Car Insurance Savings: How to Get Them & How Much

Many motorists are still struggling with high vehicle insurance costs. They would be happy to know that there are many discounts available if you know where to look and how to ask for them. Drivers may believe that traditionally you can only get discounts if you have no claims, good driving history, live in a safe neighborhood, drive less and have a safer automobile.

While these savings are still available there are many others that you can get with hardly any qualification requirements. Here are some of those discounts;

No Claim Discount

How to get: You just need to be a careful driver with no at-fault claims for certain period of time. Savings and qualification requirements vary depending on the company. Most companies offer large discounts for drivers with no claim in the last 3 years and some offer after 5 years. You start getting discounts after the first claim free years but you get the maximum savings after a long period of no claims. Some companies mainly look at the policyholder and others look at other listed drivers as well. Also, none of the listed drivers should have DUI/DWI conviction.

Furthermore, some companies may overlook comprehensive claims under $1,000 and glass claims. They may also overlook some no fault claims depending on the circumstances and company. And this no claim records are usually transferable. In other words, you don’t have to stay with the same company in these periods to qualify for the savings. You may be asked to confirm previous insurance coverage or offer proof of no claims.

How Much: These discounts are usually large starting from 10% all the way up to 30%.

Discount for Full Premium Payment

How to get: Simply pay your premium in full at the start. Most credit cards don’t charge any interest for up to 60 days if you pay back at the end of this period. Get credit from your credit card instead of an insurance company or its finance partner.

How much: Some companies are keener to get the money quickly than others. You can find companies that offer you as much as 10% savings for immediate payment, usually 5- 10%.

Online Purchase Discount

How to get: Get a quote and buy online. It is that simple. This discount is available with many top auto insurers.

How much:  You can get around 5% savings or a dollar amount rebate.

Multiple Policy Discount

How to get: There are several ways of qualifying for this discount. Normally, you get it if you buy another policy from your current insurer. Even teenagers can benefit from this discount. If they live with parents, their parents’ current insurer is generally happy to offer discounts to children.

Also, there are multi-car policies that are designed for insuring several vehicles on the same policy.

How much: This would depend on the company and additional policies bought. And the good thing is that you will probably get discounts on both polices, the current one and the new one you just bought. You can expect around 10% savings. Savings can be a little bit more with a multiple cars policy and it would not stop you from receiving discounts for buying other policies from the same insurer.

Discounts for Switching

How to get: Switch & Save is actually a trademark of Esurance. However, many companies offer discounts to new policyholders to entice them to switching. You will have to say goodbye to your current insurer and move to a new company. With Esurance you can get this discount for your first policy on your name or the first policy after coming back to the United States from overseas services.

How much: This savings are between 5 and 10%.

Discounts Offered to Homeowners

How to get: Usually owning your home (or it is owned by your spouse) qualify you for auto insurance savings. (This is different from combining auto and home policies which is covered above under multiple policies). Occasionally you may need to provide proof of ownership which can be done in several ways. Most mobile homes may not qualify or have harder qualification requirements.

How much: It varies a lot depending on the state, insurance company and drivers. Some companies may offer lower rates instead of a set discount that would deliver the same outcome: low premiums.

Roadside Recovery Discounts

How to get: Your membership to a roadside assistance service (from AAA or the National Automobile Club) can save you money on vehicle insurance.

How much: About 5%.

Education and Profession Based Discounts

How to get: Several auto insurance companies offer discounts to people with university degree or respectable profession. For example, USAA offers discounts for military personnel and GEICO has discounts for the members of various professions and associations.

Discounts can start from the moment you join the university. For example, Esurance offers automobile insurance discounts to people attend or graduated from these universities; University of Arizona, Arizona State University, University of California at Berkeley, University of Colorado Boulder, University of Oregon, Oregon State University, Stanford University, University of California at Los Angeles (UCLA), University of Southern California (USC), University of Utah, University of Washington, Washington State University.

How much: Usually discounts are between 10 to 15%.

Auto Insurance Discounts for Drivers

Your driving record is one of the key factors affecting car insurance rates. A good record that shows you are a cautious and reliable driver goes a long way in terms of saving money on vehicle insurance premiums. Here are some of the discounts offered to reward good drivers.

Good Driver Discount

How to get: When you have had your driving license for at least 3 years and you have no penalty points on your driving record. One point may be overlooked by some companies.

How much: Total savings can be between 25 and 40% that makes this one of the biggest discounts you can qualify.

Defensive Driver Discount

How to get: This discount is rewarded to drivers who completed a driver improvement or defensive driving class. Usually these discounts are offered to mature drivers of (50, 55, 60 and older depending on your state). In New York, New Jersey, Georgia and Oklahoma the discounts are available to all drivers regardless of age. In South Carolina, minimum age requirement is 25.

Discount may not be offered if you are taking the course because you are forced by a court order. The discount can be cancelled if you have an at-fault accident or serious moving violation.

How much: This could be up to 10% for certain coverage types. And they may be offered for three years from the date of driver safety course in some states.

Good Student Discount

How to get: Full time students under the age of 25 with good grades can qualify for good student discount. Most companies see a correlation between being a good student and a good driver and therefore offer savings.

How much: About 10% which is a lot of dollars off a teenage auto insurance premium.

Car Insurance Discounts for Automobiles

Automobiles with all the safety and security features are recognized and rewarded with discounts offered for the type of car you drive. Good automobiles help drivers in many ways. They prevent accidents and when it happens they protect passengers better. They also deter thieves thanks to security features they have.

These are factors that reduce number of claims, injury and property damages auto insurance companies have to pay for. When companies see something that reduces their risks they usually reward it with premium savings.

Anti-Theft Discount

How to get: Insuring an auto that has approved theft prevention devices will get you discounts. This could be a car alarm in some states while in others it would mean a vehicle recovery system like Onstar or LoJack.

How much: Depending on what type of anti-theft devices you have and where you live, you can save between 5 and 25% on your Comprehensive Coverage.

Safety Device Discount

How to get: Cars with manufacturer-installed airbags and automatic seat belts would receive discounts.

How much: This will depend on your state and number and quality of safety features. Typically you would receive between 5 and 30% off your Personal Injury Protection Coverage.

Antilock Brakes and Other Safety Features

How to get: Insuring a car with antilock brakes and other safety features will qualify you for savings.

How much: 5 – 10%.

Check Your Savings with Auto Insurance Quotes

These savings will vary considerably depending on which company you get quotations from. The best thing to do is to get several quotes and see which company offers cheap auto insurance. When you see a good premium quote from a top insurer you may not care how you got it. But knowing these details help you prepare for safer driving and lower premiums.

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