They are earned based on how you buy and pay for your policy. Policy-related auto insurance discounts are some of the easiest to apply for. If we look at some of the major companies' multi-policy discounts, we can see that Farmers is at the forefront of combining deductions on an auto policy when you also have a home, condo or renters policy. When you combine your auto and home policies, you'll get the best overall discount, with discounts from 6 to 26%.
Tenants don't benefit as much, with discounts ranging from 2% to 9%, but everything helps. Cars that are less than three years old can often qualify for a new car discount, often between 10 and 15%. The requirements vary from car insurance company to car insurance company, but students typically have to be younger than 25 years old, be more than 100 miles from home, and have access to their car only while at home during school holidays and holidays. Of the 10 largest auto insurance companies, Farmers lists the most discounts on its website, with 23 available.
However, there are many ways drivers can save money on their car insurance policy by taking advantage of insurance discounts. You can get a package discount if you insure your car with the same company you use for condo, renters, boat, motorcycle or recreational vehicle insurance. Insurers reward loyalty with discounts for long-time customers and for those who have multiple policies or cars insured under the same policy. Car insurance is a legal requirement in almost every state, but for many drivers, the cost of car insurance can be expensive.
And sometimes you have to proactively ask your auto insurance agent to review discounts to make sure you receive all the savings you qualify for. There are more than a dozen common discounts on car insurance, and you might not realize that you're already eligible. A multi-policy discount usually applies when buying car insurance and other policies from the same company. Several companies offer discounts on auto insurance for having protective devices such as alarms or locks on the steering wheel.
Because homeowners tend to be more financially stable than renters, they may be able to receive a discount on their car insurance because they are less likely to have to file claims. While new cars, vehicles with safety add-ons, and electric vehicles can be expensive, you can help offset the cost with a discount from your insurance company. We've covered the most common discounts on car insurance, but there may be more opportunities to save on car insurance. While certain expenses, such as registration fees, fuel and repair costs, are out of your control, one cost you can reduce is car insurance.
Your insurance company may offer usage-based insurance (UBI), which adjusts insurance rates based on how often and how you drive.