8 car insurance discounts that may save you money
Last updated: January 1
Discounts on car insurance are no myth — they do exist. From having car safety features to being a safe driver, here are eight ways you may be able to cut down on auto insurance costs.
1. Go For the Multi-Policy Discount.
The Insurance Information Institute (III) says many insurers offer multiple-policy discounts to reward customer loyalty. For example, you may qualify for a discount if you have homeowners insurance or life insurance and car insurance with the same company. Ask your insurer about "bundling" your policies and whether it would help maximize your savings.
2. Be a safe driver.
Maintaining a driving record with no at-fault accidents or traffic violations may help keep your car insurance premiums down, according to the National Association of Insurance Commissioners (NAIC). In fact, the association says safe drivers pay lower car insurance rates.
3. Lower costs with lower mileage.
Some companies offer discounts to drivers who drive less than the average number of miles per year. They may also offer policies where your payments are based on the number of miles you drive. If you drive less than the average driver, you may want to look into these types of discounts or policies to help you save money on insurance costs.
4. If you're a student, keep your grades up.
5. Ask About Car Safety Features.
6. Install an anti-theft device.
If your car isn't already equipped with an anti-theft device, consider the benefits of installing an alarm system or a stolen vehicle recovery transceiver. In addition to helping deter theft or vandalism, the NAIC says an anti-theft device may help you qualify for a discount from some insurers.
7. Install a telematics device.
8. Renew your policy early.
Don't wait until your car insurance policy has expired to switch to a different insurer. First off, it's not a good idea, because going without car insurance is against the law (most states require that all drivers have liability coverage). Second, some insurance companies may offer incentives for new customers who sign a new policy before their old policy expires. Additionally, some insurance companies may offer a price reduction for policy owners who pre-pay their entire policy period, instead of paying in installments.