Little Known Auto Insurance Discounts That Save You Money

18 January 2016 by Elijah Steward

As a budget conscious driver, you need to make every dollar count. If you drive an automobile, your auto insurance is a necessary expense. However, many drivers may not be utilizing valuable discounts. Check your auto policy to see if you are missing out on of these commonly overlooked discounts. 

Low Mileage Discount

Make sure that your auto insurance policy accurately reflects your current driving habits. College students, elderly drivers, and drivers who live in a large city may drive less than the average driver. If you hardly drive your car, it makes sense to see if your auto insurance company offers a discount for infrequently used vehicles.

This discount is often referred to as a low mileage discount. An individual who drives 5,000 miles a year pays approximately 8.4 percent less that someone who drives 15,000 miles annually. Assuming an annual premium of $1,200, this 8.4 percent savings results in annual savings of $100.80.

Black Box Auto Insurance

Black box auto insurance installs a telemetric device on an automobile's steering column in order to get an accurate record of the individual's driving habits. If your driving habits fulfill your insurance company's safety expectations, you can get a discount on your premiums. Telemetric devices track braking habits, acceleration, average speed driven, and total mileage driven.

Another benefit of black box auto insurance is that some insurance entities offer an additional discount when customers initially sign up for the telemetric device.

Good Student Discount

Auto insurance for drivers under 25 years of age is notoriously expensive. Rates tend to gradually decrease as a driver nears 25. Drivers in their teens can expect to pay approximately 3.5 times the premium of drivers in their thirties. If a 30-year-old driver pays $1,000 a year for auto insurance, this means a teenage driver can expect to pay a whopping $3,500 each year in auto insurance premiums.

One way that young drivers are able to reduce their auto insurance expenses is to utilize a discount offered for obtaining good grades. Though the GPA requirement varies, this good student discount is generally offered to both high school and college students. The discount varies as well though some insurance companies may offer up to a 25 percent discount. If the annual premium is $3,500 a year, this 25 percent discount results in a hefty savings of $875 a year.

When it comes to auto insurance, a few simple moves can result in steep discounts. Take a few moments to determine if you are missing out on valuable savings. Even if the discount seems small, over time, it adds up to significant savings. 

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