Most drivers know that maintaining a good driving record can help keep auto insurance costs under control, but that isn’t the only way you may be able to save. Insurance companies offer a variety of discounts, and some are easier to overlook than others. From combining policies and insuring multiple vehicles to taking advantage of vehicle safety features, there may be auto insurance discounts available that you aren’t currently receiving.
The challenge is that discounts aren’t identical from one insurance company to another. Eligibility requirements and potential savings can vary based on the carrier, state, driver, vehicle, and type of coverage. That’s where having an experienced insurance agent can make a difference. Instead of simply renewing the same policy year after year, a periodic review can help uncover savings opportunities while making sure you still have the protection you need.
Multi-Policy Discounts
One of the best-known ways to potentially reduce insurance costs is to purchase more than one policy from the same insurance carrier. Often referred to as bundling, this commonly involves combining auto and homeowners insurance, although other eligible policies may qualify depending on the carrier.
A multi-policy discount can make a significant difference in the overall cost of insurance, but the size of the advertised discount shouldn’t be the only consideration. The total premiums, deductibles, coverage limits, and policy features all matter. An independent insurance agent can help compare the complete picture to determine whether bundling actually provides the best value for your situation.
Multi-Car Discounts
If your household has two or more vehicles, insuring them with the same carrier may qualify you for a multi-car discount. This could apply to a married couple with separate vehicles, a family with teenage or young adult drivers, or a household that owns an additional vehicle.
Keeping vehicles together on one policy can also make insurance easier to manage. Rather than dealing with separate policies and renewal dates, you may be able to consolidate coverage while receiving a discount. Your agent can explain which vehicles should be listed on the policy based on your household circumstances.
Good Driver and Claims-Free Discounts
A history of safe driving can pay off. Many insurance companies offer discounts or preferred rates to drivers who maintain a clean driving record for a specified period. Avoiding accidents, moving violations, and other driving infractions may help demonstrate that you represent a lower risk to insure.
Some carriers also recognize customers who remain claims-free for a certain length of time. The specific requirements vary, so don’t assume you’re automatically receiving every discount for which you qualify. If your driving record has improved since you first purchased your policy, it may be particularly worthwhile to have your coverage and rates reviewed.
Defensive Driving Course Discounts
Completing an approved defensive driving or accident-prevention course may qualify some drivers for an insurance discount. These courses are designed to reinforce safe driving practices, hazard awareness, and techniques that can help reduce the likelihood of an accident.
Eligibility varies by state and insurance carrier, and there may be requirements regarding the type of course, the driver’s age, or how frequently the course must be completed. Before signing up solely for an insurance discount, check with your agent to make sure the course is approved and find out whether you qualify.
Good Student Discounts
Adding a young driver to an auto policy can be expensive, so families with teen or college-age drivers should ask about good student discounts. Many insurance companies offer savings when an eligible student maintains qualifying grades or meets other academic requirements.
The reasoning is that responsible academic performance may correlate with responsible behavior behind the wheel. Requirements vary by carrier, including age limits, grade-point averages, and whether the student must be enrolled full-time. Families with a student attending college away from home may also want to ask whether additional savings are available if the student doesn’t regularly have access to a vehicle while at school.
Vehicle Safety and Anti-Theft Features
The technology built into your vehicle could potentially affect what you pay for insurance. Depending on the carrier, certain factory-installed safety or anti-theft equipment may qualify for discounts on portions of your auto coverage.
Features such as anti-lock brakes, airbags, anti-theft systems, and other safety technology may be taken into consideration. Newer vehicles increasingly include advanced driver-assistance systems as well. Much of this information can be identified through your vehicle’s VIN, but eligible equipment and available discounts vary by insurance carrier. Your agent can help determine whether your vehicle’s features are already being factored into your premium and whether any additional discounts apply.
Low-Mileage and Safe-Driving Discounts
If you drive fewer miles than you used to because you work from home, have retired, or no longer have a lengthy commute, let your insurance agent know. Some carriers offer savings based on lower annual mileage. Others have optional safe-driving programs that use a smartphone app or other technology to track driving habits such as mileage, braking, acceleration, and the times of day you typically drive. Drivers who are comfortable participating may be able to earn additional savings, depending on the insurance company and program.
Payment and Policy Discounts
Sometimes savings have less to do with how you drive and more to do with how you manage your policy. Depending on the insurance company, discounts may be available for paying the premium in full, enrolling in automatic payments, choosing paperless documents, or renewing coverage continuously without a lapse.
These discounts may not be the largest individually, but several smaller savings opportunities can make a difference. Your agent can review the carrier’s available options and help determine which ones make sense for you.
Don’t Let a Discount Reduce the Coverage You Need
Finding ways to lower your premium is worthwhile, but price shouldn’t be the only consideration when choosing auto insurance. A less expensive policy isn’t a good deal if it leaves you without sufficient protection after an accident. Liability limits, collision and comprehensive coverage, deductibles, uninsured or underinsured motorist protection, and other available coverage should all be considered based on your individual circumstances.
This is also why comparing two auto insurance quotes based only on the final premium can be misleading. One quote may appear cheaper because it provides different limits or carries a substantially higher deductible. Understanding exactly what you’re buying is just as important as finding available auto insurance discounts.
When Was the Last Time You Reviewed Your Auto Insurance?
Insurance needs change over time. You may have purchased a different vehicle, changed jobs, started working from home, added or removed a driver, moved, improved your driving record, or become eligible for discounts that weren’t available when your policy was first issued. An annual insurance review provides an opportunity to update this information and make sure your coverage continues to fit your circumstances. For 35 years, Joseph J. diMonda Agency has provided personalized insurance solutions for auto, home, life, and commercial insurance. Rather than navigating a call center or explaining your situation to a new representative every time you have a question, diMonda customers have direct access to an insurance agent who can get to know their coverage and their needs.
Could You Be Paying Less for Auto Insurance?
You may already qualify for savings that haven’t crossed your radar. The easiest way to find out is to review your current policy with an experienced insurance professional who understands the questions to ask and the discounts to look for.
Contact Joseph J. diMonda Agency today for a personalized review of your auto insurance. We’ll help you explore available discounts, evaluate your coverage, and determine whether there are opportunities to save while keeping the protection you need on the road.
