Car insurance is a necessary expense of adulthood. If you own a car, you need to pay for insurance. Since there is no way to cut this cost completely from your budget, it becomes important to find ways to reduce its price. Fortunately, insurance companies are eager to offer a wide array of discounts to drivers. If you know what to ask for, you may be able to qualify for substantial savings. Here are a few discounts you may be able to take advantage of:
1.) Multi-policy discounts: Most insurance companies offer discounts to people who hold multiple policies through them. In some cases, the discount may even be enough to negate the cost of the secondary policy. For example, if you have auto insurance with one company, see if you could save some money by purchasing a cheap renter’s policy as well. Other options include homeowner’s insurance, boat insurance or motorcycle insurance. Additionally, you may get a discount for having multiple cars on one policy. Consider combining policies if your spouse is insured with another company.
2.) Good student discounts: Young people pay the most for auto insurance, but good student discounts can reduce this expense. Insurance companies offer discounts to student drivers who maintain a 3.0 GPA or higher, and these discounts often last through college or even graduate programs. This is a good way for college students to save money; it’s also a smart way for parents to mitigate the cost of teen drivers in the house.
3.) Driver’s education discounts: The local library or DMV may offer defensive driving classes or other advanced driver’s education programs. These classes are usually very affordable or even free, and your insurance company may offer a discount for completing them. Be sure to discuss this with your insurer to determine what programs qualify for discounts.
4.) Low mileage discounts: If you work from home or simply don’t drive much, you can save money on car insurance. Insurance companies assume that all drivers will average about 1,000 miles per month and calculate premiums accordingly. If you don’t drive that much, tell your insurance company and they will usually reduce your insurance costs. Some companies even offer a pay-as-you-go plan that tracks the actual miles you drive and charges you only for those miles.
5.) Customer loyalty discounts: Nearly every company offers discounts to drivers who have been insured for a long time. This may mean a deductible reduction, annual rebate check or yearly premium reductions. If you’re not being rewarded for your loyalty, it may be time to shop for another insurer who will appreciate you more.
Every insurance company offers different programs and incentives. Ask your current insurer about the available discounts, but be sure to shop around as well. You may be able to find an insurance company that will offer you superior coverage at a lower cost. By comparison shopping, you can be sure to find the policy that will suit your needs while offering the best discounts.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.