With the recent past economic recession, it has become extremely crucial for you and your family to save money. By maximizing your auto insurance discounts, you can pay less on your insurance premiums. Most insurance companies give special discounts to good drivers. The following is a list of different auto insurance discounts that are offered by various insurance companies.
Online Shopping Discounts
Many auto insurance companies would offer you discounts if you shop online. You can make contracts and obtain promotions very conveniently through the web.
Policy-Related Discounts
Multi-policy discount: Some auto insurance companies offer discounts when you insure 2 or more vehicles, or both your house and car on the same policy.
Group plan from your employer, professional, business, and alumni groups, or other associations: These group plans may be eligible for discounts. You should ask your employer and the groups (clubs) that you are in to see if this is possible.
Choose a higher deductible and raise your liability coverage: You can save a large amount of money if you will never have any accidents. For example, if you increase your deductible by $300, your collision coverage cost can decrease by 15% to 30%. If you increase your deductible by $800, your coverage cost can decrease by at least 40%.
Note:Before you decide to select a higher deductible, make sure you have enough money set aside to pay for accidents.
Vehicle-Related Discounts
Select a highly rated car model: Ratings for car models are determined based on the car models’ past collision records, injury and theft reports. To pay less for the premium, you should buy a car with high rating (referred to as “Safe Cars”) so that the insurance company would believe that there is low chance of injury or accident.
Note:Popular sports cars have a very low rating due to the high probability of fast drivers and injuries.
VIN number window etching can lower insurance premiums up to 15%: You should buy a car without an etched VIN number and then purchase the VIN etching kit yourself. If you do this, it would only cost you $19.95. However, if you buy a car with a VIN number etched on, you would have to pay an extra of $300 to $900.
Protect your cars: You can pay much less for your premium if there are more protection and security devices on your car. For example, anti-lock brakes, airbags, and alarm systems.
If your driver’s and passenger’s seats both have airbags and automatic seat belts, some auto insurance companies would offer you a 30% discount on Personal Injury Protection and Medical Payments. This is because the insurance company knows that you would have a seat belt on in time of any accidents, so your chance of becoming seriously injured is lower.
If you have an active anti-theft device, some auto insurance companies may offer you discounts for the comprehensive premium. If your alarm automatically arms itself when you turn off the car, there can be additional discounts. The discount on anti-theft device is usually 5%.
If you have anti-lock brakes (ABS), you may obtain at least a 5% discount on the Bodily Injury and Property Damage coverage.
Driver-Related Discounts
Excellent credit rating: It is extremely important for you to establish a great credit history, since some insurance companies would offer you special discounts for your good credit rating.
Drive carefully: You want to be a careful and experienced driver with a clean record. This can save you money on the premium. Some insurance companies offer discounts to drivers who have completed a defensive driving class.
Drive a friend to work: You can obtain a low premium if you carpool with your friends. This is because each carpool participant is at a lower risk than if he or she drove his or her own car. One less car off the road is one less hazard for drivers. Commuters who use public transportation can also receive discounts by not driving their own car.
Good student discount: If you are a young driver who has completed a driver’s education course or is at a college out of the area without a car, you can receive a lower premium. Some companies offer 10% discounts to students (under 25 years old) who have completed a state approved driver’s education class. This discount can be applied to Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection and Collision coverage.
3 years with no points: If you have no points in 3 years, you are a “good driver”. In this case, you are eligible for additional discounts. Normally, the insurance company would notify you of the extra potential savings. Your insurance bill would state something that is similar to “Your premium reflects the maximum discount allowed for safe driver.”
Any engineering or science-related degrees: These degrees include biochemistry, mathematics, and mechanical engineering. If you have any of these degrees in the states of Arizona, California, Nevada, Oregon, and Washington, 21st Century (auto insurance company) would offer you the “engineering and scientist” discount.
Low mileage or distance discount rating: You can obtain discounts if you drive less than a pre-determined number of miles each year or drive a certain distance every day. For most auto insurance companies, the pre-determined number of miles is 12 miles.
Take your college child off the auto policy: If your child is away at college, take him or her off the insurance policy. According to industry professionals, college students add 50% to 500% on insurance premiums.
Warning:Your college child should not drive at school unless he or she has insurance on their own. Also, do not loan your child the car when he or she comes back home.
Tips:
If you complete a course similar to the one offered by the National Safety Council (NSC), MetLife Auto would offer you discounts.
If you are an educator (certified by the State of California Commission on Teacher Credentialing or a full-time college or university professor), some auto insurance companies would offer you discounts. These auto insurance companies include Esurance, Ohio Casualty, 21st Century and Horace Mann.
If you are an active and retired member of the military, the Government Employees Insurance Corporation (GEICO) would provide you with a discount. This military discount is available in all states except: Georgia, Indiana, Maine, Massachusetts, Michigan, New Jersey, New Mexico, Tennessee, and Texas.
Driver-Related Discounts