There are several ways to reduce your car insurance premiums. Examples include increasing deductible, reducing coverages, reducing benefits, bundling auto and homeowners insurance, using usage based insurance or telematics, shopping around, negotiating hard, purchasing a group plan and even reducing mileage.
But all these methods may require you to compromise on aspects such as quality of coverage, purchase convenience or on your time involvement. Let’s look at some of the discounts that insurers offer right on the table, but you never asked for it simply because you never knew it – until now.
1. Accident-free Discount (Potential: 20-40% discount)
Good driving means reduced risk, and reduced risk translates to reduced premium. Simple logic that some insurance companies use to offer discount to drivers who have a record of safe driving consistently over a period of years.
2. Defensive Driving Course Discount (Potential: 8-10% discount)
Some insurance companies will offer you a discount if you have successfully completed a defensive driving course. You may also be able to use this course to reduce the number of points on your license. Make sure to seek advice from your insurance agent to ensure that you are going in for an accredited defensive driving course and that the carrier will accept it as a discount.
3. Safety Device Discount (Potential: 15% discount)
If your car has been installed with safety devices such as anti-theft alarm, anti-lock brakes or extra airbags, you might be able to get a discount. Speak to your insurance agent to find out which specific devices when installed, can lower premiums.
4. Good Student Discount (Potential: 8-10% discount)
If you are under 26, still in school and do maintain a certain grade point average, you may be eligible for a ‘good student’ discount. Taking advantage of student-related discounts is important given the higher insurance premiums that such young adults are charged. The logic behind this discount is that if a student is spending a lot of time on studies, then there will be tendency to be cautious with driving and towards car safety.
5. Military Discount (Potential: 15% discount)
If you are military personnel, whether active, currently deployed or retired, you may be qualified for lower premiums. Some insurance companies offer this discount to members of the military, the National Guard or the Army Reserve.
6. Payment Method Discount (Potential: 5% discount)
Some insurance companies offer discount if you opt for upfront payment or for online payment or for setting up automatic withdrawal from your bank account. These payment methods reduce the administrative overheads for insurance companies, some or all the benefit of which they pass on to the customer. So, it’s a win-win for all.
7. Early Quoting Discount (Potential: 5-10%)
If you are thinking about moving from one carrier to another, consider letting your agent know early so that they can get you quotes that are at least 7 to 10 days before your old policy expires. Many carriers like advanced quoting and offer discounts for doing it early.
Having listed the discounts, it is to be noted that an insurer that offers few discounts may still have a lower overall price. So, the focus should be on the final price, for a given quality of risk and customer service.
Contact us to find out more about these and other similar discounts, and which insurance companies offer them. You can call us on 800-903-8690 or 972-293-2139 or contact us online here.