UPDATED: Sep 29, 2020
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Car insurance discounts are one of the most effective ways that insurance companies attract new customers. After all, cheap car insurance rates are one of the main factors when drivers select their insurer. Different insurers are always experimenting with ways and means to offer this discount or that to entice customers to either switch to their service or just sign up new drivers for the first time.
Some of the discounts are obvious, some are applied immediately when you sign up for a policy, and others are less obvious. On this page, we’ll go over some of the basics of car insurance discounts that you should know about. Who knows, by the time you’re done reading this, you could be saving yourself a ton of money!
Aside from discounts, comparison shopping is another great way to save on auto insurance. Use our FREE comparison tool to get multiple rates near you right now.
When you sit down to craft a policy with insurance agent, there are some basic facts about you and your life that are so easily verifiable they will immediately qualify you for several lucrative discounts. Some of those discounts include:
- Your job (military, clergy, etc.)
- Your education level
- Home ownership (regardless of whether you bundle your homeowners and auto insurance policies)
- Your credit score
- Your age
- Safety features on your vehicle
- And many more
If you’re financially responsible enough to get a good credit score, then your auto insurance company assumes that you will be equally responsible behind the wheel; at least, that’s how the conventional wisdom goes. They also believe the opposite to be true. There are obviously situations where this isn’t necessarily the case – there are millions of drivers out there who are safe and ticket-free, but unexpected financial troubles have left them with bad credit. Likewise, there are millions of motorists who are fortunate enough to have excellent credit, but have a laundry list of violations on their driving record. If you have bad credit, but aren’t living up to your insurance company’s expectations of also being a bad driver, be sure to sign up with a credit monitoring agency that can help you track and improve your credit score over time for free. Eventually, this can lead to some very dramatic savings.