Once an insurance company has assessed your overall risk category, you may qualify for discounts on your policy that will lower your premiums. Each company offers a series of discounts for anything that statistically lowers your risk of having an accident. When you apply for insurance, some companies automatically check to see what discounts you qualify for. However, not all discounts can be calculated during your instant online rate quote.  Even after you sign up online for a new insurance policy, you can still call the company and find out if there are any further discounts you can apply for. Some of the discounts require specific information beyond what is included in the online rate quote service, and this information will usually be gathered during underwriting. Underwriting is the process by which a company thoroughly reviews all of your history and information to determine your exact insurance rate.

Examples of Auto Insurance Discounts

• Safe Driver Discount

Almost all insurance companies offer discounts for safe drivers, meaning drivers who haven’t had an accident or traffic violation for a specific amount of time, usually 1-5 years. This discount also stipulates that to be considered a safe driver, you must have been a licensed driver for a minimum number of years. Thus, a house full of new drivers won’t have access to this discount even if none of the drivers has had an accident.

• Driving Education Discount

This discount is not just for new drivers. Anyone who takes an accident prevention course can qualify for a discount on auto insurance. In many states, elderly drivers who take accident prevention classes can receive a discount to cancel out the increase in insurance rates due to age. The General Auto Insurance Company even has a special discount called the “Senior Driving Training Discount” for seniors who attend formal driving training.

• Good Student Discount

This discount is available for policies including a full-time student who maintains a certain GPA. Because of the high cost of auto insurance for young drivers, this discount can be a big help to parents. Some parents may even make driving privileges contingent on maintaining a certain GPA, and/or choose to have their teen drivers contribute money for their own auto insurance coverage.

• Multiple Vehicle/Multiple Policy Discount

Most insurance companies will offer you a better deal on each vehicle if you add all your cars to the same policy. Many companies also offer coverage for other types of vehicles besides cars. Even if you’ve already purchased your policy online, you can always add vehicles to your policy and/or request rate adjustments if you want to add to your coverage.

• Safety Feature Discount

This discount is available for vehicles with certain safety features. These might include automatic seat belts, airbags (front and side), head restraints (protect against impacts to the back of the head), and anti-lock brakes. Anti-theft features, such as an alarm, built-in GPS tracking system, or VIN-etching, may also qualify you for further discounts. When you provide information about the make, model, and year of your vehicle, your insurance company should automatically take into account any factory-standard safety/anti-theft equipment included in your car. If you have added any optional or after-market safety features, be sure to notify your insurance company to see if they can qualify you for more discounts.

• Online Discount

The cost of doing business online is cheaper because it doesn’t require the same accommodations as a standard company. Most insurance companies offer you a discount on premiums if you buy online because their overhead is so much lower for online sales. Even if you buy your policy online, you have the same rights and privileges as any insurance customer. You should feel free to call your company to ask questions and request assistance. If you need to change your policy for any reason, you can contact the company by phone or online.

• Occupation Discounts

Some companies may offer discounts to drivers in certain occupations. Active and retired U.S. military officers may also qualify for discounts. Esurance has special discounts for anyone working or holding a degree in the fields of education, engineering, or natural sciences.

• Other Discounts

There are some discounts that you might never think to ask for, but that could save you a little more money. For example, Safeco offers a discount for paying your premium in fewer payments, and The General offers a discount for all homeowners. The General also has a special discount called the “Double Deductible Discount,” which offers you a discount if you double your deductible for the first 45 days of coverage. Ask your company or check their website for a full list of the available discounts.

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