Car Insurance Discounts

4 Obscure Car Insurance Discounts

Car insurance is a high-cost item that is required by law in most states. Car owners must take advantage of every possible car insurance discount in order to save money. Paying more for car insurance than absolutely necessary is akin to throwing money away. Obvious discounts, such as a good driving record or multi-car discounts are something that everyone knows to look for.

There are more obscure car insurance discounts that will help lower the premium as well. Insurance companies do not advertise the more obscure discounts, but people who know what to ask about will receive great savings. It pays to be pennywise in the area of vehicle insurance.

  1. AAA discount: AAA is an auto club that aids drivers in various things such as offering free tows, emergency gas, directions, and discounts at hotels. Many insurance companies look favorably upon AAA members and offer a discount to them as well. The cost of membership for AAA pays off quickly and adds protection to the owner of the vehicle. People who travel often benefit the most from membership, but the savings on car insurance is enough motivation to consider the other advantages. Insurance agents will not ask if you are a member of AAA. Not all insurance companies give the discount, but policyholders must ask in order to receive a discount if it exists.
  2. Residing in low-crime areas: When making a decision on purchasing a new home, consider the car insurance premiums. Where the policyholder lives will have a major effect on the car insurance rates a homeowner pays. High-crime areas are high-risk areas according to car insurance companies. The likelihood of theft and vandalism is much higher in high-crime rate areas, leaving the vehicle and insurance companies vulnerable. If you’re considering purchasing a new home or moving from a current rental, consider the area carefully. Choose an area with the lowest crime rate possible in order to realize great savings on car insurance premiums. Do not assume that an area has a low crime rate. Find out the statistics of the area to be certain. This discount is generally automatic, depending on the policyholder’s address. Ask the insurance agent if this discount applies to the policy. If it does not, it may be wise to consider other insurance companies that do allow for the discount.
  3. Amount of annual driving: The long commutes to and from work can cause car insurance rates to rise. If using the car to go to and from work, it is ideal to live as close as possible to the workplace. If that is not possible, try to use alternative transportation. If changing the method of transportation does not require the use of the car, contact the insurance agency to give them the information. This will lower the car insurance rates paid yearly.
  4. Student discounts: Students may be offered a discount on their insurance if they have a high grade point average as well as a good driving record. This applies to both teenage drivers as well as college students. The car insurance discount for students is a great incentive to encourage them to behave responsibly. Students can easily learn to make good decisions based on the consequences of higher insurance rates, which poor decisions can impact. Many discounts are automatically given when speaking with an insurance agent. For instance, if the agent asks for the VIN number of the car, certain discounts will automatically apply. Such discounts will include safety and anti-theft equipment that came standard with the vehicle. Multi-car discounts apply as well as multi-policy. Multi-policy discounts include homeowners insurance coupled with car insurance. Every discount can make a huge difference in the money allotted in the budget for auto insurance.