7 Best Car Insurance Discounts

Car insurance doesn't have to be as expensive as you think.

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Car insurance can be expensive, with premiums averaging well over $1,500 in many states. However, there are ways to lower your car insurance bill, and all you have to do is ask.

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Car insurance discounts have been around forever and are a big part of many advertising campaigns. But the responsibility is on individual drivers to make sure a policy has all the eligible discounts applied. Applications are often handled by inexperienced customer service reps, so it’s important consumers speak up and ask about specific car insurance discounts.

What are the top seven car insurance discounts?

Multi-Policy and Multi-Vehicle Discounts

Consumers who have multiple policies with the same insurance company often experience discounts exceeding 10 percent on auto insurance. Qualified policies can include a homeowners’ insurance policy, a second car insurance policy and even health or life insurance depending on the provider.

Low-Mileage Discounts

The low mileage discount is probably the best kept secret in the car insurance industry and one which is not offered by all providers. However, if your insurance company does offer this discount, it’s worth checking into (especially if you work from home or take public transportation to work) as discounts can sometimes exceed 40 percent.

Good Driver Discounts

Obviously car insurance companies want drivers with low risk and if you have a good driving record the last three years, most insurers will reward you with a small discount.

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Vehicle Safety Features

Whenever purchasing a vehicle always look at the safety features. Factory installed features such as Anti-Lock Brakes and Airbags almost always lower your car insurance costs. A good place to start learning about vehicle safety ratings and features is visiting the Insurance Institute for Highway Safety website.

Affinity Groups

Many employers and organizations have agreements with car insurance companies to provide member discounts. If you pay dues to any organization or have a HR department ask around for any possible car insurance discounts.

Hybrid Cars

Not only will you save on fuel and contribute to a greener planet many companies offer hybrid car insurance discounts simply for owning a Hybrid Vehicle. Traveler’s insurance has a special program, the Hybrid Travelers policy, which automatically provides a discount up to 10 percent.

Car insurance rates can sometimes seem a little high on the surface but with the right knowledge it is possible to cut policy premiums by 20 percent or more simply by learning about the available discounts.

Alan Dunn is a Serial Entrepreneur, Licensed Mortgage Broker and publisher of various consumer education websites, including a site with tips on how to save money, a cool car loan calculator site and a very popular destination consumers use to compare car insurance companies.