Most insurance companies offer multiple discounts you can stack to lower your premium by 10-30% or more. The key is asking about them, since insurers won't automatically apply discounts you don't request.
Common Car Insurance Discounts
Here's what you need to know about typical discounts available:
- Bundling policies: Combine auto, home, or renters insurance with one company. This often saves 15-25% on your auto premium.
- Good driver discount: Maintain a clean driving record with no accidents or violations. This is one of the biggest discounts available.
- Defensive driving course: Complete an approved defensive driving class, often online. Discounts typically range from 5-10%.
- Paid-in-full discount: Pay your entire premium upfront instead of monthly. This saves 3-5% on average.
- Auto-pay discount: Set up automatic payments from your bank account. This usually saves 1-3%.
- Good student discount: Maintain a GPA of 3.0 or higher if you're under 25. Discount is typically 3-5%.
- Safety features discount: Vehicles with anti-theft devices, airbags, or lane departure warning systems qualify. Savings range from 5-10%.
- Low mileage discount: Drive less than 7,500 miles per year. This can save 5-15% depending on your insurer.
How to Get These Discounts
Start by calling your current insurer and asking which discounts you qualify for. Many people miss out because they don't ask. When shopping for new insurance, compare quotes and specifically mention that you're eligible for defensive driving or safety feature discounts.
Bundle your policies whenever possible. If you have renters or homeowners insurance elsewhere, moving everything to one company often gives you the biggest savings. Some insurers also offer usage-based programs where they track your safe driving habits through a mobile app, potentially saving you 10-30%.
Keep your driving record clean and update your insurer when your circumstances change. Getting married, completing a safety course, or installing safety features can trigger additional discounts you didn't have before.