Auto Insurance Discounts Explained
There are many different types of auto insurance discounts available to drivers, depending on the specific circumstances and situations. Whether you’re a good driver or just have three policies with one company, you can save money on auto insurance. Here’s the breakdown of the typical discounts you’ll find at auto insurance companies.
Good Driver Discounts refer to the available savings for “good drivers.” According to the definitions of this discount, this usually means a driver has achieved one or more of the following:
• Accident/Violation free for 3 years
• Accident/Violation free for 5 years
• Traffic School/Defensive Driver Course on Record
Good Student Discounts are available to any person who is in school full-time and maintains at least a “B” average, according to most companies. It doesn’t matter whether the students are enrolled in high school or college, as long as they are in an educational setting of some kind.
Multiple Vehicle Discounts are offered when you have an auto insurance policy with more than one car or vehicle listed on the policy. By having all of your vehicles on the same policy, the insurance company will discount your rates, usually between 5% and 10%.
Multiple Policy Discounts give discounts to people who have multiple insurance policies with the same company. For example, if your home insurance and auto insurance are with the same company, each policy will receive a small discount. The more policies you have with a company, the more you can save. The most common combination is auto insurance and home or renter’s insurance.
Vehicle Safety Discounts are available for various safety features on your insured vehicle. For example, if your car has an anti-theft system or a premium airbag system, you can receive discounts on your auto insurance. Also, driving cars with good safety ratings can activate this type of discount on your auto insurance policy.
To receive any of the above discounts, you should always ask the insurance companies if you are eligible when you are shopping around. While most companies will automatically qualify you for these discounts and include them in your auto insurance quotes, some companies don’t include them until you inquire. For example, an auto insurance agent might not be aware that you have a home insurance policy with their company, so you might need to let them know in order to get a discount on your rates.
Most insurance companies offer these types of discounts, but not all of them will. The major companies all have discount plans available, but some of the smaller companies may not be as up-to-date on discounted auto insurance. Also, if you get insurance from a company that already sells discount auto insurance, you might not find these available because of their already low rates. It’s just a matter of shopping around and asking companies what’s available. If you invest the time and effort, you should find some great discounts on auto