Most insurers offer a list of discounts, and the list differs from company to company and state to state. Some are applied automatically. Many are not, because they depend on facts the insurer does not know unless you say so. Asking a few direct questions is one of the easiest ways to make sure your price reflects your situation.
Discounts tied to how you pay
- Paid in full. Paying the whole term up front often costs less than monthly installments, which can carry fees.
- Automatic payments. Some insurers lower the price if you set up recurring payments from a bank account.
- Paperless. Choosing electronic documents and billing sometimes earns a small discount.
Discounts tied to your policy
- Multiple vehicles. Insuring more than one car on the same policy is commonly discounted.
- Multiple policies. Holding home, renters or other coverage with the same insurer can reduce the price of each.
- Continuous coverage. A record of staying insured without gaps can help. A lapse, even a short one, can work against you.
Discounts tied to the driver
- Clean record. Several years without at-fault accidents or violations often qualifies for a safe-driver discount.
- Defensive driving course. In some states, completing an approved course can earn a discount for a set period.
- Low mileage. Driving fewer miles than average, for example after starting to work from home, may lower the price.
- Usage-based programs. Some insurers offer optional programs that measure driving through an app or device. Ask how the data is used and whether the price can go up as well as down.
- Occupation or membership. Some insurers offer discounts for certain professions or organizations.
Discounts tied to the car
- Safety features. Airbags, anti-lock brakes and newer driver-assistance features may qualify.
- Anti-theft devices. Alarms and tracking systems can lower the comprehensive portion of the premium.
Questions to bring: Which discounts are already applied to this quote? Which others could I qualify for? Does any discount depend on something I need to keep doing, such as automatic payments?
Keep discounts in perspective
A long list of discounts does not guarantee a low price, and a policy with few discounts can still be the better rate. Look at the final total for the coverage you want. Discounts are worth asking about because they can only help, but the coverage on the quote matters more than the number of discount lines on it.
This guide is general information, not legal, tax, or financial advice, and it does not describe any specific policy. Coverage rules vary by state and by insurer, so read your own policy documents. America Auto is not an insurance carrier, agency, or broker.
