Don’t Miss Hidden Car Insurance Discounts
Check out Money Girl’s 10 money-saving car insurance discounts to help you keep more of your hard-earned money.
Laura Adams, MBA
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Don’t Miss Hidden Car Insurance Discounts
One of the best ways to save money is to find discounts on expenses that you can’t avoid, like car insurance. Many policyholders are clueless about the variety of discounts that are available and therefore wind up paying too much for insurance.
In this episode I’ll tell you about 10 of the best discounts and how to start paying less for car insurance so you keep more of your hard-earned money..
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What Is a Car Insurance Discount?
A car insurance discount is a reduction in your premium. They’re offered to policyholders for a variety of reasons. Some discounts you might expect, like insuring multiple vehicles or being a loyal customer.
However, many car insurance discounts are somewhat hidden because you’ve got to know that they exist in the first place, and then ask for them. Also, not all insurance companies offer the same discounts in the same amounts.
See how many of the following 10 car insurance discounts you qualify for:
Discount #1: Multiple Policies
I mentioned that insuring more than one vehicle with an insurance company can save money. Another tactic is to bundle your car insurance with other policies. For instance, if you have home insurance, it may be cheaper to use the same company for your auto policy as well, instead of getting insurance with two different companies.
Discount #2: Anti-Theft Devices
Car insurance companies want to help you prevent car theft, so you never have to make a claim. Most carriers cut your rate for having an alarm system that keeps criminals from damaging or stealing your car.
Discount #3: Safety Features
Cars with modern safety features, like anti-lock brakes, air bags, and rear-view cameras, are less likely to get involved in an accident and cost an insurer. So be sure to let your provider know about every on-board safety device in your car.
Discount #4: Safe Driver
Your driving history plays a big role in how much you have to pay for car insurance. If you have a clean record with no moving violations or at-fault accidents, you typically get a nice discount from most insurers.
Discount #5: Driver Education
But what if you don’t have a squeaky clean driving record? Well, it may be possible to redeem yourself. Most states use a points system to track driver violations. Passing an online or in-person defensive driving class can erase a limited number of points, making you appear less risky to an insurance company. Check your state’s Department of Motor Vehicles (DMV) website for approved courses.
Qualifying for new discounts, having higher credit scores, or even being married can cause your car insurance quotes to drop.
Discount #6: Low Mileage
Maybe you’re driving less for a new job or keeping a car in the garage more often. If your driving patterns change, be sure to let your car insurance company know. Cars that are on the road less have fewer claims, and that earns you a substantial insurance discount.
Discount #7: Affinity Groups
Did you know that being in a certain occupation, working for a particular company, or belonging to a certain group can entitle you to a car insurance discount? For instance, many companies reward teachers, military personnel, or even members of a fraternity or sorority.
Discount #8: Good Student
One of the most commonly missed car insurance discounts is for making good grades. Coverage for young, inexperienced drivers is relatively expensive. However, high school and college students who have at least a “B” average can rack up savings because they’re considered more responsible, less risky customers.
Discount #9: Distant Student
Another way students can save on insurance, no matter their grades, is when they’re attending school away from home. If the student is more than 100 miles away from home and doesn’t have an insured vehicle with them, their coverage won’t cost as much.
Discount #10: Billing and Payment
Many car insurance companies offer a discount if you pay your annual premium at once, instead of making monthly or semi-annual payments. Also, signing up for automatic payment or e-statements can help you save.
Not every car insurance company will offer each of these discounts. To make sure that you’re getting every available price break, ask your insurance agent or company representative for more information about potential ways to save money.
More Money-Saving Tips for Car Insurance
Remember that another important factor in setting your base auto insurance rate (in most states) is credit. Insurance companies have found that customers with poor credit make more claims, so they charge them more.
If you haven’t reviewed your car insurance lately or it’s been a while since you’ve shopped policies, you may be leaving money on the table. Use sites like InsuranceQuotes.com and CarInsuranceQuotes.com to get free online quotes from the nation’s top insurance companies.
Qualifying for new discounts, having higher credit scores, or even being married can cause your car insurance quotes to drop. That means you’ll have more money left over for savings, gifts, or even taking a fun vacation.
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Car crash image courtesy of Shutterstock.
About the Author
Laura Adams received an MBA from the University of Florida. She’s an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura’s previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.