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What Kind of Auto Insurance Discounts Are You Entitled To?

By May 15, 2018February 23rd, 2021Personal Auto Insurance, Personal Insurance

If you own a car, you need to buy Personal Auto Insurance. In most states, like New Jersey, it’s a requirement in order to register your car.  One of the common questions we hear is, “What discounts are available to help lower auto insurance premiums?” Here is a list of some of the most common discounts we have seen:

Defensive Driving Discount

Depending on your insurance company, you can save up to 10% premium for certain coverages such as liability, medical payments, and collision coverage, for taking a Defensive Driving class. The nice thing about this discount is once you take the class, the discount can apply for up to three years.

Defensive driving classes can cost as low as $15, and take only a few hours to complete. In New Jersey, it is a six-hour course. A $15 fee is a small cost when you consider how much money you save over three years.

From time to time Rue Insurance offers a FREE defensive driving class to our clients. Stay tuned to our social media pages on Facebook, LinkedIn, or Twitter for class announcements. 

Good Student Discount

Statistics show students with good grades tend to be more reliable and mature than students with marginal grades, leading to better driving decisions. Therefore, many states allow a 5% to 10% discount if a student driver makes good grades typically defined as an “A” or “B” average in high school or college. 

Home/Car Discount

Another word for this is “bundling” of your home and auto insurance with the same insurance company. Many insurance companies offer a discount of 5% or more if they provide both your homeowners and personal auto insurance.

Auto Safety Features

Most insurers recognize owners with cars containing safety features typically have fewer accidents or reduced injuries from an accident. From airbags to anti-lock brakes, from an alarm system to a GPS-based tracking device like LoJack, discount amounts can vary dramatically from different insurance companies.

Talk to your insurance professional about what discounts are available for your particular car.

Multi-car Discount

Many insurance companies offer discounts up to 15% if you have two or more vehicles insured under the same policy. The rationale is having multiple cars under one policy reduces an insurance company’s policy issuance administrative costs on a per-vehicle basis.

Being a Long-Time, Loyal Customer

More insurance companies are coming on board with the idea of rewarding customers who stay with them over time. The discount amount and required loyalty duration will vary by company.  Some companies give a discount over a handful of years, say maybe three to five years.  The amount of the discount can vary from 5% to 10%.  If you are selecting a new insurance company for your car, check to see what kind of discount the company might provide if you stay with it over time.

Claims-Free Customer

When I began my insurance career this kind of discount was unheard of. I love this kind of discount!  This rewards insureds who have not experienced any losses.  The discount will vary by insurance company.

Check with your insurance professional for any of the discounts described. Better yet, if you are in New Jersey or Pennsylvania, call us for a Personal Auto Insurance quote.  We can talk to you about the discounts for which you might qualify.

Scott Harrigan

About Scott Harrigan

Scott started his career in insurance in 1988 and joined Rue Insurance in 2004 as a Marketing Specialist focusing on creating effective risk financing and risk transfer programs for companies and non-profit organizations. In addition to this he is a member of the Rue Insurance educational team that provides ongoing professional development in critical insurance concepts and programs to Rue employees. About Scott | More Posts by Scott