With car insurance mandatory for all drivers, it makes sense to look for any available savings when purchasing policies. Your insurance company may offer discounts to help you reduce your premiums. Saving money on insurance is possible if you’re aware of these money-saving opportunities.
Almost all insurance companies incentivize bundling by offering a multi-policy discount when you purchase more than one policy with them. For example, you could save 5-15% for holding both your home and auto insurance with the same provider. But make sure bundled rates offer real savings versus keeping policies separate before combining just for the discount.
Good driver discounts
Insurers reward safe driving practices and accident-free records with significant discounts for drivers with clean records for 3-5 years. Safe driving is associated with savings, whereas DUIs, at-fault accidents, and multiple tickets lead to rate increases. Maintaining a cautious and violation-free history on the road pays off.
Good student discounts
Students who achieve B averages or higher receive 25% discounts on type 3+ car insurance. Better students are seen as more responsible with lower risk. When a student maintains good grades, prudent habits are demonstrated in their driving habits as well. Provide your latest report card or transcript when getting insurance quotes.
Defensive driving course discounts
Completing an accredited defensive driving class shows insurers you take safety seriously. It teaches skills for accident avoidance. Bring your certification of defensive driving course completion when getting quotes. Taking an approved class every few years maximizes savings. Refresher courses reinforce positive habits.
Vehicle safety feature discounts
Cars with advanced safety features like airbags, anti-lock brakes, and anti-theft systems qualify for reduced rates because they experience fewer losses. Make sure to have your VIN handy when getting quotes so insurers factor in your car’s safety rating and features. Newer models tend to receive the largest discounts in this category.
Low mileage discounts
Some companies provide discounts for drivers who keep mileage under a set threshold, like 5,000-10,000 miles annually. Document your odometer reading when shopping rates if you drive minimally. Retirees, remote workers, and those with short commutes are prime candidates for low mileage savings. Usage-based plans also reward less driving.
Going paperless with online billing and proof of insurance, along with setting up automated monthly payments, rewards customer convenience. When you have fewer administrative expenses, insurers share those savings. Opting out of physical documents and stamps provides a small but helpful discount. Some states now even offer e-insurance ID cards.
Certain employers, professional organizations, unions, and alumni associations receive discounts from insurers. Ask about list eligibility when receiving quotes. Partnerships with these groups allow access to savings simply due to your affiliation. Always inquire about the maximum discounts available through your memberships and employment.