It seems that lately more and more car insurance providers are turning to TV to lure new customers in with the promise of discounts and saving more. Discounts are one way drivers can save money, but how do these discounts work and how can you take advantage of them to reduce your car insurance rates?
If you’re about to buy your first car or are in the process of researching auto loans, knowing how much you will pay for insurance can be helpful in the planning process.
Car insurance rates are most often based on where you live, age, driving record, and car model. Your rate will be based on how much risk you pose, this is usually why younger drivers, those who drive sports cars, and drivers with poor driving records are more likely to have higher rates. Here are a few types of car insurance discounts you can use to bring down your rates.
- Low mileage discounts. If you’re home and job are only a few miles apart, or you rarely drive your car, you could be eligible for a discount! Some insurers may provide discounts to drivers who drive below a certain amount of miles each year.
- Good driving history. It pays to drive safely and avoid traffic tickets and accidents. Drivers who have a clean record for three or more years may be eligible for a safe driving discount.
- Accident-free or claims-free. Drivers who have not filed a claim or accident in certain period of time may also be eligible for a discount on their rate.
- Multiple-policy discount. If you need home insurance, rental insurance, and other vehicle insurance, going with the same provider could help you get lower overall rates.
- Multi-car discounts. More than one driver in your household? You could be eligible for a discount if your family members who live with you go with the same company.
- Education or occupational discounts. Do you have a particular degree or occupation? Some insurers may provide engineers, doctors, police officers, educators, federal employees, and more, discounts on their policies. This could save you up to 30 percent.
- Military personnel and their families. You have served the country and now your insurance wants to serve you a big discount. Eligibility and the discount vary but active and retired members of various military branches could be eligible.
- Good student discount. Some suggest not rewarding your kids for good grades, but what if those good grades could discount the car insurance you’re paying for? Some insurance companies give discounts out to student drivers with good grades.
- Student away at school. If you have a college student who left home you could receive a discount on their insurance policy while they are away.
These are just a few types of car insurance discounts that are not always advertised. Be sure to ask your insurance provider how you can get the lowest rates possible and don’t hesitate to shop around for better rates.