Discount car insurance policies offer one of the best ways to save money, yet many drivers are unaware of all available discounts.
Discounts vary based on personal characteristics such as your B average – including discounts like the Good Student Discount for full-time students who qualify. Other discounts depend on vehicle details or driving habits.
1. Invest in an Anti-Theft Device
As well as giving you peace of mind, a theft prevention device may also save money on car insurance premiums. With many options to choose from, finding one to meet both your budget and security requirements shouldn’t be difficult – just ensure it’s ARAI-certified, compatible with your vehicle make and model, and capable of deterring the type of theft you fear most is key!
Anti-theft devices range from alarms and immobilizers, so be sure to ask your insurance provider which ones qualify for discounts, and what the criteria for attaining them may be.
2. Pay Your Policy in Full
Costs associated with auto insurance continue to escalate, and paying upfront could put undue stress on drivers’ budgets. But paying upfront could unlock significant discounts.
As the best way to ascertain which discount you qualify for, it is wise to contact your insurer. Inquire further regarding alternative payment discount methods such as electronic or automatic payments.
Paying in full could limit your ability to switch carriers or cancel (after covering any early cancellation fees), though it still makes for an excellent option if you can afford it.
3. Switch to Electronic Statements
One ton of paper requires 24 trees and produces significant greenhouse gases during production, printing, and mail delivery. By switching to E-Statements instead of paper statements you can reduce both your paper trail as well as protect the environment for future generations.
Some insurance providers provide discounts if you switch to electronic statements or set up payments through EFT, commonly referred to as loyalty discounts – offering significant savings in the form of incremental savings over time.
To make the switch, log into your online banking and select “e-statements” under accounts. Alternatively, call your bank and make changes via phone call.
4. Bundle Your Policies
Bundling insurance policies is one of the easiest and most efficient ways to lower costs. It involves buying multiple policies from one insurer, such as home and auto or renters insurance policies together.
Bundling discounts can help insurance companies reduce administrative costs by sending one bill for all your products.
However, it’s important to keep in mind that bundled policies may not always provide the best coverage at an economical price. When making decisions based on price alone, always compare products before making your selections.
5. Get a Safe Driver Discount
Safe driver discounts can save you anywhere from 10%-30% off liability and collision auto insurance policies. Many insurers provide this discount through usage-based insurance (UBI) or telematics programs; this type of discount can be monitored via smartphone apps or devices that connect directly to your car in order to assess driving habits.
One effective way of qualifying for this discount is through attending a defensive driving course. These classes typically last a few hours and teach drivers techniques for avoiding accidents; additionally, these programs can assist drivers with poor records by helping improve their scores.
6. Become a Member of a Professional Organization
There is a professional organization for almost every profession and occupation, though membership doesn’t come cheaply. Membership could pay dividends when it comes to insurance discounts; professional organizations may provide group discounts on life, auto, and other forms of coverage such as student health policies. They may also host national and regional conferences where members can network with peers while also benefiting from scholarships and internship opportunities within their field of interest; all this combined can make membership worth its cost relatively quickly.
7. Get a Multi-Policy Discount
Many insurance providers offer multi-policy discounts or bundling discounts – in effect a discount when both home and auto policies are purchased from one carrier at once, saving significant sums of money in premium payments. This may help lower overall insurance costs.
Switching providers is an excellent way to reduce bills and can be particularly beneficial if you own multiple vehicles. But before making this move, be sure to shop around to ensure you find the best possible offer – many discounts have limits that must be understood, for instance, loyalty discounts may not offer as much savings if you’ve been with one provider for an extended period.
8. Sign Up for Automatic Payments
Many insurers provide auto-pay discounts, which can save you both money and give you peace of mind that your payments will always be on time. These discounts can serve both as rewards for loyal customers as well as competitive measures in an industry with relatively low customer retention rates.
To obtain your discount, visit your insurance website and choose either an existing payment method or enter one for the first time. After verifying your identity with an identity check code sent either to an established phone number or email address and agreeing to its automatic payment terms and conditions, select or add one of your saved payment methods or add one new.
9. Get a Loyalty Discount
Loyalty discounts can be an attractive incentive in an increasingly competitive car insurance market, drawing customers back. From being longtime customers or enrolling in driver safety courses to installing telematics devices, insurers utilize such incentives as ways of strengthening customer relationships.
However, loyalty discounts don’t always translate to cost savings. Many companies have been known to offer loyalty discounts, while simultaneously increasing rates resulting in no net cost reduction – known as price optimization and often employed to stop existing customers shopping around for better offers elsewhere.
