Car insurance discounts are a great way for drivers to save money on their premiums while still maintaining the coverage they need. While each auto insurer may offer slightly different discounts, there are some common types that can be found throughout the industry. These discounts can typically be grouped into categories based on driver safety, driver status, policy details, and vehicle attributes.
Driver safety is a key factor that many insurers consider when offering discounts. Good driver discounts are often available to those who have gone three to five years without an accident. By maintaining safe driving habits, such as avoiding sudden stops and speeding, drivers can save significantly on their premiums. Usage-based insurance discounts are another option, where drivers can save up to 30% by using a telematics program to track their driving habits. Completing a defensive driving course can also lead to discounts of 10% to 15% on premiums, while low-mileage discounts are available for those who drive less than the average annual mileage.
Driver status is another important factor in determining car insurance discounts. Student discounts are commonly offered to full-time students who maintain a good academic record. Military and federal employee discounts are available from many insurers, with USAA providing exclusive policies to active military, veterans, and their families. Professional and academic discounts are also common, with many insurers partnering with various organizations to offer discounted rates. Senior discounts are available to drivers 55 and older, with incentives for completing online driver improvement programs.
Policy details can also lead to discounts with auto insurance companies. Bundling policies, such as auto and home insurance, can result in savings of up to 25% on premiums. Multi-vehicle discounts are available for insuring multiple cars on the same policy, with some insurers offering discounts of up to 25%. Payment discounts, such as pay-in-full, autopay, and paperless statements, can also lead to savings of 5% to 10%.
Vehicle attributes can also play a role in earning car insurance discounts. Anti-theft discounts are available for installing anti-theft devices, saving drivers five to 15% on comprehensive coverage. Anti-lock brakes discounts offer savings of five to 10% for having an ABS system installed. Passive restraint discounts apply to seat belts and front airbags, with savings of up to 30% on PIP or MedPay premiums.
Overall, car insurance discounts are a great way for drivers to save money on their premiums while still maintaining the coverage they need. By taking advantage of these common discount types, drivers can ensure they are getting the best possible rates on their auto insurance policies.