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Taking Advantage of Discounts

Automobile insurance coverage is mandatory in most states. To alleviate the cost of mandatory automobile insurance and encourage carrier loyalty, insurance companies offer discounts to policyholders based on varying requirements. Because car insurance is overseen by state regulatory bodies, insurers must offer discounts in accordance with each state’s rules. When researching and pricing auto insurance it is important to take advantage of any available discounts and savings programs.

Many states offer approved discount programs for specific age groups. California insurers for example, can offer discounts for inexperienced drivers and for mature vehicle operators who maintain clean driving records and have no at-fault accidents. In Wisconsin, a student who attends school over 100 miles from the regular garage location of their vehicle is eligible for discounts on their premiums. Participating states offer insurance rate price reductions or discounts to motorists who complete the AARP Driver Safety course, which can be taken online or in a classroom. It is mandatory in 35 states that auto insurance companies offer discount to drivers who complete approved driver safety and improvement courses taken in a classroom. Many also mandate the same discounts be offered for online courses with the same standards.

Most insurers offer premium rate reductions to people who insure multiple cars or dwellings with the insurance carrier. These are referred to as multi-line discounts. Loyalty programs for drivers who remain with a carrier for consecutive periods are also popular.

In many states car insurance companies can offer price reductions for vehicles outfitted with safety systems. This includes theft prevention devices, anti-lock brakes and passive restraint systems on certain cars. You may also be eligible if your vehicle is equipped with an anti-theft system or airbag safety device that is manufactured in accordance with federal standards.

State regulatory bodies have recently become more involved with the administration of car insurance than ever before. Drivers in New Jersey and California can take advantage of low-cost auto insurance policies issued by the state. These state-sponsored discount programs are mandated by the state legislature and are available based on income level. State insurance departments and legislators have also begun to monitor the way car insurance companies administer these discounts to ensure consumers are able to secure affordable car insurance.

Drivers shopping for a car insurance policy should be sure to investigate any discounts available in their state and speak to potential insurance carriers about eligibility.