Ways to Get Discounts on Your Auto Insurance Policy

Before purchasing either a vehicle or an insurance policy, research the many potential car insurance discounts available. Do not throw away hundreds of dollars when a simple phone call or email can save you money on your annual auto insurance premium.

These discounts are more valuable today than ever. This is because drivers have to contend with soaring gas prices and more potential risks on the road. Below is a simple list drivers can use to familiarize themselves with common discounts available at major insurance carriers. Of course, each state and company does not offer all of these discounts.

Compare quotes

With an abundance of insurance carries vying for your business, someone is bound to have the deal you have been looking for. Take the time to receive a variety of quotes from a multitude of insurance carriers. The more you compare, the more you can save.

Low mileage driver

Ask your potential insurance carrier if they offer discounts for low mileage drivers. Each company has a set number of miles that an average driver uses each day. If you drive less than this number, you could qualify for a low mileage driver discount.

Defensive driving classes

Though defensive driving classes are usually required after an accident to prevent points on your driver's license, taking a defensive driving class can potentially lower your rate.

Additional accessories

If you already drive a safe car that features safety items and theft prevention devices like electronic stability control (ESC), additional side airbags, or pre-installed car alarms, you can receive a safe car discount. However, if you add certain accessories to your vehicle, you can also qualify for discounts. Some of these accessories include:
 Combining insurance policies

Often, insurance carriers offer discounts if you combine more than one of your insurance policies. For example, by using the same company for your home, boat, motorcycle, and car insurance you can usually save on your annual premiums.

Good student discount

If one of the children in your family earns above average grades in school, you can often receive a good student discount. Be sure to check with your insurance company to see what qualifications are required for this specific discount.

Senior discount

Many insurance carriers offer discounts on car insurance premiums for seniors. Seniors may also qualify for low mileage drivers discount as well.

Higher deductibles

When you decide on an insurance policy, you will have to choose a deductible. A deductible is a set financial amount, which the policyholder is responsible for before the insurance company pays their portion. The higher the deductible, the lower the annual premium costs. However, it is important that policyholders discuss the risks and advantages of carrying either a low or a high deductible before making their decision.

Diminishing deductibles

Some companies have begun offering special discounts to their valued customers to retain loyalty. One example of these discounts is diminishing deductibles. Every policy requires some sort of deductible. However, with diminishing deductibles, drivers who are not involved in a collision over a given time, are eligible to receive a reduced deductible. Some companies even offer the potential of achieving a zero deductible if drivers consistently avoid collision over a long period. If your insurance company does not offer this form of discount, maybe it is time to switch to an insurance carrier that does.

Maintaining good credit

No matter how hard we try, our credit scores affect every financial decision in our lives. This is also true regarding car insurance. To sustain the optimal insurance policy, it is also important to maintain good credit. Take the time to periodically review your credit score and adjust your policy as needed.

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