Don’t Miss Hidden Car Insurance Discounts

Check out Money Girl's 10 money-saving car insurance discounts to help you keep more of your hard-earned money. 

Laura Adams, MBA
4-minute read
Episode #324

Discount #5: Driver Education

But what if you don’t have a squeaky clean driving record? Well, it may be possible to redeem yourself. Most states use a points system to track driver violations. Passing an online or in-person defensive driving class can erase a limited number of points, making you appear less risky to an insurance company. Check your state’s Department of Motor Vehicles (DMV) website for approved courses.

Qualifying for new discounts, having higher credit scores, or even being married can cause your car insurance quotes to drop.

Discount #6: Low Mileage

Maybe you’re driving less for a new job or keeping a car in the garage more often. If your driving patterns change, be sure to let your car insurance company know. Cars that are on the road less have fewer claims, and that earns you a substantial insurance discount.

Discount #7: Affinity Groups

Did you know that being in a certain occupation, working for a particular company, or belonging to a certain group can entitle you to a car insurance discount? For instance, many companies reward teachers, military personnel, or even members of a fraternity or sorority.

Discount #8: Good Student

One of the most commonly missed car insurance discounts is for making good grades. Coverage for young, inexperienced drivers is relatively expensive. However, high school and college students who have at least a “B” average can rack up savings because they’re considered more responsible, less risky customers.

Discount #9: Distant Student

Another way students can save on insurance, no matter their grades, is when they’re attending school away from home. If the student is more than 100 miles away from home and doesn’t have an insured vehicle with them, their coverage won’t cost as much.  

Discount #10: Billing and Payment

Many car insurance companies offer a discount if you pay your annual premium at once, instead of making monthly or semi-annual payments. Also, signing up for automatic payment or e-statements can help you save.

Not every car insurance company will offer each of these discounts. To make sure that you’re getting every available price break, ask your insurance agent or company representative for more information about potential ways to save money.

More Money-Saving Tips for Car Insurance

Remember that another important factor in setting your base auto insurance rate (in most states) is credit. Insurance companies have found that customers with poor credit make more claims, so they charge them more.

If you haven’t reviewed your car insurance lately or it’s been a while since you’ve shopped policies, you may be leaving money on the table. Use sites like InsuranceQuotes.com and CarInsuranceQuotes.com to get free online quotes from the nation's top insurance companies. 

Qualifying for new discounts, having higher credit scores, or even being married can cause your car insurance quotes to drop. That means you’ll have more money left over for savings, gifts, or even taking a fun vacation.

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Car crash image courtesy of Shutterstock.


About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlers is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.