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Auto Insurance Discount

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UpdatedOct 19, 2010
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    2 min read
Key Takeaways:
  • Auto insurance providers offer many discounts based on your vehicle, your driving record, your age, and more.
  • Discounts vary by insurance companies so it pays to shop around to get the best rate.

Common Auto Insurance Discounts

Auto insurance providers nowadays offer a multitude of discounts to reduce your auto insurance premiums. The amount of discount and the discounts offered vary significantly by company. When shopping for an auto insurance provider, be sure to ask if you qualify for these commonly offered discounts and get the best rate possible.

Common Auto Insurance Discounts

  1. Multi Car Discount - discounts are given to individuals who have multiple cars insured by the same company.
  2. Multi Policy Discount - individuals qualify for a multi policy discount by purchasing a different type of policy such as homeowners or renters insurance in addition to their auto insurance policy.
  3. Auto Safety Devices - people whose vehicles are equipped with air bags, anti theft devices, or anti lock brakes can receive a discount on their premiums.
  4. New Car - some insurance providers offer discounts to individuals who have brand new cars.
  5. Defensive Driving - taking a defensive driving course can help lower your auto insurance rate.
  6. Good Driver - having no accidents or traffic tickets in the last 3 years can help reduce your auto insurance rate significantly. Additional discounts may be given for being accident and ticket free in the last 5 years.
  7. Good Student - if you are full time student under the age of 25 with good grades, you may be eligible for a discount.
  8. Low Mileage - some insurers offer discounts to individuals who drive significantly fewer miles than the average of 15,000 miles per year.
  9. Accident Forgiveness - while not a discount, the accident forgiveness feature prevents your rate from increasing after an accident.
  10. Affiliate Discount - discounts may also be available to individuals who are members of AAA, Costco, credit union, teachers associations, or the military.
  11. Retirement Age - people who are retired and over the age of 55 can receive a lower insurance rate.
  12. Loyalty - loyalty discounts are often given to individuals who continue to insure their cars with the same company.