When you purchase car insurance, there's a good chance you are automatically qualified for certain discounts. For example, if you've never had a speeding ticket or been in an accident, you could save more money for being a safe driver. However, times have changed in the auto industry, and so have insurance practices, which means it may be worth your while to check out new opportunities to save money on your car insurance policy.
You're probably familiar with many insurance discounts already, but as vehicles continue to become safer with advanced technology, new discounts have become available for drivers of certain cars. Some of the most common discounts include multi-policy, multi-vehicle, anti-theft devices and safe driver. Bankrate found some of the latest discounts you might not know about:
New car. According to Allstate Insurance, a new ride can save you up to 30 percent off your auto insurance premium. That's because new cars come equipped with better safety features. According to Bankrate, five out of the largest 10 auto insurers currently offer discounts for vehicles that are about three years old or less.
Daytime running lights. Have you noticed that some cars have lights on all the time, not just at night or in rain? Well, in Canada, daytime running lights have been required in all vehicles since 1990. This practice has led to a significant drop in the number of daytime accidents, though the same laws have yet to be implemented in the U.S. However, many U.S. car makers have added these lights without a mandate to improve safety. Having this feature in your vehicle can save you some money, though not all insurance providers offer this discount yet.
Low mileage. The number of miles that you drive can impact how much you pay in insurance. In general, those who drive more have a higher risk of getting into an accident and filing a claim compared to those who drive fewer miles. Proving how many miles you drive can be difficult, which is why insurance companies have begun installing electronic devices to measure mileage and send the information to your provider. While this can save you a bundle on your rate if you drive less frequently, you do surrender more privacy. For instance, your insurance company can see measurements like how fast you drive and if you take aggressive actions on the road. Most insurance companies offer this discount, and it is one of the most significant factors in how your premium is determined.
Groups. Were you a part of a fraternity or sorority during college? If so, you might be eligible for another discount. Groups, alumni and other affinity associations have recently started to gain traction for saving money, and insurance companies have begun to recognize these discounts. According to Bankrate, five out of the top 10 insurance providers offer alumni discounts.
If you already have an auto insurance policy, ask your agent if you could be eligible for any new discounts that have appeared over the last year. While shopping for a new policy or a new car, it can pay off to have an extra look at what you could save with certain vehicle features or associations.