Top Auto Insurance Discounts You Should Know About

What you pay for car insurance can depend on dozens of factors, including the state, city, and neighborhood where you live. If you drive and carry insurance in the US, though, current estimates indicate you’ll pay an average of somewhere between $900 and $1,700 annually.  

Unfortunately, outside of removing vehicles or changing coverage, most of us don’t have a great deal of control over our auto insurance premiums. Or do we? 

 In this article, I’ll provide a brief overview of some of the most common car insurance discounts available, how much they could decrease your premium, and how you can apply them to your policy.  

Are You Eligible for These Auto Insurance Discounts?

Before diving in, it’s important to emphasize that, like any other aspect of auto insurance, precisely how any of these discounts will impact your overall policy premium is almost impossible to determine in advance. Furthermore, as you’ll see, some discounts apply to only specific coverages, while others apply policy-wide. 

As a result, I’ve listed standard ranges you might expect from your premium. 

Multi-Policy Discount

At up to 25%, this is one of the most significant auto policy discounts available in many instances. Carrying auto and home together will typically deliver the best discounts, although you can still receive meaningful savings for other useful policies, like an inland marine (fine art, jewelry, expensive sports equipment, etc.) or umbrella. 

Multi-Car Discount

If you have more than one vehicle insured under your policy, you could save up to 25% off your premium. The savings are significant enough that, in some instances, adding an older, liability-only vehicle to a single-car policy could actually decrease a driver’s premium! 

Safety Discounts

Anti-lock brakes, airbags, and daytime running lights are just a few of the features commonly found on late-model vehicles that could help you save up to 40% off your medical payments/Personal Injury Protection (PIP) premium. 

Renewal Discount

This discount applies to policies that have “matured” or reached a certain number of renewals, which is why it’s also commonly referred to as a ‘legacy’ or ‘loyalty’ discount. The discount typically kicks in after 3-5 years, depending on the carrier, and could help shave up to 10% off your premium. 

New Car Discount

If your vehicle was manufactured within the most recent three to five model years, you could shave up to 15% off your policy premium. 

Anti-Theft Features Discounts

There are a wide variety of features that could potentially qualify here, although some of the most common include: 

• Manual alarms
• Self-locking mechanisms
• GPS tracking
• Ignition disabling
• Vehicle recovery (e.g., LoJack)
• VIN etching on the windshield or windows

The higher-tech the anti-theft feature, the more you’re likely to save on your insurance premium. Combined, though, these discounts could decrease your rate by up to 25%. 

Good Driver Discount

If you haven’t had any accidents or received any violations within a specified period (typically 3-5 years), you could save significantly (up to 40%). 

Good Student / Student Away at School

A Good Student discount applies if you have a part or full-time student in your household who’s under a certain age (usually 25), and they maintain a 3.0 GPA or better. Some companies require that you send grades into the company to refresh the discount (up to 25%) each annual renewal.  

If your student lives outside the household during the year while attending school more than 100 miles away, they could also qualify as a ‘student away at school,’ which can offer significant savings. 

Defensive Driver

If you take a defensive driving course after receiving a minor citation, you could save money by preventing it from sticking to your record. You could also decrease your auto insurance premium by up to 10%! 

 As with the good student discount, some carriers may require proof that you successfully completed a course. 

Occupational Discounts

Depending on your profession, you could save a small percentage on your premium. Be sure to talk with your IHS Insurance Group agent, or your insurance carrier directly, about which careers (e.g., military, education, etc.) for which they offer discounts.  

Some insurance companies also offer discounts to members of specific professional organizations, known as an ‘affinity’ discount. 

 Payment Discounts

Do you prefer paying for your policy term in full? Do you like to save time and have your monthly payments automatically withdrawn from your account (i.e., electronic funds transfer)? What about paperless (email) billing? 

If any of these appeals to you, you could save up to 10% off your auto insurance premium. 

Usage-Based Insurance

Plugging a small telematics device into the OBD-II port underneath your dashboard (usually located near your fuses) can measure factors like speed, distance, driving time, and braking and acceleration. After sending this data to your carrier, they can craft an insurance rate tailored to your specific habits. 

Related: What Does a Driver Tracking Device Measure? 

Typically, usage-based auto insurance policies deliver the most significant savings for those who drive short distances and relatively infrequently. 

Here’s a quick table outlining all of the common auto insurance discounts discussed above, ranked in order of significance (highest to lowest): 

Discount	Savings Up To
Safety	40% (Med Pay/PIP)
Good Driver	40%
Usage-Based	30%+
Multi-Policy	25%
Multi-Vehicle	25%
Anti-Theft	25%
New Car	15%
Renewal	10%
Defensive Driver	10%
Payment	10%
Student Away at School	Varies
Occupational	Varies

How Can You Learn More About the Top Auto Insurance Discounts Available?

Now that you know more about some of the most common auto insurance discounts, how can you add them to your policy and take advantage of their potential savings? And where can you turn if you have questions? 

The staff IHS Insurance Group have decades of combined experience helping clients like you find the coverage they need, at prices they can afford. Reach out today! 

Need a FREE Quote? Or do you have questions about what you should do about flood coverage under your auto policy? We have three convenient ways to reach us: 

1. If you prefer to talk to a licensed agent directly, please call (866) 480 5063.
2. If you prefer to fill out a quick form and have an agent get back with you at your convenience, use the GET A FREE QUOTE.
3. Lastly, for those that want an immediate quote, please click HERE.

We look forward to speaking with you today!