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GuideCar Insurance

Common Discounts Offered by Car Insurance Companies

Nearly every car insurance company offers extra discounts which could cut your rates by up to 50%.

The catch is not all of them will tell you which discounts you qualify for - you'll need to ask for them specifically.

The types of discounts vary by company and state, so when comparing insurance quotes, you should contact several of the companies with the best offers and see if you qualify for any additional discounts.

Here are the main ones that are typically offered:

Discount Description Savings
Multiple Policy Discount Having both auto insurance and homeowners insurance with the same company Up to 15%
Good Driver Discount If you haven't had any at-fault accidents within the past 3 to 5 years Up to 20%
Low Mileage Discount If you drive fewer than 7,500 miles per year 5 - 10%
Good Student Discount If you maintain a B average or better in school, or if you're in the top 20 percentile of your class Up to 30%
Driving Course Discount Completing a defensive driving course course Varies
Retiree Discount If you're 55 or older and no longer working 5%
Multicar Discount Having multiple cars on the same policy Up to 15%
Safety Device Discount If your car has safety features such as anti-lock brakes, collision avoidance, air bags, etc. Up to 15%
Antitheft Device Discount Having an alarm system Varies

It also pays to visit the web sites of insurance companies since most will list the discounts they offer in your particular state.

3 Steps Every Car Buyer Needs to Take to Save Maximum Money

The key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:

Step 1 Get Prices From My Trusted Network

Select the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Select Vehicle to Get Local Pricing

Step 2 Get Prices From TrueCar / CarsDirect

TrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.

Step 3 Complete my Checklist

Follow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan

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About The Author

Gregg Fidan Gregg Fidan is the founder of RealCarTips. After being ripped off on his first car purchase, he devoted several years to figuring out the best ways to avoid scams and negotiate the best car deals. He has written hundreds of articles on the subject of car buying and taught thousands of car shoppers how to get the best deals.
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