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common auto discounts

“DISCOUNTS, DISCOUNTS, DISCOUNTS” It’s the cry of so many insurance companies all over the airwaves. As I write this post, the Pandora radio station I’m listening to keeps bursting into an insurance company commercial screaming about discounts.

Discounts can be a scapegoat topic that a lot of companies use to avoid talking about great coverage, quality customer service, and a claims team that actually takes care of you.

[bctt tweet=”Discounts ARE everything in insurance pricing, but commercials exaggerate differences that usually don’t exist.” username=””] The fact is, the types of discounts are very similar no matter what company you go with.  So those commercials are spouting about things that you can get with any good company.

The way it works is that every auto insurance quote starts with the highest price possible. Then the discounts whittle the price down to a number that you’re more used to seeing. Really, EVERYONE gets some kind of discount. Price differences are primarily how many you get and at what level.

So here’s an inside look at the 8 most common discounts and how to make sure you have them:

8 Common Auto Insurance Discounts

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Driving safely has tons of advantages.  One is the price of your insurance policy.  When you get a ticket it’s noted on your insurance policy.  That often results in higher premium


No Accidents = Cheaper Insurance
How much depends on the company.  Some companies “forgive” a single accident, but most will hit you pretty hard if there are more that one.  Accidents effect your premium for at least 3 years and sometimes more.


Discounts for high credit scores are a significant price factor with most insurance companies.  Some states ban this practice but for most it remains a significant pricing factor.


You get a discount for “bundling” your home and auto insurance.  This tends to have more of an effect on your home than auto but does save money on both.  You can also get a discount for having more than one car on your policy.


Young drivers see significantly higher insurance premiums.  That tends to go down after 5 years of driving experience and again at age 25.
Women generally pay less for insurance as statistics show ladies have fewer accidents than guys.


There are generally different prices for different forms of payment.  Paying by mail is often the most expensive.  Automatic payment can give you a discount and paying in full gives you even more.


Two opposite approaches here.  Some companies offer introductory discounts that fall off in future years.  Others  offer a discount for each year you stick around.  A few companies also provide a discount for how long you were with your previous insurance company.


Companies offer a variety of discounts for what you do
for a living & associations you’re a part of. Be sure to
share your employment and associations with your
insurance provider.

Here’s a downloadable INFOGRAPHIC for making sure you have all the discounts on your policy:
common auto discounts
What discounts do you have? Which ones are you missing? Make sure to check in with your insurance agent and verify that you have the discounts you deserve:

Need an Independent Insurance Agent?

contact shine insurance

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