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Car Insurance Rates: What Discounts Are Available

Bovo Law Dec. 15, 2012

When you’re buying car insurance, rates vary due to so many things. It can be difficult to get the best rate. It is tempting to go online to get a car insurance rate, and many do just that. But sometimes, going with an agent that gives the hands-on treatment that is the best way to get the best deals. They often know of discounts that you are eligible for. Let’s take a look at some of the discounts that can affect your car insurance rate.

Multi-Vehicle Discount

If you have more than one vehicle with the same company, they will generally give you a discount on the second and subsequent cars. Hence, if Car A costs $100 a month to insure, and Car B is $80 a month to insure, together, under the same policy, they won’t be $180 a month to insure, but something more like $165. While it isn’t a huge discount, every bit helps cut your car insurance rate!

Multi-Policy Discount

If your insurer offers more than just auto insurance, if you have a different type of policy with them they will often give you a discount on the second policy. Perhaps your insurer also offers home owner’s insurance. Rather than paying full-freight on the home owner’s insurance when you start the policy, there’s a good chance they’ll discount it up to 20%.

Some insurance companies call this discount Auto-Home Discount. They often have a similar policy: Auto-Life Discount. In the case of life insurance, generally only one person on the policy having a life insurance policy is enough to grant the discount to the entire policy.

Good Driver Discount – Claims Free Discount

Are you a good driver, one who hasn’t had any incidents in several years? If you haven’t had any tickets or accidents (that you are at fault for) in about five years, you are a candidate for a good driver discount. Of course, they will verify your record with the DMV, but if you truly are a good driver, then you will likely be rewarded by a nice discount on your car insurance rate. This can also be called a Claims Free Discount.

Good Student Discount

If you have a student in the family, encourage them to get good grades. For high school students and often college (or until married) as well, having a GPA of 3.0 or higher (for some, 3.5 or high) is a good enough reason to give that student a better car insurance rate.

Airbag Discount/Anti-Theft Discount

Having airbags installed in your car will often give you a discount. And some car insurance companies give a discount for an alarm system. Beware – some cars have a number etched into the glass of the window, and salespersons at car dealerships will tell you you can get a discount for having a number etched into the glass…This may or may not be true. Check with your car insurance company before paying extra for that “benefit.”

The foregoing article was written by the author based on experiences she has had. This article is not stated as a legal opinion or as fact but instead is stated as opinion of the author.