We Americans spend lots of money each year on our cars. If you are looking to save some of that money and keep it in your pocket, insurance discounts are the way to go. There is no need to pay for insurance coverage that you don’t need; however, you want to ensure you have the coverage you need. Insurance companies categorize discounts into three main types or groups: policy, driver, and vehicle. Below, I have listed the discounts and an explanation of those as well as specific discounts in those categories in which you may qualify. Hopefully, you can find a discount you can use to keep some of your money in your pocket!
- Policy Discounts—These discounts encompass the policies you have or the way you pay for your policies.
- Policy Payment Discount—You could secure a discount if you can pay your insurance premium in full as opposed to making monthly payments. If you have the money to do this, ask your insurance company if they offer this discount.
- Bundling Discount—Most insurers offer discounts if you combine multiple cars or multiple policies for home, auto, renters, etc.
- Driver Discounts—These discounts have to do with the driver of the vehicle and their driving record.
- Good Driver Discount—These discounts are simply based on the number of accident claims filed, how many traffic tickets you get, etc. The better driver you are, the better discount you can qualify for. You can also get this discount if you complete a safe driver’s course.
- Student Discount—Car insurance for students or teen drivers can be expensive. One of the best ways to reward your student for good grades is for an insurance company to offer lower rates for good students. There are also college alumni discounts.
- Member Affiliation Discount—If you are affiliated with certain groups, you could get a member discount. The military and educators are some occupational discounts you could score as well as employees of certain companies may qualify for discounts.
- Vehicle Discounts—Typically, a family sedan costs less to insure than a luxury SUV or muscle car that is built for speed. Also, look for low mileage discounts if you drive a little and put lots of miles on your car. If you are not out on the roads much, you are less likely to get into an accident and some insurance companies will give you a discount if your annual mileage is low.
Ask for discounts—Insurance companies offer lots of discounts. Make sure you have uncovered all that they entitle you to such as low mileage, accident-free, no violations or good student driver discounts. Don’t be too shy to ask!
When your policy comes up for renewal each year, shop around to make sure you are getting the right coverage for you. You don’t necessarily need everything, but you want to make sure you are covered where you need it the most.