Driver safety car insurance discounts
Finding yourself an insurance discount is easy when you’re a good driver. These incentives can significantly save your monthly car payments, so take advantage. These discounts fall under five categories:
- driver safety
- driver status
With so many auto insurance discounts out there, it can be challenging to know which ones you should benefit from. In this article, we’ll discuss the types of deals you can find – and you’ll likely find a few you may not be aware of!
Insurance companies know that retaining customers is costly, so they do everything possible to get you on board in the first place. But when we’re already satisfied with our provider and need some extra attention from them—sometimes all it takes is one little discount offer or loyalty program benefit.
Ask your insurance company whether they offer one and how long you’ll need to be a customer before being eligible to get the loyalty discount. If other terms apply, such as an annual maximum or minimum spend required on their products/services, then make sure these guidelines match what will work best with your needs.
There are terms and conditions for these types of discounts that vary by state—namely, Maryland and Ohio, where insurance companies are not allowed to evaluate customers based on loyalty.
Good Student Discounts
In the United States, many companies offer discounts to students. Some only provide this benefit if you are enrolled in school full-time rather than part-time. Other insurers require that their customers have good academic achievement before they grant any of these incentives—the thinking of being a responsible driver is more likely a better student.
Insurance companies aren’t obliged to offer student discounts, and there is no industry standard for them, so it’s up to each company to regulate this specific type of discount. It’s always worth a phone call to your current insurer if you have coverage for students, or ask when you are shopping around for a new insurance provider.
Bundling or Multipolicy Discounts
Most of the time, if you buy two or more policies together, it is cheaper than buying each individually. Insurance companies are always looking for ways to get more clients, so it’s no surprise that they offer discounts if you buy two or more policies together. This can be anything from home or renter’s insurance to recreational vehicle insurance.
Again, this type of policy discount can vary by state and your customer profile. For example, California does not permit insurance companies to consider customers using homeownership as merit, so they cannot get a homeowners’ insurance discount on their auto insurance.
Speak with a representative and do your due diligence; there are some situations where you could save MORE when you do not bundle and receive coverage with more than one carrier.
Good Driving Discounts
Good driving discounts typically come in two ways:
- Drivers with a clean driving record with no tickets, accidents, or violations
- Drivers who opt-in to tracking programs
If you’ve been a good driver and maintained your clean record, there’s no reason not to get the reward. The discounts vary depending on where you live and the insurance provider, but can be anywhere from 10% up to 30%. (Source)
Insurance companies consider your driving record to determine how much they will discount your coverage. They look for at-fault accidents, traffic violations, and DUIs within the past 3-5 years.
Defensive Driving Discounts
The best way to become a safer driver is by taking defensive driving or training courses. Many insurance companies offer these discounts, and they can help save money in the future. Like all discounts, each insurance provider has its set criteria for qualification. This means that even if you’ve taken a defensive driving course in the past, it may not be an approved course in their eyes. Always speak with someone before you commit to an insurance provider to ensure you clearly understand what is expected of you for this discount.
Employee Group Discounts
An employer discount is worth the effort if you don’t already qualify for one. But, since they are negotiable and vary from company to company, it’s best to ask your human resources department about them before going any further with this idea as it can lock you into a discount that may be more than what you’d pay if you took the time to shop around. Essentially, employees or affinity groups (think AAA or AARP) will negotiate a bulk discount with an insurance provider to offer their employees or registrants. This is typically 5% – 20%, depending on their arranged amount. (Source)
The auto insurance industry has created special rates and benefits just for teachers. Some include a waived deductible on vehicle damage incurred while teaching in school property and compensation if your belongings are stolen from the car you drive to work. Check with potential insurance providers to see if you’re eligible.
Military and Veteran Discounts
If you are active military personnel or a veteran with USAA, they will offer special rates on vehicle insurance. These discounts help offset some costs of owning a car while serving overseas, such as parking on the military base.
Low Mileage Discounts
If you drive very little, there’s probably no way for your current insurance company to offer any discounts. However, some companies will give money-saving options through their tracking programs that track the amount of time you spend behind the wheel and not your car’s actual mileage.
Anti-Theft Device Discounts
Discounts for anti-theft devices are typical among comprehensive coverage. If you have an insurance company that offers them, they can get up to 5% off your car or even 25%. (Source) Factory-installed units might come with a discount, while aftermarket installations can get you one too. The type of devices that commonly qualify for discount include:
- GPS Based Systems
- Stolen Vehicle Recovery Systems
- VIN Etching
Online Quote Discount
Some companies will offer an incentive to receive an online quote. While the discount will vary from the insurer, it’s a great option as it allows you to learn more about your coverage before you enroll.
New Customer Discount
If you’re looking to switch from another insurance company, most offer an initial bonus in return. If you’re currently on the hunt for a better plan to suit your needs, give us a call, and we can find one that works best for you and your wallet.