Car insurance discounts are more plentiful than you might be aware of. Here are some lesser-known discounts that might be available to you.
Low annual mileage
The less time your car spends on the road, the less likely it is to be involved in an accident. As such, cars with low annual mileage are low risk for insurance companies. Many companies offer these mileage discounts in tiers — 7,000, 10,000 and 12,000 miles per year, for example.
Households with multiple vehicles can vary which car they drive in order to score this discount, even if they travel more than 12,000 miles per year.
Purpose of vehicle
Insurance companies may give you policy discounts based on how you use your vehicle. For example, if you use your vehicle primarily to drive around your own land — perhaps on a farm or ranch — you might pay less than if you use it to get around a metropolitan area. In general, business use will cost the most.
Advance renewal
Insurance companies like to keep their clients around and will sometimes reward those who renew their policy early. How early? That depends on the company.
In general, insurance providers limit this discount to those who renew seven to 10 business days ahead of schedule. If you are happy with your provider, this is a discount to take advantage of.
Customer loyalty
Insurance companies will also offer financial rewards for being a loyal customer. This is actually one of the most common discounts, and one that you might be able to receive for other types of insurance coverage as well. In most cases, this discount becomes available to clients who have been with an insurance provider for 60 months or more.
Electronic funds transfer
When you set up automatic payments, companies know that they will get paid in full and on time. This motivates them to offer a small discount. Again, this discount is available across various types of insurance policies.
Are you looking to pay less for your car insurance? Speak with your insurance broker to find out which companies offer the right discounts for you.
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