Your Guide To Property Insurance

Types Of Car Insurance Discounts

Auto insurance companies have multiple discounts you can use to lower your auto insurance rates. The companies base their discounts on various factors. Below are some broad factors that determine the discounts you qualify for.


You may qualify for good student discounts if you are in school and meet your carrier's threshold for the discount. The typical requirement is to attain and maintain good grades to enjoy the discount. Many insurance companies that offer the discount have specific grades or GPA (grade point average) that qualify learners for good student discounts.


Your profession may qualify you for auto insurance discounts in multiple ways. For example, some insurance companies award automatic discounts to members of certain professions, such as educators, whom they deem responsible.

Some organizations have affiliations with auto insurance companies to provide discounts for their members. For example, you may find discounts for federal employees, the military, and employees of certain hospital networks.

Driving Habits

Your driving habits determine how likely you are to cause or be involved in an accident. Thus, safe driving habits may qualify you for certain insurance discounts. For example, some insurance companies have discounts for:

  • Drivers who go through a certain period without an accident
  • Drivers who prove safe driving habits using telematics (telematics record data related to braking, acceleration, speed, and driving location)
  • Drivers who do not exceed a specified annual driving mileage

These discounts make sense since accidents cause insurance companies money. The discounts are also a reward for drivers to maintain safe driving habits.

Insurance Status and History

Lastly, insurance companies may also award you discounts based on your current insurance status and history of insurance. For example, some carriers offer discounts for those who buy multiple insurance lines from them. You may also enjoy discounts by having multiple cars under the same policy. These discounts are like a reward for the additional business.

Lastly, loyalty discounts exist for those who stay with the same insurance company for a long time. Again, carriers have specific years you must be with them to enjoy the loyalty discount. The discount is an incentive for you not to take your business elsewhere.

Car insurance does not have to be costly. You just have to get the right company, the right coverage, and the right discounts. Unfortunately, the internet is filled with considerable insurance information, some of which is unreliable. Consult an auto insurance agent to verify the information and buy affordable insurance coverage.

For more information on car insurance, contact a professional near you.