Car insurance is often expensive, but you can find ways to save money through discounts. All providers offer some type of discount, but they can vary and even the amount of the discount will be different from one company to the next.
Why Discounts are Important
Most insurance companies offer multiple discounts and customers can receive as many as they qualify for. What that means is that the provider with the lowest initial price may not be the one with the lowest premium once the discounts are added in.
One discount may not seem like much by itself. However, when you add in multiple discounts, the savings can really add up. You can save hundreds of dollars over a year or even more.
The Top Discounts
Now that you know why discounts are important, which ones should you look for? Most insurance companies will automatically check to see if you qualify for certain discounts. If you are shopping around, you will want to pay attention to certain discounts that are offered to help you determine which providers may be the best options. Here are the top discounts to look for when you are checking for affordable car insurance:
Multi-policy – this discount is given if you insurance your home and your car from the same provider; it often offers the biggest savings for your policy and can override other discounts from another provider
Multi-driver – also called a multi-car discount, this is for families with more than one car or driver in the family with the same insurance company, the provider offers a discount as long as you insure both drivers or vehicles
Good credit – also referred to as financial stability discount, this discount rewards you for having a good credit score; insurance companies have deemed that low credit scores mean higher risk for claims, so a good credit score is considered desirable
Good driver – you can often qualify for this discount if you remain accident-free and have no tickets in the last few years, specific details will differ among providers, but it could make a big difference in premiums
Good student – anyone with a young driver in the household will appreciate this discount that rewards students for good grades; the idea is that people with good grades are more responsible and less likely to be involved in an accident, which results in savings for families.
How to Choose the Right Insurance Provider
If you are shopping for affordable car insurance, begin with a basic quote. Narrow your results down by the two or three providers that offer the best rates. Then, compare their discounts to see which one offers the final best price. You might be surprised to find that the one that was lowest is not the cheapest when the discounts are added in.
Discounts will rarely overcome a large difference in price, which is why you only want to bother with two or three providers. If you don’t qualify for certain discounts now, set an appointment with yourself in the future to try again. For instance, you can improve your credit to qualify for that discount. Once any old traffic tickets fall off your record, you can begin working towards that discount as well.
Saving money on car insurance is possible if you know how to hunt for discounts. While some discounts will never work for you, plenty of others are available that can help you save money on your monthly premiums.