If you think that you’re paying too much for car insurance, it could be that you’re not asking the right questions. You see, many car insurance companies offer a number of discounts that aren’t well advertised. After all, if the insurance underwriter can get your business without having to give up much of anything, why would they reveal them?
So in this article, I’m going to give you 11 discounts that you should ask your auto insurer about if you think you qualify. Some of them are quite popular but there are a few that might surprise you.
1. Multiple vehicle discount – If you have two or more vehicles insured with multiple insurance companies, consider rolling them under one policy with one insurer. When you do this, the insurance company will generally apply a discount automatically.
The only time you won’t get the discount is if a vehicle is in storage and doesn’t have personal liability and property damage coverage. And if you have a lot of cars you want to insure, ask the underwriter at what point will the discount stop being applied. But depending on the number of vehicles, you could save up to 25% on premiums.
2. Multiple policy discount – By having your auto, home, life, motorcycle, boat and anything else insured with one company, you’ll qualify for a multi-policy discount. Depending on the insurance company, you could save up to 50% in total. Be sure to shop around if you fall into this category.
3. Safe driver discount – If your recent driving history is free of accidents and lots of speeding tickets, insurance companies will reward you. They love safe drivers. So you can save up to 40% on your insurance.
4. Senior citizen discount – Automobile insurance companies know that people who are age 55 and older don’t drive as much as much as 20-something whipper snappers. Plus the senior age group is less prone to get into accidents. So this discount could save you up to a 10%.
5. Good student discount – If your young driver is a solid, upstanding teenager who gets good grades in school, that could result in a saving of up to 10% on your insurance.
6. Occupational discount – Are you a teacher, police officer, nurse, doctor, or local, state, or federal government employee? Pretty much any position that is healthcare, law enforcement, education, or government related could save you money.
7. Military discount – Just about all insurance companies love to support our military personnel. So if you’re an active or retired military member or veteran, ask your auto insurance company if they offer a discount. If they don’t, check with their competitor.
8. Farm vehicle discount – If you reside in a rural area and your vehicle is primarily used on the farm, you could qualify for an insurance discount.
9. Insurance continuation discount – This is also referred to as maintaining “persistence”. Insurance companies don’t like to see breaks where you’ve had no insurance coverage on your vehicles. It makes them wonder what was going on. Was it due to debt issues? So if you have an unbroken history of maintaining auto insurance coverage, they’ll give you a discount.
10. Theft prevention discount – Does your car have a gps tracking device or other anti-theft features? If so, that could save you up to 10% on your auto insurance.
11. Safe features discount – This would include features such as anti-lock brakes, air bags, daytime running lights, etc. You can get a discount of up to 30% off your premiums for having them.
12. Defensive driving course completion discount – If you participate in an approved defensive driving course, some insurance companies will reward you with a discount on your insurance of up to 10% off.
13. Early switching discount – The auto insurance industry is super competitive. So they are constantly poaching from each another. One of their techniques is to give you an incentive to cancel your current policy and switch to theirs. Some companies will give you a 10% discount on the new policy.
14. Full pay discount – If you currently pay for your car insurance on a monthly or quarterly basis, you may want to switch to paying it in full for the year. This can result in a savings of up to 10%.
15. Easy pay discount – Some insurance companies will give you a 5% discount on your insurance if you sign-up to have payments automatically withdrawn from your checking account.
So that’s fifteen car insurance discounts that can save you a bundle. One or more of these tips is bound to apply to you. If nothing else, I’ll bet you could take advantage of the full-pay or easy-pay discounts. The best strategy is to discuss applicable discounts with your current insurance company, and if they won’t budge then talk with the competition.