8 Common Auto Insurance Discounts

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“DISCOUNTS, DISCOUNTS, DISCOUNTS” It’s the cry of so many insurance companies all over the airwaves. As I write this description, the Pandora radio station I’m listening to keeps bursting into an insurance company commercial screaming about discounts.

Discounts can be a scapegoat topic that a lot of companies use to avoid talking about great coverage, quality customer service, and a claims team that actually takes care of you.

To be clear though, insurance pricing DOES have a ton of discounts. In fact, the whole structure of insurance pricing is based on it. The thing is, most of the major discounts are the same for all companies. So those commercials are spouting about things that you can get with any good company.

The way it works is that every auto insurance quote starts with the highest price possible. Then the discounts whittle the price down to a number that you’re more used to seeing. Really, EVERYONE gets some kind of discount. Price differences are just how many you get and at what level.

So here’s an inside look at the 8 most common discounts and how to make sure you have them:

1. Safe Driving
Driving safely has tons of advantages. One is the price of your insurance policy. When you get a ticket it's noted on your insurance policy. That often results in higher premium

2. Accident-free
No Accidents = Cheaper Insurance
How much depends on the company. Some companies "forgive" a single accident, but most will hit you pretty hard if there are more that one. Accidents effect your premium for at least 3 years and sometimes more.

3. Credit
Discounts for high credit scores are a significant price factor with most insurance companies. Some states ban this practice but for most it remains a significant pricing factor.

4. Multi-policy & Multi-car
You get a discount for "bundling" your home and auto insurance. This tends t0 have more of an effect on your home than auto but does save money on both. You can also get a discount for having more than one car on your policy.

5. Age & Gender
Young drivers see significantly higher insurance premiums. That tends to go down after 5 years of driving experience and again at age 25. Women generally pay less for insurance as statistics show ladies have fewer accidents than guys.

6. Paid in Full
There are generally different prices for different forms of payment. Paying by mail is often the most expensive. Automatic payment can give you a discount and paying in full gives you even more.

7. Loyalty & Introductory
Two opposite approaches here. Some companies offer introductory discounts that fall off in future years. Others offer a discount for each year you stick around. A few companies also provide a discount for how long you were with your previous insurance company.

8. Associations & Employment
Companies offer a variety of discounts for what you do for a living & associations you're a part of. Be sure to share your employment and associations with your insurance provider.

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