Types of Auto Insurance Discounts

Types of Auto Insurance Discounts

So what car insurance discounts to ask for? Here's a look at some of the most common discount options that auto insurers provide and the best car insurance discounts to ask for:

Low mileage discount. Insurance companies estimate that the average motorists drive 5,000 miles or more a year. If the mileage you put on your car annually is less than that, you could be eligible for a discount. Why? - Because the less you drive, the lower the chance of an accident.

Good driver discount. If you have a good driving record and haven't filed any claims over a certain period of time (typically, three years,) you could qualify for a good driver discount. Insurance providers offer this type of discount because you are considered less of a risk, which means there is less of a chance you will file a claim.

Good student discount. Some car insurance companies provide discounts for good students; usually for those who maintain an average grade of a B or higher. The reason? - Good students are viewed as being responsible, which means that there's a good chance they will be cautious drivers.

Driver training discounts. If you complete a driving course, you might also be eligible for discounts on your car insurance. For example, new drivers who complete an accredited driver's education program, or veteran drivers who complete a defense driving course could receive discounts on their insurance.

Auto club discounts. If you are a member of an auto club, you could be eligible for a car insurance discount. These auto clubs, such as AAA, offer roadside assistance, which means that stranded motorists' will have access to help, which can reduce their risk of getting into an accident.

Equipment discounts. Your driving record, habits, and association with an auto club aren't the only things that could qualify you for discounts on your auto insurance; your vehicle could, too. Many car insurance companies offer reduced prices for the type of equipment that a car is outfitted with. Examples include: anti-lock brakes; airbags; daytime running lights; anti-theft protection, and passive restraint. If your vehicle is considered "green" (it uses alternative fuel), you might also be able to receive a discount.

Multi-vehicle discounts. If you insure more than one car under a policy, you could receive a discount, too.

Loyal customer discount. Car insurance companies like loyal customers. If you continue to renew your policy with your provider, you will likely pay less each time you renew.

Bundling discounts. If bundle multiple policies together, such as your car insurance and homeowners insurance, you might be able to receive a discount, too.

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