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11 Discounts that may save you money on your auto policy

By July 7, 2020 Personal Insurance

It is well-known that you may receive premium discounts on your personal auto policy for things like bundling with your homeowners insurance or staying accident-free, but here are some less well-known discounts that can keep some money in your bank account:

1. Anti-theft device: An anti-theft device is anything that makes it more difficult for a thief to drive away with your car. This can be as simple as a steering wheel or tire lock to something as advanced as a hidden “kill switch” in your car that requires a switch to be flipped before electricity can flow to the engine. If you have any kind of anti-theft item in your car, your agent may be able to get you a discount on your premium.

2. Auto-pay: Managing your account so that your monthly payment is automatically withdrawn gives your insurance company some assurance that you’ll be on-time with your payments. If you set up auto-pay on your account, you not only will always stay current, but you may be eligible for a reduction in your premium for it.

3. Good Student: Are you a student or do you have a student driver on your auto policy? If so, you may qualify for a Good Student premium discount. By sharing your/your student’s excellent report card with your insurance provider, you may be eligible to save an average of 7% on your premium – a humblebrag that may save you some money!

4. Students away from home: Are your great students away at college? This may also give your insurance company a reason to give you a break on your premium. If you have a student who lives over 100 miles away from your home, you’re on average able to save 15-30% on your auto policy.

5. Green/Hybrid car: Green features are becoming more and more prevalent in newly manufactured cars. If your car has an eco-mode, low-rolling resistance tires, LED lights, runs on electricity, or several other environmentally friendly features, you may be able to save money on your auto premium. You can save the environment while saving money – win/win!

6. Marriage: Insurance providers typically provide a discount to drivers who are married. If you and your spouse have good driving records with few accidents, it may be beneficial for you to combine your auto policies and save. Ask your insurance agent if this benefit may apply to you.

7. Organization Memberships: Your insurance provider may give you a discount on your auto policy if you are affiliated with certain organizations. Here’s a list of the most popular affiliations: AAA, AARP, collegiate alumni associations, wholesale clubs like COSTCO and BJ’s, business groups, honor societies, teachers’ groups, etc. If you belong to a group, chances are there’s an insurance provider that wants to give you a discount!

8. Advance-Quote (purchase) discount: By shopping around for a new auto policy well in advance of your current policy’s expiration date, you may be eligible to save an additional percent on your premium. You don’t have to shop around months in advance either – some providers may apply this discount if you have as little as 7 days left on your current policy. It pays to think ahead – literally!
9. Education credit: Completing any kind of driver safety course may save you money on your auto premium. You can also earn an extra discount on your premium if everyone in your home under the age of 21 completes a driver education course. Reach out to your agent to see what courses may be available to you.

10. Defensive Driving course: Specifically completing a Defensive Driving course will not only make you more alert on the roads, it may be cause for your provider to give you a discount. Many of these courses are offered online with low registration fees. Taking this course may get you as much as 10% off your auto policy and in some cases, you may be able to remove points off your license by taking one.

11. Pay in full: By paying your auto premium in full up-front, you are eligible for many kinds of savings. You’ll save on monthly charges associated with your auto policy, you’ll never be charged a late fee, and you’ll be able to take one monthly bill off your list!

Contact American Insurance today to find out how we can save you money on your auto insurance in New Jersey!