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How to Save Money on Car Insurance

How to Save Money on Car Insurance
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The cost of things we buy and services we use has been going up, and that includes car insurance. The price for car insurance has gone up by 15% since March 2022, according to the U.S. Bureau of Labor Statistics. Most of the top car insurance companies have discounts available. If you qualify for them, you might be able to get a better price.

Whether you’re looking for a new car insurance company or checking your current policy, here are some common car insurance discounts to look for.

Different Types of Car Insurance Discounts:

Every insurance company in our list of affordable car insurance options has ways for eligible drivers to lower their costs. What discounts could you get? Each insurance company has its own special discounts and rules, but most discounts fall into these five groups:

Discounts Based on Your Policy:

  • Bundle Discount: You can get a discount if you buy car insurance and another type of coverage from the same company. This could be home insurance, motorcycle insurance, or renters insurance.
  • Multi-Vehicle Discount: If you insure more than one vehicle, you can usually get a discount. This might apply to family members living in the same house, like spouses, parents, and kids.
  • Loyalty Discount: Some insurers give discounts if you stay with them for a while. It’s a good deal, but remember to still check prices from time to time.
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Discounts for How You Pay:

  • Pay in Full Discount: If you pay your insurance all at once for six or twelve months, you can save money. Monthly payments are convenient, but paying upfront can get you a discount.
  • AutoPay Discount: If your payments are automatically taken from your bank account, you could get a discount. Plus, you won’t risk your policy being canceled if you forget a payment.
  • Paperless Discount: If you choose to get your bills and policy info by email instead of mail, you might get a discount. It’s also easier to keep track of your insurance proof and policy details.

Discounts Based on You:

  • Military Discount: If you’re in the military, you might qualify for a discount. Some insurers offer this for active duty, reserves, and retired members.
  • Good Student Discount: Students who get good grades might get a discount. Most insurers want a “B” average or better. Discounts can be between 8% and 25%.
  • Senior Discount: If you’re 55 or older, you could get a discount from some insurers.
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Discounts for Your Driving:

  • Good Driver Discount: If you haven’t had an accident or moving violation for a while, you could get a discount.
  • Accident-Free Discount: Going a certain time without an accident can get you a discount. Requirements vary by insurer.
  • Usage-Based Insurance Discount: Some insurers monitor how you drive through an app or system. Good driving habits could save you between 5% and 40%.
  • Driving Course Discounts: Completing driving courses might get you a discount. They’re available for different types of drivers and ages.

Discounts for Your Vehicle:

  • New Car Discount: If your car is less than three years old, you might save with this discount. Discounts are usually 10% to 15%.
  • Anti-Theft Discount: Insuring a vehicle with anti-theft devices could save you 5% to 25%.
  • Safety Features Discount: Cars with safety features like airbags and anti-lock brakes might help you save.