Getting Discounts on Your Auto Insurance

November 27, 2019

You need car insurance if you drive, but that doesn’t mean you have to break the bank to get it. Shopping around for the best policy will help you find the lowest rates. But did you know that many insurance companies offer discounts?

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Learn which discounts you may be eligible for on your policy.

Bundling Your Insurance

Insurance companies love loyalty and will reward you for it. If you have more than one type of insurance with an insurance company, they typically offer a discount. The largest discounts are on homeowner’s and car insurance bundles, but you may get a discount on other bundled policies as well.

Talk with your insurance agent about discounted policies if you need renter’s insurance, homeowner’s insurance, life insurance, health insurance, and of course auto insurance. Make sure you also shop around to see that the discounted rate is still the lowest rate available, but take advantage of bundling discounts when they are available.

Car’s Safety Features

Sometimes premiums on newer cars are lower than older cars because of the safety features offered. Anti-lock brakes and airbags are pretty common today, but other safety features brought on by the latest technology may help lower your insurance premium.

If you add any aftermarket safety features or your car has unique safety features, make sure you let your insurance agent know. Anti-theft devices are often a big one as many people add them to their car after buying it. If it lowers the risk of theft of your vehicle, it may lower your premiums.

Short Commutes

Where do you typically drive your car? If you only drive to and from work and it’s close by, you may get a discount on your premiums. The more miles you drive, the higher the risk you pose to the insurance company. Talk to your insurance agent about the number of miles you drive per day, month, and year. If you fall well below the average for the area, you may find that you qualify for a discount.

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Safe Driving

Some insurance companies offer ‘safe driver discounts.’ What qualifies for this discount varies by company. In general, though, avoiding tickets and accidents can help you get the lower premiums. Your driving history plays a role in the likelihood of filing a claim. Insurance companies use this information when calculating your premiums. If you have a good stretch without any claims, tickets, or accidents, you may get lower premiums as a result.

Club Discounts

If you pay for any memberships or belong to any clubs, inquire about the possibility of lower car insurance premiums. AAA memberships and even professional organization memberships may provide you with discounts on your insurance premiums. It never hurts to ask!

Driving Classes

If you take certain driving courses, insurance companies may lower your premiums. Typically, defensive driving courses lower your premiums the most. Taking these courses helps you become a better driver, which lowers your risk of filing a claim. Before you sign up for a class, ask your insurance agent if it will help lower your premiums.

Good Grades

Good grades and good driving habits go hand in hand. If you have a B average, you may get a discount on your insurance. Good grades show insurance companies that you can multi-task and are responsible, two characteristics that are important if you want to get behind the wheel of a car.

Paying Your Premium Upfront

Many insurance companies offer a lower premium if you pay your semi-annual premium in full. If you opt for the monthly payment option, you’ll typically pay a slightly higher premium because it’s riskier for the insurance company. Paying your premium in full provides coverage for the full six months. Paying it monthly covers you on a month-to-month basis. The insurance company has to worry about non-payment and dealing with claims that fall into the ‘grey area.’

Every insurance company offers different premiums and discounts. Shop around and get quotes from at least three insurance companies before making a decision. Sometimes the discounts are great, but the premiums themselves are too high. Compare apples to apples when looking for the right car insurance that provides adequate coverage at a price you can afford.

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