Popular Auto Insurance Discounts and Reductions

The price you are quoted for your auto insurance may not reflect every type of discount or reduction available. Although auto insurance agents may attempt to verify your eligibility for special deals, consumers should always ask about available discounts in a bid to shave dollars off of their insurance premiums. Read on and we will explore five ways you can save money on your auto insurance premiums.

1. Driving History — You may have been in an accident and it may not have been your fault, but when it comes to insurance you will pay extra for claims that have been filed. On the flip side, if you have not been involved in an accident during the past five years, your insurer may reduce your premiums by at least 20 percent. Your driving history is a matter of public record, but tell your insurer if you have been driving accident free.

2. Driver’s Education — Young drivers that successfully complete a driver’s education course are eligible for discounts. Students that also have good grades, typically a “B” average or better can take an additional discount, typically ranging from 10 to 15 percent. Yes, experienced drivers may be eligible for a discount too if they’ve completed a defensive driving course. Those discounts vary depending on your state.

3. Partnering Groups — Your affiliation with a the U.S. military, certain businesses and even your auto club can yield additional savings. Some auto insurers offer discounts of up to 25 percent for active military members especially for those deployed overseas. Retired military members, state and federal employees, and people affiliated with the insurance company also might qualify for discounts. Ask your employer about auto insurance as a fringe benefit — you may automatically receive a discount by mentioning your company’s name.

4. Loyalty Matters — Not that you should never shop around for insurance, please do, but the longer that you are with one insurance company, the more likely you will be presented with a loyalty discount. Such loyalty and discounts are recognized in other areas including multi-car discounts for insuring two or more automobiles with the same insurer. You can qualify for additional discounts if you bundle your insurance by having your homeowners, rental insurance or other eligible policy written by the company that writes your auto insurance. Don’t forget your motorcycle insurance too.

5. Safety Equipment — Today’s new vehicles come equipped with a number of safety and security features that can reduce the cost of your auto insurance. Airbags are ubiquitous, but not all models come with driver-side airbags. Those that do can translate into bigger savings. Other discounts are offered for cars that are equipped with daytime running lights, an anti-lock brake system and an anti-theft system. Your insurer sets its rates based on a number of factors including how well your car performs in crash tests conducted by the Insurance Institute for Highway Safety. The IIHS is funded by the major auto insurers.

You can save money on auto insurance in other ways too. For instance, eliminate coverage for what you do not need such as collision insurance on your 15-year-old high mileage sedan. You can also opt for higher deductibles, skip the roadside assistance coverage if you belong to an auto club, drive less to qualify for low mileage discounts, and do not opt for extensive medical coverage if you have a good health and disability plans. Not sure if you are eligible for a discount or a rate reduction? That’s simple: just ask your agent. Make a habit of reviewing your coverage at least once annually and shopping around for competing coverage elsewhere.

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written by:  Jeff Mathis

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