Almost all insurance companies offer a range of auto insurance discounts and you may even qualify for multiple discounts. The amount and the eligibility criteria for each discount is state-dependent, but some of the most common discounts are described below:
Anti-Lock Brakes – You may qualify for a discount for driving a vehicle fitted with factory-installed anti-lock brakes (ABS).
New Car – In some states you may receive a discount if you are the first title holder of your vehicle.
Passive Restraints – Driving a vehicle fitted with airbags or other automatically activated restraint devices may qualify you for a discount.
Accident-Free – Staying accident-free for 3-5 years or more may save you 5-10% off your premium.
Defensive Driving and Accident Prevention Training – If you’ve completed an approved defensive driving or accident prevention training course you may qualify for a discount of 5% to 15%.
Anti-Theft Device – Most insurance companies offer a discount on comprehensive coverage if your vehicle is fitted with an anti-theft device. The amount of the discount usually depends on the type of anti-theft device or devices you have installed and where you normally garage your car.
Customer Loyalty – Stay with the same insurance company for three or more years and you may be eligible for a long-term policyholder discount. The amount of the discount usually increases the longer you stay with the company. After three years your discount may be 5%, but after five years it could be as much as 15%.
Multiple Policies – Many companies offer a discount to customers who purchase more than one type of insurance. For example, you may save money by buying both auto insurance and home insurance from the same insurer.
Multiple Vehicles – Insuring two or more vehicles with the same company may give you a discount of up to 20%.
Be careful not to assume that buying multiple policies or more than one type of insurance from the same insurer will always cost less. Often, consumers can get a lower overall cost by choosing different insurers for different types of policy.
Memberships – Simply belonging to a particular group or organization, such as the military, or a college alumni association, may entitle you to an affiliation discount.
Farm Bureau Member – Farm Bureau members qualify for substantial discounts in some states.
Farm or Ranch Vehicle – Full-time farmers or ranchers may receive a discount when insuring a vehicle used exclusively for work on a farm or ranch.
Good Student – Students below age 26 may qualify for a discount of up to 15% if they maintain good grades at school.
Resident Student – You may receive a discount if your policy includes coverage for a student aged 21 or younger and who lives at a school more than 100 miles from your home.
55 and Retired – If you’re aged 55 or older and not in full-time employment you may save on your premium.
The range and amount of discounts offered varies by insurer and by state. Don’t forget to ask your insurance company if you qualify for any discounts.