Getting car insurance is not only a smart thing to do; it’s the legal thing to do in 48 of the 50 US states. While the law varies from state to state, the minimum requirement is to carry some form of liability. There are many instances where liability only might be a good way to go, but there are several other reasons a person may want to get more coverage. You may be surprised that there are many undisclosed discounts offerred by most companies. These discounts may offset the premiums in a way that would make your auto policy more affordable. If you’re in the market for cheap auto insurance, get the best rate possible by asking if you qualify for these common discounts.
1. Good driver. Accident forgiveness is one of the rewards a company may offer a client, but so are discounts. In fact, sometimes the discounts that a company gives can be quite substantial. In order to qualify for the discount, however, you may be required to be accident free for three years. Additionally, you should have no traffic tickets over the past three years in order to qualify for the discount. More savings can be offered for drivers that extend their good driving record over a five year time period.
2. New car. Buying a new car has its perks and one of them is getting discount auto insurance. Not all companies offer discounts for new cars, but some do so if you have a new car or if you’re intending on purchasing one soon, be sure to ask about new car discounts.
3. Auto safety. Vehicles that come standard with anti-lock brakes and air bags provide drivers and their passengers with an added layer of protection, especially if an accident occurs. These auto safety devices also provide drivers with discounts. Having an anti-theft device installed in your vehicle may also qualify you for a discount.
4. Multi car. If you own more than one vehicle, getting an auto policy with all the vehicles on it can grant you a discount. Usually an RV, a boat, or a motorcycle can qualify as additional vehicles and can count toward a multi-car discount. It can payoff to get all your vehicles insured with the same company.
5. Multi policy. Another discount that you might qualify for is a multi-policy discount. This applies to individuals who purchase multiple kinds of insurance from the same company. For example, an auto policy and a homeowner’s policy purchased together can provide owners with substantial discounts.
6. Good student. In effort to reward individuals who are full time students and who are also under the age of 25, many companies commonly offer good student discounts. These discounts teach kids that getting good grades not only gets them brownie points with their teachers, it also teaches them that good grades are rewarded in the real world, too.
The good news is that there are lots of discounts that can add up quickly. These discounts can reduce your monthly premium and can make insuring your vehicles more affordable.
Dorian Travers is a freelance writer and blogger. He keeps his readers informed on all things finance.