Are you looking for the biggest car insurance discounts? By the time you finish reading this article, you will know how to maximize all available discounts to your advantage.
Buying car insurance can be expensive, but does it have to be? Well, you can knock down your premium by taking advantage of discounts.
When you contact a car insurance company, make sure to always ask about available discounts. Every insurance company will give you discounts depending on what you qualify for.
You can cut your total policy cost by up to 40 percent, depending on if you qualify, the discount type and the insurer.
According to the Insurance Information Institute and Investopedia, these are the biggest car insurance discounts.
Ways to Get Car Insurance Discounts
- Shop Around Before You Buy
- Group Insurance Discount
- Multi-Policy Discount
- Multi-Car Discount
- Good Student Discount
- Homeowner Discount
- Customer Loyalty Discounts
Shop Around Before You Buy
Shopping around and comparing quotes will certainly pay off. That’s because prices vary from company to company. The best decision you can make is to get at least three price quotes from different companies.
You can call insurers directly or get information online. For example, Geico can help you get a quote for free.
Keep in mind that price is not the most important thing to look for. Before you buy a car and obtain insurance ask your friends and family for recommendations. You can always contact your state’s insurance department if you need more information about the company you picked. Also, you can speak with the insurance company directly if you have any specific questions.
Group Insurance Discount
Some companies can offer you price reductions with a group plan. Such group plans may be available to you from your employer, clubs, or associations that you are a part of.
Make sure to ask your employer to see if a group insurance discount is available to you.
This type of discount is also referred to as bundling. It’s still one of the biggest discounts you can get in 2021. To bundle your insurance policies means to purchase at least two types of insurance from the same issuer. To give you an example, you can buy auto and home insurance, which will usually give you the largest multi-policy discount. At insurers such as Allstate, the discount can reach as much as 25 percent.
Of course, you can bundle other types of insurance policies as well, like life insurance and auto insurance, but you typically get a smaller discount for that. Rarely will you be able to get a better deal with two different insurance companies. So, do you own a home? If you do, may want to consider an insurance issuer who can package your home and car policies.
Another significant discount is the multi-car discount. If you insure two vehicles together, you can pay a lower rate compared to insuring them individually. Buying insurance policies for two or more vehicles from the same issuer will get you a multi-car discount, which can be as high as 25 percent at insurers such as Geico. Of course, first, you should ask the insurance company if they offer this service.
Good Student Discount
This discount is only for full-time students with good grades. Typically, you need at least a 3.0 GPA or higher for high school or college students. Issuers who offer good student discounts will want you to prove your good grades to them somehow. Those discounts can be as much as 25 percent and you need to be less than 25 years old to qualify.
Generally, young drivers pay higher rates. That’s why some insurance companies have decided to reward good students with a discount. They assume that young drivers who are responsible in school may also be responsible drivers and statistics prove that this is true.
You may be surprised to learn that owning a home can get you an auto insurance discount. Insurance companies offer this discount even if the client purchased home insurance from another company. The reason is that homeowners tend to be more stable than renters.
If you are a homeowner, you can claim this discount and combine it with the multi-policy discount to achieve maximum results.
Customer Loyalty Discounts
If you are a long-time customer or you have more than one insurance policy, you can get rewards for your loyalty. You may qualify for a discount when you move one of your insurance policies to your auto insurance company.
A little advice about loyalty discounts you should be aware of: There are car insurers who use a practice called “price optimization.” They charge their loyal customers higher rates due to the fact that they are not likely to switch companies.
For that reason, it’s very important to compare auto insurance rates on a regular basis. That is because your final rate may still be higher at your current company even with a loyalty discount applied.
In conclusion, speak to your car insurance company to see if there are any other discounts you may qualify for. You can contact them via phone or the internet.
Remember to review your car insurance at least once per year. Even though discounts save you money, always remember to look at the total cost. It’s much more important than the number of discounts you receive.
Remember this last piece of advice: The best way to keep your premium low is by maintaining a clean driving record and having a good credit score. These two factors can save or cost you tons of money.
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Renee Valdes contributed to this report