21 Discounts You Might Get On Your Car Insurance
Car insurance companies offer several discounts to qualified customers. Most discounts are available at nearly every company in some form, while others only appear at a handful of specialty companies. Because each state has different insurance regulations, not all discounts are available in every state.
When shopping for a new insurance policy, make sure you know the types of discounts you might earn. Then you will know which discounts to ask about when you discuss your quote with the insurance company.
Standard Insurance Company Discounts
Multiple Policy - Almost every car insurance company offers a discount for customers who purchase another type of insurance through the same company. The most common combination is homeowner's and car insurance.
Multiple Car - If your household has more than one car, you could qualify for a discount by insuring all of your vehicles through the same carrier. Most companies require the car owners be related by blood or marriage and live within the same household.
Good Student - Most insurance companies will offer some sort of discount to high school and college students up to age 25 who maintain a B average or better. Some companies will give the parents a discount whether the student is a driver or not.
Senior Discount - If you are 65 or older, you could qualify for a discount based on your years of experience behind the wheel. You may be required to pass a driving course in order to receive this discount.
Safe Driver - As a safe driver, you already receive the lowest insurance rates. Many companies provide additional savings for drivers who have gone for a specific number of years without an accident or traffic ticket.
Low Mileage - The fewer miles you drive in a year, the less you will pay for your car insurance. Several insurance companies tack on additional discounts for drivers who stay under a certain number of miles in a year.
Safety Equipment - If your car came with equipment like airbags and anti-lock brakes, you can earn you discounts from most car insurance companies.
Anti-Theft Equipment - If you go out of your way to protect your car against theft, you could earn a discount. Items like steering wheel locks and electronic alarms usually qualify.
Driver's Education Discounts - Each insurance company defines this discount a little differently, but the bottom line is that most of them offer a discount for drivers who take extra driving classes. You will probably need to take your classes from an instructor approved by the insurance company.
Homeowner Discounts - Owning your home is one of the most common ways to earn a discount on your car insurance. If you take advantage of a multi-policy discount by insuring your home and your vehicle through the same company, you could save even more through the multiple-policy discount.
Paid in Full Discounts - Drivers who pay their insurance premiums in annual lump sums will pay less than those who choose monthly or quarterly payments. That's because insurance companies charge installment fees when you make partial payments.
Customer Loyalty - Several insurance companies have special discount programs for customers who have carried insurance with the company for a long time. In some cases, you only have to renew after 12 months to receive a discount, while other companies require three or more consecutive years of coverage before you qualify.
Digital Discounts - The internet has created new discounts from many car insurance companies. You can earn a discount for requesting an online quote, signing up for your insurance through a company's website, providing an accurate e-mail address, or agreeing to make your payments through electronic funds transfers. These discounts vary widely from company to company.
Students Away From Home - Families that have college students who live on campus during the school year can earn discounts on their car insurance costs. The student can also earn an additional discount if he or she leaves their car at home during the school year.
Membership Discounts - Several insurance companies have affiliations with schools or community organizations. Drivers who are employees or members of these organizations receive a discount on their car insurance premiums.
Gradual Deductible Reduction - Some companies offer to lower your deductible for each year that you remain accident free. These discounts generally carry a limit to how much they will reduce the deductible without changing your premium.
Household Driver Safety - You can earn discounts through some companies if everyone in your household remains accident free for a specific length of time. Usually this discount is only available to families that have more than one vehicle insured through the same insurance company.
Hybrid Vehicle - Many companies offer discounts to drivers who own hybrid or low emission vehicles. Insurance companies offer these discounts because drivers generally operate hybrid vehicles more conservatively than owners of other types of cars.
Specialty Discounts:
High Risk Insurance - These specialty insurance companies offer more affordable rates to drivers who might have trouble purchasing standard insurance policies. If you have had multiple accidents, multiple traffic violations, or something else that puts you in a high-risk category through traditional insurance companies, you could save a great deal of money by purchasing your insurance through a company designed to handle high-risk accounts.
Strictly Minimum Coverage - Some companies only offer the minimum state required insurance. They can offer less expensive rates because they do not carry any other type of insurance policy. If you only want to pay for the least amount of insurance you need to stay legal in your state, these insurance companies are ideal.
Low Income Car Insurance - In California, a program offers basic state-minimum coverage for an exceptionally low rate to low-income drivers with good driving records. This successful program may expand to include other states as governments realize the fiscal savings such programs offer in fewer uninsured accidents.
Other programs exist to help drivers save money, such as accident forgiveness, waiver of deductible, or loan and lease payoff. These programs save you money if your car is involved in an accident.
