Alyssa Lane
AAA, also known as the Automobile Association of America, is one of the largest providers of home and auto insurance in the US. AAA offers a range of discounts on its insurance policies, including for bundling home and auto insurance, having protective devices like smoke detectors and burglar alarms, and for mature homeowners. The exact discount offered by AAA on homeowners insurance varies by state and region, with some states like California and Michigan offering cheaper rates than others. AAA also offers additional discounts for members, with some clubs providing up to 20% off on home insurance.
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What You'll Learn
Discounts for bundling home and auto insurance
Home insurance is not legally required, but your mortgage lender might ask for it. It is a good idea to have it, though, as it protects your house, condo, or apartment—from replacement costs for personal goods to living expenses if your home becomes uninhabitable.
One way to save on home insurance is to bundle it with auto insurance. This not only simplifies your insurance management but also maximizes your savings by taking advantage of the benefits associated with having both policies together. The discount rates vary by company, but you may save anywhere from 5 to 15% per policy. Some companies offer even bigger discounts, with savings of up to $950 per year.
There are other ways to save on home insurance as well. For example, installing a high-end security system or living in a gated community can lower the likelihood of theft, leading to a discount. Similarly, maintaining a good credit score signals financial responsibility, which insurers reward with lower premiums. Installing low-cost safety features and security upgrades, such as alarms and fire extinguishers, can also result in a reduced home insurance premium.
Some insurance companies offer discounts for seniors. For example, with home insurance through AAA, you can get a 50 Plus discount if you're over 50.
Finally, upgrading your home can also trigger lower premiums. A new roof that's stronger than your old one can save you money on your policy, as can upgrading your electrical, heating, and plumbing systems.
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Discounts for installing safety features
Safety features are an effective way to reduce your home insurance premiums. The purpose of safety features is to minimize risk and lower premiums. Insurance companies want to reward you for being a responsible homeowner. Installing safety features can save you up to 15-20% on your monthly homeowners insurance premium.
- Deadbolts: These are locks that require a key or a code to open. Deadbolts are often required on exterior doors to receive a policy credit.
- Smoke detectors and fire alarms: These devices detect smoke and alert you to a potential fire. Fire alarms can be standalone devices or connected to a central monitoring system.
- Security cameras and home security systems: These can help protect your home from burglary and theft. Some security systems also offer additional features such as fire and water leak detection.
- Fire extinguishers and fire sprinklers: These devices can help put out a small fire and prevent it from spreading.
- Storm shutters: If you live in an area prone to hurricanes or tornadoes, storm shutters can help protect your home from wind damage.
- Updated heating, plumbing, and electrical systems: Modern systems reduce the risk of fire and water damage, which can help protect your home from costly disasters.
- Water leak detection systems: These systems monitor your plumbing and pipes for potential leaks or bursts.
- Reinforced building materials: If you live in an area prone to natural disasters such as hurricanes or floods, reinforced building materials can help protect your home from damage.
It is important to note that the availability and amount of discounts may vary by insurance company and state. Contacting your insurance agent before making upgrades can help you understand how they will affect your coverage and eligibility for discounts.
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Discounts for new homes
Home insurance is not one-size-fits-all, and there are many ways to save on your premium. Discounts for new homes are some of the biggest savings you can get on homeowners insurance. If you buy a new construction home, you'll get one of the largest discounts when you buy homeowners insurance. The average new home discount is 40%, but this depends on your insurance company, homeowner profile, state, and other factors. Even if a home is not brand new, you could still qualify for this discount; the number of years a home is considered “new” will depend on the insurance company. Many insurance carriers will consider a home new if it was built within the last 10 years.
You can also get a discount if your home has been certified as a green home by an organization such as the Leadership Energy & Environmental Design Organization (LEED). If your home is newer, your roof is also less likely to need a claim, so you could get a discount for that. A new roof that's stronger than your old one can save you on your policy. Roofs are where the majority of losses due to snow, wind, hail, and rain occur, and a stronger roof can reduce your likelihood of damage.
Upgrading your home's electrical, heating, and plumbing systems earns you an average discount of 13%. A roof upgrade alone averages an 11% discount. You can also get a discount for installing safety features like automatic sprinklers, security systems, and cameras in your home. Installing a high-end security system or living in a gated community can lower the likelihood of theft, leading to a discount.
You can also save by bundling your home insurance with car insurance from the same company. This not only simplifies your insurance management but also maximizes your savings by taking advantage of the benefits associated with having both policies together. On average, bundling saves 18%, although it can be as high as 25%.
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Discounts for paying upfront
Paying upfront for your homeowner's insurance can bring significant savings. Most policies require you to pay for the full year upfront, and this can be a large sum to pay, especially when added to the other costs of buying a home. However, paying upfront can save you money in the long run. The "paid-in-full discount" is a common option offered by insurance carriers, and you can expect to save between 5% and 10% on average. This is because monthly premium payments often include a small processing fee, so paying the total annual premium in one go can reduce your overall costs.
Another advantage of paying upfront is that it locks in your insurance rate for the year, so you won't be faced with unexpected rate increases. You can also save money by paying for a longer period upfront. For example, Progressive offers a discount if you pay for a 12-month policy upfront.
There are other ways to save on your homeowner's insurance, such as bundling your home and auto insurance, which can save an average of 18%. Upgrading your home's electrical, heating, and plumbing systems can also earn you a discount of around 13%.
It's worth noting that some companies offer loyalty discounts, rewarding you for staying with them. However, it's a good idea to review your policy annually to ensure you're getting the best rate.
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Discounts for good credit scores
Maintaining a good credit score is an effective way to lower your homeowners insurance premium. A good credit score signals financial responsibility, and insurers consider this when determining your eligibility and premiums. A high credit score is an indicator of how likely you are to make a claim and how large that claim is likely to be. For example, a homeowner who stays on top of their monthly mortgage payments may be more likely to properly maintain their home and be more risk-averse overall. Thus, insurers offer more expensive homeowners insurance rates to people with poor credit histories, as they are likely to have greater loss ratios, and they offer discounts to people with high CBI scores.
Credit scores range between 300 and 850, with most people's scores falling between 600 and 750. The higher your score, the lower risk you are considered. In some cases, customers with good or excellent scores could save 20% or more on their base home insurance rates. Conversely, those with poor insurance scores may see their rates more than double.
While your credit score can impact your home insurance premium, it is not the sole factor. In some states, companies are required to notify you if your credit history negatively affects your insurance quote. Additionally, your CBI score is only one part of how an insurance company determines your rates. If you have poor credit but are diligent about maintaining your house and rarely make homeowners insurance claims, you may still get an inexpensive rate.
It is important to note that insurance companies in California, Maryland, and Massachusetts do not use credit scores to set homeowners insurance premiums, as the state governments have barred the practice.
To find the best homeowners insurance rates, it is advisable to maintain a good credit score and compare quotes from multiple insurance providers.
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Frequently asked questions
AAA offers a discount for bundling your homeowners policy with your car insurance. You usually get discounts on both policies, not just one. The discount varies depending on the state and region, but it can be as high as 20% on home insurance and close to 12% on auto insurance.
AAA offers a discount for mature homeowners, which is typically available for those over 50 or 55. They also offer discounts for installing protective devices such as smoke detectors and burglar alarms.
One of the biggest discounts you can get on homeowners insurance is for buying a new home. A new home discount can provide savings of up to 40%.
To get a discount on your Triple A homeowners insurance, you can bundle your policies, install protective devices, or take advantage of their mature homeowners discount. You can also pay upfront for a full year of home insurance to get a pay-in-full discount.
To get the best deal on homeowners insurance, shop around and compare quotes from multiple insurance providers. Research the discounts offered by different companies and review your policy regularly to stay informed about new discounts.
