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How to save on auto insurance

There are several easy ways to save money with auto insurance. Your current insurance company may have pointed out some of the discounts that you might benefit from, but at the end of the day it's up to you to know your options and ask what they have and what you qualify for.

Insurance rates are based on a number of factors, but there are also many ways you can lower your rates. The programs are described below. Be aware that not all insurers offer these discounts or rebates and that some state laws prohibit their application. Everything is mentioned for 2 main reasons: knowledge is power and it doesn't hurt to ask the insurer.

Professional discount

Insurance companies pay attention to occupations that tend to mean less driving and less risk taking, as this translates into fewer accidents. If you work in any of these professions, you could save money. Some of the eligible professions are police, firefighters, physicians, dentists, registered nurses, teachers, engineers and scientists.
If you are a current or former member of the armed forces, or if you are a student participating in a commissioning program such as ROTC, you may be entitled to certain savings. For insurers that cater specifically to the military, there are additional factors that can help lower premiums, such as your rank, whether or not your vehicle is parked in a base garage and whether your automobile is stored during deployment or outside your home.

In addition, some employee auto insurance discounts result from business relationships your insurer has with other companies. Being an employee of one of these companies could mean savings for you.
In general, it's a good idea to check with all of the organizations you belong to and find out what discounts (if any) they have given and with which companies.

Credit score

Have you checked your credit score recently? The vast majority of insurance companies take credit scores into account these days, and a high score could help cut your auto premiums in half. The specific odds that trigger discounts are a well-kept secret, but industry sources claim that someone with a score above 700 will be more eligible for lower bonuses than someone with a score within 500.


Insurance companies sometimes offer discounts because of their sponsorship relationships. The relationship could be with a sorority or fraternity, professional association or university, to name a few. Whether you are a student or a former student, you can benefit from a reduction.

Go green

It is common practice nowadays for businesses to offer the option of going green by opting for the reduction of paper statements. What you may not know is that your insurer may reward you with a discount for choosing this option.


Most people know that reducing the number of kilometers driven annually will result in savings on your insurance bill. Some companies also offer discounts of up to 10% if you go green while driving a fuel efficient hybrid vehicle. It's not that hybrid cars are safer, insurance experts say; it's that people who go out of their way to buy them and drive them are considered a better risk.

Security and protection

You may already know that safety features like air bags or anti-lock brakes can lower your premiums. But you may not realize that you can save money on the entire portion of your insurance by installing anti-theft measures, including: car alarms; fuel or ignition cut-off switches; stolen car tracking systems such as LoJack; and VIN engravings, or engravings of your vehicle identification number on your windshield and windows.

Taking defensive driving lessons is another way to get a discount on your auto insurance rates. This can represent up to ten percent off your premium. Not only that, you might end up not only learning some important defensive driving techniques to protect yourself and your passengers, but you might also end up saving yourself some money.


Some auto insurers reward loyalty. Nationwide offers customers who have been with the company for at least five years a 15% discount, or 5% if they have been with them for three years.

Good marks

If you fall into the category that your provider defines as eligible for the “student discount voucher”, you can save money on your auto insurance. In fact, companies often offer discounts greater than ten percent. This is based on the theory that good students are better drivers. Usually, the discount only applies to full-time students. Qualifications vary, but the reduction usually applies to high school and college students. The savings can be 10-25%.

Company for two

It might not make sense to you, but premiums can drop when you get married, as statistics from insurance companies show paired drivers tend to be safer than those who are free and fancy. . Some insurers will even extend the reduction to unmarried same-sex couples
Other unmarried couples can insure their vehicles together for a multicar discount, which almost all providers offer. Or, if you own a property together and have home insurance, there is usually a bundle discount for insuring your car with the same company.
Whether you are married or single, do your research before renewing a car policy to make sure you get all the discounts possible.

Grouped discount

If you buy multiple types of insurance from the same provider, you can often save money. For example, if you get your life insurance, auto insurance, and home insurance from the same company, they may offer you discounts on each of them. With most businesses, the more types of insurance you group together, the more you save on the price of buying them all separately.
Discount on payment method
Many insurance companies offer a discount if you set up some form of automated payment. Most of these discounts are cumulative, so if you have a lot of them you might be able to really save.

Multiple car discount

Just like bundling, insuring more than one car will entitle you to a multiple car discount. The make, model and year of vehicles, number of vehicles and other factors are taken into account, but the savings can be significant.
Save money with Pay as You Drive insurance
This increasingly popular new type of insurance can be based on specific mileage that you and the insurer agree to, the time you spend in your automobile, verified odometer readings, or installed technology, such as GPS.
While considerable savings can be made with this type of insurance, it is important to adhere to the mileage restrictions agreed to with the insurance company. Violations can be costly.


There are many opportunities to save money with auto insurance. Your insurance representative can point you to some of them, but in the end, it will be up to you to do your research and ask the questions.
When looking for the cheapest insurance you can afford, don't lose sight of the big picture. What I mean is that an insurance provider that offers lots of discounts might not be cheaper than a company that offers few discounts.