8 Possible Car Insurance Discounts That Could Help You Save Money

Insurance is important for all car owners. Besides being a mandatory requirement, insurance also indemnifies you and third parties in case of injury or damage resulting from an accident. There is also comprehensive coverage that insures you against theft, vandalism, and acts of God. Driving without could see you face penalties in the form of fines, jail time, as well as license and registration suspension.

Insurance is, therefore, an unavoidable expense. However, there are car insurance discounts and breaks you can take advantage of to slash some cash off that high car insurance premium. Here are 8 possible car insurance discounts that could help you save money.

1. Multi-policy insurance discount

A car in need of insurance discounts to fix the vehicle.
A car involved in an accident | Getty Images

Bundling your car insurance with another policy can make you eligible for rewards that reward customer loyalty. You can get yourself in contention for such rewards by obtaining different policies such as life insurance, home insurance, and auto insurance from the same company. Some companies also offer a multi-car discount, adding your cars to one policy.

It is advisable to consult your insurer on the policies you can “bundle” to enjoy maximum discounts.

2. Maintain a good driving record

Fewer accidents mean insurance companies pay less in claims. Insurance providers try to reduce the number of claims by lowering the premiums payable by drivers with a good driving record. Therefore, keeping your traffic violations to a minimum and not causing accidents may reduce your car insurance rate.

3. Low mileage discounts

According to Allstate, some insurance companies also provide discounts for drivers that drive less than the average number of miles per year. The idea behind this discount is to reduce the number of claims, as fewer miles on the road means a lower likelihood of being involved in an accident. You can take advantage of this car insurance discount if you drive less than the average driver.

4. Good grades car insurance discount

If you are a student who owns a car, you should be motivated to keep your grades up, as this could earn you a discount on your insurance premiums. And no, this is not only a preserve of teenagers in high school. Some insurers offer this type of discount to full-time students aged below 25 years.

5. Safety feature discount

Safety features such as anti-lock brake systems and airbags minimize the risk of accidents and cushion you against injury. According to the Insurance Information Institute, many insurers have noted this and provided discounts for such safety features.

6. Anti-theft car insurance discount

Many new cars come equipped with an anti-theft device nowadays. You should consider installing an alarm or stolen vehicle recovery transceiver if yours does not come with one. In addition to significantly reducing the risk of theft, installing an anti-theft device on your car may make you eligible for an anti-theft discount.

7. Install a telematics device

A telematics device enables insurers to monitor and collect information on your driving habits, which they use to offer personalized feedback, rewards, and discounts. You could qualify for car insurance discounts by enrolling in a telematics program with your insurer.

8. Renew your policy early could result in a car insurance discount

Insurance companies want to retain their clients. They employ various discounts to keep them around. For one, some insurers offer discounts to customers who renew their new policies before the old one expires. You may also enjoy a reduction in premiums if you pre-pay the entire policy period in one go.

There may also be long-term customer discounts available if you stay with your current insurer for an extended period. If you deem this to be the case, consult your insurer to determine if you qualify for a discount.

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