Types of Auto Insurance Discounts
Shown here is a list of 20 typical auto insurance discounts. This is by no means an exhaustive list. These are just some of the policy discounts that are available from many major providers, as well as quite a few regional carriers:
The Accident-Free Discount. This discount is for drivers who have not had an accident in at least three years, and were continuously insured the whole time. If you stay alert while behind the wheel, you should eventually be able to score this discount.
The Good Driver Discount: This discount is awarded to drivers who have not had any moving violations in the past three years. People who don’t drink are much more likely to score this discount than people who do.
The Good Student Discount: This discount is awarded to students who are enrolled full time in a high school or an accredited university, and who maintain a certain grade point average. Check several car insurance carrier websites or call to inquire for details regarding how good your grades have to be to qualify for this discount. Being a good student saves an average of 16% on car insurance premiums.
The Senior Discount: This discount is often available to people of ages 55 and older, based on the successful completion of a DMV-approved defensive driving course. This is good for a discount of 7%, on average. Senior citizens might also receive an additional discount by insuring their vehicles through the American Association of Retired People (AARP).
The Occupational Discount: This discount is approved for people whose professions suggest that they are careful drivers, at least in the eyes of auto insurance underwriters. Professional discounts are most often given to teachers, firefighters, police officers, taxi drivers, clergy members, auto mechanics, and insurance underwriters, to name just a few. People ineligible for this discount may include bartenders, deejays, drag racers, and daredevils. It’s hard to list all professions here, but you get the general idea. If you’re not sure, it might be worth your while to ask various carriers if your profession qualifies you for an occupational discount.
The Annual Mileage Discount: Some insurance carriers write policies with premiums based on the average number of miles driven in a year by the policyholder. Drivers who drive less than 15,000 miles per year may be eligible for this discount.
This type of policy discount may be a appropriate for younger drivers who attend school near where they live, perhaps even living on campus. This discount is also good for older drivers who work from home or close to home, for senior drivers who don’t go out much, for city drivers who have access to public transportation, and for anyone else who doesn’t drive too often. Only about one out of eight car insurance carriers offers this discount, but of you can get it, it’s good for a savings of 11%, on average.
The Passive Restraint Discount: This discount is given to drivers who have safety devices installed in their vehicles that are designed to protect people from bodily injury. Such devices may include dual airbags, automatic seat belts, antilock brakes, and other safety features. It’s a good idea to have these kinds of features installed anyway, discount or no discount. But just for the record, you can save 30% on car insurance just by having certain safety features installed, or by purchasing a car that already has these features. Check with several carriers to learn more about their safety feature discounts.
The Anti Theft Discount: This discount goes to policyholders who use particular anti theft devices, which reduce the chances of a vehicle being robbed, vandalized, or stolen. Approved anti theft devices may include items such as installed car alarms and wheel locks. Check with several insurance carriers regarding their anti theft device discounts.
The New Car Discount: This discount is applied to insurance policies on a vehicle that is less than 2 years old, and still has its original owner.
The Multi Vehicle Discount: This significant discount is given to drivers who insure more than one vehicle with the same insurance company. Multi vehicle policy discounts are not restricted to cars, but may also include motorcycles, boats, RVs, buses, and trucks, among other motor vehicles. Most online quote websites will ask if you have more than one vehicle. If you do, and if the vehicle’s insurance policy is with the same company, then your final quote will probably include a generous multi vehicle discount.
The Multi Policy Discount: This is kind of an expanded version of the multi vehicle discount. The multi policy discount is applied for policyholders who have more than one policy with the same insurance provider. This discount is for people who own homes, boats, valuables, and/or other vehicles. The discount can be as high as 10%. In fact, if you own more than one vehicle, don’t be afraid to ask for both discounts: The multi vehicle discount and the multi policy discount. If a company offers both discounts, then both discounts should apply to drivers who own more than one vehicle. Anyway, it couldn’t hurt to ask.
The Online Purchase Discount: This discount is automatically applied to insurance policies that are purchased online. Additional benefits of purchasing auto insurance policies online include convenience, flexibility, and cost effectiveness, among other things.
The Paypal Discount: This discount applies to people who maintain an active Paypal account. If you don’t already have a Paypal account, it’s easy and free to sign up. Having a Paypal account makes sending and receiving money much more convenient.
The EZ-Pay Discount: If you set up automatic withdrawals to your car insurance company from your bank account, you can earn an extra 5% savings.
The PIF Discount: The Paid In Full discount is applied if a policyholder pays the annual premium all at once and up front, as opposed to month by month. Paying the premium in full comes with a 9% discount, on average.
The Good Credit Discount: Whether or not they are willing to admit it, insurance underwriters normally check your credit rating, and factor it into their calculations of how high your premiums should be. Maintaining good credit is a good idea anyway, and also just might lower your annual premium rates for car insurance.
Early Signing Discount: Enjoy a 10% auto insurance discount when you buy a car insurance policy one week before it goes into effect.
The Advance Renewal Discount: This discount goes to policyholders who renew their auto insurance policies a week or ten days ahead of time. The savings for early renewal is 8%, on average.
The Marriage Discount: You may or may not have heard, but being married can score auto insurance policy discounts of 14%, on average.
The Farm Vehicle Discount: This discount applies to drivers who use their vehicles primarily for farming or ranching purposes. You can save 10% with a farm vehicle discount.