Top 5 Discounts to Ask for to Save on Your Auto Insurance

Everyone wants to save money on auto insurance, but few people think about discounts they may be missing when they apply for a new policy or renew an old one. Are you sure you are getting every discount possible on your auto insurance?

Some companies have customer helps for finding discounts, such as State Farm Insurance Company’s “Discount Check,” but others leave it up to the customer to ask for discounts or point out the fact that they qualify for certain savings. Here are the top five discounts you should always ask about with any company from which you obtain quotes.

1) Good driver discount. This discount may fall under one of several categories and can be called by various names, but essentially a “good driver discount” rewards you for not having claims on your policy within a certain time period. The time period assessed by the insurance company is different for each insurer, but three years and six years are common numbers.

If you have not had an at-fault accident or a claim within that time period, the company usually offers you a substantial discount, no matter what your age, location, or gender. Another form of the “good driver” discount is the deductible reduction discount, such as “Vanishing Deductible” from Nationwide. These programs reward you by lowering your deductible every year you do not have an accident.

2) Multi-car and multi-line discounts. If you keep all your business with one company, that company will often reward you for your loyalty with a discount on your total insurance bill. If you insure more than one car with the same company, you should be receiving around ten percent off the bill on both vehicles.

Similarly, if you insure your house and your car with the same company, you should expect about a ten percent reduction on both premiums. Some companies offer more discounts, and some less, but most offer some form of this discount.

3) Driver training discounts. Students under 25 can often save their parents money on car insurance by successfully completing driver’s education classes. Driver’s education is offered through some school systems and is also offered by local technical schools and driving academies.

Older drivers may take defensive driving courses through work or private organizations. Some insurance companies offer their own driver training courses and give substantial discounts to those who complete them. There is ordinarily a cost associated with these classes, but the insurance premiums discount may pay for the class within a year if the cost is reasonable in your area.

4) Safety device discount. Most companies offer lower premiums for cars with safety features such as airbags, also called “passive restraints,” anti-lock brakes, and rollover protection. Newer vehicles may also offer backup and side assist that makes noise if another object is approaching your blind spot, or may even offer cameras so you can see things behind you and to your side.

Anti-theft devices also lower your insurance costs for comprehensive insurance, which covers car theft. By installing an alarm or ignition lock on your car, if it does not already have these features, you may be savings yourself a lot of money on your comprehensive premium.

5) Low-mileage discounts. There are several ways companies implement low-mileage discounts. Some operate on the “pay as you drive” system, in which your mileage is recorded at regular intervals and you are charged only for the time you actually operate the vehicle.

Others offer low-mileage limits, such as no more than 5,000 miles per year, and check at the end of the coverage period to see your actual mileage. If you go over this mileage, you will be charged a higher price for your insurance. Still other companies, like Progressive, monitor your mileage in “real time” with an onboard computer device that plugs right into your car’s dashboard.

These devices not only record your mileage but also take “Snapshot Coverage” data points on your speed, braking ability, and other factors that may contribute to an assessment of your insurance premium price. Low-mileage discounts work very well for people who do not drive often or who travel sporadically and leave their cars parked for long periods of time.

They also work well for people who only drive a set amount per day or week and rarely vary from that total. People who can predict their mileage with a fair amount of accuracy usually benefit most from the low-mileage discounts.

You can find the right discounts and the right insurance prices by comparing quotes from various companies. Get started today on your free auto insurance quote by entering your ZIP code above. With just a little information, you can get quotes from top companies so that you can compare prices yourself. Before you purchase, be sure to contact the company in question about any other discounts for which you may be eligible.