7 Car Insurance Discounts That You Might Not Know about ...

If you need to lower your monthly expenses, researching different car insurance discounts might be the answer. Car insurance is a necessity if you own a vehicle. If you're involved in an accident, insurance pays for damages to your vehicle, as well as damages you cause to another person’s vehicle. Unfortunately, car insurance premiums can go through the roof and create a financial burden. There are, however, ways to minimize your costs. Here are seven car insurance discounts that you might not know about.

1. Multi-car Discounts

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Car insurance discounts are more common than you might think. In fact, adding another car to your policy can help you qualify for a 25% discount, per car. This is perfect if you and your spouse or another family member both have vehicles. You can merge both cars onto one policy and save each month.

2. Bundle Your Insurances

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In all likelihood, auto insurance isn't the only type of insurance you carry. You might also have homeowner’s insurance, renter’s insurance or health insurance. If your auto insurance provider offers other types of insurances, getting a secondary policy can result in a lower premium.

3. Low Mileage Discount

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The number of miles you drive on a yearly basis also has an impact on your car insurance rate. The truth is, the less you drive, the lower your risk of an auto accident. For that matter, if you work from home, walk to work or rely on public transportation, you may qualify for a low-mileage discount. The guidelines vary by auto insurance provider, but typically, if you drive less than 10,000 miles a year, you can qualify for a 20% to 25% discount. Check with your insurance provider for details.

4. Safe Driver Discount

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Obviously, avoiding an auto accident is the best way to keep your auto insurance premium low. However, you can also snag a cheaper premium if you take steps to improve your driving record. Taking a driver improvement course at a DMV–approved location can add positive points to your driving record. And the more positive points you add, the cheaper your auto premium.

5. Honor Roll Student Discount

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Some parents are hesitant to add their high school or college student to their auto insurance policy. This is because policies are typically higher for young drivers. However, if your high school or college child is an honor student (A or B average), you might receive a discount on your policy β€” anywhere between 10% and 25%.

6. Occupational and Organizational Discounts

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Auto insurance companies don't always advertise available discounts, but if you ask about discounts, they have to disclose this information. With that said, working in a certain profession or belonging to a certain organization may qualify you for certain discounts. You might receive a discount if you're a teacher, a firefighter, a police officer, or if you're in the military or a member of a sorority or fraternity.

7. Good Credit Score

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Understandably, your credit score has nothing to do with getting auto insurance, but this doesn't stop insurance companies from pulling your credit report. From an insurance company’s standpoint, there is a connection between good credit and safe driving habits. For that matter, policyholders with the highest credit scores typically qualify for the best insurance rates.

Auto insurance doesn't have to cost an arm and a leg. If you’re looking to save, contact your provider today and ask about discounts available to you. How were you able to save on auto insurance?

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