UPDATED: Mar 13, 2020
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What Steps Can I Take to Reduce My Auto Insurance Premiums?
One of the easiest ways to save big on your monthly automotive insurance premiums is to apply for as many auto insurance discounts as possible. In fact, you’re probably eligible for a few discounts right now that you aren’t even aware of. Almost anything you can to do reduce your likelihood of filing a claim, from driving fewer miles to installing an alarm system on your vehicle, could help you earn money-saving discounts on your insurance policy.
Offering discounts for drivers is a win-win situation both for you and your insurance provider. The more money you can save, the more likely you (and thousands of drivers like you) are to patronize their business. And the more customers they can attract with discounts, the more money they can make. If you haven’t done it yet, make sure you ask your insurance agent about any and all possible money-saving discounts you qualify for!
Take Advantage of Auto Insurance Discounts – Save 30% or More
For example: not all automotive insurance companies offer the same total amount of savings for having a clean driving history. One company may offer to lower your monthly premium by a few dollars per month, while another may reduce your monthly premium by as much as 32% or higher.
Therefore, it isn’t just the number of discounts that you want to pay attention to when shopping for car insurance discounts; you also want to pay attention to your overall total savings. One company may offer you a dozen discounts which only save you a few dollars monthly, whereas another company might offer you two or three, but the total savings equals up to a quarter of your premium each month. It’s not hard to see which provider is offering the better deal in that scenario.
A List of All Car Insurance Discounts You Should Ask for
Insurance laws vary by state, and not all companies are required to disclose available discounts if you don’t ask for them upfront. Below is a basic list of popular discounts which can save you hundreds yearly – but only if you ask your insurance agent about them.
- Annual Mileage: The fewer miles you drive each year, the less likely you are to get into an accident (and end up filing an expensive claim with your insurance provider). So if you know you don’t drive much, you should definitely ask about an annual mileage discount.
- Car Features: Various features of your vehicle may yield discounts, such as anti-lock brakes, extra air bags, enhanced technology, or other advanced features which are designed to reduce either the likelihood of filing a claim, or the total body damage which might be sustained in an accident.
- Safety Features: Anything which can keep your passengers from sustaining serious injuries during an accident or reduce the expense of repairs to your vehicle will likely lower your monthly premiums. Ask your insurance agent for more details.
- Theft Deterrent Features: If you opt for Comprehensive coverage on your policy, anti-theft devices might lower your rates since they discourage theft and vandalism (which Comprehensive covers).
- Carpooling: Like the Annual Mileage discount mentioned above, a Carpooling discount also rewards you for driving your vehicle less and avoiding potential accidents. Check with your provider to see if this discount is offered in your area.
- Customer Loyalty: The longer you keep a policy with a particular insurance company, the more likely you are to stay with them and continue giving them your business. And they recognize that offering their customers financial incentives to stay will yield them higher profits in the long run – which is why they offer tiered discounts based on how long you have been a loyal customer.
- Driver’s Ed: Contrary to popular belief, Driver’s Education isn’t just for lowering the insurance costs of teenage drivers (although it does help). Knowing how to drive safely and defensively helps lower accident rates for everyone, whether you’re 17 or 70.
- Good Student: Drivers under the age of 25 pay some of the highest insurance rates around. They are also more likely to be in high school or college. And if you are the type of responsible student who has a 3.0 GPA or higher, then your insurance company will assume that you are just as responsible behind the wheel – and lower your insurance rates accordingly.
- Marriage Discount: Bundling your automotive insurance policy with that of your spouse gives the insurance provider you both choose that much more business – and most insurance companies are willing to reward that extra business with a discount.
- Mature & Experienced Drivers: Drivers between the ages of 50-65 are still young enough to be alert and focused behind the wheel, but have enough driving experience to know how to avoid accidents in the first place. And many companies reward this experience with a monthly discount.
- Multiple Policies: Several major insurance providers issue more than just vehicle insurance. Some offer homeowner’s insurance, renter’s insurance, and more. And if you bundle multiple policies with the same company, there may be some lucrative discounts waiting for you.
- Multiple Automobiles: Again, this is an example of your insurance company rewarding you for bringing them more business. Believe it or not, it’s actually less costly for your insurer to reward an existing, low-risk customer for insuring an additional vehicle than it is to insure a brand new customer with an unknown level of risk.
- Safe Motorist: If your accident risk is very low, then you are your insurance company’s ideal customer. Most companies want an accident-free driving history of at least 3 years or more, but it varies by company. Your insurance agent can give you more details.
The more discounts you qualify for, the more you can save. In the chart below, we compared your average drivers from across the country with motorists who qualify for the following discounts: good credit, married, bundling multiple policies, and driving fewer miles yearly.