Introduction
Due to the practically universal requirement for auto insurance among states, most Americans’ budgets typically include a policy. However, even though most drivers must budget for the cost of a car insurance policy, expenses can soar quickly based on your needs and the level of coverage you choose. Finding affordable auto insurance may seem hard as a result.
Different types of car insurance discounts
Discounts for auto insurance often fall into one of a few areas. You can be eligible for a discount based on your unique profile, driving record, or the specifications of your automobile, depending on what each auto insurance provider offers.
When looking for auto insurance, it’s crucial to compare rates from various carriers because discount levels and eligibility vary depending on the insurance company. Review the discounts and their effects on your insurance prices after receiving quotes, and see if you might be overlooking any of the below-listed savings chances.
Driver-based discounts
Some reductions on auto insurance are determined by a driver’s attributes, such as their age group, career, or affiliation with a particular group. Even if some discounts might already be applied, it never hurts to check if you don’t notice one.
| Type of discount | Potential savings | Who the discount is for |
|---|---|---|
| Young driver discounts | Varies by program | Young drivers between the ages of 16 and 25 |
| Student discounts | Varies by school level and GPA | Currently enrolled high school and college students |
| Military discounts | *Up to 15% | Active and retired military members, and some qualified family members |
| Professionals discounts | Varies by industry | Individuals who are in qualified industries, such as education or health care |
| Organizational based discounts | *Up to 12% | Individuals who are members of or employed by partner organizations |
Young Drivers Discount
Among all age groups, young drivers have some of the highest auto insurance premiums, but there are methods to get reductions. Some insurance providers provide a discount for passing a safe driving course made specifically for teen and young drivers, while others provide telematics programs to encourage young drivers to adopt safe driving practices.
offered by prestigious insurers like Farmers, Progressive, and State Farm
Students discount
Including student discounts is another way to reduce the cost of your auto insurance. High school and college students who maintain a strong GPA (usually a B average or higher) may be able to add a Good Student discount to their policy. A remote student discount may also be available to college students who don’t bring a family car to school and travel far from home.
offered by well-known insurers like Allstate, Farmers, and Travelers
Military discounts
Some insurance companies also offer discounts specifically for military members. Whether you are on active duty or active reserves, or retired or honorably discharged, you and qualified family members may be able to qualify for an extra discount. Offered by major insurance companies like: Geico, Liberty Mutual, USAA etc.
Driving-based discounts
The best method to qualify for many safe driving discounts is often to have a spotless driving record because it tells insurance providers that you are less likely to file claims. Even so, there are still a lot of driving-related discounts for which you may be eligible and so save money on your driving.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Safe driver discounts | *Up to 40%, if using a telematics program and performing well | Safe drivers who have not been in an at-fault accident or received a moving violation conviction. More savings may be earned by participating in a telematics program |
| Low-mileage discounts | Varies based on miles driven | Drivers who do not commute daily and drive very infrequently |
| Defensive driving course discounts | *Up to 5% | For people who are looking to improve their driving skills and reaction times |
Vehicle-based discounts
Anti-lock brakes, adaptive cruise control, daytime running lights, and other safety technologies that are built into your automobile may make driving safer and aid in your ability to avoid collisions. Your lower risk may qualify you for a discount for these features from your auto insurance provider.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Safety features discounts | *Up to 5% | Vehicles that have specific safety features outlined by the insurance carrier |
| Anti-theft discounts | *Up to 23% | Vehicles that have anti-theft features outlined by the insurance carrier |
How to find the best car insurance discounts in February 2023
Automobile insurance comparison shopping might be difficult. You might be thinking about how much auto insurance you require, what kind of coverage options to include, and which provider would provide you the most affordable rate. Finding the finest auto insurance plan within your price range may be significantly impacted by being aware of and utilizing discount options. Here are some suggestions for locating discounts on auto insurance:
- look up a carrier’s website. This can be the quickest approach to learn about the discounts that are offered and whether any of them might apply to you.
- Consult a qualified agent. Since the majority of the websites for major insurance providers only offer basic information, there can be extra reductions that are only available in your state. In this situation, a licensed agent will be your best resource.
- combining your car and home. Bundling numerous insurance plans with a single provider is typically one of the greatest strategies to maximize your savings out of all the discount options available. When looking for vehicle insurance, think about requesting quotes for homeowners insurance or another policy type to see if one company can handle all of your insurance requirements.
Conclusion
Before making our top picks, our staff assessed 25 insurance providers and gathered tens of thousands of pieces of information. Eight factors were considered, and the ones that had the most effects on potential clients received the most weight.
The top choices were chosen based on the following criteria: geographic availability (weighted 15%), fairness in pricing mechanism (weighted 10%), and median annual premium (weighted 30%). Along with complaint scores, J.D. Power and Consumer Reports consumer satisfaction ratings, and firm loss ratios, we also considered other elements that purchasers value.