As a savvy consumer, you should realize that the best auto insurance discounts are reserved for new clients. Why give you discounts when they already have your business? Because of this, it is typically in your best insurance to shop your auto insurance policy once a year. When you do, you should look for all of the hidden discounts that you might not know about that will save you money today. Here are a few of the things you can get discounts for.
Being Accident Free
It really goes without saying that this is the biggest thing that an insurer will give you a discount for. After all, they do not make any money when people get into accidents. If you are accident free, you should qualify for the best rates because you are the ones that make the company money.
Paying Up Front
You can often receive a substantial discount of hundreds of dollars by paying your entire annual premium at once instead of paying monthly. This might net be possible for everyone, but if you can swing it, inquire about payment in full discounts.
If nothing else, you would avoid that pesky monthly installment fee.
Having Multiple Policies
If you have other insurance like renters insurance or home owners insurance, you should ask about multiple policy discounts. They can add up to huge savings.
If you do not have other insurance policies, you could consider getting them just for the discount. You might, for example, be able to get life insurance for little to no cost because of the discount it gives you on your auto insurance.
The only caveat about bundling insurance policies is that it might make it a bit trickier to shop them in the future. More policies to move equals more headaches.
Getting An Anti Theft Device
If you have an anti theft device on your vehicle such as an alarm or LoJack, you might be able to get a discount. The savings might be small but every little bit counts when you are trying to save money.
You Don’t Mind Being Watched
Devices that track your driving habits are becoming very commonplace. How it works is that your insurance company will send you a device that you simply plug into your car. It will then monitor your driving habits over a set amount of time and then you send them the device. If you have been a good driver, you may get a premium reduction.
No Lapses In Coverage
It is an extremely bad idea to have a lapse in auto insurance coverage. Not only do you put yourself at risk from damages, but you also may increase your insurance premium in the future. Insurance companies view those with lapses as a higher risk so you could save money by keeping continuous coverage.
Insuring More People
If you are married, there is just about no reason that you and your spouse should not be on the same policy. You can get a nice discount for insuring more people because, obviously, it makes the insurance company more money. You might get a discount for adding children as well although the cost of their premiums will probably more than offset any savings you see. Kids are expensive but you already know that.
You Are A New Customer
By simply being a new customer, you could score a nice savings on your annual premium. They need to attract new clients and they might be willing to cut the price a bit just to get you. Keep in mind though that they are counting on you staying put when the policy renews and the discount will expire.
Having Good Credit
Another surprising way that your credit affects you. Like it or not, if you have bad credit you are going to pay more for car insurance. As part of your application, many insurers will run your credit. Have good credit and you will save.
Going Paperless
Most companies these days are trying to go green and save money. If you sign up for paperless billing you may be able to save. Many companies will push paperless billing but not give you anything for it so you will have to shop around.
Your Kid Is A Good Student
Good students are often good drivers so if your kid is making straight A’s, or close to it, be sure to tell your agent. The cost of insuring a teenager is huge so anything that you can do to drive that price down is well worth the effort.
You Don’t Drive Far
Many insurers will gauge their risk by the amount of miles that you drive. If you drive under 10,000 miles a year, you could be in for a nice little savings.
You Served Or Are Serving
As a member or former member of the military, you might qualify for a discount. Big companies like USAA were founded on the principal but other insurers are jumping on board, offering discounts for those with military experience.
Online Shopping Is Your Thing
If you do all your shopping online, you might be able to save on insurance when you do the same. It is much cheaper for a company when you interact with a computer instead of a person. Many will pass that savings on to you in the form of an online discount.
Owning More Than One Vehicle
The more you get insured, the more of a discount you can receive. The insurer wants to make more money and that is what more vehicles get them. Just like with adding drivers, overall the premium goes up but the cost per vehicle will go down the more you add.
