Maximizing Aaa Auto Insurance Savings: Tips And Tricks

AAA offers a wide range of discounts to help drivers save money on their auto insurance premiums. By taking advantage of these discounts, drivers can reduce their annual premium and enjoy additional benefits that come with being an AAA member. AAA's auto insurance discounts include savings for good students, safe drivers, long-term members, and defensive driving class participants. Additionally, bundling policies, improving credit history, and considering insurance costs when selecting a vehicle can also lead to significant savings. With a variety of options available, it is beneficial for drivers to explore the different ways they can save on their AAA auto insurance.

Discounts for good students, safe drivers, long-term members, and more

AAA offers a range of auto insurance discounts for its members, including for good students, safe drivers, and long-term members.

The AAA Good Student Discount offers a 10% discount for high school or full-time college students with a verifiable GPA of 3.0 or above. The student must be named on the auto insurance policy and be under 25 years of age.

Safe drivers can benefit from the AAA Good Driver Discount, which is based on how long you have been licensed and your driving activity. Generally, a better driving record means lower premiums. AAA also offers a Driver Training Discount, where completing a program on accident prevention or defensive driving can save you up to 10% on your auto insurance.

Long-term AAA members can save 5% on their auto insurance with the AAA Membership Savings Discount. This discount is applied if any driver rated on the policy is a AAA member.

Other AAA auto insurance discounts include the Multi-Car Discount, where having more than one vehicle on the policy can lead to savings. Additionally, AAA offers the Teen Smart Discount, which offers 20% off for qualified teen drivers who complete a qualified program by the time they are 19.

It is important to note that the availability of AAA auto insurance discounts may vary across different regions, so it is recommended to check with your local AAA office or agent to see which discounts are offered in your area.

Save by bundling policies

Bundling your policies is a great way to save money on AAA auto insurance. By combining your auto insurance with another policy, such as home, condominium, renters, or life insurance, you can take advantage of significant discounts offered by insurers.

For example, AAA offers a multipolicy discount, which provides a 25% discount on home insurance if you also have your auto insurance with them. This not only saves you money but also simplifies your coverage by having one policy, one premium, and one deductible. This convenience reduces the number of insurance companies you have to deal with.

In addition to the financial savings, bundling your policies with AAA comes with exclusive member benefits. These benefits include 24/7 nationwide roadside assistance, mobile battery service, identity protection, travel services, and various other valuable discounts. With over 100 years of experience, AAA has a proven track record of insuring drivers and is one of America's most trusted brands.

When considering bundling your policies, it is important to evaluate your insurance needs and ensure that the coverage provided meets your unique requirements. By working together with AAA, you can create a personalized insurance policy that maximizes your savings while providing the protection you need.

Overall, bundling your policies with AAA can lead to significant savings, simplified coverage, and access to exclusive member benefits. By taking advantage of the multipolicy discount, you can reduce your insurance costs while enjoying the convenience and peace of mind that come with having your insurance needs met by a trusted brand like AAA.

Increase your deductible

One way to save on your AAA auto insurance is to increase your deductible. A deductible is an amount you pay out of pocket before your insurance coverage kicks in. By raising your deductible, you can lower your insurance premiums. This is because you are assuming more of the financial risk in the event of a claim, which reduces the potential payout for the insurance company.

For example, if you have a $500 deductible on your comprehensive coverage and you file a claim for a damaged windshield, you will need to pay the first $500 of the repair cost, and your insurance company will cover the rest. If you increase your deductible to $1,000, you will pay more out of pocket for the repair, but your monthly insurance premiums will be lower.

It is important to note that while increasing your deductible can save you money on your premiums, you should only do so if you can afford to pay the higher deductible in the event of a claim. Make sure you have enough savings to cover the higher deductible, or consider setting aside a small amount each month into an emergency fund specifically for this purpose. That way, you'll be prepared if you need to make a claim and can still benefit from the reduced premiums in the meantime.

Additionally, when deciding whether to increase your deductible, it's worth considering the frequency of your claims. If you rarely file claims, the likelihood of needing to pay the higher deductible is lower, making it a more attractive option. On the other hand, if you find yourself filing claims more frequently, a higher deductible may end up costing you more in the long run.

Finally, keep in mind that different types of coverage may have different deductible options. For example, collision coverage and comprehensive coverage typically have separate deductibles, and you can choose to increase one or both, depending on your preferences and driving habits. Review your policy carefully and consult with your AAA insurance agent to understand your coverage options and make informed decisions about your deductible.

Improve your credit history

Improving your credit history is a marathon, not a sprint. It takes patience and discipline to repair bad credit or build credit for the first time. Here are some detailed, direct, and instructive tips to improve your credit history:

• Check your credit reports for errors: Request a copy of your credit report from the three major credit bureaus (Equifax, Experian, and TransUnion). Review the reports for any incorrect information, such as late or missed payments, high credit card balances, collections, or judgments, which can negatively impact your score. Dispute any inaccuracies by contacting the credit bureau and your lender.
• Get a handle on bill payments: Set up payment reminders, create a filing system, or enroll in automatic payments to ensure you pay your bills on time. Payment history is one of the most important factors in determining your credit score, and delinquent payments can significantly harm your score.
• Aim for a low credit utilization rate: Keep your credit card balances low relative to your credit limits. Aim for a credit utilization rate of 30% or less, and work towards reducing it to 10% or lower. This shows lenders that you can manage your credit responsibly.
• Limit your requests for new credit: Avoid applying for multiple new credit cards or loans within a short period. Hard inquiries into your credit history can negatively impact your score for up to two years. Space out your credit applications and only apply when necessary.
• Keep old accounts open: The length of your credit history matters. Keeping old credit accounts open, especially those with a positive payment history, demonstrates stability and can boost your score. Only close old accounts if they charge annual fees or tempt you to overspend.
• Consider consolidating your debt: If you have multiple outstanding debts, consider taking out a debt consolidation loan to pay them off. This can simplify your payments and improve your credit utilization ratio, leading to a higher credit score.
• Monitor your credit regularly: Sign up for credit monitoring services to track your progress and identify any issues. Regularly reviewing your credit report and score can help you catch errors, address negative marks, and make informed financial decisions.

Low-mileage discounts

To qualify for a low-mileage discount, you typically need to drive under 7,500 or 8,000 miles per year, which is about 21 to 22 miles per day. Some insurance companies offer even bigger discounts if you drive less than 7,000 or even 5,000 miles a year.

• Calculate your average mileage: To do this, set your odometer to zero and take note of the number of miles you travel over the next week. Multiply this number by 52 to get your annual average mileage.
• Reach out to your insurer: Once you know your average mileage, contact your insurer to see if you qualify for a low-mileage discount.
• Provide proof of low mileage: Insurance companies may require proof of your mileage when you renew your policy. You can do this by submitting a photo of your odometer or providing service paperwork that's at least 90 days old, along with a current photo of your odometer.
• Consider "pay-per-mile" insurance: If you drive less than 26 miles per week, you may be able to get "pay-per-mile" insurance, where you pay for each mile you drive.
• Shop around for insurers: Not all insurance companies offer low-mileage discounts, so it's worth comparing rates and discounts from different providers to find the best deal.
• Adjust your annual mileage: If you've started driving less, for example, due to working from home or retirement, be sure to update your annual mileage with your insurer.
• Look into usage-based insurance programs: These programs track your driving behaviour and mileage and can offer discounts based on your driving performance.

By following these steps, you can take advantage of low-mileage discounts and save on your AAA auto insurance premium.

Frequently asked questions