What are Some of the Types of Auto Insurance Discounts?

If you have been looking for ways to save money on auto insurance, you may have heard that insurance companies often offer discounts. There are are a variety of auto insurance discounts available, some of which you may never have considered. These discounts can help substantially reduce your car insurance costs:

Multi-Car Auto Insurance Discount

If you own more than one car, and agree to insure all of your vehicles under the same policy, you may qualify for a multi-car discount. This auto insurance discount is applied to each vehicle on your policy, and can save you as much as 15 percent on your premiums.

Multi-Line Discount

If you own a home, motorcycle, or boat, you can save money by insuring it with the same company that provides your car insurance. Typically, an insurance company will apply a multi-line discount to both policies, so you can save even more on your insurance costs. Multi-line discounts vary by company, but they typically reduce your premiums by 5 to 10 percent.

Claims Free Discount

Some companies reward customers who drive carefully and avoid losses by offering a claims free discount. Typically, this discount begins after you have gone an entire policy period (usually six months) without an accident or claim. A claims free discount is cumulative, meaning that the longer you go without a claim, the greater the discount.

Defensive Driving Course Discount

Several major auto insurance companies provide discounts for customers who voluntarily take defensive driving courses. Keep in mind that the key word is “voluntary” – if a court has required your to take the course because of an accident or moving violation, the discount will not apply.

Good Student Discount

Although not every company offers this auto insurance discount, there are many companies that reward families with good students. If you or a member of your family consistently receives excellent grades in high school or college, you may be able to save 5 to 10 percent on your car insurance premiums.