How to Guide: Insurance Discounts
In this article, we will share crucial knowledge to help you make the best decision for you. This time, we’ll be exploring the world of car insurance discounts.
Defensive driving course
Drivers who took defensive driving or driving school course from a certified school can receive a discount of up to 15% on coverage. In most cases, the class can be taken online. Even if you’re in the middle of a policy, you always can check with the company to see if they offer defensive driving discounts.
“Good driver” discount
Most companies offer a “safe driver” discount, which typically means you’ve been accident-free for a period of time, usually 3-5 years.
Different companies define what a good driver is a bit differently. Wearing your seat belt, not accelerating, or braking too aggressively, and keeping consistent speeds, all of these safe habits can save you money. So, make sure to check how long you need to be accident-free before a discount applies.
“Good driver” discounts can also work with Telematics. Companies may calculate rates based on multiple driving factors, as well as the frequency of driving and time of day.
Your credit score
Did you know? Your credit score is a key component for insurance companies to consider when pricing your premium. If you have a low credit (a score of 300 to 579), you can expect to pay approx. $800 more for a six-month premium than someone with excellent credit (over 800).
The policy also differs by state. E.g., California, Hawaii, and Massachusetts all banned using credit scores to determine your insurance rates. Other states offer some restrictions, such as not allowing companies to rely solely on your credit score.
Recent graduates and good students
Drivers under 25 years old often have higher premiums, but some companies offer discounts for young drivers that are able to maintain a grade average of B or above. If you’re a full-time student, you can qualify for some pretty big savings — That average between 7% and 20%.
Additionally, if a college student leaves their car at home and is attending a university more than 100 miles away from home, your insurance company may reduce your liability coverage.
Bundling auto and home/renters insurance is another great way to reduce costs. Discounts are often applied to liability, personal injury protection, and uninsured/underinsured motorist premiums. If you move to home while on a policy, check with your insurance company that they have your latest address and ask about potential discounts.
Most companies offer some discounts for Anti-theft devices with features like disabling systems, and bigger discounts for advanced features, like an ignition shutoff or hood lock.
Anti-theft devices serve a double purpose. They can ease the hassle of filing a stolen car claim, and they also might save you money on your insurance premiums.
However, buying a pricey device simply to save on your insurance is not a great idea. most of these savings will go toward premiums that aren’t typically the most expensive part of auto insurance. But if you were planning to buy an anti-theft device anyway, it can be a nice bonus.
Don’t wait for your discount!
Most importantly, it’s better to avoid waiting until the last minute.
Now that you know the different types of car insurance discounts, don’t be afraid to ask your insurance agent directly — they may not inform you unless you initiate that conversation.