When you’re looking to tighten your budget, there are a few obvious places to start. Cut down on dining out, cancel a few subscriptions you don’t use — you know, the nonessentials. Because there’s nothing you can do about the essentials, right? Not necessarily. There might be car insurance discounts you qualify for and don’t even know it.
This may or may not surprise you, but car insurance companies don’t always advertise their discounts. Sometimes you have to ask for them. But how do you get what you don’t know about?
We’re going to cover six discounts that you should ask your current or prospective car insurance company about.
Why You Should Ask About Car Insurance Discounts
Do your premiums have you ready to jump ship? The very first thing you should do is make sure you’re actually getting the best deal. So first and foremost, you should shop around. The SS’s auto insurance comparison tool can help with that.
Then once you’re sure you’re sure you’re happy with your policy, keep trimming down your costs with car insurance discounts.
There are a couple reasons why you should ask about these discounts. For one, they’re not automatically applied in most circumstances. And two, you may not have reported certain changes that would allow you to qualify, like recently joining AARP or switching to a job that requires significantly less driving.
1. Low-Mileage Discount
This is a discount for those who don’t drive as much as the typical person, usually fewer than 7,000 miles per year. Companies are willing to knock off a few dollars for this because the less you drive, the lower your risk for getting in an accident. For example, Allstate offers Milewise, which has you pay per mile.
You’ll likely qualify for discounts like this if you work from home, are retired, use public transportation or live in a walkable city.
Ask your car insurance company if they provide this, and if they do, they may require odometer checks or the use of tracking apps.
2. Usage-Based Insurance (UBI)
Usage-based insurance, also sometimes called telematics, is a program that tracks how you drive using an app or plug-in device. It can log your speed, braking habits, if you use your phone while driving and what time of day you tend to get behind the wheel. USAA’s UBI program even checks the kinds of roads you choose to take.
It’s basically a way to prove you have such good driving habits that you deserve a discount. That being said, it will also track your bad habits. So if you’re not sure you’re ready to stop speeding when you’re late for work, don’t try this one.
3. Affiliation or Membership Discounts
You could get a discount through your employer, alumni group, union or even for being a member of organizations like AARP, AAA or warehouse clubs like Costco.
You could ask your car insurance company or go through the group or organization you think could land you a discount.
4. Defensive Driving Course Discount
Are you willing to take a safe driving course? It could get some money back in your pocket. You’d ask your car insurance provider if they’ll reduce your premiums for doing a state-approved course. This is especially good for older drivers, young/new drivers, and people with tickets or accidents on their records.
5. Paid-in-Full Discount
This one might be difficult for some people. You could get a discount if you pay your premium in full when you renew, rather than paying it monthly. Companies do this because they have to process fewer transactions and don’t have to worry about missed payments. If you can’t afford the amount up front, ask to pay six months instead of a full year.
6. Paperless and Auto-Pay Discounts
These discounts are usually smaller, like 3% to 5%, but it’s still something. If you opt into paperless billing or sign up for auto pay, companies will give you a discount for reducing admin costs and decreasing chances you’ll miss a payment. Both options are good for any driver to have in place. If you log into your account it should be fairly straightforward to sign up for either. Just make sure you link a card that has the proper funds and that you check regularly.
Final Thoughts: How to Get the Best Deal on Car Insurance
The very best way to make sure you’re getting the cheapest rates possible is to shop around. Once you’ve used something like our auto insurance comparison tool to do the research for you, you can start asking about discounts. Remember that you don’t get all discounts automatically. You may have to ask. That’s why it’s a good idea to evaluate your circumstances every year to see if there’s anything new you could get. For example, maybe you signed up for autopay and forgot to ask for the discount.
So, before you renew your policy, check how other companies stack up and ask about hidden car insurance discounts. Even if you don’t qualify at the time, it could be something you work toward.
