Learn how to Get the Greatest Auto Insurance Reductions – MarketWatch

Are you looking for the biggest discounts in car insurance? By the time you finish reading this article, you will know how to maximize all of the discounts available to your advantage.

Buying auto insurance can be expensive, but does it have to be? Well, you can lower your premium by taking advantage of discounts.

Whenever you contact car insurance, always ask about available discounts. Any insurance company can offer you discounts based on what you qualify for.

You can reduce your total insurance costs by up to 40%, depending on your eligibility, the type of discount and the insurer.

How to get the biggest discounts on auto insurance

According to the Insurance Information Institute and Investopedia, the following are some of the ways to get the biggest and best discounts on auto insurance:

  1. Take a look around before you buy

  2. Group insurance discounts

  3. Multi-policy discounts

  4. Multicar discounts

  5. Good student discount

  6. Homeowner discount

  7. Loyalty discounts

1. Look around before you buy

It's worth browsing around and comparing car insurance offers. That's because prices vary from company to company. The best decision you can make is to get at least three price quotes from different companies.

You can call the insurer directly or find out more online. For example, Geico, State Farm, and others can help you get a free quote.

Remember, the most important thing to look for is price. Before buying a car and getting insurance, ask friends and family for recommendations. You can always contact your state's insurance department if you need more information about the company you are considering. You can also speak to the insurance company directly if you have specific questions.

2. Group insurance discounts

Some companies may offer you discounts with a group plan. Such group plans may be provided to you by your employer, club, or association of which you are a member.

Ask your employer if a group insurance discount is available to you.

3. Multi-policy discounts

Also known as a bundling, it's still one of the most significant discounts you can get in 2021. To bundle your insurance policies, you need to buy at least two types of insurance from the same provider. To give you an example, you can get auto and home insurance, which usually gives you the biggest discount across multiple policies. With insurers like Allstate, the discount can be up to 25%.

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Of course, you can also bundle other types of insurance such as life insurance and auto insurance, but you usually get a smaller discount for this. Rarely will you get a better deal with two different insurance companies. So do you own a home? If you do, you should consider an insurance provider who can package your home and auto policies.

4. Multicar discounts

Another significant discount is the multicar discount. If you insure two vehicles together, you can pay a lower tariff compared to individual insurance. When you buy insurance policies for two or more cars from the same provider, you get a discount for multiple cars, which can be up to 25% with some insurers. Of course, you should first ask the insurance company whether they offer this service.

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5. Good student discount

This discount only applies to full-time students with good grades. Typically, you will need a GPA of 3.0 or higher for high school or college students. Issuers who offer good student discounts want you to somehow prove your grades to them. These discounts can be up to 25% and you must be under 25 years of age to qualify.

In general, young drivers pay higher tariffs. This is why some insurance companies reward good students with a discount and assume that a young driver who is responsible at school drives responsibly. Statistics prove that this is true.

6. Homeowner Discount

You might be surprised to learn that having a home gives you a discount on auto insurance. Insurance companies also offer this discount if the customer takes out home insurance with another company. The reason for this is that homeowners tend to be more stable than renters.

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If you are a homeowner, you can take advantage of this discount and combine it with the multi-policy discount for maximum results.

7. Loyalty discounts

If you are a long-term customer or have multiple insurances, you can reward yourself for your loyalty. You can get a discount when you transfer one of your insurance policies to your auto insurance company.

A little tip to keep in mind about loyalty discounts: Auto insurers use a method called price optimization. They charge higher fees to their loyal customers as they are unlikely to switch companies.

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For this reason, it is important to regularly compare car insurance rates. This is because your final price at your current business may be even higher even if a loyalty discount is applied.

Review your insurance policy annually

Remember to check your auto insurance at least once a year, speak to your auto insurance and inquire about other discounts. Even though discounts can save you money, always remember to consider the total cost. It's much more important than the number of discounts you get.

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Remember this final piece of advice: the best way to keep your premium low is to keep a clean driving record and maintain good credit. These two factors can save or cost you a lot of money.

This story originally ran on KBB.com.

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