Nobody wants to pay more for insurance than they have to. So today we are going to take a look at auto insurance discounts to make sure you are maximizing your savings without compromising your protection!
There are various types of discounts you can add on to your auto policy. Some apply for the entire policy, and some apply to specific coverages (Such as liability, collision, etc.). Depending on your specific situation, you need to talk with your agent about the discounts that they offer. Below is a short list (Not complete since some carriers offer unique discounts that others may not have) of auto discounts and a brief description so you can see the requirements for each.
Paid In Full Discount:
You get this discount when you pay your auto policy premium for the full 6 months (or 12 months if applicable).
This discount applies when you set up your policy for automatic payments with a Bank Account and Routing Number. (This shows the insurance company that your payments will not be a problem and that they will automatically draft vs a monthly non-eft plan where you are required to make a manual payment or call your agent each month to make the payment. The chances of missing a payment with auto draft is far less likely, so you get a discount for that!)
This are typically the largest discount available on an auto policy, and when you bundle your home insurance with your auto it can give you upwards of a 20% discount on both policies! But the bundle discount also applies to other types of policies, such as Renters Insurance, Life, Boats, Motorcycles, Travel Trailer/RV, Rental Home, Umbrella, Business, and more. The discount varies by policy type for the bundle, but in almost all cases you save overall when you bundle your policies together.
Early Shopper Discount:
Not all insurance companies will offer this discount. But for those who do, you typically get a discount when you get a quote and it is not set to go into effect for 7 days or more in the future. (Insurance companies like people who plan ahead. It shows that you are responsible and are less likely to 'jump ship' at a moments notice. While every agent would love to retain your business forever, we understand that is not the case. But by taking the time to look at your options and ensuring you are getting the right coverages, it shows that you understand the value of your policies and you will most likely stay longer as long as your agent is doing their part and providing you with the value you deserve. **You still get the Early Shopper Discount even if you purchase the policy the same day, but the effective date needs to be for 7 days out, which gives you time to cancel your policies with your current carrier and give you a smooth transition to your new agency.)
Many carriers offer a discount just for owning a home, even if you don't bundle the home policy with your auto. Make sure to let your agent know if you own a home. (Some carriers may require proof of ownership such as mortgage statement, county tax assessor verification, etc.)
Paperless Policy Discount:
This will apply when you elect to receive policy documents and notifications via email, saving the insurance company on postage and saving you on premium. But this discount is typically one of the most difficult ones to keep on a policy in my experience. That is because it requires the client (You) to go online and create an account on your carriers website to acknowledge the terms and conditions. It is not a difficult process, but many agents don't have a great onboarding process for new clients and it gets forgotten until it falls off and then you call in upset that your rates went up. So make sure to ask your agent what you need to do to keep the Paperless Policy Discount on your policy, because it will vary by company.
Safe Driver/Good Driver Discount:
This typically applies when you do not have any accidents or tickets within the last 3 years. It shows insurance companies that you are a lower risk and the chances of having to pay out on a claim is less than someone who has had one of those more recently.
Defensive Driver Discount:
This is the longest running discount for any auto policy, but the requirements vary by carrier. Some may require an in-person course, and some will allow certain online courses. The Defensive Driver Discount gives you a percentage off the Bodily Injury, Property Damage, Uninsured/Underinsured, and Collision coverage's. But the best part is that this discount stays on your policy for 3 years, so I recommend everyone getting that added!
Good Student Discount:
This discount helps those still in high school or college who carry a 3.0 GPA or better. You will be required to submit a proof of grades to verify the GPA.
I saved this one for last because there are soooo many different telematics programs in insurance these days. Phone apps, devices you plug into your car, and others make this a hard topic to discuss but are still a viable option to maximize your discounts. Some offer higher discounts for youthful (16-24 years old) drivers, some may impact your rate negatively for bad driving behavior, some don't have negative impacts, and some are just too difficult to use. It is worth having a conversation with your agent to find out details about the telematics program your company offers and see if it is a good fit for you!
Like I said, this would be a short list of the most common auto policy discounts. Every insurance company has their own quirks and requirements, but you should always make sure that you are getting the best deal on your insurance and that you have an agent who truly puts you first. We would love the opportunity to earn your business, and by clicking the button below we can put together a quote and at least present some options for you! Either it is a great fit and we can help (Yay), or it's not a good fit right now and you are already getting the best deal (Win-Win for you).
You have nothing to loose. So get your quote today and see the level of service you should be receiving from your insurance agent!
This blog will have articles written by members of the Stephen Turner Agency as well as other relevant articles we find. We want to ensure you have the most up to date info on the insurance industry so you can make the best choices for your family!