Personal Auto Insurance Discounts

Seek Those Personal Auto Insurance Discounts

• “Defensive Driving Discount.” This discount can save you 5 percent on most of the major coverages under your auto policy, such as liability, medical payments, and collision coverage. Defensive driving courses can cost as little as $20 and last as few as 5 or 6 hours, and the discount normally applies for 3 years.

• “Good Student Discount.” Statistics show that good students tend to be more reliable (and mature) than students with marginal grades. This leads to better driving decisions. Therefore, many states allow a 5 to 10 percent discount if your student driver makes good grades. This is usually an overall “A” or “B” average in high school or college. If your child has to pay his or her own automobile insurance, this can be another motivator for him or her to make good grades!

• “Home/Car Discount.” Many insurers offer discounts of 10 percent or more if they provide both your homeowners and personal automobile insurance. This can lower your costs on both policies.

• “Auto Safety Features.” Most insurance companies recognize owners with cars containing safety features may have fewer accidents and reduced injuries. Many insurers also encourage drivers to purchase cars with antilock brakes by giving small discounts for these safety features. Other insurers give discounts for vehicles with daytime running lights.

• “Accident-Free Discount.” Many insurers offer discounts of up to 10 percent for remaining accident-free for a period of 3 to 5 years. These are sometimes called “good driver” discounts.

Copyright 2014
International Risk Management Institute, Inc.