Drivers with short commutes, who own their home or who don’t drive every day
of the week are among the many consumers eligible to save hundreds of dollars
each year on car insurance. Many consumers are not even aware of this or
necessarily know it. It is one of those best kept secrets!
Did you know that the average American spends $762 per year on car insurance? Depending on where you live, you’re more—or less—likely to score big discounts. Missouri residents get the most discounts (discounts are available about 33.1 percent of the time), followed by Connecticut (32.6 percent), Indiana (32.3 percent), Wisconsin (32.1 percent) and Iowa (31.7 percent.
Meanwhile, residents of North Carolina tend to get the fewest discounts (discounts are available about 13.2 percent of the time), followed by Hawaii (14.5 percent), New York (20.3 percent), Massachusetts (20.5 percent) and Michigan (20.9 percent).
While it’s hard to pick up and move, the good news is that you can score car insurance discounts no matter where you live. The most common discounts—and the ones that most of us have heard about—include those for being a good student (77 percent of the insurance carriers offer this with an average 16 percent discount), having a home policy with the same company (68 percent offered this with a 9 percent discount), paying all of most of the bill upfront (46 percent offered this with a 9 percent discount), being married (41 percent offered this with a 14 percent discount) and taking a driver training course (41 percent offered this with a 7 percent average discount), the Insure.com survey revealed.
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There are many more discounts that, though less common, still can produce significant savings if you can get them.The right discount can knock hundreds of dollars off your car insurance bill. Many discounts aren’t advertised or automatically offered: Often you just have to ask to start saving some money. As a consumer one should always call and ask about specific discounts when you are looking for a new policy, and if you already have one, you should ask annually. People should also ask about discounts after a major life event like a divorce or a shortened work commute.
Here are eleven little-known discounts—and what they can save the average consumer.
Annual mileage: $84
Consumers who drive less—typically 7,000, 10,000 and 12,500 miles per year -- may be eligible for discounts (13 percent of insurance company’s out there offer this discount and the average savings was 11 percent. That means that the average customer who spends $762 per year on car insurance,) who scored this discount would save an average of nearly $84 per year. That is $84 in your pocket and not the insurance companies!
Use of Car: $76
People who use their car primarily for farming (someone who mainly drives his truck around the farm, for example)—as opposed to business or pleasure—will get the steepest discounts. Roughly 40 percent of companies offer this discount with an average savings of 10 percent. That is $76 in your pocket and not the insurance companies!
Advance renewal: $61
More than one in four insurance companies offers a discount to those who renew in advance, typically 7 to 10 days ahead of schedule. The savings is significant—8 percent on average—which would save the average consumer nearly $61 per year. That is $61 in your pocket and not the insurance companies!
Customer loyalty: $46
“The industry rewards loyalty.” In particular, companies tend to give discounts for consumers who have been customers for a year, 36 months and/or 60 months. More than one in three insurance companies offer this discount and the
average savings was 6%. That is $46 in your pocket and not the
People who own their own homes, condos or apartments can save an average of 6 percent off car insurance. Fully 21 percent of insurance companies offer this deal. That is $46 in your pocket and not the insurance companies!
Concurrent life insurance policy: $30
While most people know that they can get an auto insurance discount by holding a homeowner’s insurance policy with the same company, the bundling also works with life insurance. The discount in this case is usually 4 percent—and roughly 37 percent of companies offer it—which would save the average person more than $30 per year. That is $30 in your pocket and not the insurance companies!
Using electronic funds transfer: $30
Because companies want to get paid in full and on time, many offer a discount to drivers who allow companies to automatically deduct payments from their bank accounts. More than one in three insurance companies offer this discount and the average consumer would save 4% by opting for this option. That
is $30 in your pocket and not the insurance companies!
Short commutes: $30
People who commute to work for shorter distances—typically five, 10 or 15
or fewer miles—can often save money. Fully 22 %of insurance companies offer this discount and the average savings was 4%. That is $30 in your pocket and not the insurance companies!
Days per week driven: $30
Eight percent of companies offer a discount for people who don’t drive every day. Typically, the discount is for those who drive one, two, three or four days per week. The average savings is 4%. That is $30 in your pocket and not the insurance companies!
Car ownership: $30
People who own rather than lease their car may be able to save: Roughly 7 percent of companies offer this and the average discount is 4 percent. That is $30 in your pocket and not the insurance companies!
College degree or higher: $30
Only 6 percent of companies offer this discount—some for getting a Bachelor’s, Master’s or Ph.D. and occasionally for completion of vocational or technical school. The average savings is 4 percent. That is $30 in your pocket and not the insurance companies!
Have you ever inquired about getting these discounts? When last did you check with your current insurance agent and or insurance company and see if you are getting these discounts? If you haven’t already done so, what are you waiting for? Happy savings!!