Insurance is expensive. The national average annual car insurance cost with full coverage is $1,655, though this will differ greatly depending on factors such as age, location, credit score, driving record, and type of car driven.
The costs associated with car insurance are so high that it is the second most expensive item when it comes to maintaining a car. A study by the American Automobile Association (AAA) lists depreciation as the only cost to beat out insurance.
High costs are an incentive to seek out good discounts, and though they can seem trivial at times, they can be crucial in putting a serious dent in those high premiums. There are many types of discounts which take into account the type of driver you are.
Before we list some of the Best Auto Insurance Discounts for You, let’s review the kind of habits that make you eligible for lower premiums:
- A clean driving record – Reckless driving leads to traffic violations that will stain your record. A DUI can add $723 to your premiums, and a speeding ticket will cost an extra $422.Worse off is that these mistakes will continue to affect your insurance rate for 3 -5 years.
- Better credit score – Poor credit is no joke and can increase your premiums by 76%.
- Shopping around – do so annually and get multiple quotes to get a better idea of the best deal you can get. Insurance costs from different providers can vary widely.
- Pick your car wisely – Stay away from vehicles with high maintenance/repair costs, powerful sporty cars associated with speeding, electric cars, vehicles with poor safety records, and cars popular among thieves.
- Paying premiums in full – a one-off payment, as opposed to monthly payments, can qualify you for a discount.
Here are some of the discounts you ought to ask for:
- Multi-policy discount – one of the biggest discounts you can get is from bundling your car and home insurance – it can attract 5 to 25% discounts. Insurance companies want to keep you shopping with them, so they’ll offer discounts to keep you in-house. Other bundles, e.g., life, boat, RV, and renters’ insurance, can also be bundled with your car insurance.
- Multi-car discount – Similar to bundling, more than one car insured by the same company can net you 8 to 25% discounts.
- Defensive driving/Good driving discount – A good driving record for over more than three years or taking a certified defensive driver can, depending on the insurer, get you anything from a 10 to 40% discount.
- New car discounts – If you have a car that is less than three years old, it is possible to get a 15% discount.
- Low mileage discounts – The less you drive, the less likely you are to get into an accident. This is typically for those who clock in under 7500 miles, though this will have to be monitored by the insurance company.
- Anti-theft discount – The insurance company is worried you will be stolen, so if you have theft prevention systems such as GPS locators, a remote kill switch, or VIN etching – these can get you a small discount.
There are many more discounts apart from these. Just remember that discounts can make a sizeable difference, so always make it a point to shop around.