Learn the Most Common Auto Insurance Discounts

Homeownership discount

Insurance for your child or young driver may be expensive, as any parent knows. Even after obtaining a learner’s permit or official driver’s license, a youngster is still inexperienced in driving, increasing the probability of an accident. Fortunately, most auto insurance companies allow parents to save money on their insurance.

Those who are no longer students may recall being able to produce a good report card to the neighborhood pizza restaurant in exchange for a free personal pan pizza. When they brought home a perfect report card, some may have even received an allowance bonus.

In any event, rewarding a student for their academic performance is pretty typical, and it serves as the foundation for the “academic achievement discounts” or “excellent student discounts” that auto insurers frequently provide. The concept is straightforward, but the specifics differ depending on the insurance provider.

In general, you can obtain a discount by demonstrating that a covered student is performing well in school. This may be limited to persons under 25, but it can apply to high school and college students as long as they are enrolled full-time and meet the insurer’s grade standards.

Advanced quote discount

When do you usually decide whether to renew your current vehicle insurance policy or shop for a new one? Many insurers may give you a discount if you acquire your quote before that date, known as an “advance quote discount” or an “advance purchase discount” if you start shopping ahead of time.

Assume you are aware that your policy will expire in a month and have opted to shop around for a new provider. You may be eligible for the discount if you obtain a quotation at least seven days before the effective start date of your new policy (i.e., the date your existing policy expires and your new one must begin to avoid a lapse in coverage).

Claims free discount

A “claims free discount,” often known as a “accident-free discount,” is precisely what it sounds like. An insurance company checks back in your past (typically three years) to determine if you have filed a claim during that period, similar to how claims-free discounts work with other insurance products.

If you haven’t filed any claims in the last three years, you should be fine. As long as no new claims are submitted, this discount will usually continue to apply after each renewal. When requesting this reduction, it’s critical to understand what an insurance provider deems a “auto claim” in your history. While certain claims count towards this, some may not (for example, a claim payment of less than $500). As a result, discussing this discount with your agent is critical to fully grasp the details.