Little-Known Auto Insurance Discounts

These days you have to be really wise, especially when it comes to your finances. Spending on your car and its insurance coverage is no exception to this. Wouldn’t it be great if you can get the cheapest auto insurance possible? To do this, you must shop around. You can ask for help from people who can point you to the right direction, or you can log on to the Internet and do your research. There are many auto insurance discounts you might be eligible for, and you must be aware of them.

Schooling: If you’re a full-time student, you can hit two birds with one stone by maintaining grades that average at least a B in school. The first benefit is you can be eligible for the “good student discount,” which most insurance companies offer. The second benefit? You might just receive a school scholarship for your excellent academic performance. Other school-related discounts include being a college or 4-year university graduate, and being a current graduate school student.

Your occupation and membership in some professional organizations: Some insurance companies offer discounts for federal employees, teachers, members of the National Guard or the military, and members of organizations like AAA.

Minding how you spend and pay bills: Maintain a good credit score, and pay all of your bills, whether car-related or not, on time. For your car insurance, if you regularly renew with the same company, insure multiple vehicles with them, and pay your premiums in a single lump sum, your insurance company will surely be impressed. Increase your deductible, and this alone may give you ten to fifteen percent discount.

Car equipment and usage: Insurance companies love safe drivers. It makes sense that if you don’t use your car that much, its annual mileage maintained at, say, 6,000, then you’ll encounter accidents less. Carpool. Ask to be driven by or drive for your spouse. When you do drive, make sure you know all the road rules and regulations and follow them. Complete a defensive driving course, even an approved motorcycle safety course if you have a motorcycle. And if you’ve got complete safety equipment — airbags, daytime running lights, automatic seat belts, car alarms, anti-lock brakes, and whatnot — all the better. Your insurance company will be giving you your much-needed discount with both hands and a wide smile.

Other factors: You can also get auto insurance discounts by having your VIN etched on your car window, being a resident where there is low crime rate and mild traffic such as in rural areas, and having your homeowner’s insurance moved to the same company that provides your car insurance.

How many of those discount qualifications do you have? Lucky you if you’re qualified for more than half of them. There may be others you’re not aware of, but for these, just ask each insurance company you speak with, and they’ll certainly be more than happy to talk you through them.

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4 Responses to Little-Known Auto Insurance Discounts

  1. Laurence says:

    There are also:
    – low mileage discount
    – good driver discount
    In MA, I can get a discount if I provide my public transportation passes for the previous year.

  2. Gail says:

    We get a discount because of the university my hubby graduated from. ASK!

  3. Jennifer Nelson says:

    I’m an insurance agent in NJ. We have discounts for things like:
    * Paperless Billing
    * Signing up for your new policy at least 7 days before you need it to start.
    * Choosing your health insurance to pay your medical bills if injured in an accident
    We also have many of the discounts listed above.

  4. linda lewallen says:

    This year I removed my ex husband’s name from the policy, I have been divorced for 18 years. Met Life suddenly decided that I was single and divorced and therefore a higher risk and raised my rate by $55/month?!!

    How do they get away with this type of discrimination? Above all what can I do about it. To whom can I complain?

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