Car insurance discounts aren’t always what they seem. For example, you might think “big savings!” when you see a discount advertised with up to 40% off, but that doesn’t necessarily mean you’re going to get 40% off your entire car insurance bill.
Here are some discount car insurance tips.
Some discounts apply only to specific coverage types, not your entire bill. For example, seat belt discounts might be applied only to your cost for medical payments coverage or personal injury protection, because those types pay for passenger injuries. Anti-theft device discounts might apply only to comprehensive coverage because that’s the coverage that pays for car theft.
Discounts can be capped. You might qualify for multiple discounts, but the insurance company usually limits the total possible discount percentage. For example, you might add up discounts that look like 75% off your auto insurance, but the total might be capped at 20%.
Not all discounts are automatic. You might have to ask for them, especially if you’ve had the same policy for a few years. Your insurance company may not know that you had an anti-theft device installed in your car, or that your student driver has excellent grades. The best way to save money on discounts is to ask your insurance agent on a regular basis to review your policy.
Discounts vary by state and the insurance company. A discount you see mentioned on an insurance company website might not actually be available in your state.
Insurance companies place teen drivers in the high-risk category. So, teens have to pay more for their insurance. One way for teen drivers to lower their car insurance rates is by graduating from a defensive driving course.