In many cases, you have to have insurance. It’s a necessary expense if you want to get on the road or get a mortgage. But just because you have to pay, doesn’t mean you have to pay full price. In fact, there are lots of ways to save on your insurance thanks to the many different types of insurance discounts most insurers offer. When shopping for an insurance quote, be sure to ask your agent about potential insurance discounts.
Today we’re highlighting the 8 kinds of discounts that could save you the most on your insurance.
8 Insurance Discounts
1. Bundling
Always ask about bundling discounts. Most insurance companies will offer you a discount if you purchase both your home and auto policies from them. Some offer as much as 20% off both policies when you “bundle” them together.
If you own multiple vehicles in your household, using the same insurer for all of your cars may get you a multi-car discount.
Learn more about how bundling can help you save on your insurance here.
Plus, bundling can make your life easier since you’re only dealing with one insurance carrier for all of your insurance needs.
2. Safety discounts
Installing or implementing safety features is one of the most effective ways to get a lower insurance premium. Safety features help reduce your risk of running into an incident, which reduces the likelihood you’ll submit a claim. Not only do insurance companies want a low risk of claims, but safety features can also keep you and your family healthy and protected!
Car features that may contribute to a safety discount include:
- Anti-theft features
- Anti-lock brakes
- Green or hybrid car
- New car (lower risk of malfunction)
- Completion of defensive driving course
Home features that could get you a discount:
- Central security/alarm system
- Smart smoke alarms
- Fire sprinkler system
- Impact-resistant roof
- Lightning protection system
- Anti-flood structures
Check out these 11 safety features that can help lower your home insurance premium here.
3. Financial stability discount
This is becoming more popular for insurance companies to offer clients. Many agents will even consider your financial stability when they’re first packaging your policy together. “Financial stability” looks at your credit profile and other financial holdings to determine how “risky” you are (especially with your money). Insurance companies will reward good credit profiles in some states.
If you have a good credit profile, you’ll likely get a lower premium right off the bat. If you maintain that profile, you’ll likely keep a low premium—or it may even go down.
If you have a poor or average credit profile, your insurer may make your initial premium high. But if you’ve been working to raise your credit score, you can talk to an agent to reevaluate your premium as your financial stability increases.
4. Low-incident discount
If you haven’t had any incidents with your car or home recently, you’re considered less of a risk to your insurer.
On your car, you may qualify for a good driver discount. If you haven’t had an accident or ticket in 3-5 years, you may be able to get a reduced premium rate. We especially love that good driver discounts are applied per driver, so you could get multiple discounts on the same policy if you have multiple drivers.
On your home, you could benefit from not submitting insurance claims. If you haven’t made a claim on your home in several years, you can talk to your agent to see if you qualify for a lower premium.
5. Loyalty discount
Similarly, if you’ve been with the same insurer for many years and you’ve had few or no claims, you can ask about a loyalty discount.
If you notice that your premiums are increasing, even though you’ve had no claims and you’ve been with the company for a while, you’ll want to talk to your agent. The premiums may be increasing due to an aging home or car, which increases the risk of claim, but your loyalty and low incidence should also play a factor in keeping your premiums consistent.
6. Good student discount
Young drivers tend to pay much higher auto insurance rates—which can be one of your biggest insurance expenses. A “good student” discount is a great way to offset this “under 25” expense. This typically applies to a student who has a 3.0 GPA or higher and hasn’t had any claims while driving.
Find out other ways to offset the "under 25" auto insurance expense here.
7. Payment discounts
A lot of insurance companies will offer you a discount if you select their auto-pay, pay-in-full or paperless bill option. Although the discount is usually on the smaller side, it’s an easy way to get lower premiums—and not have to worry about paying your bills on time each month!
8. Group affiliations
If you’re affiliated with certain groups or organizations, your insurance company may offer you a discount. For example, being an AAA member might get you a slightly lower premium.
Military personnel, both active and retired, may also qualify for lower rates.
Conclusion
The easiest way to ensure you’re getting the best rate is by comparing quotes from different companies. And the best way to compare quotes is with an independent agent who can do it for you and help you identify different discounts.
Get quotes in just ten minutes to see where you can save on your home and auto insurance. Call us today at (844) 300-3364!
Not by the phone? Request a quote or schedule a call with an insurance advisor online: