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How to get the biggest car insurance discounts

Are you looking for the biggest car insurance discounts? By the time you finish reading this article, you will know how to maximize all the discounts available to your advantage.

Buying car insurance can be expensive, but does it have to be? Well, you can get rid of your premium by taking advantage of the discounts.

When calling an auto insurance company, always be sure to ask about available discounts. Every insurance company can offer you discounts based on what you qualify for.

You can reduce the total cost of your insurance policy by up to 40%, depending on your eligibility, type of deductible, and insurance company.

How to get the biggest car insurance discounts

According to the Insurance Information Institute and Investopedia, here are ways to get the biggest and best car insurance discounts:

  1. Shop before you buy

  2. Group insurance discounts

  3. Multiple discounts policies

  4. Multiple car discounts

  5. Good student discount

  6. homeowner discount

  7. Customer loyalty discounts

1. Shop before you buy

Shopping around and comparing car insurance quotes definitely pays off. That’s because prices vary from company to company. The best decision you can make is to get at least three quotes from different companies.

You can contact the insurance companies directly or get the information online. For example, Geico, State Farm, and others can help you get a quote for free.

Keep in mind that price is not the most important thing to look for. Before you buy a car and get insurance, ask your friends and family for recommendations. You can always contact your state’s insurance department if you need more information about the company you are considering. Also, you can speak with the insurance company directly if you have any specific questions.

2. Group insurance discounts

Some companies can offer you price cuts through a group plan. These group plans may be available to you from your employer or the clubs or associations of which you are a part.

Be sure to ask your employer to see if a group insurance discount is available to you.

3. Multiple policy discounts

Also known as bundling, it’s still one of the most important discounts you can get in 2021. Bundling your insurance policies means buying at least two types of insurance from the same issuer. To give you an example, you can buy auto and home insurance, which usually give you the biggest multi-policy discount. At insurance companies like Allstate, the discount can be up to 25%.

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Of course, you can also bundle other types of insurance policies, such as life and auto insurance, but you usually get a lower discount for that. Rarely will you be able to get a better deal with two different insurance companies. So, do you own a home? If you do, you may want to consider an insurance issuer that can package your home and car documents.

4. Multiple car discounts

Another big discount is the multi-car discount. If you insure two vehicles together, you can pay a lower rate compared to insuring them separately. Purchasing insurance policies for two or more cars from the same issuer will give you a multi-car discount, which can be up to 25% with some insurance companies. Of course, first, you should ask the insurance company if they offer this service.

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5. Good student discount

This discount is only for full-time students with good grades. Usually, you need at least a 3.0 GPA or higher for high school or college students. Issuers that offer good student discounts will want you to prove your score in some way. These discounts can be up to 25%, and you must be under 25 to qualify.

In general, young drivers pay higher rates. That is why some insurance companies reward good students with a discount, arguing that the responsible young driver at the school drives the car responsibly. Statistics prove this to be true.

6. Homeowner Discount

You may be surprised to learn that owning a home can give you a discount on auto insurance. Insurance companies offer this discount even when a customer purchases home insurance from another company. The reason is that homeowners tend to be more stable than renters.

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If you are a homeowner, you can claim this deduction and combine it with the multi-policy deduction for maximum results.

7. Customer loyalty discounts

If you are a long-time customer or hold more than one insurance policy, you can get rewards for your loyalty. You may qualify for a discount when you transfer one of your insurance policies to your auto insurance company.

A little tip about loyalty discounts to be aware of: Car insurance companies use a practice called rate optimization. They charge their loyal customers higher rates since they are less likely to change companies.

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For this reason, it is essential to compare car insurance rates regularly. This is because your final price may still be higher at your current company, even with the loyalty discount applied.

Review your insurance policy annually

Remember to review your car insurance at least once a year, talk to your auto insurance company, and inquire about other discounts. Although discounts save you money, always remember to look at the total cost. It’s much more important than the number of discounts you get.

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Remember this last tip: The best way to keep your premium low is to maintain a clean driving record and maintain a good credit score. These two factors can save or cost a lot of money.

This story originally ran KBB.com.



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