If you’re looking to buy discount car insurance, it helps to start with a list of discounts to ask for. As really cheap car insurance rates become harder to find, consumers must learn to qualify for and get all the auto insurance discounts they are eligible for. If you haven’t reviewed your policy in awhile or completed an insurance comparison with free online quotes, then you may be missing out on some discounts that can lower your premiums.
Fortunately for you, insurance companies are constantly undercutting each other’s prices with a variety of new discounts. In light of this, we’ve compiled a list of the best car insurance discounts from State Farm, GEICO, Allstate, Progressive, Farmers and Nationwide to help you get cheap coverage. Read on to learn about all the different types of discounts as well as how to get lower rates on car insurance!
- 1 Car Insurance Discounts Comparison
- 2 How To Get Discounts on Car Insurance
- 2.1 Increase Your Deductible
- 2.2 Multi-Policy and Multi-Car Discounts
- 2.3 Safety Device Discount
- 2.4 Student Drivers – Good Grades
- 2.5 Defensive Driving Classes
- 2.6 Payment Methods – Pay Annual Premiums
- 2.7 Claim-Free Discount – A Clean Driving Record
- 2.8 Maintain A Good Credit Score
- 2.9 Car Storage – Use A Garage
- 2.10 Low Mileage Discounts
- 3 Best Cheap Auto Insurance Rates
Car Insurance Discounts Comparison
After reviewing this list, you may realize that there are some car insurance discounts you aren’t taking advantage of. If you’re unhappy with your current company or want to lower your rates, maybe it’s time to start shopping around. Just enter your zip code above, choose a company, and start a car insurance quote online. At the very worst, you can use the free quotes from different companies to negotiate with your existing carrier and lower your payments.
|For bundling car insurance with other policies, such as life and home insurance.|
|For insuring more than one vehicle.|
|For being a loyal customer with a company for a certain period of time.|
|For anti-theft devices such as alarm systems.|
|For safety features such as air bags and seat belts.|
|For hybrids or alternative-fuel vehicles.|
|For new cars equipped with the latest safety technology.|
|For a clean, accident-free driving record.|
|For taking a defensive driving course.|
|For young drivers earning good grades.|
|For driving less than the average American.|
|For members of the United States Armed Forces.|
|For belonging to a certain group, occupation, university, company, credit union, etc.|
You will quickly notice that the most popular discounts on car insurance are:
- Multiple policies (bundling)
- Safe driver
- Defensive driver
- Good student
- Automatic payments
How To Get Discounts on Car Insurance
With the amount of competition and transparency in the insurance industry, it shouldn’t be difficult for consumers to get discount auto insurance. However, qualifying for multiple discounts from your company doesn’t necessarily mean you are getting the cheapest car insurance.
If an insurer starts out with expensive premiums and discounts your rate, you may still be paying more than another company’s starting price. This is why it is always important to compare car insurance quotes once a year and make sure you are consistently getting the lowest rates in the market.
Whatever your situation, the following strategies will provide you ways to lower your car insurance rates and get a discounted policy.
Increase Your Deductible
Increasing the deductible on your car insurance policy can save you hundreds of dollars a year in premiums. In fact, by increasing your car insurance deductible from $500 to $1,000, you can cut annual premiums by as much as 20 percent.
Multi-Policy and Multi-Car Discounts
All car insurance companies offer multi-policy and multi-vehicle discounts for individuals who have more than one vehicle or policy insured with the company. This auto insurance discount extends to customers who buy home or life insurance from a single carrier. How much you save depends on your state and insurer, but both types of policies will get discounted.
Safety Device Discount
Every company recognizes and appreciates drivers who are safety conscious. When it comes to getting affordable car insurance, buying a vehicle with safety devices such as anti-lock brakes, anti-theft or alarm systems, electronic stability control, traction control systems, rear parking sensors, GPS, and air bags will get you the cheapest car insurance quotes. With new car purchases, be sure to mention these safety features to your insurer and save up to 33 percent with discount car insurance.
Student Drivers – Good Grades
Most of the best car insurance companies offer what is known as the “Good Student Discount”, which provides lower rates for full-time high school, college, or university students under the age of 25 who maintain at least a 3.0 GPA or minimum “B” average. With the good student driver discount, you can save up to 10 percent on liability, collision, and medical payments coverages.
Defensive Driving Classes
Commonly referred to as the “Defensive Driver Discount”, this perk applies to older drivers age 50 and up who complete a defensive driving course approved by their state’s DMV. This discount can save you up to 10 percent on select coverages, which vary by state. Often, the safety class is good for 3 years before you have to retake it.
Payment Methods – Pay Annual Premiums
If you are financially able, then by all means, pay your car insurance premiums upfront and in full. Instead of making monthly car insurance payments, a paid-in-full discount can save you up to 10 percent on your annual premiums.
Car insurance companies also offer a discount for drivers who pay their premiums electronically or have their payment debited from a checking account, so consider that option if you are eligible.
Claim-Free Discount – A Clean Driving Record
Drivers with near perfect or clean driving records often have a better chance of buying the cheapest car insurance. By maintaining a clean record devoid of accidents, speeding tickets, or traffic violations, companies can be confident that insuring you won’t result in a claim. A claim-free discount can save you up to 25 percent.
Maintain A Good Credit Score
Individuals with good credit find cheaper auto insurance quotes. Many of the top companies have found a strong relationship between a good credit history and a general sense of responsibility and discipline. Ultimately, insurers believe a high credit score is an indication of a low-risk policyholder.
Car Storage – Use A Garage
Simply obtaining a lease on a garage (or building one at home) and letting your company know that your car is parked there can result in discount car insurance. A garage reduces the risk of weather damage and theft, especially in urban areas with moderate to high crime rates.
Low Mileage Discounts
If you don’t spend a lot of time behind the wheel, then maybe it’s time to consider applying for a “Low-Mileage Discount” for infrequent drivers. If you are retired, a senior citizen, or regularly use public transportation, you may qualify. Low mileage discounts typically apply to drivers who commute less than 6,000 miles a year, saving them up to 15 percent with some car insurance companies.
Best Cheap Auto Insurance Rates
If you think you qualify for a specific discount but your agent or company hasn’t offered it to you, be sure to give them a call and remind them. Following the tips above will ensure drivers get as many discounts on their car insurance as possible.
To test our car insurance tips, we encourage you to get free car insurance quotes from the best companies in the country. By comparing rates, policies, and carriers, we ensure our users find the best, cheap auto insurance available in the market. Enter your zip code to begin a car insurance quote now.