Amy Danise
Amy Danise, editorial director at Insure.com, an independent Web site that provides articles and tools to aid consumers in making insurance decisions. It recently conducted a study of nearly 25,000 auto insurance discounts nationwide.
Do you have a master’s degree? Are you married? Do your kids get good grades? Strange as it may seem, answering yes to any of these questions—or other seemingly unrelated questions—might earn you a discount on your auto insurance policy.
You may know that insurers often offer discounts to policyholders who take defensive-driving classes or install antitheft devices in their cars. But those are just two of the many discounts available—including some that are completely unrelated to your vehicle or your driving skills.
These discounts sometimes subtract 15% to 20% or more from collision, liability, comprehensive and/or overall premiums. Policyholders usually are allowed to combine discounts to increase their savings, though total discounts often are capped, sometimes at around 25%. The average auto insurance policy costs around $800 a year, so that 25% off represents an annual savings of $200—possibly more if your coverage is especially expensive.
Don’t assume that your insurer will automatically apply all of the available discounts. It’s often up to the policyholder to inform the insurer that he/she qualifies. That’s especially likely if you didn’t qualify for a discount when you initially signed up for the coverage but do now.
The discounts vary dramatically in type and size from insurer to insurer, and even from state to state with the same insurer.
If any of the discounts listed here fit your situation, call your insurer to find out whether it’s available and, if so, whether you currently are receiving it. When you shop around for your next auto insurance policy, ask insurers which discounts are available to you and make sure that their price reflects the discounts.
Among the discounts…
Rules vary, but a 3.0 GPA often is required. In some cases, the student must maintain this GPA…in others, he need only achieve it in the most recent semester to qualify for the discount in the following policy period.
Average savings: 16%.
Average savings: 14%.
Average savings: 11% for car owners who drive less than 5,000 to 8,000 miles per year. Smaller discounts may be available to car owners who drive more than this but less than 15,000 miles per year.
Average savings: 10%.
Savings: 10%.
Examples: Geico offers a discount of up to 8% to members of Mensa, the high-IQ organization, and up to 8% to active and retired federal employees. Country Financial offers up to 10% off for full-time teachers of kindergarten through 12th grade and up to 5% for emergency first responders. Allstate’s Esurance offers up to 15% to students and alumni of the Pacific-12 collegiate athletic conference schools who reside in Arizona, Colorado, Oregon and Utah.
Average savings: 9%.
Average savings: 9%.
Examples: In Florida, Travelers, Allstate, Progressive, Safeco and Infinity are among the insurers offering this discount. Some insurers extend this discount to new customers who sign up for coverage well before their current policy with a different insurer expires.
Average savings: 8%.
Average savings: 6%.
Average savings: 4%.
Average savings: 4%.