The average car insurance rate across the country is in the neighborhood of $1,502 annually. That equates to roughly $125 per month. However, it’s not really that cut-and-dry. Many factors go into calculating the cost of car insurance, including the breadth of coverage, types of autos, and number of drivers in your household.
As important as it is to carry adequate coverage for your vehicles, it all comes at a price. But you should not have to sacrifice proper insurance because premiums are on the rise. Most car insurance companies offer their policyholders discounts, which can help keep costs more affordable. So what kind of discounts should you talk about with your insurance agent?
- Defensive Driving Drivers can enroll in approved defensive driving courses which focus on how to best identify and avoid traffic hazards. Not only can this discount save valuable premium dollars, but these types of courses can sometimes improve a driving record by eliminating driver’s license points.
- Low Mileage The less a car is driven, the less likely it is to be involved in a collision or be a target for theft and vandalism. Because of this, some insurance carriers offer discounts to drivers whose mileage is below a certain limit. In some cases, this can also apply to vehicles that are kept at home while the primary driver is away, such as college students.
- Safe Driving One of the simplest ways to improve your car insurance rates is for you and those on your policy to maintain a clean driving record. That means no accidents or traffic violations, normally for three to five years depending on the carrier.
- Good Student Because of their young age and minimal driving experience, student drivers normally pay a higher premium for their car insurance. However, for students who can prove they maintain a certain GPA (usually a 3.0 or higher), some insurance companies will offer a discount.
- Driver Training Schools and other agencies like AAA offer driver training courses for youthful drivers. After completing the course, a certificate is provided showing the classroom and on the road driving hours. It’s another nice discount that helps lower the premium when young drivers are added to the policy.
- Pay in Full Discount Most carriers offer a pay in full discount on auto insurance as a reward for paying up front. If a payment plan is desired, the premium is slightly higher and service fees apply. If one can budget for this, the additional savings is nice and can add up over time.