Customers get discounts on car insurance by comparing rates, driving safely, bundling policies with one company, maintaining good credit and increasing deductibles. Taking advantage of multiple discounts can add up to big savings for drivers.
Rates for the same coverage vary from one insurance company to the next. Getting quotes from multiple insurance companies allows the driver to find the best rates. Comparing different coverage limits and deductibles also allows the driver to find the best balance between coverage and premiums. Raising the deductible from $200 to $1,000 could decrease the premium by 40 percent, according to the Insurance Information Institute.
Insurance companies offer discounts for a variety of reasons. A customer who buys more than one insurance policy such as a home and car policy typically gets a discount on both. A driving record free of accidents and moving violations often earns additional discounts. A customer who takes a defensive driving course may get credit for it in the form of insurance savings.
Factors not directly related to driving also play a role in car insurance rates. Customers with good credit often pay less for insurance, as research shows higher credit relates to fewer claims. Families may get a discount for teen drivers who earn good grades.