Owning a car comes with a lot of added costs. Maintenance for repairs and rising gas prices can take a toll on a driver's wallet, not to mention the cost of insurance.
While we cannot necessarily control the cost of filling up the gas tank or how much we spend on auto repairs, the cost of insurance is actually one of the few areas that allow for possible savings. Clients who have not recently reviewed their policies may be missing out on valuable discounts that can contribute to considerable savings in the long run.
According to Michael Barry, spokesman for the Insurance Information Institute, competition among insurers has lead to new discounts. “Insurers are trying to differentiate themselves in the marketplace,” Barry says.
Some insurers list discount information plainly on the website, but for others, this information can be difficult to find, as it is only available on Question & Answer pages or in the intricate policy wording. By methodically compiling information from discounts pages on the web, Bankrate has compiled a list of popular discounts found on the websites of the ten largest auto insurers in the U.S. to help consumers find more discounts.
Discounts, however, can vary by location because state regulators control which reductions are allowed, and some companies' market research may show that a discount may be bad for business in certain areas. Finding all of the available discounts may take some digging, especially since Bankrate encourages consumers to look beyond their insurers' website. Instead, consumer advocates suggest that consumers explore buying guides from state insurance departments, media reviews of companies' offerings and research by industry groups.
While some discounts are common, others are much more unique or obscure, such as discounts for getting married or wearing a seatbelt . Industry experts suggests that policyholders review their coverage with agents at least once a year, and after any major life event to be sure that policyholders are getting the most bang for their buck. However, while some companies may offer several discounts, this does not mean that the insurer provides the lowest premium for drivers.
Click through the following slides to see the 19 Most Popular Car Insurance Discounts found on the websites of the country's largest auto insurers. While not all insurers offer the following discounts, clients could save money by looking into some common insurance price breaks.
1. Multiple Policies: Discounts for bundling car insurance with other policies, such as homeowners' insurance
- Provided by 10/10 top insurers
2. Good student: Discounts for a younger driver who earns good grades
- Provided by 10/10 top insurer
3. Multivehicle: Discounts for insuring more than one vehicle
- Provided by 9/10 top insurers
4. Anti-theft: Discounts for a vehicle's anti-theft device, such as a car alarm system
- Provided by 9/10 top insurers
5. Passive restraint: Discounts for safety features such as airbags and motorized seat belts
- Provided by 9/10 top insurers
6. Safe driver/accident free: Discounts for a clean driving record
- Provided by 9/10 top insurers
7. Full payment: Discounts for paying premium all at once
- Provided by 8/10 top insurers
8. Paperless billing or automatic payment
- Provided by 8/10 top insurers
9. Distant student: Discounts for a young driver on a policy attending school far away from home
- Provided by 8/10 top insurers
10. Low mileage: Discounts for keeping mileage down (electronic monitoring of mileage may be required)
- Provided by 8/10 top insurers
11. Defensive driver: Discounts for taking a defensive driving course (may be limited to senior drivers)
- Provided by 8/10 top insurers
12. Anti-lock breaks
- Provided by 7/10 top insurers
13. Loyalty: Discount for staying with an insurer for a length of time
- Provided by 6/10 top insurers
14. Newer vehicle: Discounts for vehicles that are under a certain number of years old
- Provided by 5/10 top insurers
15. Early signing: Discounts for switching to a new carrier if the shopping process started at least a certain number of days before an old policy expired
- Provided by 5/10 tip insurers
16. Military
- Provided by 5/10 top insurers
17. Affinity/occupational (nonmilitary): Discounts for belonging to a certain group or working for a certain company or in a particular field
- Provided by 5/10 top insurers
18. Daytime running lights
- Provided by 4/10 top insurers
19. Green vehicle: Discounts for hybrids or alternative-fuel vehicles
- Provided by 3/10 top insurers
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.