However, while it seems that many insurance companies promote the types of discounts they offer, many times it may come down to where you live instead of the company you are with. To get a better idea, check out the chart below on the top ten rankings by state in terms of auto insurance discounts:
State rankings: Availability of 49 common discounts
In the end, however, no matter where you live, you can still cash in on the discounts offered by your auto insurance provider. While many of you may already be fond of insurance discounts such as the good student discount (77% of insurance providers offer this with a average 16% discount), concurrent home policy (68% of companies with a 9% average discount), payment type (46% offered this with average 9% discount), being married (41% offered as a 14% discount) and taking a drivers education course (41% offered this 7% discount).
In addition to these well known discounts, there are also other, less common discounts that can provide consumers major savings. "The right discount can knock hundreds of dollars off your car insurance bill,” says Insure.com editorial director Amy Danise. These "right discounts" are sometimes the ones that are not advertised or promoted as much. Instead, consumers may often times have to ask to get them. As a result, when you are looking at new insurance companies or policies, you should ask about certain discounts or ask your current insurance company every year. Discounts can even come after major life events such as a divorce. Here are some of the least known insurance discounts:
- Annual Mileage: Based on Insure.com, consumers who drive less than around 7,000, 10,000 and 12,500 miles per year may save up to an average of about 11% on their auto insurance rates. OFfered by 13% of surveyed companies, this can save you $84 dollars if you based your auto insurance cost on the $762 spent by the average American.
- Car Use Purpose: People who use their car for business or pleasure will not get as steep of a discount as someone who were to use it for farming. This is mainly due to the fact that the latter will have a lower chance of getting into an accident. This discount was offered by 40% of the companies surveyed for an average savings of 10% or $76.
- Advanced Payment: People who pay their car insurance in advance can save up to 8% on average on their car insurance which is equivalent to $61/yr. This discount is only offered by about a quarter of insurance companies.
- Customer Loyalty: Who doesn't like loyalty? People who are loyal tend to get rewarded. In the case of insurance, companies typically give discounts to consumers who have been with them for a year, 36 months or 60 months. Consumers on average saved 6% on this discount that was offered by about 33% of surveyed companies.
- Residence: Different than concurrent home insurance discount, consumers can save 6% based on their residence type/occupancy. Only offered by 21% of companies.
- Concurrent Life Policy: We mentioned concurrent home insurance policy, but did you know you can save 4% on your policy for having life coverage with the same company?
- Using EFT as payment: Companies love to get paid on time and as quickly as possible. As a result, they offer savins to drivers who use elecronic funds transfer as their form of payment. Doing so will allow consumers to save 4% on their car insurance, which comes out to about $30.
- Short Commutes/Days Driven: Less time on the road means less chance of getting into a accident. As a result, insurance companies offer an average of 4% discounts. These discounts are offered by 22% and 8% of insurance companies respectively.
- College Degree: Not only are they useful for getting jobs, but they can also help you save 4% on your auto insurance policy. However, this discount is only offered by 6% of companies.
In the end, each insurance company will have different policies and regulations. Some may cap your discount at a certain amount while others may put strict regulations on eligibility for certain discounts. Despite this, you should take full advantage of the various opportunities that you have to save on your auto insurance by contacting your auto insurance agent and asking for possible discounts.