Want to save more on your car insurance? Compare discounts you could qualify for.
Always stay diligent about saving on your car insurance. There are lots of discounts out there, and some companies aren’t always forthcoming about ways to save money. If you want to get car insurance discounts instead of just hearing about them, this guide can show you how.
How much will discounts affect my rates?
Paying less doesn’t necessarily mean getting less. You don’t always have to sacrifice the amount of your coverage to save money on your car insurance. You just need to know what to look for and decide what works best for you.
Insurance companies determine your premium based on behaviors of certain groups. People who drive more and into busy areas, younger drivers and people who drive high-performance cars are more likely to file claims. On the other hand, more experienced drivers, people who drive cars with safety and security features and people who drive less tend to pay less. Insurance companies take all of this into consideration when determining premiums.
Car insurance can get expensive, so look for ways that you can save.
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What discounts should I look for?
Insurance companies don’t always advertise their discounts to established customers. If you’ve been with a company, it’s worth asking about what they offer. Discounts vary by state and insurance company. Possible discounts include:
- Low milage. If your car is garaged or you don’t drive it much.
- Driver safety courses. Take a driver safety or skills course. Often it’s for less experienced drivers, while other insurers open it up to everyone.
- Loyalty bonuses. Staying with the same provider for more than two years.
- Security. Installing a security system, tracking device or kill switch.
- Safety. Driving a new car or a car with anti-lock brakes, airbags or if you purchase a roadside assistance package.
- Going green. Driving a hybrid or low emissions. And you’ll save money on gasoline.
- No claims. Many companies offer cash back, credit or a discounted rate if you don’t make a claim after a certain amount of time.
- Payments. Sign up for autopay to have your payments taken directly from your checking account each month, or paying the full premium upfront.
- Early renewal. Renew your policy before it expires.
- Student. Your child’s in school with at least a 3.0 GPA, or if you have a child who is at school more than 100 miles away.
- Military. You or your anyone in your household is or has currently served in the US military.
- Low income. Live in a state that mandates that you have car insurance and you make below a certain amount, you could qualify for a low-income discount.
- Bundling. Package your home, life and auto insurance all with one provider, or if you have more than one car insured under the same policy.
More ways to save money on car insurance
To save even more on your insurance, keep these other options in mind.
- Buy a car that’s cheaper to insure: Cars that are cheaper and easier to repair cost less to insure. Keep prices down by buying something that’s cheap, safe and fuel-efficient.
- Drive defensively: You’ll always save money if you don’t make any claims. To avoid an accident never drive while impaired, tired or distracted.
- Pick a higher deductible: The deductible makes a substantial difference to your premiums, and it’s worth adjusting to take advantage of savings.
- Nominate drivers: Specify exactly who’s allowed to drive your car, and prevent anyone else from getting behind the wheel. This can go a long way to keeping premiums down.
- Park safely: Many insurers will offer lower prices for a car that is kept under a carport rather than on the street, and lower prices still when it is kept in a secure, lockable garage.
- Pick extras carefully: Where possible choose a policy that gives you the flexibility to drop features you don’t need, and get the ones that are important to you.
What to watch out for with car insurance discounts
Discounts can help you save a significant amount of money, but their main purpose is to bring in new customers. With car insurance being such a competitive market, always be cautious when deciding on a plan.
Always read the terms and conditions and be aware of:
- Time limits. Some deals may only apply for a limited period of time. There’s a big difference between getting 10% off for one year or two.
- Exclusions: As with the policies themselves, exclusions can also apply to discounts. Customers who are already earning certain discounts are often excluded from any more, while other exclusions may apply.
- Rising premiums: Getting 25% off car insurance is nice, but you’re not saving any money if the insurer raises your premiums by 26% soon after. For general car insurance, insurers are able to set their prices, and change them without notice. Stay diligent and frequently compare policies, or ask your insurer why they raised your rates.
Bottom line
We all need car insurance, and often feel we are paying too much. Before you sign up for a plan, be sure to compare your options and look at what discounts you qualify for.