Car insurance can be very pricey, but most drivers miss out on major discounts that help bring down their premiums. Most insurance companies offer a myriad of discounts, such as being a safe driver, loyal client, and adhering to specific lifestyle choices. Learn about some of the common discounts that can help you save money on your car insurance.
Probably the most popular discounts are good driver discounts. The good driver discount is given to people who have been accident-free and ticket-free for a few years. These drivers are classified as low-risk by the insurance companies, which if you are that kind of driver, lower your premium rates accordingly. If you are a safe driver, ask about it from the insurance company.
Another common discount is what’s called the multi-policy discount, or bundling. Many insurers provide discounts if you are purchasing more than one type of insurance policy with them, like combining car and home insurance. That could be pretty significant in savings, as the insurer is incentivized to retain customers who are buying multiple products. Bundling provides an easy route to reducing your premiums without cutting down on coverage.
Other good options exist in the form of good student discounts, particularly for families with teenage drivers. Many insurance companies have a discount for students with a high GPA—usually 3.0 and above. The theory seems to be that if you’re responsible enough to get good grades, you’ll probably be a responsible driver. If you or your child fits within those parameters, it can help offset the usually higher premiums associated with a younger, inexperienced driver.
Low-mileage discounts can be a very good option for those who drive less. The insurers realize that there is less of a chance that such a driver will meet with an accident, so most give discounts to those who drive less than a certain number of miles within a year. If you work from home, take the bus, or just don’t drive much, it’s worth inquiring about a low-mileage discount.
A lot of insurers offer vehicle safety discounts when the vehicle comes with added safety features. If your car has anti-lock brakes, airbags, anti-theft devices, or some other form of safety technology, you are likely to be entitled to a discount. With lower factors in the risk of both injury and theft at play here, risk to the insurer is reduced, and therefore your premium is lowered.
Another potential discount will come from paying your premium in full, rather than in monthly installments. Most insurance companies give a discount to someone who pays the whole annual premium at one time because it reduces their administrative costs and really assures them that their money will come. This does need a larger payment up front, but the savings can really add up over time.
Some companies also offer loyalty discounts to customers who have been on their books for a few years. If you are with the same insurer for a longer time, the discount will increase, and then the bonus will be credited for your loyalty. However, it is always good to check periodically the rates offered by other insurers to make sure that sticking with the current insurer is really rewarding your loyalty.
Lastly, occupation and affiliation discounts are available for most policyholders who belong to certain professional organizations, alumni groups, or even specific employers. This is due to the fact that most insurance companies have lower rates for people of a particular profession, say teachers, military, or engineers, since these are groups which rate as low in risk.
In summary, there are a number of car insurance discounts that go unnoticed but can significantly reduce premiums. Good driver, multi-policy, good student, low-mileage, vehicle safety, pay-in-full, loyalty, and occupation-based discounts are potential ways through which you can save yourself a handsome amount on car insurance. Keep reviewing the policy from time to time and insist that your insurer inform you of the discounts you could avail lest you leave your money on the table.