Car insurance can be expensive, no matter what kind of car you drive or auto insurance company you choose. However, many companies offer discounts to help lower the cost of car insurance. While the specific discount you are entitled to and the amount it saves on monthly insurance varies depends on your insurance provider, there are some general categories that make drivers eligible for reducing their car insurance payments. If you’re searching for cheap car insurance, see if your insurance carrier offers the following discounts.
Customer Loyalty and Bundle Packages
Some insurance companies offer discounts for customers who buy multiple insurance plans from them. This includes home insurance, life insurance, and other types of insurance. Companies may also give family discounts for households where more than one individual signs up for the company’s insurance coverage. This policy is sometimes referred to as a “multi-car” discount. Insurance companies may also offer insurance reductions for customer loyalty, which means that they reduce rates for long-time customers who renew their policy in consecutive years.
Some insurance companies also provide insurance discounts for certain segments of the population. This includes homeowners, low-income citizens, and senior citizens. Insurers may also offer discounts for college students and graduate students who maintain a certain GPA. In some cases, insurance companies may offer this reward for students up to 25 years old.
Vehicle Safety Features
As a driver, you probably consider the volume and type of safety features that a vehicle offers when you’re shopping for cars. You find these features valuable, and it turns out that insurers do too. If you’re on the fence about upgrading to a higher trim level or paying more for advanced safety features, just remember that your investment can pay off based on the insurance company.
Safe Driver Discounts
Along with having safety features in your car, just being a safe driver can help you get cheap car insurance . Maintaining a clean driving record with no accident history or moving violations can reward you by cutting payments from your insurance plan each month. Some insurance companies also offer a tiered rewards system that deducts more from your insurance payments the longer you maintain a safe driving record.
Your personal networks and connections can help with many areas of life. Who you’re affiliated with can affect your car insurance rates, too. Drivers associated with certain groups and organizations can get reduced insurance rates. Drivers who are active or veteran members of the military may be eligible for lower insurance payments, and those who sign up for emergency roadside assistance can also get reduced monthly insurance plans.
Low Mileage and Infrequent Usage
If you’re debating whether to get a new or used car, one reason to consider a new car is that even though you might spend more upfront, you may be able to get lower car insurance rates. Many companies offer rewards for low-mileage driving. Some also offer usage discounts where the rate you pay each month for insurance varies based on whether a car is your primary vehicle or a secondary vehicle, such as a convertible that you only use on a seasonal basis.
Maintain a Good Credit
Having a good credit rating is important for many aspects of life. It can also affect the amount that you pay for car insurance each month. Many insurers use customers’ credit history to determine their rates, and research shows that better credit scores lead to lower claims .
When looking for auto insurance rates, one of the best ways to get the lowest possible cost is to shop around for different quotes. Since there are so many variables used by insurers to calculate your insurance rates, you may get quite a bit of variation among rates for the same vehicle. It’s also important to keep in mind that some states have different requirements for auto insurance than others, which also affects the amount of insurance that you pay.
Although auto insurance can be expensive, there are many ways to reduce your auto insurance payments. From buying multiple insurance plans from the same company to maintaining good grades and having a clean driving record, consumers have many outlets for paying less on car insurance. Before settling on any insurance plan, however, be sure to shop around and compare multiple options.