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10 Car Insurance Discounts for Lower Rates

By May 30, 2023August 16th, 2023Car Insurance, Personal Insurance
10 Discounts That Can Lower Your Car Insurance Rates - Young Child Dropping a Coin into a Mason Jar that is Labeled Family Vacation

If you’re paying too much for your car insurance, you may be missing out on some valuable discounts that could lower your premium and save you money. But finding and applying these discounts can be tricky and confusing.

We understand that car insurance can be a significant expense for many drivers, and we want to help you find the best coverage at affordable rates.

That’s why we compiled this info, to provide ways you can secure discounts that can lower your premium and reward you for being a safe driver and loyal policyholder.

You may encounter difficulty finding the best deal among different options and discounts. And you can be overwhelmed by the complexity and variability of car insurance rates, which depend on many factors such as driving history, vehicle type, location, usage, and features.

The lack of transparency and consistency in how discounts are applied and calculated by different insurance companies can be downright frustrating. You just want to save money on car insurance without compromising on quality or coverage, but you may not know how to compare and evaluate different quotes and discounts effectively.

Over the years, we’ve helped many clients save money and time by finding the best coverage and value for their situation. We can do the same for you.

We created this article to help you learn about the different types of discounts and how to get them.

By following our advice, you’ll be able to compare quotes and choose the best policy for your needs and budget. You’ll also enjoy more protection and peace of mind on the road. Read on to find out how to get the best deal on your car insurance.

The Truth About Car Insurance Discounts

If you’re looking for ways to save money on your car insurance, you may be interested in learning about the different available discounts. However, not all discounts are created equal, and some may be more beneficial than others, depending on your situation.

One common way to get a discount is to bundle multiple vehicles or policies together. For example, you may get a lower rate if you insure your home and car with the same carrier.

In some cases, adding another type of coverage, such as an umbrella policy, may even reduce your overall cost more than if you only had two policies. However, you should also consider the quality and coverage of each policy and not just the price.

Some insurers may claim to have the largest discounts in the industry, but they may also have the highest costs or the lowest benefits. Therefore, you should always compare the final cost and value of each option before making a decision.

Below are ten possible ways to earn discounts on your auto insurance policy.

1. Multi-Car Discount

One of the easiest ways to get a discount on your car insurance is to insure more than one vehicle with the same company. This is called a multi-car discount, and it can vary depending on how many vehicles you have on your policy.

For example, you may get a 5% discount for the second car and a 15% discount for the third car. However, if you remove a vehicle from your policy, you may also lose some of the discounts you had before. Therefore, you should always check how changing your policy will affect your rates before making any decisions.

2. Multi-Policy Discount

Another way to save money on your car insurance is to bundle it with other types of policies from the same carrier. This is called a multi-policy discount, and it can apply to various combinations of policies.

The most popular option is to have both your home and car insurance with the same carrier. However, you can also get a discount if you add other policies, such as a second home (like a camp) or rental property. By bundling your policies, you can simplify your payments and enjoy lower rates.

3. Defensive Driving Course Discount

If you want to improve your driving skills and lower your car insurance
rates, you may want to consider taking a defensive driver course. This is an online safety course that teaches you how to avoid accidents and drive more responsibly. The course usually takes about six hours to complete, but it can have lasting benefits for your policy and your license.

The defensive driver course discount is different from other discounts because it only applies to certain parts of your policy that are related to your driving behavior. These parts are:

  • Property damage: This covers the damage you cause to other people’s property in an accident.
  • Bodily injury liability: This pays for the medical expenses of the people you injure in an accident.
  • Collision coverage: This covers the damage to your vehicle in an accident (if you have this optional coverage).
  • Personal injury protection: This pays for your own medical expenses regardless of who is at fault in an accident (also known as PIP or “no-fault” insurance).

The discount does not apply to other parts of your policy that are not affected by your driving, such as comprehensive coverage (which covers damage from theft, fire, vandalism, etc.) or roadside assistance coverage (which helps you if your car breaks down or needs a tow).

You can learn more about these optional coverages by reading our articles on comp vs. collision and roadside assistance.

Even though the discount is not applied to your entire policy, it can still make a significant difference in your premium. Moreover, the course can also help you reduce the points on your license that may have increased your cost due to traffic violations.

The best part is that the discount lasts for three years, so you don’t have to retake the course every year.

Infographic - 10 Discounts That Can Lower Your Car Insurance Rates

4. Annual Payments Discount

Do you remember the cartoon character, J. Wellington Wimpy, who always asked for a hamburger today and promised to pay on Tuesday? Well, that’s not how insurance companies like to do business.

They prefer to get paid upfront for the entire year, and they will reward you with a discount if you do so. This way, they can save money on administrative costs and avoid the risk of late or missed payments.

Paying your car insurance in one lump sum can be a smart move if you have the cash available. You can enjoy a lower rate and avoid any service fees that may apply to monthly or quarterly payments.

However, if you don’t have enough money to pay for the whole year at once, you can still choose to pay in installments. You may have to pay a little extra for this option, but it can help you manage your cash flow better.

5. Loyalty Discount

Some carriers value your loyalty and will reward you with a discount if you stay with them for a long time. This discount can take different forms depending on the company and the policy. One way is to lower your premium as a percentage of the total cost, similar to other discounts in this article.

Another way is to lower your deductible, which is the amount you must pay out of pocket before the insurance kicks in.

For example, if you have a $500 deductible and don’t make any claims for a year, your deductible may drop to $400 the next year. This can continue until you reach the minimum deductible, which is usually $100.

You can read more about deductibles and how to choose the right one for you in our article “How Auto Insurance Deductibles Work in New York State.”

6. Good Driver Discount

One of the most important factors that affect your car insurance rates is your driving record. Insurance companies favor drivers who have no accidents or tickets in their history, and they’ll reward them with a discount.

The longer you maintain a clean driving record, the more you can save on your premium.

However, how this discount is applied may vary depending on the carrier and the policy. Some companies will show you a specific amount or percentage you save for being a good driver. Others will simply lower your base rate without showing how much you save.

Either way, you can be sure that having a good driving record will help you get a better deal than someone with violations or claims.

7. Vehicle Equipment Discount

If your vehicle has safety features that can prevent or reduce accidents and thefts, you may qualify for a vehicle equipment discount. Vehicles with these features also reduce the chances of you filing a claim. This can lower your costs compared to similar vehicles that lack them.

Some of the features that can earn you a discount are:

  • Automatic braking: This feature can help you avoid or lessen the impact of a collision by applying the brakes when you get too close to another vehicle or object.
  • Backup camera: This feature can help you see what’s behind you when you reverse and avoid hitting anything or anyone.
  • Lane change warning: This feature can alert you when there’s a vehicle in your blind spot and prevent you from changing lanes unsafely.
  • Active alarm system: This feature can deter thieves from breaking into or stealing your vehicle by making loud noises.

The amount of the discount will depend on the type and number of features your vehicle has and the carrier you choose. Therefore, you should compare quotes and see how much you can save by having a safer vehicle.

8. Good Student Discount

If you’re a student with good grades, you may be eligible for a good student discount on your car insurance. This discount is based on the idea that students who do well in school tend to be more responsible and careful drivers.

To qualify for this discount, you may need proof of your academic performance, such as a report card or transcript. Usually, you need to have a “B” average or higher to get the discount.

The good student discount can apply to each student driver on your policy, whether in high school or college. This can be a great motivation for you to study harder and excel in your classes. Not only will you get better grades, but you’ll also save money on your car insurance.

This is a valuable lesson that parents and guardians can teach their children: studying pays off in more ways than one.

If you have a young driver on your policy, learn about other ways you can secure auto insurance discounts.

9. Paperless Document Discount

Many people prefer electronic communication over paper mail. It’s convenient, fast, and eco-friendly. If you choose to receive your statements and pay your bills online, you can get a discount from your carrier. This is because they save money on printing and postage.

But going paperless is not for everyone. You need to keep track of your emails and log in to your account regularly. You also need to check for any policy changes or updates that are sent electronically. If you like having paper copies of your documents, you may want to skip this discount.

10. Usage-Based Discount

Your driving habits can affect your insurance rates. Some insurance companies offer a device or an app that monitors how you drive. They check things like your speed, braking, mileage, and idling.

If you drive safely and less frequently, you can get a discount from your carrier. But be aware that this discount can also backfire. Some carriers may increase your rates if they don’t like your driving patterns.

If you tend to drive fast or aggressively (you know who you are), this may not be a good option. Make sure you understand the terms and conditions of this discount before agreeing to the tracking feature.

Use What You’ve Learned to Get Great Car Insurance Discounts

You may not qualify for all these discounts, but you can still save money on your insurance by choosing the ones that suit you best. You don’t have to pay more than you need to for your coverage.

Following our advice, you can find discounts that lower your car insurance premium and save you money.

You’ll also compare quotes like a pro and choose the policy that fits you best.

Whether you have multiple vehicles or policies, a good driving record, a safe vehicle, or drivers with good student records in your household, you’ll find a discount that fits you, leading to a lower auto insurance premium.

By overlooking our advice, you may miss out on valuable discounts that can save you money. You may also end up paying more than you need to for your coverage or getting fewer benefits than you deserve.

Comparing quotes and choosing the best policy for your needs and budget will be difficult, and you’ll likely overlook some features or options that can improve your protection and peace of mind on the road.

Don’t let this happen to you. Follow our advice and get the best deal on your car insurance.

Insuring your vehicle can be a big expense, and we understand how frustrating it can be to find the best coverage at affordable rates. That’s why we want to help you learn about the discounts that can make a difference.

If you’re not ready to shop for discounts and spend time comparing carrier policies and rates, we can do the heavy lifting for you.

As an agency that has partnered with several reputable and reliable insurance carriers that offer competitive rates and discounts, we can benefit you by learning your specific needs and preferences and matching you with the most suitable policy and carrier.

Get things started by clicking the Get a Quote button below. One of our friendly insurance specialists will reach out to you to begin tailoring a policy and discuss discount options.

If you’d rather continue learning about auto insurance, read our comprehensive article explaining the various aspects of a New York auto policy and how to obtain one.

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Daniel J. Middleton

Daniel is the only fully remote staffer, but he’s as much a member of the team as everyone with boots on the ground. Daniel assures that the team is always presentable—digitally speaking—and our message clear and palatable. Click here to read more about Daniel.