How to Get Car Insurance Discounts

By Tonya Nash

  • Overview

    Driving without car insurance is against the law in most states. If you are found to be driving without car insurance by law enforcement, you run the risk of paying high fees and even having your vehicle towed. As much as you may dislike having another bill to pay, buying car insurance is really in your best interest. To help with the cost of car insurance, many insurance companies offer discounts that can significantly lower your car insurance premiums.
    How to Get Car Insurance Discounts
    • Step 1

      Keep your driving record clean. Getting traffic violations can cause your insurance premiums to go up. The amount of increase in your premiums depends upon which insurance company you have and which state you live in. Many insurance companies will give you a discount if you go at least 3 years without a traffic violation.
    • Step 2

      Take defensive driver education courses. These classes can be taken on the Internet or in the traditional classroom. Before taking a defensive driver course, make sure that the program is accepted by your insurance company for insurance discounts. Several insurance companies give a 10 percent discount for these courses. Keep in mind that some insurance companies may require all drivers under the policy to take this course in order for the discount to take place.

    • Step 3

      Look for discounts based upon professional associations, occupation or age. Organizations such as AARP, AAA Auto Club and alumni associations are able to get lower car insurance rates because of group coverage discounts. Some insurance companies provide car insurance discounts for military personnel and for teachers. College students with a good grade point average can also receive discounts. Persons over the age of 55 are eligible for discounts with numerous insurance companies.
    • Step 4

      Seek car insurance from an agency you already have insurance with. A number of insurance agencies give discounts if you have more than one policy with them, such as fire, life and health insurance. In addition, it is common for an insurance company to give discounts for multiple vehicles on a policy. Most agencies reward loyalty and will give a discount if you have been with them for a certain period of time.
    • Step 5

      Drive a car with multiple safety features. Cars that have fared well on crash tests are cheaper to insure. Things insurers look for are airbags, anti-lock brakes, daytime running lamps, and anti-theft systems.
  • Skill: Moderately Easy
  • Tip: Try carpooling. Some insurance companies give a discount for those that drive low miles because the risk is lower.
  • Tip: Maintain a good credit score. Those with low credit scores sometimes pay higher car insurance premiums.
  • Warning:
  • When searching for car insurance, be sure to deal with reputable car insurance companies.
  • Answer all questions truthfully. False information can result in a cancellation of your insurance policy.

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