Owning a car is useful for someone who wants to travel around town at their own pace. When choosing a car, many consider its selling price, registration fees, and taxes. What they forget about, however, is the insurance cost. Car insurance premiums are a recurring expense one must bear for as long as one owns the vehicle. While insurance can be expensive, there are ways to get a good deal and save money.
Multi-policy discounts
An easy way to get discounts is by bundling auto insurance with other policies, like life or home insurance. Several insurers offer discounts ranging from 5% to 25% for customers who bundle policies, leading to substantial savings. So, when buying car insurance, one must ask the company whether they have such multi-policy discounts. That said, to qualify for such savings, one will have to buy a car, home, and other types of insurance from the same company.
Safe driver discounts
Another way to reduce auto insurance premiums is to maintain a clean driving record. Companies usually offer insurance discounts to drivers who have always driven carefully in the past and haven’t violated traffic rules. Depending on the insurer, safe driver insurance discounts may range between 10% to 40%. The exact savings percentage will vary from person to person based on their driving history. However, to be eligible, one must prove that they have been accident-free for a certain period, like three or five years.
Low-mileage discounts
People who do not drive a lot may qualify for low-mileage car insurance rates. The idea is that less time spent on the road equals a lower risk of mishaps. Every insurance provider may have a different mileage threshold, but customers will likely be eligible if they drive fewer than 7,000 miles per year. When signing up for such a program, one may have to provide an estimate of their odometer readings.
Student car insurance discounts
Young drivers still pursuing their education may also be eligible for discounts. For instance, if someone maintains a high GPA consistently, they may be eligible for a “good student” car insurance discount. In some scenarios, the price slash on the premium can be as high as 25%. However, such programs are typically applicable only till students turn 25. Also, the qualification is subject to providing a transcript or proof of good grades to the insurance provider. Some providers may offer this uncommon car insurance discount only to students who are enrolled full-time.
Higher education discounts
Car owners may also qualify for a discount if they can prove they have completed their higher education. A higher education degree, such as a bachelor’s degree, proves one is old enough to drive safely. Those who produce such degrees may, thus, stand a chance to score additional discounts.
Vehicle safety and anti-theft discounts
A car with advanced safety features or anti-theft devices may qualify for a lower insurance premium. That’s because such vehicles are less likely to meet with a mishap or be stolen. Lane departure warnings, airbags, and car alarm systems are a few things insurance providers consider when providing customers with this discount.
Full or automatic payment discounts
Paying a premium in full rather than in installments is an ideal way to save on insurance. An insurance provider may offer discounts between 6% and 14% to policyholders who sign up for full payments. If one cannot help but make monthly installments, they can at least choose an auto-pay plan. People who make automatic monthly premium payments sometimes earn discounts. So, one should ask the company about discounts for paying in full or setting up auto-pay.
Early renewal discounts
A policy renewed early (before expiration) may yield additional discounts. Many insurers provide incentives for early renewals, which may result in up to 15% savings. The exact savings percentage can vary depending on the insurance company and how early one renews their plan.
Marriage discounts
Safety risk is among the most important factors affecting car insurance premium rates. Reports show that married couples and those with family responsibilities are more likely to drive safely and follow traffic rules. Such customers could pay 4% to 10% less on car insurance.
Telematics device discounts
Some insurance providers install telematics devices on their customers’ cars to collect information about driving habits. If the recorded telematics data indicates that the customer drives safely, they may enjoy additional discounts. Telematics devices may also be used when offering usage-based insurance. Here, the premium is calculated based on how many miles the car is driven within a predetermined period.
Membership discounts
This discount is offered to customers who are part of certain organizations, such as the American Automobile Association (AAA) and the American Association of Retired Persons (AARP). The savings can range between 10% to 15%. Other organizations that offer membership discounts include alumni associations, credit unions, sororities, and fraternities.
Auto insurance is essential to safeguard one’s financial interests in case of a mishap. Whether new or pre-owned, every car must be insured. These car insurance savings tips can help one get a good deal and avoid financial strain.