Auto Insurance Discounts and Driver Bonuses

Every insurance company offers discounts on various criteria to their customers. Here is a list of the most commonly used ones.

Safe driving

Safe driving lowers everybody’s costs. Insurers reward drivers with spotless records with up to 50% of the value of the policy. This is by far the most consistent discount you can be eligible for.

Early contracting

If you renew your policy way before it is about to expire, you can get a discount between 5 and 10 percent. The same goes if you want to switch carriers and contract the new policy much in advance. Specific time frames vary from one insurer to another, but something in the range of two months should make you eligible for this discount.

Resident student

If you have a kid who is a student, is at school at more than 100 miles away, doesn’t have a car and only drives on vacations when he gets home, you can get 25-30% off your premium.

Deductible bonus for no claims

Some companies reward you with a flat rate off the deductible for every year without a claim. If you get a car insurance quote and sign up comprehensive policy with $500 deductible and don’t file any claims in the first five years, you can have your whole deductible waived. Alternatively, you can keep paying the same amount and opt to have your premium lowered.

New car discount

A new car is less likely to break down in the middle of the road than a jaunty one made in 1988. Insurers understand that the risk is lower and may offer you a discount in the range of 25% for all policies that cover new cars.

Anti-theft device bonus

If your car is equipped with an alarm system or a GPS tracker, you can get a few percents off the premium. Some insurers reward you for less fancy devices, so you may be eligible for this discount if you use a measly wheel lock kit.

Good student discount

If you are in college or a high school, some insurance companies will motivate you to get good grades. If you maintain a GPA of at least 3.0 each semester, you can get a discount of around 10%. College and university students have an extra requirement – they have to take at least a number of credits each semester.

Multi-policy discount

If you bring your life and homeowners’ or rental insurance with the same company, you can get an extra 10-15% off the premium. This should also help you save some time, because you get all policies on the same bill and can pay them all in one go.

Anti-lock brakes discount

If your car comes with an ABS system, you can get a discount of a few percents. The good news is that most modern cars are equipped with this system.