4 Discounts That Could Help You Slash Auto Insurance Costs

Don't pay more for auto insurance by passing up these opportunities for savings. 

Auto insurance premiums can cost hundreds or even thousands of dollars per year. And this is one expense drivers can't avoid, as it's required by law to have certain types of coverage, and it's also important to have the right auto insurance in place to protect assets.

The good news is, even though car insurance premiums must be part of every driver's monthly budget, there are ways to reduce the amount that must be paid. In fact, there are four discounts that motorists should look into taking advantage of in order to save on their insurance coverage. 

1. Good driver discounts 

Good driver discounts could allow responsible motorists to save around 10% to 30% on the cost of auto insurance premiums. These discounts are available to people who have not been in an accident recently and who are generally careful and cautious behind the wheel.

Different insurers have their own unique rules for how and when responsible drivers are rewarded. Some insurers provide a discount if motorists are accident free for a set number of years, such as three years. Others offer savings for those who have no violations on their record. And some companies even allow motorists to install apps on their phones that monitor their driving. When the apps show safe behavior, savings follows. 

2. Defensive driver discounts 

It may also be possible to score a discount for completing a defensive driving course. This could allow motorists to save between 5% and 20% off the cost of insurance premiums. Courses may be available locally or online and typically last for several hours. Drivers should check with their insurer to find out about approved classes that could help them reduce auto insurance premiums. 

3. Discounts for employment or membership

It's very common for car insurance companies to offer discounts to people who work for certain employers or who have a particular type of job. For example, there may be discounts for active duty military members or for people who work for a larger employer that has partnered with the insurer to offer savings.

Sometimes, becoming a member of a particular club or organization can also provide the chance to save on insurance as well. Insurance companies typically have a list of affiliations or memberships that can qualify a motorist for special savings on premiums. 

4. Discount for bundling coverage

Finally, if a motorist also needs other types of insurance, it can be cheaper to bundle coverage and get multiple policies from the same company. 

Insurers could bundle coverage by insuring several cars with the some insurer, or by insuring a car as well as a motorcycle or boat. It's also possible to get renters or homeowners insurance from the same company as a car insurer in many cases, and this can also result in a loyalty discount. 

The savings could be as much as 25% for those who work with the same insurer for several policies. It can also be more convenient to have only one company to deal with. 

Ultimately, drivers may be able to take advantage of all four of these discounts, or any combination of them, and premiums could decline significantly for those who take this opportunity.