarms can attract a discount since you are reducing the risk that your vehicle will get stolen and that you will be making a claim.
It has been found that many insurance companies give substantial auto insurance discounts to people in professions that are considered to be less risky than others. Essentially, the nature of your job could have an impact on what you pay for auto insurance, even though the jobs have no direct influence on the drivers’ experience.
In fact this is so substantial, that the difference in insurance claims can come to a few thousands. For example, a window cleaner or warehouse operative is considered to be in a more accident-prone job than a librarian. Others give discounts to active and retired members of the military. To qualify for this discount, you will have to embellish your job title in a number of ways.
Where you park your car at night will have an impact on how much you pay for insuance. Parking your car in a secured area such as a garage rather than on a street will qualify you for a discount as you are reducing the risk of making a claim.
Make and model of car
Some big name auto insurers offer rate discounts for hybrid drivers. Research shows that hybrid drivers pose a lower insurance risk than others because they drive fewer miles overall. Furthermore, if you drive a car that doesn’t cost much money or time to repair or its parts are relatively cheap and easy to find, this could qualify you for big savings on your auto insurance.
Safe Vehicle Discount
If your car is considered a “safe car”, you may qualify for additional discounts. Safe cars are those that are statistically safer due to their design and safety features. Note that this is not offered by all insurance companies, and you will have to ask your insurance agent for companies that offer this particular discount.
No Claims Discount
The no claims discount is easily the most effective way to get substantial discounts on your auto insurance. Every year you have car insurance and don’t make a claim, you’ll get a discount on the following year’s premium. On the flip side, your premium could rise by 30 per cent if you make a claim.
If you take a recognized defensive driving course, you can also be given a discount by the insurer since you will have the skills to avoid an accident. Older drivers can particularly benefit by taking classes offered by the AARP, which can earn them discounts of as much as 5% a year for three years after they have completed the course.
If you keep your overall mileage within the boundaries set by your insurance carrier or carpool regularly, you may be eligible for a low mileage discount. Note however, that you may need to validate your mileage through an electronic monitoring device that the insurance company will install in your car.
Senior Citizen Discounts
Many insurance companies give discounts to elderly drivers over the age of 55 because they are seen as being safe drivers, compared to their younger counterparts.
Daytime Running Lights
Vehicles equipped with Daytime Running Lights as standard equipment could earn you a 3% discount on certain car insurance coverages.
The age of the car you drive can qualify you for a discount. New cars qualify for a discount because they are new and are much less likely to break down.
Anti-Lock Brake System
If your car has a factory installed anti-lock braking system, you could receive a 5% discount on the collision portion of your premium with certain insurers.
Paying a high deductible will is one of the most effective ways to save money on your car insurance. Securing your auto insurance policy with a high deductible effectively translates into lower auto insurance premiums.
Your Credit Score
An increasing number of insurance providers are now using your credit score as one of the factors to set insurance rates. The higher you are able to get your credit score, the lower your insurance premiums will be because the insurance companies will see you as a safer risk. Improving your credit score will pay off with much lower insurance premiums.
Whilst some of these discounts can potentially save you money if you qualify for them, it is important to check that the insurer’s rates are naturally competitive. There is the very real possibility that even though a particular insurance company offers all of these discounts, the higher premiums may cancel out any potential savings you may enjoy.