Car insurance is a necessary part of all motorists' lives and is one of the most heavily advertised services today. While providing a financial safeguard against several problems arising from accidents, theft, and vandalism, car insurance also provides many opportunities for earning discounts. While some discount programs or deals are unique to specific insurance companies, most offer the same general discount opportunities for their respective customers. It is important for all car insurance customers to be aware of all the discount programs their insurance company provides in order to take advantage of them.
Safe Driving
Generally, the most significant discounts are safe driving discounts, namely, customers who aren't involved in any at-fault accidents, DUI's, DWI's, or other minor infractions such as speeding tickets or parking violations. Most insurance companies require car owners to go a period of time without being involved in any of these incidents to receive this discount, with GEICO offering as much as a 26% discount for individuals who go at least 5 years without an accident. Car owners can usually expect to save between 10% and 40% for safe and responsible driving.
Good Student
Some of the highest insurance rates are typically applied to newer and/or younger drivers. Thankfully, insurance companies offer good student discounts to individuals who are enrolled as a full-time student in high school or college. Students must meet certain grade and age requirements, usually maintaining a B average or better and being between the ages of 16 and 25. Good student driving discounts vary significantly among insurance companies usually falling between 10% and 25%.
Mileage
Although not as popular or substantial as other discount programs, many insurance companies are increasingly offering larger discounts for driving fewer miles. This specific type of discount will generally vary in significance among insurance companies depending on the state the policyholder resides in. California, in particular, has partnered with insurance companies to provide significant discounts to customers who drive fewer miles. Individuals who drive fewer than 7,500 miles a year can save nearly $600 in comparison to those who drive more than 15,000 miles a year in this state.
Consistent Insurance History
Insurance companies will also provide discounts for drivers the longer they maintain an insurance policy. The typical industry-wide requirement for receiving these types of discounts is 5 years of continuous coverage, with savings averaging around $200 per year for motorists who meet this requirement. Newer drivers who were recently insured under their parents' or guardians' policy should always let their new insurance company know when they switch to a new policy or company so they can receive this discount as soon as possible.
Miscellaneous
Increasing numbers of insurance companies are providing discounts for drivers who opt-in for paperless billing and other documentation. Others may offer discounts up to 12% for customers who fill out an online quote and then sign up for a policy. College students who are out of state and do not have a car with them can usually receive discounts as well. Finally, some insurance companies offer occupational discounts, like Liberty Mutual providing discounts for those in the education profession and GEICO offering a 15% discount for members of the military.