Insurance companies are not known to be friendly to customers most of the time. However, it is a very necessary factor in Car ownership. To drive, you need to ensure your car, and finding the right insurance to buy can be very frustrating.
We’ll look at some of the car insurance discounts offered to help you with the best possible choice below:
1. Loyalty Discounts:
If you have been with your insurance company for a while and think you deserve a little compensation for staying put, then you are ripe for a loyalty discount.
Ask your insurance company whether such a discount is offered in the first place and how long it’ll take for you to be eligible.
They normally give this discount after a specified period of time and some companies normally increase the discount, the longer you stay with them. This discount depends entirely on the company and it may vary depending on the state in which you live.
Some states such as Maryland and Ohio frown upon companies evaluating consumers based on their loyalty.
2. Good Student Discounts:
Based on your academic prowess as a student, you are eligible for the Good Student discounts in some insurance companies. Some also offer discounts to all students.
This discount is liable to the discretion of the insurance company.
They sometimes require proof of good grades from the policyholder usually the parents.
3. Bundling or Multipolicy Discounts:
When you buy two or more policies, most insurance companies would give you some discounts. You can bundle homeowners’ insurance and recreational vehicle insurance.
You may be eligible for these discounts when you bundle two or more vehicles together.
Due to the way life insurance is regulated, it is excluded from bundling discounts. The more insurance you bundle, the more you’re able to save. You are more likely to get a bundling discount from a bigger insurance company than a smaller one.
You might want to seek out this discount before making your decisions. The nationwide average saving for a bundling discount is 16% according to InsuranceQuotes.
4. Good Driving Discounts:
There are two types of driving discounts: discounts offered to drivers who have a clean driving record free of accidents and violations and discounts offered to those who partake in tracking programs.
The discount for maintaining a clean record is not so common as you might think. Using a device installed in your vehicle, insurance companies such as State Farm, Allstate, American Family can track your driving habits.
The device reports data like how often you drive, how fast you drive etc.
5. Defensive Driving Discounts:
You access these discounts after you go through approved driver courses. They’re quite common with large insurance companies. The companies normally set their own criteria for the qualifications.
You can check with your insurance company and find out what exactly is expected of you if you’re interested. Since you’ll have to pay for the course yourself, you might not be able to save much.
6. Employer/Affinity Group Discounts:
When you work for a company that negotiated a payment rate with an insurance company, you can qualify for an employer discount. This stops you from exploring other companies to access much lower rates. Some Affinity Groups include AAA or AARP, credit unions, and alumni associations.
These discounts can range from 5% to 20% depending on how negotiations were made between your group and the company. With some affinity discounts, you can get a flat percentage off and with others, you give up a certain level of control.
You’re not able to customize policies to suit your needs with affinity discounts and it is a predetermined group rate.
7. Teacher Discounts:
Teachers sometimes get special discounts and rates from a lot of major insurance companies. Some of these benefits include compensation for belongings stolen from the teacher’s car, deductibles on vehicles damaged on school premises waived off. Check with your insurance company to see whether you’re eligible if you are a teacher.
Military and Veteran Discounts
Military personnel and their families together with veterans most often receive special discounts from major auto insurance companies. Some of these companies include Nationwide, Geico, Farmers, Progressive, State Farm, and USAA.
USAA is a company set up specifically to serve the insurance and financial needs of military personnel, both active and inactive.
8. Safety Equipment Discounts:
These discounts are not as common as you would want. Most vehicles nowadays are heavily equipped with technology that minimizes the risk of accidents which decreases the amount an insurance company pays for injuries.
It is rare for insurance companies to offer discounts for cars with such technologies.
9. Low Mileage Discounts:
Some companies offer discounts for low mileage when customers opt into their tracking programs. It mostly considers the time you spend behind the wheels than actual mileage.
There are pay-per-mile options to consider for high-value vehicles that are driven on special occasions.
So above are some of the car insurance discounts you can get.