In fact, a survey commissioned by InsuranceQuest.com found most Americans do not ask for car insurance discounts for getting married (76%), getting good grades (69%) or completing a defensive driving course (70%). Yet these and other discounts can save you hundreds of dollars a year through reduced premiums–if you know enough to ask..Insurance Companies are the most competitive in the world with lot of discount for prespectives customers but yet surprisingly few people ever think to actually ask their auto insurance company whether they qualify for one of those discounts or not.
Auto insurance discounts generally fall into one of three categories:
- Discounts based on you and your connections
- Discounts based on your vehicle
- Discounts based on your other insurance policies
You and Your Connections
You can be eligible for discounts through your employer, the credit union you use, professional associations and organizations you belong to, your driving history, and by taking defensive driver courses.
Membership and Employer Discount
Your affiliations and associations may be more connected to insurance than you realize. Auto insurers typically partner with large employers and professional associations to tap into prospective customers.
Insurance companies know employers are looking for ways to help their workers save on out-of-pocket expenses. In its 2018 U.S. Employee Benefit Study, MetLife reports that 65% of of the 2,600 employees it surveyed believe non-medical benefits help buffer out-of-pocket expenses. Forty five percent say having auto insurance as a part of their benefits package helps reduce their financial stress.
Although nearly half of the employees surveyed want auto insurance included in their benefits package, even if you have such a benefit, it still pays to shop around. After all, while your employer may promote an insurer’s group rate offer as a discount and even allow you to have payments automatically deducted from your salary, it isn’t paying a portion of your premium as it usually does for your health insurance.
Still, Metlife claims people have saved more than $500 by opting into its group auto insurance rate through their employer. So check with the human resources department for any partnerships your company may have and see how this discount rate compares.
Credit Union members may have access to group rates, as well. For example, Navy Federal Credit Union members, depending on their location, may qualify for a discounted rate through GEICO.
You can also inquire about discounts offered through other groups, such as alumni associations. Often you won’t have to ask. The Rutgers University Alumni Association features its partnership with Liberty Mutual on its benefits page. You never know where you’ll find an opportunity for a premium reduction. But always be sure to compare the group rate with what you might be able to get on your own.
Accident-Free Discount
Having a good driving history doesn’t guarantee you a low rate. Insurance companies consider many variables when calculating your premium, including your age, location and what type of vehicle you drive. But companies do usually offer a reduced rate for those who have had no accidents, violations or claims for a certain number of years. Progressive, for example, will take up to 33% off your policy price for three consecutive years of no claims.
Defensive Driver Course Discount
If you don’t have a good driving record, you may be able to take a defensive driving or basic driver training course to get a premium reduction. Travelers provides discounts of up to 8% for completing such a course, but discounts vary from state to state.
Your state’s Department of Motor Vehicles can provide guidance on state-approved defensive driving programs. The National Safety Council, a nonprofit organization that offers defensive driving courses, has programs in 12 states including New York, Illinois and Texas. If you decide on an online course, make sure your state has certified or approved it.
Good Student Discount
Drivers who are under the age of 26 and still in school may be eligible for “good student” discounts. Some insurers require you to have and maintain a certain grade point average to qualify for the discount. For example, Travelers Insurance offers an 8% discount to students enrolled in high school or college who maintain a B average or better.
Taking advantage of student-related discounts is a must given the higher rates teenagers and young adults are charged. Insure.com analyzed car insurance rates nationwide for six companies and found that teenagers paid an average rate between $1,900 and $5,300. Those age 20 to 24 paid an average rate between about $830 and $2,400.
Military Discount
Military personnel and veterans can qualify for lower premiums. Geico offers members of the military, the National Guard or the Army Reserve up to 15% off their premiums. It also allows policyholders suspensions or reduction of insurance coverage for a vehicle while the owner is deployed.
Your Vehicle
Car insurance rates vary dramatically based on vehicle make and model. Companies look at the safety equipment on a model, how frequently it is stolen, how often drivers of that vehicle get into accidents and how expensive the vehicle is to repair when it is damaged. The most expensive models to insure tend to be luxury models and performance cars that are driven aggressively.
Insure.com’s 2018 list of the 10 most expensive vehicles to insure includes five Mercedes models, a Porsche and three BMWs. By contrast, its list of the 10 cheapest vehicles to insure includes two Hondas, two Subarus, two Mazdas and two Jeeps. (When comparing prospective cars to purchase, ask your insurer how much each will cost to insure.)
Anti-Theft Equipment
Does your car have a theft deterrent system? Did it come with the car or was the deterrent installed later? These are good questions to find the answer to.
A theft deterrent system could be a GPS tracker such as LoJack or OnStar. There are deterrents that prevent hot wiring like the Viper LCD Two-Way Security System and then there’s the ubiquitous transponder chip in car keys that prevent cars from starting with just anything that fits its ignition key switch. Once you identify your car’s anti-theft equipment, call your insurer to see if if offers discounts for those deterrents.
For example, 21st Century Insurance gives 15% off its comprehensive coverage premium for theft recovery devices like GPS trackers. Nationwide offers anti-theft discounts based on the state you live in and based on the type of device you install. Geico says customers can get up to a 25% discount for anti-theft equipment.
Safety Features
Insurers care about how safe your car is, just as you do.
Older cars may not have certain safety features that are proven to prevent accident-related injuries. Those include passenger airbags and head restraints (those protruding cushion sitting on top of your car seats that helps prevent whiplash). These things seem standard today but passenger airbags weren’t a mandatory part of car production until 1998. Mandatory head restraints have been around longer—since 1969.. That leaves a handful of older cars missing basic modern safety features.
Other safety features include daytime running lights and anti-lock brakes. If you’d like to hold on to an oldie but goodie car, take care to update the safety features and then contact your insurance provider to see what discounts may be available. If you’re a State Farm customer, you could get 40% off medical-related coverage for retrofitting an old car with safety equipment.
Low Mileage
If you use your car less than average, you may be able to qualify for a lower premium. According to the Federal Highway Administration, the average American driver logs nearly 13,500 miles a year. But what qualifies for a low mileage discount varies by insurer and by state. For example, State Farm gives an automatic 5% discount for enrolling in its Drive Safe and Save program, which then provides up to 50% off on premiums for a car driven fewer than 7,500 miles a year.
Multi-Car Discount
Insurance companies provide a discount when you insure multiple vehicles. Amica, for example, gives its customers up to a 25% discount for insuring two or more cars through the company. It also offers discounts to individuals under 30 whose parents have been with Amica for at least five consecutive years.
Your Policies
Multi-Policy Discount
Bundle up to reduce your rates. Insurance companies want to reward your loyalty by offering reductions for having more than one policy with them. State Farm gives its customers a discount of up to 20% for taking out a home or life insurance with them. Make sure you compare the multi-policy quote to other companies to make sure you’re not missing out on a better deal.
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