Insurance companies offer dozens of discounts, but many policyholders don’t take advantage of them simply because they don’t know they exist. A recent survey found that the average driver misses out on at least two to three applicable discounts, potentially leaving hundreds of dollars on the table each year.
Here’s a comprehensive look at the discounts you might be eligible for but haven’t claimed.
Vehicle Safety Discounts
Cars equipped with safety features often qualify for premium reductions. Anti-lock brakes, airbags, electronic stability control, anti-theft systems, daytime running lights, and backup cameras can all earn discounts. Newer vehicles with advanced driver assistance systems like automatic emergency braking, lane departure warning, and adaptive cruise control may qualify for additional savings.
Driver-Based Discounts
Your personal characteristics and behavior can qualify you for several discounts. Good student discounts are available for full-time students who maintain a B average or better, typically saving 10-25%. Senior citizen discounts are offered by some companies for drivers over 55 who complete a mature driver course.
Occupational discounts are available for certain professions including teachers, nurses, engineers, scientists, and military personnel. Some companies offer discounts of 5-15% based on your job alone.
Policy and Payment Discounts
How you set up and pay for your policy can also save money. Paying your annual premium in full rather than monthly installments often saves 5-10%. Setting up automatic payments or going paperless might save another 3-5%. Signing up for electronic delivery of policy documents instead of paper mail can earn an additional small discount.
Loyalty and Relationship Discounts
Staying with the same insurer for multiple years often earns a loyalty discount. The longer you stay, the bigger the discount typically gets. Some companies also offer new customer discounts to attract switchers, so it pays to get quotes even if you’re happy with your current insurer. Multi-policy bundling with home, renters, or life insurance can save 10-25%.
How to Maximize Your Discounts
The key to maximizing discounts is to ask. Call your insurance company or agent and specifically request a review of all available discounts. Mention any life changes since your last review: a new job, retirement, home purchase, or your teenager making the honor roll. Review your discounts annually, as new ones may become available or you may become newly eligible for existing ones.
Also compare quotes from other insurers periodically. Even with all available discounts at your current company, another insurer’s base rate plus their discounts might beat your current deal.
