Auto Insurance Discount Checklist
Check out our auto insurance discount checklist to save money on your premiums. The top questions included in this car insurance discount checklist are 1) do you own multiple vehicles? 2) did you just buy a new car? and 3) have you gone without an accident or traffic violation for the past five to seven years? Answering yes to these questions (and more below) can qualify you for some serious auto insurance discounts.
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UPDATED: Nov 12, 2020
It’s all about you. We want to help you make the right coverage choices.
Want to save money on car insurance? Every insurer offers discounts. By taking advantage of these discounts, you can save hundreds – even thousands – on auto insurance.
Maximize your car insurance savings today by reading through our famous auto insurance discount checklist.
Do You Own Multiple Vehicles? If you own multiple vehicles, then you can bundle multiple insurance policies with the same company to save money.
Does Your Spouse Have a Separate Insurance Policy? Bundling car insurance policies with your spouse can help you both save money on car insurance. In certain states, you qualify for spousal car insurance discounts even if common-law married (i.e. if you have lived together for years but are not married).
Are You Married? Even if your spouse doesn’t have a vehicle, or if your policies are already bundled together, you may qualify for special car insurance discounts just for being married. Statistics show that married drivers are much less likely to make a claim than single drivers.
Have You Checked Your Credit Score Lately? Your credit score plays a big role in car insurance premiums. Drivers with a high credit score pay less for car insurance. If you have recently improved your credit score, then you may qualify for a car insurance discount on your next renewal.
Have You Recently Changed Jobs? Certain professions qualify for special discounts. Some insurance companies provide special rates to teachers, police officers, government workers, military personnel, doctors, nurses, and other professions.
Are You Getting Good Grades in High School or College? Many insurance companies offer good grade discounts to drivers in high school or college. If you have an average of B+ or higher across all your classes, then you may qualify for a discount.
Have You Completed Higher Education? If you recently received a degree, then you may qualify for a car insurance discount. Statistics show that drivers who have completed one or more post-secondary degrees are less likely to make a claim.
Do You Have Multiple Years of Safe Driving Experience? If you have gone without a claim for 3 or more years, then you should qualify for a safe driving discount. Sometimes, you need to call your insurer to verify this discount.
Have You Recently Completed Driver’s Education or a Defensive Driving Class? Insurance companies give discounts to drivers who have completed driver’s education courses or a defensive driving class.
Has It Been More Than 5 or 7 Years Since Your Last DUI, Accident, or Claim? After 5 or 7 years, most claims will fall off your insurance record (some states require DUI records to go back 10 years). All at-fault accidents and other claims, however, will fall off your record after 7 years.
Should You Exclude a Bad Driver in your House to Save Money? Your insurance company requires you to list every driver in your house. However, if a driver in your house has a bad record, then it can cause insurance rates to skyrocket. If you recently moved in with your boyfriend or got a new roommate, for example, then you may wish to exclude that driver to prevent insurance rates from rising.
Have You Checked for Safety Feature Discounts for Airbags, Car Alarms, Etc.? Many insurance companies give discounts for vehicles with certain safety features – like side airbags or a security system. Vehicles with safer crash ratings, meanwhile, also qualify for cheaper insurance premiums.
Have You Changed How Many Miles You Drive Each Year? Most insurance companies assume you follow a normal workweek. You drive to and from work or school five days a week. The average American drives between 10,000 and 12,000 miles per year. If you drive fewer miles than this amount, however, then you may qualify for cheaper car insurance premiums. Did you recently quit your job? Retire? Start working from home? Ask your insurer for a mileage-based discount.
Do You Need Home Insurance of Life Insurance? If you need home insurance or life insurance, then you may want to bundle multiple insurance policies together with a single company. Most major car insurance companies offer discounts for bundling home and auto insurance together. You can save up to 25% on both policies by bundling them together.
Is Your Car Old Enough to Drop Comprehensive or Collision Coverage? On older vehicles, you may be okay with dropping comprehensive or collision coverage. When a vehicle is below a certain value, it may no longer be worth it to hold full coverage. Dropping comprehensive and collision coverage can save 50% or more from your premium.
Are You Part of a Professional Association or Alumni Association? Insurance companies have set up deals with certain unions, professional associations, and alumni groups. You might qualify for a discount of 15% if you are a member of one of these groups.
Do You Want to Raise Your Deductible to Save Money? Most car insurance deductibles are around $500 to $1,000. However, you can reduce your monthly premiums by raising your deductible. You’ll pay less per month and pay more if you get into an accident. It’s a risk/reward scenario. For safer drivers, however, raising your deductible above $1,000 is an easy way to save money.
Are You Paying for Optional Coverage You Don’t Need? Review your car insurance policy to verify what you’re paying for. You might be over-insured, for example, or have optional policies you don’t actually need.
Have You Changed your ZIP Code Lately? Have you moved to a new neighborhood lately? Car insurance companies check your ZIP code for claims history and crime rate information, among other factors. Drivers in a ZIP code with high rates of collisions and break-ins will pay more for car insurance than drivers in safer ZIP codes.
Can You Afford to Pay for Car Insurance 6 or 12 Months At a Time? Most people pay for car insurance on a monthly basis. However, you may be able to save money by paying for car insurance 6 or 12 months at a time. Insurance companies call this a “paid-in-full” discount.
Am I Paying for Unnecessary Medical Payments Coverage? If you have a good health insurance plan, then certain car insurance policies may be unnecessary. Some states allow you to buy medical payments coverage with your car insurance, for example, which functions in a similar way to health insurance. If you already have a good health insurance policy, then medical payments coverage may be redundant and unnecessary.
Have You Recently Retired? Certain car insurance companies offer discounts for those who are recently retired. Insurance companies know you’re no longer driving to work five times a week, for example, so they give you a retiree discount.
Have You or an Immediate Family Member Joined the Military? Active duty and retired military personnel and their families may qualify for USAA car insurance, often ranked as one of the best and cheapest car insurance companies in the United States. Even if you don’t get a good rate with USAA, you may qualify for a military discount from your current insurance company.
Are You Paying for Unnecessary Roadside Assistance? Roadside assistance can give you valuable peace of mind. However, it can also cost $200 per year for something you rarely use. If you rarely take long road trips, for example, and mostly drive around town, then roadside assistance may be an unnecessary expense.
Do You Drive a Hybrid Vehicle? Some insurance companies reward drivers who use hybrid or electric vehicles, giving you a small discount in exchange for going green.
Do You Drive During Non-Rush Hours? There’s more traffic on the road during rush hour. That means more accidents. Drivers who drive during non-rush hours – like shift workers – may qualify for lower premiums through usage-based insurance and similar programs.
Have You Setup Auto-Pay? Many car insurance companies reward you for setting up automatic payment plans. Your premium is deducted from your bank account every month instead of paying a bill manually.
Do You Want to Save Money in Exchange for Installing a Driver Tracking Device? Many major insurance companies in the United States now offer telematics discounts. In exchange for installing a tracking device (or using the company’s mobile app while driving), you can save hundreds on car insurance. Many companies guarantee a certain discount just for agreeing to be tracked – say, a guaranteed discount of 5% up to a 30% discount for safe drivers.
Have You Moved to a New State? Each state has its own insurance department, and each state has unique car insurance rules. Some states – like New Hampshire – don’t even technically require you to have car insurance. If you recently moved to a new state, you may qualify for lower insurance premiums.
Have You Shopped Around Lately? Above all, one of the most important parts of a car insurance discount checklist is to shop around. You might have ticked off every box on the checklist above. However, you might still get a better deal by switching to a new insurance company. Compare rates today and shop around to ensure you’re paying competitive car insurance premiums. Most experts recommend shopping around for car insurance every time your policy is up for renewal – say, every 6 to 12 months.