Many people find the cost of their auto insurance high, but there are ways to lower the cost without sacrificing the benefits. Taking advantage of the various discounts offered by insurance companies is one of the best ways to lower your rates. These discounts are designed to encourage safe driving, loyalty, and other things that make insurance companies worry less about their money. This article will discuss how you can use discounts to save money on your auto insurance and how to make the most of these savings.
1. Safe Driving Discount
Having a good driving record is one of the most popular ways to save money on auto insurance. Insurance companies offer safe driver rates to drivers who have never had an accident or broken the law. Rates vary from insurance company to insurance company, but generally, if you have a good driving record for a certain number of years, you can save a lot on your premiums.
Make sure you don’t have a car accident or get a speeding ticket for a few years. Instead, ask your insurance company about safe driving discounts. Some insurance companies will save drivers money if they have not had an accident for 3, 5 or even 10 years. Some of these savings are significant and can significantly reduce your premiums.
2. Discounts for Buying More than One Car
You may be able to get deals for owning more than one car. You can get these savings if you have more than one car covered by the same insurance company. When you insure multiple cars with the same company, the rates per car are usually lower than if you were insured individually.
To get a discount for owning more than one car, simply call your insurance company and ask them to add all of your cars to one policy. This discount is available even if you only have two cars covered, so it is worth asking how many cars you own as well.
3. Group Discounts
Many insurance companies will give you discounts if you buy more than one type of policy with them. For example, you can get a discount if you buy car insurance in addition to homeowners, life or renters insurance. You can save money on all of your policies if you buy them all from the same company.
Bundling can save you a lot of money, especially if you need multiple coverages. Make sure you consider all of the bundle options and that the total cost of buying the policies together is still lower than buying them separately. Bundling puts all of your plans in one place, saving you money and making your insurance management easier.
4. Student Discount
If you are a student or live with students, you may be able to get good student rates. Insurance companies often offer discounts to younger drivers who maintain good grades, as these drivers are less likely to be involved in an accident. Students typically need to maintain a GPA of 3.0 or higher to receive this discount, but requirements can vary by insurance company.
Drivers under the age of 25 often get a discounted student rate, which can save you a lot of money. Parents can also get this discount if they list their children as drivers on their policy.
5. Low Mileage Discounts
If you don’t drive much, you may be eligible for a low mileage discount. Drivers who drive fewer miles per year may qualify for this offer because the fewer miles they drive, the less likely they are to be involved in an accident. Insurance companies use mileage to determine how risky you are. If you drive less, you may be considered a lower risk and may get a lower interest rate.
Most insurance companies require that you drive less than a certain number of miles per year, usually between 7,500 and 10,000 miles, to get low mileage rates. If you don’t drive to work every day or rarely use your car, ask your insurance company if they offer a low mileage discount.
6. Discounts on Car Safety Features
Cars with certain safety features, such as airbags, anti-lock brakes, anti-theft devices, and automatic seat belts, often get discounts. Insurance companies believe that cars with these safety features are less likely to be stolen or involved in an accident. This reduces their risk.
Tell your insurance company about any high-tech safety features in your car so they can offer you appropriate savings. Some newer cars have better safety features, such as rear-view cameras, collision avoidance systems, and lane-keeping systems. All of these features can help lower your insurance rates even further.
7. Full Payment Discount
People who pay their premiums all at once instead of weekly often get discounts from their insurance company. When you pay annually or semi-annually, the insurance company doesn’t have to pay the monthly payments. If you can pay your premiums in full, this deal can be an easy way to save money.
If you pay your premiums all at once, you may have to pay more initially, but the savings can be worth it. Before you make this decision, make sure you know how much you can save compared to your monthly payments.
Conclusion
You can save money on your auto insurance by taking advantage of the various offers offered by insurance companies. There are many ways to lower your rates without sacrificing coverage. You may be able to get a discount if you are a safe driver, own multiple cars, or are a good student. Knowing what discounts are available and taking steps to get them can help you save money on your insurance without sacrificing the security you need. Be sure to compare prices, ask about discounts, and always check your coverage to make sure you are getting the best deal.
FAQs
1. What types of savings are possible with auto insurance?
Drive safely, bundle insurance, get good grades (if you are a student), drive fewer miles, have your car equipped with safety features, pay in full, stay with the same insurance company long-term, take defensive driving classes, and join the military. Some insurance companies also offer discounts based on how you drive using telematics.
2. How do I get a safe driving discount?
Typically, you must have been free of collisions or traffic tickets for a certain period to qualify for a safe driving discount. Each insurance company has its own rules about how long you must drive safely, but generally, you can get a discount for three to five years.
3. Can I save money if I don’t drive often?
Yes, you may be able to get a discount if you drive fewer miles per year. Most insurance companies offer this discount if you drive less than a certain number of miles per year (usually between 7,500 and 10,000 miles).
4. What safety factors can help me get cheaper insurance?
You may be able to get a discount on insurance if your car is equipped with airbags, anti-lock brakes, anti-theft devices, and other up-to-date safety technology, such as collision avoidance systems and lane departure warnings. Make sure your insurance company understands the safety features of your car.
5. Will paying for insurance annually instead of monthly save me money?
Yes, many insurance companies will give you a discount if you pay all at once instead of monthly. If you pay annually or semi-annually, the insurance company has less money to manage, which can result in lower premiums.
