When shopping for auto insurance, there are some great ways available to consumers to lower their insurance
payments. While most insurance companies will offer a consumer various ways to help lower their premiums,
it is helpful to understand the various discounts that may be available before you begin searching for auto insurance.
Good driver discounts
Nearly all car insurance companies offer some type of a good driver discount. These vary and may be based
on a number of factors including the point system as defined by the registry in your individual state. Other car
insurance companies will base these discounts on claim history and driving history.
Discounts for low mileage
Many insurance companies will offer drivers who drive less than a certain number of miles in a year an additional
discount. These are generally based on a formula that can be provided to consumers by an insurance agent. For example,
a senior who is driving only to the market once a week may quality for a low mileage discount while someone who
drives 100 miles per day to get back and forth to work may not be eligible for this type of discount.
Good student driver discounts
While most insurance companies do penalize student drivers, many also offer good student discounts. If a family has
a student driver in the home who is maintaining high grades, they may be able to get a discount on the policy that covers
Another way to save money on automobile insurance is to find out if the company offers multi-policy discount. These
discounts not only involve multiple cars, but also may include other forms of insurance. Homeowners insurance,
boat or RV insurance, motorcycle insurance and even life insurance may all be combined with one company to take
advantage of these discounts.
One word of warning with these types of discounts: it is critical to review each policy and make sure that the
coverage matches what you have already. Since many states regulate the prices on auto insurance but not on other
types of insurance, it is crucial that all of the policy prices be reviewed to make sure that you are not saving
money on one policy while paying substantially more on another policy as this may defeat the purpose of a multi-policy
Some insurance companies may offer a discount if more than one driver shares a car. Most multi-driver policies can
cover up to four drivers and four vehicles. The downside of these policies must be weighed however as one bad driver
out of four can result in an increase in the policy price. These policies are typically based on where a vehicle is
garaged and apply to married couples as well as domestic partnerships where recognized by individual states.
When trying to save money on car insurance, many factors play a role in what discounts are available. If you are
trying to save money for a home down payment searching for discounts can save a substantial amount of money.
Some employers also offer automobile insurance discounts to employees if a parent company or subsidiary is an insurance
This article is written by guest author Doreen Martel exclusively for Save For House.