Auto Insurance Discounts

cut priceThere are multiple auto insurance discounts which can add up to significantly reduce premiums. Study the below types of discounts below and use the new knowledge to obtain a discount when comparing quotes.

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Keep in mind that there are also many discounts available to drivers for a variety of reasons. Glance at or print out the list below as a reminder, and don't forget to opt in for any rate reduction you may qualify for. Opt in for auto insurance discounts which can yield up to a 30 percent discount or even more:

The following is a list of auto insurance discounts:

  • Good Driver: This is applicable to those who have maintained a clean record and are considered to be a responsible motorist. Qualifying for this can reduce premiums in the 20 percent range. It's very important to always obey traffic laws and practice safe driving at all times to help avoid blemishes on a driving record.
  • Air Bags and Automatic Seat Belts: There are insurers that will apply a reduction of up to 30 percent on personal injury protection (PIP) and medical payments (med-pay) for having these safety features. The basic principle behind this is if an insured is involved in an accident, these features can prevent the risk of injury or lower the amount of injuries sustained by the policyholder and/or passengers.
  • Anti-Theft Devices: Companies offer a lower rate on comprehensive coverage to those who own a vehicle equipped with LoJack, a GPS tracking system, or an alarm. There are two reasons for this. The first is that an alarm can deter a thief if it is activated. Second, if a vehicle is stolen and it can be tracked quickly, it raises the chances of recovering the vehicle before damage is done. This will save the insurer a significant amount of money if a claim is filed and the automobile is recovered before it can be stripped or destroyed. The savings on coverage are usually in the area of 5 percent, which may not seem like much, but in combination with others it can add up.
  • Anti-Lock Brakes (ABS): Having ABS can enhance the ability to stop before striking another vehicle and can bring a rate reduction of 5 percent or more on property damage and bodily injury liability policies.
  • Driving Courses: There are providers that will give up to 10 percent off of property damage, PIP, collision, bodily injury, and med-pay coverage for completion of a state-approved drivers education class. This applies to motorists under the age of 25. Since this age group tends to pay high rates for policies, it may be wise to complete one of these courses. Proof of completion may need to be submitted to the insurer.
  • Multi-Car and Multi-Lines: This is basically a savings offered by a company for having two or more vehicles or having an automobile as well as a home, boat, RV, etc. insured with them.
  • Good Student: Teenage drivers pay more than any other age group when it comes to automobile coverage. Many insurers will reward those who maintain a "B" or higher with a lower rate. This is given because it shows the insurers that these students are more responsible as opposed to those who do not consider their grades to be as important. Proof may need to be submitted to the insuring company.
  • Low Annual Mileage: Those who operate their vehicles less are given cheaper premiums. This is simply because motorists who drive a low number of miles are on the road less and therefore reduce the risk that they will be involved in a traffic accident.
The discounts on auto insurance vary among states and companies and may not be available in all areas. There are also additional savings that are offered but are not as common such as being a nonsmoker or having an occupation like a teacher or an engineer. Consumers can also be given a cheaper rate for completing higher education, having a good credit score, or having daytime running lights, among others. When comparison shopping, always ask about any discounts that may apply and take advantage of the savings.

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