4 Discounts That Could Help You Cut Auto Insurance Costs


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Don’t pay more for your auto insurance by missing out on these savings opportunities.

Key points

  • Car insurance premiums can be expensive, but there are opportunities to save money.
  • Discounts are available for good drivers as well as based on employment relationships.

Car insurance premiums can cost hundreds or even thousands of dollars a year. And it’s an expense drivers can’t avoid because the law requires having certain types of coverage, and it’s also important to have the right auto insurance in place to protect assets.

The good news is that while car insurance premiums should be part of every driver’s monthly budget, there are ways to reduce the amount that has to be paid. In fact, there are four discounts motorists should consider taking advantage of in order to save on their insurance coverage.

1. Good discounts for drivers

Good driver discounts could save responsible motorists about 10-30% on the cost of car insurance premiums. These discounts are available to people who have not been in an accident recently and are generally safe and careful behind the wheel.

Different insurers have their own unique rules for how and when responsible drivers are rewarded. Some insurers offer a discount if motorists do not have an accident for a certain number of years, for example three years. Others offer savings to those who have no violations on their record. And some companies even allow motorists to install apps on their phones that monitor their driving. When apps show safe behavior, savings follow.

2. Discounts for defensive drivers

It may also be possible to score a discount for taking a defensive driving course. This could save motorists between 5% and 20% on the cost of insurance premiums. Classes can be available locally or online and typically last several hours. Drivers should check with their insurer for approved classes that may help them reduce car insurance premiums.

3. Discounts for employment or membership

It is very common for car insurance companies to offer discounts to people who work for certain employers or have a particular type of job. For example, there may be discounts for active duty military or for people who work for a larger employer who has partnered with the insurer to offer savings.

Sometimes becoming a member of a particular club or organization can also provide the opportunity to save on insurance. Insurance companies usually have a list of affiliations or memberships that can qualify a motorist for special premium savings.

4. Discount for bundled coverage

Finally, if a motorist also needs other types of insurance, it may be cheaper to bundle coverage and get multiple policies from the same company.

Insurers could bundle coverage by insuring multiple cars with a given insurer, or by insuring one car and one motorbike or boat. It is also possible to purchase tenant or home insurance from the same company as a car insurer in many cases, which may also result in a loyalty discount.

Savings could be as high as 25% for those working with the same insurer for multiple policies. It may also be more convenient to have only one company to deal with.

Ultimately, drivers may be able to take advantage of all four of these discounts, or any combination of them, and premiums could drop significantly for those who take advantage of this opportunity.


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