5 Car Insurance Discounts You Should Ask About

car insurance discounts

The average American is paying more for their auto insurance rates compared to last year. A survey conducted by J.D. Power & Associates found that 2013 rate increases have actually gotten higher than the year before.

“In 2013, there is a sharp rise in the number of customers who have experienced premium increases,” said senior director of the global insurance practice at J.D. Power Jeremy Bowler in a statement. “The dollar amount of those increases is also larger, averaging $153 in 2013, compared with an average rate increase of $113 reported in the 2012 study.”

Types of Car Insurance Discounts Offered

Drivers may pay more or less for their auto insurance, but unless policyholders have asked about all the available car insurance discounts available, they’re probably still paying too much. Examples of rate discounts include: student discounts, low mileage, bundling policies, paying policy premiums upfront or taking driver’s education. Yet drivers could still be missing out on some great savings.

Be sure to ask insurance companies about the incentives below before signing up for a new policy.

Early Renewal

Also known as advance renewal, this discount is worth checking out. Drivers can save on their auto insurance rates if they renew policies seven to 10 days before it expires.


Customers who have been with the same company for several years, can get a great return in the form of discounts when continuing business with one company. Often insurance companies reward policyholders with a discount for sticking around.

Not Bundling, Just Owning a Home

Owning a home may be enough to get you a car insurance discount. You don’t have to insure your home with the same company as you would with a multiple policy discount, but some insurers offer savings for homeowners.

Electronic Funds Transfer (EFT)

Using EFTs means the insurance company doesn’t have to pay workers to follow up on your payment or process your check. You can save about 4 percent on your car insurance premium by paying your premium in this way.

Days You Drive

Are you a homebody who only gets out on the weekends? You could be eligible for a discount if you drive between one and four days per week.

Owning Your Car

Drivers who are leasing their cars are out of luck. However, for those who do own their cars, there are savings to be had.

Talk to your insurance company or agent about these potential car insurance discounts. Not every company offers them, but those that do help policyholders save a bundle when it comes to their auto insurance rates.