WalletHub, Financial Company
@WalletHub
To find hidden auto insurance discounts, look up your insurance company’s discounts online, check your state’s mandatory discount laws, and contact your insurance agent or the company’s customer service department. Since discounts vary significantly by location and company, discounts might be “hidden” in that they are not widely advertised, like a buy-in-advance discount. Similarly, some of the most commonly overlooked auto insurance discounts are driver monitoring discounts, paid-in-full discounts, and the AARP driver safety course discount because they usually aren’t automatically applied.
Hidden Auto Insurance Discounts
- Low mileage or short commute discount
- AARP driver safety course discount
- Buy or renew in advance discount
- Automatic or electronic payment discount
- Driver monitoring discount
- Hybrid or electric car discount
- Anti-theft or Lojack discount
- Paid-in-full discount
- Multi-policy discount
- Farm vehicle discount
Car insurance companies do not fully disclose the formulas they use to calculate a driver’s premium. However, most states allow a driver’s demographic information, credit history, vehicle information, and driving record to affect rates. As a result, you could also get a “discount,” in the sense of getting a lower base premium, by changing one of these factors. For instance, car insurance is generally cheaper for married individuals because they are statistically likely to be low-risk.
Since your demographic information is unlikely to change, focus on improving your credit history and driving record if you want to lower your base premium. If your car is particularly expensive, fast or unsafe, trading it in for a safer, less valuable model will help lower your insurance premium, too. Similarly, increasing your deductible and eliminating any unnecessary coverage can also help save you money, acting like a hidden discount.
If you’re looking for extra savings, it’s worth double checking the most common car insurance discounts as well as the most often overlooked ones listed above. Finally, no matter how many discounts are being applied to your policy, it’s best to frequently compare quotes from different insurers.
People also ask
How do I get a good student discount for car insurance?
You can get a good student discount for car insurance by being a high school or college student with at least a B grade point average. All of the 10 largest insurance companies offer a good student discount, and qualifications are typically the same between insurers. Exact discount amounts may vary by company and state, however. For example, State Farm's good student discount can help you save up to 25% on your premium.
Insurers That Offer a...
read full answerWhat is an alternative to AAA?
The best alternative to AAA roadside assistance is a motor club membership with Better World Club, Good Sam, or Allstate Motor Club. Another good alternative to AAA is purchasing a roadside assistance add-on from your car insurance company.
Insurance companies like Nationwide and Travelers offer different levels of roadside assistance coverage to choose from. Better World Club, Allstate Motor Club, and Good Sam also offer several coverage options. Drivers can find protection comparable to AAA by comparing the coverage...
read full answerCan you negotiate car insurance rates?
No, you cannot negotiate car insurance rates because the industry and prices are heavily regulated by each state. An insurance company can’t change its range of rates, once it is approved, without a new state review and evidence that the change is financially necessary. If your insurance company gave you a significantly different rate from the first one it quoted you, the insurer could face large fines or lose its insurance license.
Although you...
read full answerDid we answer your question?