Car insurance discounts may not always be what they appear. You might believe that you are getting big savings when you see a car insurance discount with a 40% or more discount, but this doesn’t mean you will get 40% off your whole car insurance bill.
These are some tips for getting cheap car insurance.
Avoid the “up to”
You will often see discounts listed as “upto” a certain percentage. This may not be possible. For example, certain drivers may not be eligible for the highest discounts.
Some discounts on auto insurance don’t apply for your entire bill
Seat belt discounts may not be available for personal injury protection or medical payments coverage, as these types of insurance pay for passenger injuries. Comprehensive coverage may be exempt from anti-theft device discounts, as that is the coverage that covers car theft.
State law may require discounts to some extent
Any insurance company will offer you state-mandated discounts. New York, for example, requires drivers to complete a defensive driving course that includes a certificate of completion. This will allow them to get a 10% discount on liability and collision coverage for three consecutive years.
You can limit discounts
Although you may be eligible for multiple discounts the insurance company will usually limit the percentage of discount that can be offered. You might be able to get discounts as high as 75% on your auto insurance. However, the maximum discount might be 20%.
Discounts are not all automatic
These may be required if you have had the same policy for several years. You won’t tell your insurance company that your vehicle has an anti-theft device or that you are a student driver. Asking your agent to look at the discounts available is the best way to save on Car insurance Calculator Canada.
State-specific discounts may apply
You might not be eligible for the discount that you see on an insurance company’s website.
You can control certain expenses such as registration fees, fuel, and repair costs, but you can cut down on car insurance. According to Forbes Advisor’s research, the national average cost of car insurance, which includes liability, uninsured driver coverage and collision and comprehensive insurance, is $1,998 per year for a 30-year old driver.
Discounts are one way to lower your car insurance bill. There are many common discounts for car insurance, some that you may not be eligible for. Sometimes, you need to ask your agent about discounts so you can make sure you get all the savings that you are eligible for.
Car insurance discounts
To find the most common ranges, we looked at discounts that were available from 11 large auto insurance companies in the country. Your insurance company may offer higher or lower discounts.
Multi-policy discounts are often available when you purchase car insurance and other policies from the same company. This discount is also known as a “multiline discount” or “bundling”. Bundling home and car insurance can often save you between 5% and 25%. You don’t have to be a homeowner to get car insurance. However, you can bundle your insurance with other types of insurance like condo, renters and motorcycle insurance.
This discount is usually available if you have more than one vehicle insured by the same insurance company. Discounts of up to 8% or 25% are common.
Safety discounts for vehicles
You may be eligible for a discount if your car is equipped with safety equipment such as anti-lock brakes and air bags. Daytime running lights typically offer very modest discounts. However, air bag discounts for full front seat air bags can save you up to 40% on your personal injury protection or medical payments.
Discount on new cars
A discount of 10% to 15% is often available for cars less than three years of age.
Anti-theft device discounts
You can usually get discounts of up to 5% to 25% on your comprehensive coverage if your car is equipped with anti-theft devices. You may be eligible for anti-theft discounts depending on your insurance company.
Good driver discounts
Car insurance companies reward good drivers with savings. Car insurance companies will usually require that you are incident-free for a set period of time. Geico car insurance can save you up to 26% if there have been no accidents within the last five years. You may be eligible for a discount if you don’t have any traffic violations, car insurance claims, or accidents. Discounts for good drivers can range from 10% to 40%.
Defensive driver discounts
If you take a defensive driving course approved by insurance companies, you may be eligible for a discount. This discount is only available to qualified drivers who are at least 50 years old. Discounts for defensive drivers typically range from 5% to 10%. This discount is required by some states for mature drivers.
Good student discount
You may be eligible for a discount if you or your student driver are enrolled full time at a college or high school and meet certain requirements. Car insurance companies usually require students to have a minimum B average and to be between 16 and 25 years old. We found great student discounts that ranged from 8% to 25%.
Discount for students away from school
You may be eligible for a discount if your student is not at home and has no car. There are different requirements for car insurance companies. However, the minimum age requirement is that your student be less than 25 years old and live more than 100 miles away from home. You also need to have access to your car during school holidays and vacations.
Get a full discount when you pay in full
Car insurance companies often offer discounts if you pay the entire policy term upfront.
Top companies offer discounts ranging from 6% to 14% when you pay your entire insurance bill in one lump sum, rather than breaking it into monthly installments. You will save money on your monthly finance fees or service fee if you spread the payments.