How to Save on Auto Insurance
There are numerous discounts that can be applied to your auto insurance policy, depending on your eligibility.
Ranging from life, vehicle, history and more, discounts exist under a variety of conditions.
Don’t wait for discounts to be offered to you. Ask!
It is advised to always ask about discounts upon renewing your policy to ensure you’re getting the best possible rate. Not all insurance companies will openly tell you about discounts.
Most Common Discounts
These are 23 of the most common auto insurance discounts that may be available to you. Take notes and ask your representative, hopefully you can save some money this year.
Multiple Vehicles
Most auto insurance companies offer a discount if you or your household own more than one vehicle. And this number grows if you have more cars than drivers in a household.
Multiple Policies
Much like having multiple cars, having other policies can usually get you a discount as well. Bunding your home insurance or tenant insurance with your auto insurance can result in a lower rate altogether.
Skrypnykov Dmytro, Shutterstock
Group Discounts or Group Rates
Find out if you belong to an eligible group that would allow you a discounted group rate. This is commonly found in employer benefits, union benefits, or for alumni of certain post-secondary institutions.
Higher Deductibles
If you’re willing to take a higher deductible, you’re going to pay a lower insurance rate. The trade-off here though is that you’ll need to pay more when you need it most. If you’re a good driver, this may still be worth it.
Loyalty and Renewals
Always ask about loyalty discounts—this is the same for everything from utilities and phone bills to insurance and more. Oftentimes, people who have been with the same insurance company for 5+ years will get a 5% discount.
Driving School
If you attended driver’s education you may be eligible for a discount. Auto insurance companies often believe that educated drivers are safer drivers and pose less of a risk. As such, those drivers are rewarded with discounts.
Telematics
Telematics (usage-based insurance “UBI”) has combined leading-edge wireless communications and global position system (GPS) tracking technology that collects and analyzes data from moving motor vehicles.
Telematics Discounts
This feature essentially puts discounted rates in your control. The better driver you are, the more you can save.
Seasonal Tires
Certain regions offer discounts for policy holders who use winter tires. In some Canadian provinces, for example, insurance companies are required by law to offer you a 2-5% discount once informing them that you have winter tires.
Hybrid Cars
Hybrid and electric cars can have an effect on your insurance rates as well. In some places, electric or hybrid car owners can be eligible for a discount of up to 10% as companies appreciate that these vehicles are low risk, and tend to be safer with fewer break-downs.
Robert Scoble, CC BY 2.0, Wikimedia Commons
Private Parking
In most major cities, having a safe parking spot for your vehicle can get you a discount. Parking on the road leaves your vehicle more vulnerable to break-ins and accidents. Parking in a private garage can save you money, and keep your car safe.
1994McLarenF1, CC BY-SA 4.0, Wikimedia Commons
Alarms
Having an anti-theft system in your vehicle may get you a discount as well. It’s important that the system is active and functioning. There is a plethora of anti-theft options available these days. Find out what your vehicle has and mention it to your broker to see what they can offer.
The Make/Model
Vehicles are rated in terms of safety and performance. Vehicles with higher ratings in those two categories can result in insurance savings. Typically, newer vehicles that have more airbags, or vehicles with good crash test ratings yield higher discounts.
The savings here can be massive, so do a little research before buying your next vehicle.
Retirees
If you recently retired, you may qualify for a discount. Insurance companies believe that retirement often leads to a decrease in driving activity. As well, the retiree status indicates you’ve (likely) been driving for many years and are an experienced driver.
Marital Status
Your marital status has an impact on your insurance rates. Believe it or not, married folk generally receive a bit of savings on auto insurance.
Graduated License Discount
Drivers who progress through the graduated licensing system often receive a discount of 10% on all coverages.
This discount depends on where you live and what the licensing system is like in your region.
Age
Naturally, your age plays a role in your eligibility for auto insurance discounts. Teenagers, for example, will pay higher premiums than people in their 30s and 40s.
Typically, age 25 is definitive difference maker. Before that age, you typically pay more.
Conviction-Free
Your driving record most definitely plays a part in your insurance rates—a big one, actually. Demerit points can greatly increase your premiums, and so can traffic tickets and accidents in which you were at-fault.
Repair Estimates
When insuring a vehicle, auto insurance companies will check to see how readily available the parts are for that vehicle. Exotic, rare, and premium cars will require specialized skills and parts, making their repairs expensive—thus, costing you a higher insurance premium.
Roadside Assistance
In some places, having a roadside assistance plan can earn you a discount on auto insurance as well. Be sure your membership is kept up to date and active, otherwise you will lose that deal.
Where You Live
Some states and provinces have higher insurance rates compared to others. It can vary by city, even.
formulanone, CC BY-SA 2.0, Wikimedia Commons
Safety Features
Some insurance companies will offer discounts based on which safety feature add-ons your vehicle is equipped with. Many newer vehicles have an array of safety features that insurance providers love to hear about, so be specific and see how much you can save.
Students
Some insurance companies offer discounts to students who are away at school and have left their cars behind. This means they will obviously be driving less, and thus will receive a discount. Be sure to mention this if it applies to you.
Proximity to Work
Living close to your workplace may present a discount available to you. Most accidents occur between work and home, so the closer you live to work, the less risk there is of getting into an accident.
The less you drive, the more you save.
Bottom Line
There are a number of ways you may qualify for discounts when it comes to auto insurance. Not all companies will offer you what they have, so it pays (literally) to ask. Even if you don’t get it, it doesn’t hurt to ask.
Bonus Tip
While you’re exploring the market for your next new ride, send your insurance representative the details of the vehicle you’re interested in and they can give you an estimated quote for that vehicle.
You’ll find that your rates will change based on the make/model and year of car, as well as the safety features it includes—as mentioned earlier.
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