With good Car Insurance Discounts, you are covered for some costs as well as save money when applying. As some car expenses are like registration fees, fuel costs, and repair costs are on the edge, another costs you should consider is of car insurance.
One of the best ways to reduce bills is by getting discounts. There are a lot of insurance discounts that you can be eligible for. Sometimes, you should ask your car insurance agent to review the discount you are eligible for so you can get the savings you qualify for.
What Is Car Insurance?
A car insurance covers damages to your vehicle and protects the owner financially if liable for someone else’s injury or damages. It can pay for medical bills for you, passenger, or passer-by that got injured during an accident. This insurance also covers when you are involved in an accident with an uninsured or underinsured driver.
Car Insurance Companies
Here are some of the most known car insurance companies:
- State Farm
Types Of Car Insurance
The most known types of car insurance are:
- Private car insurance
- Two-wheeler insurance
- Commercial vehicle insurance
Car Insurance Coverages
Some of the common car insurance coverages options include:
- Auto liability coverage
- Uninsured and underinsured motorist coverage
- Comprehensive coverage
- Collision coverage
- Medical payments coverage
- Personal injury protection
Types Of Car Insurance Discounts
Different car insurance companies offer different discounts to their customers. Note that you might note get same discounts available in one company as with another. Here are some of the usual discounts you can get from a typical car insurance company:
Good Driver Discounts
Good drivers are appreciated and can be rewarded with savings. A car insurance company may request you to be incident-free for a given duration of time. If you don’t get involved in any accidents, car insurance claims or traffic violations, then you can qualify for a discount. This type of discounts ranges between 10% to 40%.
Defensive Driver Discounts
Some insurers will offer you a discount if you agree to take an approved defensive driving course. Note that this discount may apply to qualified drivers of selected age, which is typically 50 or older. Defensive driver discounts can range between 5% to 10% depending on the company.
Good Student Discount
As a student driver who is enrolled in a full-time at a high school or college and meets certain requirements, you can qualify for a discount. Some car insurance companies require student of age 16 to 25 to maintain at least B. This discounts ranges between 8% to 25%.
Students Away At School Discount
If you are a student that is away at school and doesn’t own a car, then you can be eligible for a discount. There are certain requirements based on the company. But by average, the student has to be under age 25, and more than 100 miles from home. And has access to car only while home during school vacations and holidays.
Pay In Full Discount
If you usually pay your full policy term up front, then some car insurance companies can offer you a discount. This discount can range from 6% to 14% if you pay in full rather than splitting the insurance bill into monthly payments.
This usually applied when you purchase a car insurance and other policies from same company. It can also be referred to as a multi-line discount and also bundling. This is one of the biggest known discounts offering between 5% and 25%.
Vehicle Safety Discounts
If your car has a complete safety equipment such as anti-lock brakes, air bags, daytime running lights, then you can qualify for a discount. Air bags discounts for a complete front seat can be as much as 40% applied to medical payments or personal injury protection coverage.
You may qualify for this discount if you insure over one car with same insurance company. This discount covers about 8% to 25%.
New Car Discount
Cars that are below three years old can qualify for the new car discount. This discount ranges between 10% to 15%.
Anti-theft Device Discount
Car owners who have the anti-theft feature can get a discount for about 5% to 25% off their comprehensive coverage. Based on the insurance company you can get this discount for both factory installed and after-market installed devices.
Electronic Funds Transfer (ETF) Discount
Car owners who pay in installments can qualify for a small discount for using the automatic withdrawals. ETF discount can range from 3% to 6%.
If you decide to get your policy documents and billings electronically (paperless), then you can get a small discount. This type of discount isn’t popular among all insurance companies.
Online Quote Discount
Some car insurance companies can offer discount to car owners who get an online quote and sign up for a policy. This discount ranges from 4% to 12%.
Early Bird Discount
You can get a discount for shopping online and purchasing a policy in advance of your current one expiring. Different companies vary on number of days in advance you are required to buy to get the discount. But this tends to usually around seven to 14 days. And the discount ranges between 2% to 15%.
Based on your occupation, you can qualify for a discount from car insurance companies. It is great to ask your insurance agent if your current occupation qualifies for a discount.
Alumni Associations And Professional Organization
You can get a discount for college alumni associations, fraternities, sororities, or professional organizations.
Usage-Based Insurance Program (UBI) Discount
This is an adjusts insurance rates offered based on how often and how well you drive. The data is collected using a device installed on your car’s ODB-II port or collected from a smartphone app. As a good driver, the UBI discount can range between 5% to 40%.
RECOMMENDED: Best Insurance Companies For Home And Auto