Auto Insurance Discounts

Most insurance companies offer a variety of auto insurance discounts. You may qualify for one or more discounts if you have a good driving record, drive a vehicle with approved safety and security devices, or belong to an affiliated organization. Below is a list of some of the discounts currently offered by insurance companies:

• Accident-Free Discount

  Being accident-free for 5 years or more may save you 10%. Being accident-free for 3 years may save you 5% on your premium.

• Affiliation Discount

  Some insurers offer savings of up to 10% to drivers affiliated with certain groups or organizations, such as the military, college alumni associations, education organizations, and many others.

• Anti-Lock Brakes Discount

  Drivers of vehicles fitted with a factory-installed anti-lock braking system (ABS) may be eligible for a discount.

• Anti-Theft Device Discount

  Discounts are available for vehicle is fitted with an anti-theft device. The amount you save depends on the device installed and where you keep garage your car.

• Customer Loyalty Discount

  If you stay with the same insurance company for three years or more you may be eligible for a long-term policyholder discount. After three years you may receive a 5% discount. After five years the discount can increase to 15%.

• Defensive Driving and Accident Prevention Training Discount

  Drivers in certain age groups may receive a discount for completing an approved accident prevention or defensive-driving course.

• Farm Bureau Member Discount

  Farm Bureau members may receive substantial discounts in certain states.

• Farm or Ranch Vehicle Discount

  Full-time farmers or ranchers may receive discounts when insuring a farm or ranch vehicle used exclusively for work on the farm or ranch.

• 55 and Retired Discount

  You may receive a discount if you're age 55 or older and not in full-time employment.

• Good Student Discount

  Some insurers offer discounts of up to 15% for insured students age 25 or younger who maintain good grades.

• Multiple Policy Discount

  Many insurers offer discounts of up to 10% for buying more than one type of insurance. For example, you may qualify for a discount if you obtain auto insurance and homeowners insurance from the same insurer. Other types of insurance may also qualify, such as renters insurance and life insurance.

  But don't always assume that buying more than one type of insurance from the same insurer will be cheaper. Often you may get a better rate (or better coverage) by purchasing different types of insurance from different insurance companies.

• Multiple Vehicle Discount

  If you have more than on vehicle, you may receive a discount of up to 20% if you insure them together with the same insurance company.

• New Car Discount

  If you've just purchased a new car and are the first title holder of your vehicle, you may receive a discount in some states.

• Passive Restraint Discount

  Discounts may be given for vehicles fitted with full front-seat airbags or restraint devices that are automatically activated when your door closes.

• Resident Student Discount

  If your policy includes coverage for a student under age 21 and lives at a school more than 100 miles from your home, you may receive a discount.

The availability and amount of the above discounts vary by insurer and by state. Don't forget to ask your insurance agent if you qualify for any discounts.

The key thing to remember is that while it's nice to know you are receiving a discount, what really matters is the final cost of the premium.

September 5, 2010