Paul Sanchez
There are several ways to save money on auto insurance, from shopping around for the best rates to taking advantage of discounts offered by insurance companies. One way to save is by enrolling in a driving school, which can lead to significant savings on car insurance premiums, especially for young drivers. Direct car insurance discounts can range from 5% to 20% for qualified drivers, and driving school graduates can also expect to graduate to a full license more quickly, resulting in additional savings. Other ways to save on auto insurance include bundling policies, raising deductibles, and maintaining a good credit history.
| Characteristics | Values |
|---|---|
| Average annual cost of car insurance in Washington, D.C. | $62 for minimum coverage and $201 for full coverage |
| Average annual cost of car insurance in the U.S. | $621 for minimum coverage and $2,278 for full coverage |
| Direct car insurance discounts | 5% to 20% |
| Average cost of attending driving school | $600 |
| Average savings for a 17-year-old driver with driving school | $1,689 per year |
| Average savings for a 17-year-old driver with driving school over a 3-year period | $5,067 |
| State Farm average savings | $649 |
| State Farm Drive Safe & Save discount | Up to 30% |
| State Farm discount for under 25s without at-fault accidents or moving violations | Up to 20% |
What You'll Learn
Discounts for driving school graduates
Driving school graduates can save a significant amount on their auto insurance premiums. The savings can be as high as 20% for some qualified drivers, with direct car insurance discounts typically ranging from 5% to 20%. The exact amount saved depends on factors such as age, location, and driving record.
One of the quickest and easiest ways to save money on auto insurance is to take a driving school course. Many states require driver education courses for drivers under a certain age, and complying with these requirements can lower insurance rates. Additionally, some insurance companies offer discounts for anyone who completes defensive driving classes and maintains a safe driving record.
Young drivers, in particular, can benefit from taking driving school courses. They are often eligible for a discount of about 10% on their insurance rate for completing these courses. Furthermore, driving school can help young drivers obtain their full license quicker, which can result in additional savings for the family.
The cost of driving school is generally a good investment, as it can lead to significant savings on insurance premiums. For example, a 17-year-old driver could expect to pay an average of $6,870 per year without driving school and $5,181 per year with it, resulting in yearly savings of $1,689.
When considering a driving school course, it is important to ensure that the school is approved by the relevant authorities, such as the MTO in Ontario, Canada. The curriculum typically includes a review of the rules of the road, safe driving practices, alcohol awareness, and vehicle handling. Many driving schools also offer the opportunity for students to gain practical driving experience under the supervision of an experienced instructor.
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Discounts for safe driving
Defensive driving courses are a great way to save money on your car insurance. Many insurance companies offer discounts for drivers who complete these courses and maintain a safe driving record. Direct car insurance discounts can start at about 5% and go as high as 20% for some qualified drivers.
The amount you save depends on several factors, including your age, location, and driving record. For example, a seventeen-year-old driver would pay an average of $6,870 per year without a driving course and $5,181 per year with one, resulting in yearly savings of $1,689.
Some insurance companies offer discounts for drivers who have not had any accidents or moving violations during a specified period or who have taken a defensive driving course. If you are a young driver, you may also be eligible for a discount if you have good grades or take an additional defensive driving course.
In addition to defensive driving courses, there are other ways to save on car insurance. You can shop around for the best rates, compare insurance costs before buying a car, raise your deductible, reduce optional insurance on older cars, and bundle your insurance policies.
Remember, the lowest price is not always the best option. It is important to choose a reputable company and consider the quality of service you receive.
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Discounts for bundling policies
When considering bundling policies, it's important to make sure that the provider offers all the types of insurance needed. Additionally, it's crucial to compare the cost of bundling policies with the cost of purchasing each policy separately from different providers. In some cases, bundling policies might not be the cheapest option, especially if one type of insurance is significantly more expensive than the others. It's also important to research different providers and compare their bundling discounts to find the best deal.
Some insurance providers offer loyalty discounts to customers who have been with them for a long time, and these discounts can be combined with bundling discounts for even more savings. It's also worth asking about other additional discounts, such as those for paying in full or signing up for automatic payments. Remember to review your insurance policies regularly to ensure they still meet your needs and cancel any policies that are no longer required.
Overall, bundling policies can be a great way to save money on insurance costs and simplify the insurance process. By purchasing multiple policies from the same provider, you can often take advantage of discounts and make managing your insurance policies more convenient.
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Discounts for low mileage
Low-mileage drivers can benefit from significant discounts on their car insurance. The definition of a low-mileage driver varies across insurance providers, but it generally refers to those who drive under a certain number of miles per year. Most insurance providers consider someone who drives between 0 and 7,500 miles per year a "low-mileage driver". This is because the fewer miles you drive, the less likely you are to get into an accident and cost the insurance company money.
There are three main ways to save on car insurance if you don't drive much: low-mileage discounts, pay-per-mile insurance, or usage-based insurance.
Low-Mileage Discounts
Some insurance companies offer reduced rates for those who drive fewer miles. Most companies offer this discount for people who drive less than 7,500 or 8,000 miles per year, which is about 21 to 22 miles per day. Examples of companies that offer low-mileage discounts include:
- USAA
- Safeco Insurance
- American Family Insurance
- Farm Bureau
- PEMCO
Pay-Per-Mile Insurance
Pay-per-mile insurance sets rates based on your mileage. Several car insurance companies offer pay-per-mile insurance policies that track your mileage and determine your rate based on how many miles you've driven. Examples of companies that offer pay-per-mile insurance include:
- Metromile
- Allstate Milewise
- Nationwide SmartMiles
Usage-Based Insurance
Usage-based insurance programs use a telematics device or an app on your phone to monitor your driving habits, including mileage, in-car phone use, braking habits, speeding, and other behaviours that can increase or decrease the risk of an accident. While not all usage-based programs offer discounts for low mileage, people who drive less usually save the most with this type of insurance. Examples of companies that offer usage-based insurance include:
- Progressive Snapshot
- State Farm Drive Safe & Save
- Nationwide SmartRide
- Liberty Mutual RightTrack
- Esurance DriveSense
In addition to these options, there are other ways to save on car insurance. For example, taking a defensive driving course can often lead to a discount, and maintaining a good credit history can also lower your insurance costs. It's always a good idea to shop around and compare quotes from different insurance companies to find the best rate for your needs.
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Discounts for good grades
Young drivers tend to be charged more for car insurance due to their higher likelihood of getting into car accidents and committing traffic violations. However, insurance companies assume that young drivers who are responsible in their studies are more likely to be responsible drivers. As a result, they are less likely to file insurance claims and therefore deserve to pay lower insurance premiums.
Many insurance companies offer good student discounts to high school and college-age drivers who earn good grades. These discounts can save students between 4% and 20% on their car insurance. The specific requirements for earning a good student discount vary by company, but typically include:
- Being under 25 years old
- Being a full-time high school or college student
- Maintaining at least a "B" average or a 3.0 GPA, or demonstrating performance on standardized tests
- Providing proof of academic performance, such as a school transcript or report card
Some companies that offer good student discounts include:
- State Farm: Up to a 25% discount for full-time students up to age 25 who earn good grades
- GEICO: Up to 15% off certain coverages for full-time students with a B average or better
- Allstate: Around 20% off the standard price
- Progressive: Average discount of 10% for students under 23 with a B average or better
- USAA: 4% discount for students enrolled full-time and earning good grades
In addition to good student discounts, young drivers can also save money on car insurance by being added to a parent's policy, completing driver's education, or leaving their car behind when they attend college.
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Frequently asked questions
DSC, or driving school courses, can save you up to 10% on your insurance rates. This can result in large savings, especially for young drivers who are considered high-risk and often pay high insurance premiums.
Aside from the direct discount, DSC helps reduce insurance rates by accelerating the process of getting a full G license. This means that drivers can reduce the amount of time they pay higher insurance rates.
The average cost of attending driving school is $600. This is a worthwhile investment as it can lead to significant savings on auto insurance premiums.
A 17-year-old driver could expect to save up to $1,689 per year by attending a driving school. Over a three-year period, the savings could amount to $5,067.
Driving schools typically cover essential rules of the road, best practices for difficult situations, traffic laws, tactics for driving in heavy traffic or bad weather, and strategies for managing stress while driving.
