Policy discounts are discounts offered by insurers to retain you as a customer. Driver discounts are offered to drivers who pose a relatively low risk to their insurer based on characteristics such as age, driving history and annual mileage. In addition, there are discounts on vehicles for drivers who have additional safety technology in their car. Similarly, insurers offer discounts to drivers who use the same insurance company for other types of insurance, such as homeowners or renters insurance.
Homeowners are often offered a discount on car insurance because they are considered to be financially stable. Some insurers also offer a physical telematics device for the car that connects to the vehicle's integrated diagnostic port, located under the dashboard. The 10 biggest insurance companies offer a good student discount, and the requirements are generally the same among insurers. Louisiana is the only state that requires auto insurance companies to offer military discounts, so military service members and their families based in Louisiana will save on their car insurance premiums regardless of the company.
You'll save on premiums with most insurance companies if you can show that you've had insurance for the previous six months. You can get a good student discount on car insurance if you're a high school or college student with at least a B grade point average. Expensive cars, sports cars, and cars with high theft rates are considered to be riskier to insure than cheaper and more practical vehicles. Four of the 10 largest insurance companies offer passive restriction discounts, and the requirements are generally the same among insurers.
However, insurers in Hawaii, Massachusetts and Montana do not allow insurers to consider the customer's marital status when calculating their insurance premium. For people enrolled in telematics-based auto insurance programs (also known as usage-based insurance), these devices send personalized driving data to their insurance provider for a specified period of time or on an ongoing basis. If you're already driving safely, enrolling in a telematics program can result in cheaper car insurance rates by rewarding your good driving habits. Allowing an insurance company to track your actual driving habits, usually through a device connected to your car or a smartphone app, can offer substantial savings.
Auto insurance discounts can offer significant savings opportunities, especially the most common ones, such as discounts for safe driving and the combination of home and auto insurance policies. For example, drivers can get a discount of up to 15% if they insure a car that is three years old or younger.