Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 19, 2020

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Key takeaways...

  • In order to save money on your car insurance, there are certain available car insurance discounts that you should always ask about
  • One discount that almost every insurance company offers is the multiple-policy discount
  • Drivers who practice safe driving can save a big chunk of money compared to those who cause a lot of accidents, even if they are minor
  • If you pay your premium all at once, you will usually receive a discount. In most cases, it is a 10 percent discount

In order to save money on your car insurance, there are certain available car insurance discounts that you should always ask about.

The majority of insurance providers offer a variety of discounts for which only certain groups of people are eligible. These discounts are rewards for things that help keep risks low.

Start searching for affordable car insurance rates by placing your ZIP code into the FREE quote tool above!

Car insurance companies figure out what your insurance rate is going to be by using a number of factors. You are then put into a risk category, whether you present a high or low risk to the company. The lower your risk, the less you will pay for your car insurance policy.

Using discounts can help keep your premium even lower. Some discounts are similar no matter which provider you choose, while some providers offer discounts that differ from those of other companies.

Table of Contents

Multiple Policy Discount

One discount that almost every insurance company offers is the multiple-policy discount. This is also one of which most drivers are able to take advantage.

Whether you own a home or condo, or you rent, you will probably need insurance to protect your belongings.

Insurance companies realize the benefit of having as much of your business as possible, so they give you a discount for combining your homeowner’s or renter’s insurance along with your auto insurance.

If you have life insurance, you will also benefit from getting it from the same company that gives you your car insurance.

Bundling your insurance policies can save you anywhere from 10 to 20 percent on your policy.

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Multiple Vehicle Discount

Along with insuring multiple insurance products, you will benefit financially if you insure more than one vehicle with the same company.

It could be a spouse’s vehicle or a car that your teenager drives; if it is considered to be a part of your household, you will usually receive a discount for insuring it with the same company with which your own car is insured.

Early Signing Discount

There are many reasons why you may not want to stay with your current insurance company. You may be unhappy with the customer service you are, or not receiving, the claims process may not be ideal, or you may feel like you are paying too much for your current policy.

Instead of waiting until your current policy is finished, you should start looking for another policy immediately. There is no penalty for switching companies early; in fact, some companies will give you a discount if you do.

Allstate is one insurance company that offers a discount for signing a policy with them before your current one has expired. You will save 10 percent on your policy by switching over.

Remember to keep paying your current policy until your new one is effective or else you will have a coverage gap that will end up costing you more money in the end.

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Safe Driving Discount

A big discount that is offered by many car insurance providers is a discount for safe drivers. Your driving history is one of the greatest factors when it comes to your premium rate.

The more accidents you have, the higher rate you will pay because you will be considered to be a higher risk to the company.

Drivers pay car insurance premiums so that, if they are in an accident, the damage will be partly or fully covered by the insurance company.

Even though this is the case, the companies want to pay for the least amount of accidents as possible. The Highway Loss Data Institute shows the distribution of claims by the size of the claims.

To help cut down on the number of claims filed, insurance companies reward safe drivers with discounts on their policy. Drivers who practice safe driving can save a big chunk of money compared to those who cause a lot of accidents, even if they are minor.

Some companies will rewards drivers who go a certain amount of time without any accidents or other traffic violations.

With some companies, you will notice a rate decrease if you go more than one year without filing a claim, while with others it is a longer period of time, such as three or five years.

Some age groups that are considered to be higher risk drivers may receive a discount for taking an approved driver safety class.

These age groups are usually those between the ages of 15 and 20 and those over the age of 65. Older drivers have more fatal crashes than any other age group except for teenagers, according to the Insurance Information Institute.

The reason for this is usually because certain physical changes in older people can interfere with safe driving. Their eyesight begins to decline, reaction time slows, and perception changes, and as a result, they tend to cause more accidents.

There are a number of classes that are offered that teach the basics of driving, share any new rules of the road, and teach defensive driving.

These are good for new drivers, older drivers who may have forgotten what they learned years ago, and drivers in between who have gotten many traffic tickets and have been in multiple crashes. Ask your agent if your company offers discounts for taking these courses.

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Good Student Discount

https://www.youtube.com/watch?v=boVWFVyLQjM

Because teenagers are considered to be the highest risk drivers, according to the Centers for Disease Control and Prevention, rates for teen drivers are through the roof.

One way to help is to take advantage of the discount for good students, which is offered by many insurance providers.

Each auto insurance company has its own guidelines when it comes to this discount. Most consider good grades to be anything “B” or higher, which is equivalent to a 3.0 GPA or better.

Individuals who are eligible for this discount beyond this qualification will differ depending on the provider.

Some require that the student be going to school full time. Others will allow the discount to stay in effect up to the age of 25, even if the driver has graduated from college already.

Ask your company about the specific details. This discount can save you 20 to 25 percent on your policy.

Discounts for Vehicle Equipment

A discount for certain vehicle features is a popular discount. Passive restraints that have been factory placed can earn you a discount of anywhere from 15 to 30 percent. These include motorized seatbelts and airbags.

Other safety features will garner you a discount as well, such as anti-lock brakes. Newer vehicles have traction and stability control, which help prevent more accidents in less-than-ideal conditions.

To find a car that is considered to be the safest according to insurance companies, visit Safer Car’s website.

The vehicles shown have passed the most stringent safety tests and have earned five-star ratings. You can search for vehicles by class, by model, or by the manufacturer.

Other vehicle equipment can get you a discount too.

Because comprehensive coverage pays for the replacement of a vehicle in the case of theft, you can receive a discount if your vehicle contains devices to protect against theft.

An audible alarm is one device that will earn you a discount. You can also save money if you have tracking devices to help find the vehicle in the event it is stolen.

There are also devices you can add to your car that will disable it so it can’t be driven if broken into.

Low Mileage Discount

The number of miles you drive affects how much you pay for your car insurance policy. If you commute every day, you will pay more than someone who drives only occasionally. The magic mile amount for most insurance companies is 7,500.

If you drive fewer than 7,500 miles, you are probably eligible for a low-mileage discount.

Senior drivers often receive this discount because they usually drive less than other drivers. They are mostly retirees, so there is no job to get to every day. Plus, with some of the physical limitations such as difficulty seeing at night, driving becomes less desirable and is done less often.

If you are still part of the working population, you can still take advantage of this discount by being a little more creative.

Carpool with other co-workers or people in your neighborhood; vow to take public transportation a few days a week or whenever is possible; walk or ride your bike more often; or work from home if it is a possibility.

Not only will this help you save money on your auto insurance, you will be helping out the environment as well.

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Pay-in-Full Discount

If you pay your premium all at once, you will usually receive a discount. In most cases, it is a 10 percent discount.

If you are used to paying your policy every month, switching to an annual payment will be a change but you can do it if you budget correctly. Plus, you will save money on stamps and will have one less due date of which to keep track.

Discounts are offered by many insurance companies to help you save money. You would be smart to ask about any that would be available to you.

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