No one wants to pay more for their car insurance than needed. This is why many people volunteer their cars have such features as anti-lock brakes, a security system, air bags, etc. With that in mind, here are 10 discounts to be aware of that may add up to some nice savings on your car insurance!
Day Time Running Lights: When you start your car, do the headlights come on automatically. The concept is built on being more visible to other drivers on the road so they don’t pull out in front of you. The average savings is between 3 and 5%, usually on the collision coverage.
Anti-Lock Brakes: Anti-lock brakes have almost become standard equipment on most cars. What insurance companies are looking for is factory installed four-wheel (not just front) anti-lock brakes. Savings is in the 3% to 5% range.
Anti-Theft Devices: Car alarms have also become standard equipment on most new model cars. If you have to manually press a button on your key fob to arm the alarm, then you qualify for an active alarm discount which saves you 3% to 5%.
Cars that automatically arm the alarm when you remove the key and step away from the vehicle, as well as disable the fuel or ignition system are referred to as passive disabling devices. This type of security system qualifies for up to a 12% discount.
Homeowner: Home owners, including condo owners, pay less for their car insurance than renters. This usually applies whether the home is written with the same company the car policy is written with, and the discount can be up to 8%.
Multi-Policy: If you don’t own a home, but own a condo or rent an apartment or home, drivers save when they add one of these policies with their car insurance. The percentage varies depending on the type of home you have, but savings of $25 to $250 or more a year are typical.
If you have a life insurance policy or umbrella insurance with the same company and you could save another 3% or so too.
Multi-Car: Do you have more than one car? Be sure to combine them on the same policy because the savings is usually very attractive. If your company provides you with a vehicle, several insurers extend the multi-car discount to the owned vehicle, so be sure to explore this with your agent.
Passive Restraints: This discount is applied on a sliding scale based on whether the vehicle is equipped with a driver only airbag, driver and passenger airbags, or driver, passenger and side airbags. The more airbags the better!
If your car comes with automatic seatbelts, that may also lower your rate. This discount may be applied only to personal injury protection (PIP) or medical coverage or to the entire premium and ranges from 10% to 30% depending on the company.
Low-Mileage: How many miles do you drive a year? If you’re commuting from Dallas to Fort Worth or Frisco to downtown, you drive a lot of miles just in commuting. If you drive 8,000 miles a year or less, you may qualify for a low mile-age discount. Knowing how far you commute can help keep the premium lower.
Coverage: Which cost you less, having Texas minimum limits on your car insurance (30/60/25) or higher limits of 100/300/100? Most people believe the lower limits cost less, but that’s not always the case. There are a few companies that actually charge less for higher limits than lower limits.
Affiliate Discounts: Several insurance companies provide affiliate programs that contain discounts within them. The Hartford’s relationship with AARP is the largest affiliate program. If you’re 50 years old or older, this can be a very attractive program for AARP members.
Other insurers offer discounts through employers or through alumni organizations. Two such companies are Travelers and Liberty Mutual. Even with this discount compare the overall pricing with other carriers. A discounted rate may still be more than another company’s rate.
What other savings have you found? Share your thoughts, comments and questions with us on our Facebook or Google + page or in the comments section of our blog. I’d love to hear from you!
