A Guide to Auto Insurance Discounts

Many drivers leave money on the table by not taking advantage of auto insurance discounts. Depending on the policy or carrier, drivers can save for things ranging from earning good grades, having the right optional equipment on their car or completing a driver safety course. To keep your money in your pocket and not your insurance guy's, it’s important to know about the different discounts that may be available to you. Here’s a list of the most common discount types, and how to make the most of them. 

The Basics

Feature Discounts

Many policies come with discounts for certain features your vehicle may have. For instance, safety features, or an alternative fuel type. Here’s a quick breakdown.

  • Anti-lock brakes
  • Passenger airbags
  • Hybrid or alternative fuel
  • Anti-theft components

Driver Discounts

There are also discounts based on the specific drivers covered on the policy. These are usually based on past behavior of the driver, key details about the person and achievements.

  • Good grade discounts
  • A clean driving record for the past three years
  • Age of the driver
  • Auto club membership, like AAA
  • Completion of driver’s ed or other driver safety courses
  • Driving low annual mileage

Policy Specific

There are also policy specific discounts. Examples include multi-driver and multi-vehicle discounts. Premiums are also often extended when auto insurance is bundled with other types of coverage, like home, health or life insurance.

Shop Around for Better Discounts

The cost of insurance can vary widely from company to company. A little bit of homework can pay off big. Start with your current carrier and ask about available discounts and how they can lower your premiums. Take what you learn from your agent and compare. Don’t be afraid to say no to a company, even if you've done business with them for years.

Other Auto Insurance Factors to Consider

Be careful, cheaper sometimes comes with hidden costs. A company with large discounts might look nice on paper, but that doesn’t mean it’s the best company to go with. It’s important to make sure the policy and the company is going to be reliable and dependable over time as well. While insurance that is bought and never used is the best kind of insurance, be sure that you will be covered if the worst should happen. Before purchasing a policy, take a hard look, does it offer the following?

  • All the necessary coverage
  • Added perks on top of the basics
  • A good solid company rating with a proven track record of reliability
  • Ease of use, with apps and online platform
  • Additional support throughout the country and nearby countries

All of these factors are important should be investigated before any commitment is made.

Get the Best Auto Insurance Discount for You

Auto insurance discounts make a big difference and can save hundreds or even thousands each and every year. Look for them, but don’t let the discounts be your only deciding factor. Take the time to look at all the details of a company before making the final decision.