Auto Insurance Discounts: How To Apply And Save

Auto insurance discounts are a great way to save money on your car insurance. There are many different types of discounts available, and they can help offset the cost of insurance, fuel, and vehicle repairs. The best way to get a discount on your auto insurance is to shop around and compare quotes from multiple companies. You can also ask your current insurer about any discounts you may be eligible for. Some common auto insurance discounts include bundling policies, having a safe driving record, being a good student, and having certain vehicle safety features. Additionally, you may be able to get a discount for being a member of certain professional organizations or for having a federal or military affiliation. Keep in mind that discounts may vary by state and insurance company, so it's important to do your research and ask about any potential savings opportunities.

Student Discounts

Student drivers typically pay the highest rates for auto insurance among all driver types due to their lack of driving experience. However, there are ways to save money on your auto insurance policy, and good student discounts are one of the easiest ways to do so.

How to Get a Good Student Discount

To qualify for a good student discount, you must usually:

• Earn at least a B average in your classes.
• Submit proof of your grades to your insurer.
• Shop around for car insurance quotes from various providers to see if another option will give you better rates as a student driver.

Insurers Offering Good Student Discounts

Most of the largest car insurance companies offer good student discounts, including:

• Allstate
• State Farm
• USAA
• Farmers
• Geico
• Nationwide
• Auto-Owners Insurance
• American Family Insurance
• Progressive
• Liberty Mutual

Other Ways for Students to Save on Car Insurance

The good student discount is just one way for young drivers to save on their car insurance premiums. Here are some other student car insurance discounts:

• Driver's education discount: Some car insurance providers offer discounts to student drivers if they take an approved driver's education or driver training course.
• Defensive driving course discount: Taking a defensive driving course could qualify many policyholders for additional savings.
• Student away at school discount: If you're a college student who lives away from home and rarely drives, you could be eligible for another discount.
• Multi-car discount: Student drivers who share their policy with another person, such as a parent, could save more money.
• Vehicle safety features discount: If a student drives a vehicle with safety features like airbags or an anti-theft system, they may qualify for additional savings.
• Usage-based insurance: Telematics insurance apps reward students for safe driving if they avoid behaviours such as speeding, hard braking and late-night driving.

Defensive Driving Discounts

Defensive driving courses are a great way to improve your driving skills and can also help you save on your auto insurance. These courses are designed to teach you techniques to anticipate and react to dangerous situations on the road, covering topics such as accident statistics, safety concerns, and local driving laws. The courses typically last between four to twelve hours and can be taken online or in-person.

To get a defensive driving discount, the first step is to check with your insurance company to see if they offer this type of discount. Not all insurers provide this discount, and eligibility criteria may vary. Some companies offer discounts to specific age groups, such as drivers under 25 or over 60, while others extend the savings to drivers of any age. Additionally, some insurers may have requirements, such as a clean driving record, to qualify for the discount. It's also important to note that the discount amount can range from 2% to 20% and usually lasts for three to five years.

Once you've confirmed that your insurance company offers a defensive driving discount, the next step is to select an approved course. It is crucial to ensure that the course you choose is recognised by your insurer and state (if applicable). You can usually find this information on your insurer's website or by contacting their customer support. Additionally, consider factors such as cost, timing, and format when choosing a course.

After completing the course, you will receive a certificate of completion. This certificate serves as proof that you have successfully finished the course and is typically required by insurance companies to process your discount. Make sure to submit this certificate to your insurance provider and inquire about any additional steps needed to apply the discount to your policy.

It's worth noting that defensive driving courses can also be used to fulfil court orders or dismiss traffic tickets in some states. However, these courses are typically separate from those designed for insurance discounts. Therefore, it's important to verify the purpose of the course before enrolling.

Vehicle Safety Discounts

Know the Available Discounts: Different insurance companies offer different vehicle safety discounts. Common vehicle safety discounts include discounts for anti-lock brakes, airbags, and daytime running lights. Some companies also offer discounts for factory-installed anti-theft systems, GPS-based systems, and passive restraint systems. Check with your insurance provider to see what specific discounts they offer for vehicle safety features.

Review Your Vehicle's Safety Features: Familiarize yourself with the safety features of your vehicle. Check your vehicle's manual or contact the manufacturer to get a detailed list of safety features included in your car. This will help you identify which discounts you may be eligible for.

Inquire About Eligibility: Contact your insurance provider to inquire about your eligibility for vehicle safety discounts. Provide them with the details of your vehicle's safety features. They will be able to advise you on the specific discounts you can receive and guide you through the process of adding them to your policy.

Compare Insurance Providers: Vehicle safety discounts can vary between insurance companies. It's worth shopping around and comparing quotes from different providers. Consider not only the discounts offered but also the overall cost of the policy. Sometimes a company that offers fewer discounts may still have a lower overall price.

Keep Your Policy Up-to-Date: Insurance companies may introduce new vehicle safety discounts over time. Review your policy periodically and stay in touch with your insurance provider to ensure you're taking advantage of any new discounts that become available.

By following these steps, you can maximize your vehicle safety discounts and save money on your car insurance premiums. Remember to be proactive in seeking out these discounts, as your insurance company may not always automatically apply them to your policy.

Policy-Related Discounts

Policy-related car insurance discounts are some of the easiest to qualify for and are earned based on how you buy and pay for your policy. Here are some of the most common policy-related discounts:

Automatic Payments Discount

If you switch to automatic payments, you can often get a discount and avoid any worries about forgetting to pay on time. However, make sure you have enough funds in your account each month to cover the costs.

Early Shopper Discount

If you don't need insurance immediately, you can get a quote before your current policy expires to qualify for an early shopper discount. Some insurers require a quote seven days before your new policy starts.

Paid-in-Full Discount

Although it can be challenging, paying your entire policy upfront can result in a discount. If you need to cancel your policy later, most insurers will refund you for the remaining months.

Paperless Discount

Switching to electronic statements can help you save, and it's also better for the environment!

Personal Traits Discounts

Good Student Discount

Most auto insurance companies offer discounts to full-time students who maintain good grades, typically a B average or higher. Age restrictions vary by insurance carrier. For example, Nationwide offers this discount to students aged 16 to 24.

Homeowner's Discount

You may be eligible for a discount if you own a house, even if you don't have homeowners insurance with the same company as your auto insurance.

Student Away-at-School Discount

If you're a student who leaves their car at home while away at college, you may qualify for a discount. Requirements vary by company but usually include a minimum distance to the school and age limits. For example, Progressive offers this discount to drivers aged 22 or younger who are in school at least 100 miles away from home.

Alumni or Membership Discounts

Some insurance companies offer discounts if you are an alumnus of certain universities or a member of Greek life or professional organisations like the American Library Association.

Military and Federal Employees Discount

If you are a federal employee, a member of the armed forces, a veteran, or related to someone in the military, you may qualify for a discount.

Frequently asked questions