Car insurance premiums can be high, but many insurance companies offer discounts that can help you save money. While some discounts, like those for safe driving or bundling policies, are well-known, there are several lesser-known discounts that could significantly reduce your premium. Here are some top car insurance discounts you might not know about.
1. Low Mileage Discount
If you drive fewer miles than the average driver, many insurance companies offer a low mileage discount as you’re considered to be at a lower risk for accidents.
- Who Qualifies: Drivers who drive below a set annual mileage limit, often between 7,500 and 10,000 miles per year.
- How to Get It: Some insurers require you to verify mileage with a monitoring device, a mobile app, or by submitting odometer readings.
- Tip: If you work from home or use public transportation frequently, ask about this discount as it could lead to significant savings.
2. Pay-in-Full Discount
Some insurers offer a discount if you pay your entire premium upfront instead of opting for monthly or quarterly payments.
- Who Qualifies: Anyone willing to pay the premium for the full term (usually six or twelve months) in one lump sum.
- How to Get It: Ask your insurer if they offer a pay-in-full discount and calculate if it fits within your budget.
- Tip: Paying in full may save you around 5-10%, and it also helps you avoid additional service fees associated with installment payments.
3. Paperless Billing and Auto-Pay Discounts
Insurance companies may provide discounts for enrolling in paperless billing or setting up automatic payments.
- Who Qualifies: Most policyholders; simply opt-in for digital statements and set up autopay from your bank account.
- How to Get It: Contact your insurer to enroll in paperless billing and auto-pay, which is often easy to do through an online account.
- Tip: These discounts might be small, but they add up, and going paperless is also environmentally friendly.
4. Advanced Quote Discount
Some insurance companies reward drivers who get a quote in advance of their policy start date, often one to three weeks before coverage is needed.
- Who Qualifies: Drivers who shop for insurance before their current policy expires.
- How to Get It: Shop for quotes early, ideally two to four weeks before your current policy’s end date, to qualify for this discount.
- Tip: This discount can reduce your premium by as much as 5-10% just by planning ahead.
5. Occupational Discount
Your profession may qualify you for a discount, as some insurers offer reduced rates to professionals in certain fields who statistically have lower accident rates.
- Who Qualifies: Teachers, nurses, engineers, military personnel, and first responders often qualify, though eligible occupations vary by insurer.
- How to Get It: Let your insurance company know your occupation, and ask if you qualify for a discount.
- Tip: Some companies also offer discounts for professional memberships or alumni associations, so be sure to mention any affiliations you have.
6. Vehicle Safety and Anti-Theft Discounts
Many insurers offer discounts if your car is equipped with safety features or anti-theft devices, as these reduce the risk of theft and accidents.
- Who Qualifies: Drivers with cars that have features like anti-lock brakes, airbags, electronic stability control, and anti-theft systems.
- How to Get It: Provide information about your car’s safety features when you get a quote or update your policy.
- Tip: Installing an anti-theft device or dashcam in an older car can sometimes qualify you for this discount as well.
7. Defensive Driving Course Discount
Completing a defensive driving course can demonstrate safe driving skills and may lead to a lower premium.
- Who Qualifies: Drivers who voluntarily complete a certified defensive driving course. This discount is particularly beneficial for young drivers and seniors.
- How to Get It: Ask your insurer which courses they recognize, and provide proof of completion.
- Tip: Some insurers may even offer their own online courses, and the discount can last for multiple years.
8. Green Vehicle Discount
If you drive a hybrid or electric vehicle, you may be eligible for a green vehicle discount, as these cars are often associated with lower accident and theft rates.
- Who Qualifies: Owners of electric, hybrid, or fuel-efficient vehicles.
- How to Get It: Let your insurance company know if you own an environmentally friendly vehicle.
- Tip: This discount may not be offered by all insurers, so if you have a green vehicle, ask specifically about this option when shopping for insurance.
9. Good Student Discount
Young drivers (typically under 25) who maintain good grades in school can qualify for a good student discount.
- Who Qualifies: High school or college students who maintain a B average or higher.
- How to Get It: Provide proof of academic performance, such as a report card or transcript, to qualify.
- Tip: This discount can be substantial—sometimes up to 20%—making it one of the best ways for young drivers to save on insurance.
10. Accident-Free Discount
If you have a clean driving record with no accidents over a certain period, your insurer may offer a discount as a reward for your safe driving.
- Who Qualifies: Drivers with no accidents or claims over a period of three to five years.
- How to Get It: Maintain a clean record, and check with your insurer about how long you need to be accident-free to qualify.
- Tip: This discount typically increases the longer you go without an accident, so safe driving pays off.
11. Loyalty or Renewal Discount
Staying with the same insurance company for several years can sometimes earn you a loyalty discount or a discount for renewing your policy.
- Who Qualifies: Long-term policyholders who renew with the same insurer.
- How to Get It: Simply renew your policy each term, though some insurers apply the discount automatically.
- Tip: Even with a loyalty discount, it’s still smart to compare rates occasionally to ensure you’re getting the best deal.
12. Family or Multi-Policy Discount
Some insurers offer a discount if you add family members to your policy or have multiple policies with the same company.
- Who Qualifies: Households with multiple cars or multiple family members on the same policy.
- How to Get It: Contact your insurer to combine family members or policies for a multi-policy discount.
- Tip: If you have young drivers or new drivers in the family, combining them on the same policy may save money over getting separate policies.
13. Alumni or Professional Organization Discounts
Many insurance companies offer discounts to members of specific alumni groups or professional organizations.
- Who Qualifies: Members of alumni associations, professional organizations, or affinity groups that have a partnership with the insurer.
- How to Get It: Provide your membership details when signing up or renewing a policy.
- Tip: If you belong to multiple groups, ask your insurer which affiliations qualify. These discounts are often small, but every bit counts.
14. New Customer Discount
Some insurers offer a new customer discount as an incentive to switch to their company.
- Who Qualifies: Drivers switching from a competitor to the new insurer.
- How to Get It: Check with the insurer when you’re getting a quote and ask about discounts for new customers.
- Tip: This discount might be temporary, but it can help reduce costs in your first year as you establish yourself with the new insurer.
Conclusion
Many lesser-known auto insurance discounts can add up to significant savings on your premium. By asking about low mileage, pay-in-full, green vehicle, or occupational discounts, you can tailor your policy to maximize savings. Take time to review your policy annually, and explore any new discounts your insurer offers to keep your rates as low as possible. With the right combination of discounts, you can enjoy affordable and comprehensive auto insurance coverage.