Learn the Most Common Auto Insurance Discounts
Welcome bonus
The most straightforward is a “welcome discount.” If you’re a new customer, you might be eligible for a discount! Depending on your current provider, this incentive may be enough to convince you to move.
The duration of a welcome discount will undoubtedly vary. Some insurers, for example, may only apply the discount for the first year, but others may prolong it for a longer time, such as three years. If you’re looking for auto insurance and ask about a welcome discount, make sure to ask how long it lasts!
Discount for complete payment
Some insurance companies provide a discount if you pay your entire policy premium in advance. This can be a terrific deal for those who are able to take advantage of it. You will not only save a percentage of your premium but also avoid having to remember to make payments or deal with monthly statements. Depending on the provider and your policy, you may be required to pay the 6-month or annual payment in advance.
Discount for mature drivers
Insurance companies may have discounts for policyholders in their latter years, sometimes referred to as a “senior driver discount.” The exact age an individual needs to qualify varies by provider, but it may be available as early as 50.
Other potential car insurance discounts
Aside from the reductions stated above, your auto insurance provider may provide a variety of other discounts.
Discount for loyalty/renewal. Depending on how long you have been with a provider, you may be eligible for a discount when renewing your coverage. This is usually started at a lower percentage and gradually increases until it reaches a maximum.
Discount on auto insurance. Most insurance companies will grant discounts for specific car safety features, such as anti-lock brakes and passive restraints (seatbelts).
Discount for anti-theft measures. Auto insurance companies want to prevent auto theft just as much as you do, and this discount is typically used to persuade you. You may be eligible for a discount if you have an approved anti-theft system installed on your car.
Discount for driver education. While many people take defensive driving classes to avoid traffic citations, you can use them to earn a discount on your vehicle insurance price. Some providers will also offer certified driver training courses and drug and alcohol driving awareness workshops.
Again, remember that particular discounts, percentage amounts, and criteria will differ from provider to provider. Furthermore, while a particular insurance company may offer many discounts, how they are (or are not) combined may be more involved than just adding the percentages. Make sure to contact your insurance agent to understand the exact parameters for any discount or series of reductions a carrier offers.
