How to Save Money on Auto Insurance: Ask About Discounts

Want to save money on auto insurance?  I know, it sounds like the beginning of a car insurance commercial, but one of the keys to doing just that is asking your agent about the many discounts offered by insurance companies.  They don’t always tell you about them up front—you have to ask—and some insurers offer some, but not others.  There’s a chance you’re already getting the benefit of a couple of them without even knowing.  Pull out the Declarations Sheet that came with your policy and take a look.  It lists your coverages and your premiums and there is, undoubtedly, a section listing discounts you are currently getting.  Some discounts offered are small, around 5%, but some offer bigger savings, and even the small ones in combination could make a substantial difference.

Ask about discounts for:

1)    Multiple Vehicles on the policy.  This rate-cut is offered to consumers insuring more than one vehicle. This applies to cars, trucks, motorcycles, RV's, trailers and some boats.
2)    Multiple policies with the same company.  This is a great way to save on all of your insurance policies.  Choose a company that discounts more than one policy, and then combine your auto, homeowner’s, life, disability, and sometimes even health insurance into one insurance portfolio.  Some companies will also count financial savings plans such as 401K's Roth IRA's, money markets and college funds as additional policies to ensure the discount.
3)    Low Vehicle Mileage.  If you only use your car for local errands, and only put about 7 or 8 thousand miles a year on it, your insurer might deduct a small percentage from your premium.  If you’re on the road less frequently, you have a smaller chance of having an accident.
4)    Safety features.  A lot of newer model cars have safety features that come standard, and with some they are optional. Features such as air bags, anti-lock brakes, daytime running lights, etc, could help save you some money.
5)    Anti-theft device.  If your car is equipped with a car alarm, a steering wheel lock or another type of anti-theft device, you are sure to get a break on your premium if you carry comprehensive coverage.
6)    Good driver.  If you have not had an accident in 3 or more years, and you have not gotten a moving violation in recent years, most companies offer a substantial discount.
7)    Good student. Are your grades (or your teenager’s) up to par?  You don’t have to have straight A’s to get this discount, but if you are a high school or college student with a B or better average, it won’t be bragging if you mention it to your agent.  It could save you some money.
8)    Defensive driver. Some insurance companies offer defensive driving seminars and, if you attend, you are rewarded with a rate cut.
9)    Mature driver. Similar to defensive driver seminars, some companies offer mature driver classes, resulting in a sizable discount.
10)    Trade associations. Some insurance companies offer group discounts to members of a company, a trade association or a motor club.
 
There are many discount options for drivers who take the time to look into their company's policies and apply for the discounts available. While individually, they may not save you much, combining a few can add up to a hefty rate savings.  Don’t be shy—go ahead and ask!