Car insurance premiums can really add up over time, resulting in a financial headache at times. Thankfully, there are a lot of different ways you can save on your monthly premiums. While there are many ways you can approach reducing your car insurance premiums, one of them is taking advantage of the different discounts available to you through your insurance provider. For this post, we’ll focus on car insurance discounts, and what types of discounts that might be available to you for reducing your car insurance premiums.
In general, there are three types of discounts you can receive on your car insurance premiums: driver discounts, vehicle discounts, and policy discounts. There are many different discounts available within these three categories, and here are just a few to give you a quick idea of what’s out there. Of course, there are many more discounts than what’s included here, so definitely do some more research to find out what other discounts are available and which insurance coverage might work for you.
Common Car Insurance Discounts
1) Multi-car discount: Have more than one car? Insure them both with the same company and you might be eligible for a discount on both their premiums.
2) Low mileage discount: Don’t drive much? Many companies offer a low mileage discount for those who drive their cars less than a pre-determined number of miles per year (often that number is 10,000 miles per year).
3) Economy car discount: Cars that have a lower price tag are generally much cheaper to repair, so insurance companies will sometimes reward a policyholder for owning such a car by giving them a discount on their car insurance premiums.
4) Loyalty or long-term policyholder discount: If you’ve been with a specific car insurance company for a long time, you might be eligible for a discount for simply being so loyal to that company.
5) Good student discount: If you’re a student who gets good grades, you might be eligible for a discount. Many insurance companies require at least a ‘B’ average, and being in the top 20% of your class sometimes helps get you a discount as well.
6) Vehicle safety features discounts: There is more than one discount nestled in this category. You may be eligible for discounts for a variety of safety features, including electronic stability control (ESC), anti-lock brakes, anti-theft devices, passive restraints and driver assist technology.
7) Club membership discounts: If you’re a member of certain clubs or organizations, you might be eligible for a discount on your car insurance premium. Specific examples include memberships in AAA, MENSA, fraternities and sororities, and the Farm Bureau.
8) Paid-in-full discount: Some companies will offer you a discount on your car insurance premiums if you pay the whole bill at once instead of spreading it out over the months.
9) Vehicle Tracking Device: These devices typically plug in to your OBDII port and collect data about your driving habits and share with your insurance company. Newer vehicles equipped with OnStar automatically collect and share information with insurance companies.
10) Anti-theft Device: Installing a anti-theft GPS tracking device or ignition kill switch can qualify you for a discount from 5%-20%.
There are a lot of different discounts available out there, many more than what we have covered, so do a little research and ask your car insurance provider which discounts they offer and which discounts you may qualify for.