Research and take advantage of all discounts available. It would definitely be worthwhile to take the time to look for discounts -- the amount of money you would save adds up over time. Insurance companies reward good drivers. Other discounts available may (depending on your insurer) include multiple vehicles, anti-theft devices, retirees, driver education, abstainers from alcohol, age, and distance to university/colleges for students.

1. Policy-Related Discounts

• Multi-policy discount – If you insure two or more vehicles on the same policy some companies may give you a discount. They may be equally generous if you have your home and both cars insured with them as well.
• Group plan from employers, professional, business, and alumni groups, or other associations may qualify for discounts . Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.
• Select a higher deductible and increase your liability coverage. You’d save a lot of money if the vehicle will never be involved in an accident. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

2. Vehicle-Related Discounts

• Choose a highly rated model - Do research before buying a motor vehicle. Industry agencies assign a rating to every car model based on historical collision, injury and theft claims, among other factors. The higher the rating, the more consumers will reduce their premium. Some insurance companies classify certain cars as "Safe Cars", meaning there's statistical data to suggest that there's less risk of injury by way of design, air bags ABS, etc. Find out if your car qualifies for this discount. Conversely, choosing a flashy red sports car with a lower rating can significantly raise a premium because insurance providers associate the model with more risk, due to the increased probability of theft and fast drivers.
• VIN number window etchings can lower your premium by up to 15%. Buying a VIN etching kit for $19.95 and etching your VIN # onto your window is much cheaper than paying $300-$900 more for a car with a VIN # already etched on. You can get a VIN etching kit here.
• Take preventative measures - Many providers award discounts to customers who take steps to protect their cars from physical damage and theft. By opting for anti-lock brakes, airbags, alarm systems and other security devices, consumers often can save significantly on their premiums.
  • Some companies might discount up to 30% off Personal Injury Protection and Medical Payments coverage if the driver and passenger sides have air bags and automatic seat belts. This discount is given because the insurance company knows you'll be belted in every time, hence your risk of injury in a crash is much less than someone else who is not belted in.
  • Some companies give discounts off the comprehensive premium when an active anti-theft device is present. Some companies may discount more if the alarm arms itself automatically when you turn off the vehicle. This 5% discount usually does not add up to much, but combined with other discounts listed here, will certainly make a dent.
  • If you have Anti-lock brakes (ABS), you may 5% or more off Bodily Injury and Property Damage coverage.

3. Driver-Related Discounts

• Drive carefully - A clean driving record can save money. The more careful and experienced the driver, the less risk insurance providers take, therefore lowering the premium. Some insurance companies also offer discounts to policyholders who complete a defensive driving class.
• Drive a friend to work - The premium also ties to how often a car is used. Discounts can apply to carpool participants, for example, because each participant’s car is at less risk when the participant is carpooling than if he/she drove his/her own car. One less car off the road means one less hazard for drivers. Commuter discounts also are available for car owners using public transportation because their vehicles will have lower annual mileage than if they drove to work each day.
• Good student discount - If there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college out of the area without a car, you may also qualify for a lower rate. Some companies give drivers under age 25 who complete a state approved drivers education class up to 10% off on Bodily Injury, Property Damage, Medical Payments, Personal Injury Protection and Collision coverage.

• If you're a safe driver, usually 3 years with no points, you qualify for additional savings on different types of coverage. The insurance company will let you know. Usually on your insurance bill you'll see something that says "Your premium reflects the maximum discount allowed for safe driver".
• Degree in any number of engineering or science-related fields including biochemistry, mathematics, and mechanical engineering. 21st Century sells auto insurance in Arizona, California, Nevada, Oregon, and Washington, and offers the "engineering and scientist" discount in all of those states.

• Low mileage or distance discount rating. Some insurance companies give discounts to people who drive less than a pre-determined number of miles each year or drive certain distances to and from their place to work.
• If your teen is away at college, take him off the auto policy. According to industry professionals, teen drivers add anywhere from 50 percent to 500 percent to a premium. Two caveats: The kids can't drive at school unless they get their own insurance, and if they come home for a break, don't loan them the car.

Tip: MetLife Auto offers discounts for those who complete courses such as the one offered by the National Safety Council (NSC).

Tip: Esurance, Ohio Casualty, 21st Century and Horace Mann offer insurance to educators. 21st Century will offer you a discount on your car auto insurance premium if you're certified by the State of California Commission on Teacher Credentialing, or if you are a full-time college or university professor.

Tip: GEICO, which stands for Government Employees Insurance Corporation, offers discounts to active and retired members of the military. The military discount is available in all states except Georgia, Indiana, Maine, Massachusetts, Michigan, Mississippi, New Jersey, New Mexico, Tennessee, and Texas.

Tip: 21st Century’s founder saw that “educators, scientists, and engineers have lots of characteristics that seem to show that they're the best drivers.” Now, quit honking at us!

 

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