Everybody likes to save money, and one of the easiest ways to cut your monthly expenses is to get your car insurance premiums reduced. You may already know that car insurance companies offer lower rates to drivers who avoid accidents and traffic citations. What you might be overlooking, though, are the numerous discounts that insurance providers offer but don’t disclose to policyholders unless they ask.
Here are a few common auto insurance discounts to discuss with your provider:
1. Loyalty Discounts
In an effort to maintain policyholders, many insurance companies offer discounts to customers who renew their policies. Before you set your policy to auto-renew, ask your provider if they offer a loyalty discount.
2. Defensive Driving Course Discounts
Some insurance companies offer discounts for taking a defensive driving course under the assumption that drivers who do so are less likely to file a claim. These courses are available online and in-person. Ask your insurance company if they offer this type of discount and which courses are eligible.
A defensive driving course can reinforce safe driving behavior and possibly lead to reduced insurance premiums.
3. Low-Mileage Discounts
Drivers who have low annual mileage are statistically less likely to be involved in a collision, thus reducing the probability of filing a claim. Try comparing quotes from multiple providers to find one that caters to low-mileage drivers.
To help you save time, our team compared estimated quotes from multiple providers in each state to find the best rates for low-mileage drivers. You can view the results of our study here.
4. Safe Vehicle Discounts
Your insurance company may reduce your rates if your vehicle has antilock brakes, an antitheft device, a collision mitigation system, or other crash- and injury-prevention technologies. You may also be able to get your premiums reduced if you purchase a vehicle that has low horsepower and a low rate of claims.
5. Good Student Discounts
Insurance companies have clued into the fact that claim rates are lower among good students. If you’re enrolled full time and your GPA is 3.0 or higher, you may qualify for a good student discount.
6. Paperless Billing Discounts
Opting for paperless billing will reduce your insurance company’s overhead, which may translate into lower insurance premiums.
7. Multi-Vehicle Discounts
If you have multiple vehicles in your household, there’s a good chance that you could save by getting them both insured by the same company.
8. Multiline Discounts
Some insurance companies offer discounts to policyholders who purchase multiple types of policies. For example, if your insurer sells both homeowners insurance and auto insurance, find out if they offer multiline discounts.
Maximize Your Savings By Asking About Car Insurance Discounts And Comparing Quotes
Besides inquiring about car insurance discounts, one of the best ways to save on auto insurance is to compare quotes from multiple providers. Each insurance company has its own formula for calculating premiums, so the quotes you get from one provider may be significantly different from the next.
Were there any important discounts or money-saving tips that we missed? Feel free to share them in the Comments section below.