Auto Insurance Discounts: What Driving and Money Habits Can Land You a Better Rate?

There are plenty of auto insurance discounts out there - are you getting your fair share?
By Brian O'Connell ,

Car insurance discounts are low hanging fruit these days, so it's somewhat surprising that more consumers don't take advantage of them.

Yet, largely they don't - or at least consumers aren't requesting any auto insurance discounts.

According to a Princeton Survey Research Associates International study, in association with InsuranceQuotes.com, only 16% of U.S. auto consumers have asked their car insurance provider for discounts, thus "leaving millions of dollars of potential savings have been left on the table," the study notes.

Yet great auto insurance discounts are out there, if you know where to look.

Bankrate helps out with its most recent auto insurance discount report, which tracks the top ten car insurers to uncover the best discounts available to consumers. For example, Bankrate notes the following "gimmes" for auto insurance consumers looking for a price break:

--Homeownership - "Currently, three out of the top ten [car insurers] now advertise that they give a price break on auto insurance if you own your own home or condo," Bankrate says.

--Defensive driving - "Taking a defensive driving course can save you some serious cash," the report states. "Nine out of the top ten insurers state on their websites that they offer this discount -- up from eight out of ten in a similar 2014 study from Bankrate." 

--Green vehicle ownership - "A discount for a hybrid or alternative-fuel vehicle is growing in popularity," Bankrate states. "Four out of the ten insurers now promote this discount on their websites."

"Doing a little research can add up to substantial savings when it comes to auto insurance," says Doug Whiteman, an insurance analyst at Bankrate. "Shop around to find the best quote and then make sure to inquire about what discounts may be applicable to you." 

There are more easy-access ways to cut your auto insurance dates, all by taking simple steps.

For example, bundling is a great way to knock a few bucks off your auto insurance bill - and other insurance bills, too. "For people who have already found the best price on auto insurance, the best discount they can add is the bundling discount," says Eric Narcisco, chief executive officer at Effective Coverage in Albany, N.Y. "Many of our customers get renters insurance for free since they save so much money on the bundling."

One of the biggest underwriting factors on auto insurance rates is your credit score, says Adam Johnson, SEO Specialist at QuoteWizard, an online insurance quote comparison service based out of Seattle.

"Credit score is a major factor in what you pay for car insurance," notes Johnson. "If you have made improvements to your credit score, it's possible to reduce rates for your next renewal."

"Completing a defensive driving course will pay for itself over the course of your policy discounts," he adds. "Many companies now offer telematic devices to be installed in your car -- like Progressive Snap Shot) -- that lead to discounts just for having it installed."

Another good target are low mileage discounts. "The best discount is the low mileage discount," says Chris Long, chief executive officer at Longevity Insurance Brokers in Denver. "It's not offered by all providers, but if you do very little driving you can get as much as 40% off your bill by qualifying."

A discount people frequently miss is with affinity groups, Long adds. "Employers and organizations make agreements with specific insurance companies to provide member discounts," Long says. "If you work for a larger employer or pay dues to an organization, ask around to see if there are any car insurance discounts you can use."

There are plenty of auto insurance discounts out there, just begging for a chance to cut your monthly bill by 20%, 30% or even 40%. Do your due diligence and take advantage of every one you can.

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