Understanding Automobile  Insurance Discounts 

Saving money on your auto insurance premiums is as good as money in the bank!  However, understanding automobile insurance discounts is one of the keys to unlocking cheap automobile insurance rates for you. 

But like most people, you may be wondering where do you start and what factors are considered when trying to find the cheapest auto insurance rates.  Well, the truth is that there are a multitude of discounts available that will keep your insurance premiums low while providing you with excellent coverage.

Let's look at a few of the more common ways to save on your car insurance:

Safety Features

First, there are discounts for car safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seat belts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply.

If the principal driver usually 55 years old or older has completed an approved defensive driving class, a discount could apply. Keep in mind that most states will only approve this class if it is voluntary, meaning that it was not the result of a violation or infraction.

Multiple Car Discounts

Some insurers will give you a discount for having multiple cars. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver's discount.

Loyalty Discounts

Many insurance companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business.

Many of the top rated auto insurance companies in United States will honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk. Conversely, if you do decided to change insurers, a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer.

Student or Military Status Discounts

If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. Military personnel, either currently active or retired, from any branch of the US Military may qualify for a discount as well.

Anti-Theft Equipment Discount

If your vehicle is equipped with an anti-theft device, a discount could apply.

Multiple Policy Discount

If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply if you have your homeowners and auto insurance policies with the same carrier.

Understanding automobile insurance discounts can make a significant difference in the amount you will pay for auto insurance, even more so if you qualify for multiple discounts. We have found that the easiest way to check to see if you qualify for discounts is to visit an online insurance agent to compare auto insurance quotes - it could prove to be a very profitable 5 minutes (average time to complete a short online form)!