When shopping for insurance discounts, you always want to ensure you get the best price available while receiving high-level professional service. Many companies offer discounts that can lower premiums by a significant amount. Many people do not realize they exist, so they don’t know to ask about them when shopping around.
Here we give you an overview of the various discounts available for insurance and provide information that may help you decide which of them works best for you. Remember that in many cases, you will have to directly ask your agent about these discounts as they often are not simply suggested or offered upfront when you ask for a quote.
General Tips to Get Discounts
You should periodically review your various insurance policies and compare them with the discounts available through your insurer. If you see a discount offered for which you may qualify, talk it through with your agent or contact your insurance call center to see your options. Even if it only amounts to a small saving on your premium, it is worth the effort in the long run.
You also should make a point to revisit your policy every year. Life changes happen, and you may qualify for a discount that you didn’t before. You also may have reached a milestone that offers you a type of loyalty discount that you didn’t qualify for in previous years. It doesn’t hurt to compare your current policy with others either. Having quotes from other companies readily available when you speak to your agent can provide you with more negotiating leverage to get a discount or reduction on your premium.
There are so many options available that the right ones for you are certain to change over time. Although shopping for and dealing with insurance can be tedious, staying on top of what you’re currently paying and what you think you should be paying is essential. It is also necessary to know the discounts and advocate for them with your insurance company.
Insurances companies like Geico list available discounts on their website, which you can use to help you see what type of discounts you may be eligible for and calculate the savings.
Discounts To Look For With Any Insurance
First, You should look at all of the available discounts from a company to determine which ones best suit your current individual or family situation. A variety of discounts exist, although some are more worthwhile than others.
Depending on the discount for which you are eligible, you can save up to 26% or more on your insurance premiums. That percentage can equal a lot more cash in your pocket without sacrificing coverage.
You also want to weigh the time and expense that it would take on your part to obtain the discount with the benefit that it ultimately provides. For example, if you need to take a “safe driving course” to qualify for a particular car insurance discount, make sure the reward is large enough to make taking the course worth your time.
Here’s an overview of insurance discounts that many companies, especially the largest ones, will cover. These discounts could be for auto, homeowners, or medical.
Discounts for Customer Loyalty/Bundling
If you’ve been a customer of the same company for a while, you may qualify for a loyalty discount. Don’t assume that this discount will automatically apply once you reach a specific number of years or another milestone. If you have stayed with the same insurance company for several years, ask if you qualify for a loyalty discount.
Loyalty discounts can be applied in terms of length of time with a company and bundling multiple products or vehicles together, or deciding to renew before your policy expires.
Affiliations With Companies or Other Groups
It is always good to check and see if your place of employment or other groups you belong to (like AAA, AARP, certain credit unions, etc.) offer insurance discounts. You may find that you are on a preferred list with certain insurance companies because of your affiliation with these places or groups.
Most insurers will offer discounts for military members (both active and retired) and their families. These types of deals can save you up to 25%. In addition, the school or university that you attend may have a similar program.
Other common groups that are often eligible for discounts include scientists, teachers/professors, nurses, pilots, and first-responders.
Discounts Based on Demographics
Things such as your age, income, status as a student, and even your grades can qualify you for discounts. If you’re a senior citizen over 65, many states mandate a senior discount for insurance. In addition, college students who live at school and do not have regular access to a car qualify for discounts. If your income is around the lower end, you may also have state-mandated discounts that can apply.
Often homeowners policies and some auto insurance policies may offer discounts for being married or widowed, or even if you are engaged to be married within the next 12 months.
Senior Citizen Discounts
Most insurance companies will offer a senior citizen discount for individuals over 55 years old. This discount could amount to significant savings. If you are within that age bracket, you should not overlook this opportunity to save money on your premiums. Remember that the exact age requirements for participation may vary by company, so it is essential to discuss the specifics with your agent.
Payment Related Discounts
Many insurance companies will discount enrolling in their auto-pay program (your payment will be automatically drafted from your bank account each time it falls due) or pay it in full each year. There may even be discounts for going paperless with your bills (although these discounts generally aren’t very significant).
If you can afford it, paying upfront can save you the most money in this category.
Switching Early Discount
Sometimes you could even get a discount from a competitor company if you get a quote from them and decide to switch within a certain amount of time of your existing policies expiration. Companies offer this type of discount as an incentive to get you to make a decision quickly and commit to switching.
Discounts Specific to Auto Insurance
Many states require you by law to have car insurance, so it is something that you do not want to neglect having. Depending on where you live and your good driving habits, rates can be pretty high and even burdensome for some drivers.
The good news is that car insurance is something that most people will qualify for a discount in one way or another. Even a slight reduction in your premium can impact your wallet in the long run.
The discounts covered here are specific to auto insurance policies and generally based on driving records or special equipment installed in your vehicle.
Discounts Based on Driving History
These discounts can save you a significant percentage on your auto insurance premium. Most large companies offer ways to measure your driving history and reward you for being accident-free, ticket-free, being a safe driver, or not using your vehicle often (low mileage).
Using your car can also secure you a considerable discount on your premium. Some companies consider the time of day you drive, how hard you brake when driving, your average speed, and how many miles you drive per day to determine if your usage makes you less of a risk and qualifies you for a discount.
These discounts are similar to “driving history” but often involve using a tracking device that attaches to your vehicle to monitor these statistics. Driving history discounts more often focus on accident or speeding ticket records.
Driver Training Discounts
You could be eligible to receive a discount if you complete specific courses or training requirements outlined by your insurance company. For example, your provider may reward you if you take a defensive driver course or another specifically-designated course related to driver safety. These courses could either be online or in-person and could net you a discount of 10% off your premium.
Again, weigh the effort associated with taking the course with the specific savings you’ll get. Similarly, with auto insurance, being a good driver and not having many incidents should almost guarantee some discount.
If your vehicle(s) includes particular safety of theft-deterrent equipment, your insurance company may also offer you a discount. These discounts could apply to anti-theft systems, anti-lock brakes, new vehicles, hybrid vehicles (or green energy), or certain safety restraints. Many newer cars already have some of these things installed so that you could be eligible for an automatic discount based on your vehicle. Discounts are usually only an insignificant amount (2% or 3%) but might be able to be stacked with others as well.
Discounts Specific to Homeowner’s Insurance
Suppose you’ve never filed a claim with your homeowner’s insurance policy or have gone many years since filing one. They don’t anticipate you filing any future claims in the foreseeable future. You may qualify for a discount because the company has not had to pay out any significant money to you throughout the years.
Monitored Burglar System
Many insurance companies will offer you generous savings if your home has a monitored security system installed. Because they are deterrents to criminals and help police respond faster to attempted break-ins, they make your home less of a liability. Note again that a 3rd party service must monitor the system to receive this discount.
Discounts for Certain Roof Types
Roof replacements are one of the most frequent types of claims that insurance companies receive from homeowners, and they can be expensive. If your home has an impact-resistant roof that likely won’t be damaged by hail, your company may offer you a discount because you are less anticipated to have significant hail or storm damage.
Monitored Fire Alarm System
Like burglar systems, installing a fire alarm system in your house that you connect directly to a 3rd party monitoring service may qualify you for a discount. Again, the reasoning is that these systems allow the fire department to respond faster to incidents at your house, and in turn, the cost of damages suffered in a fire could be much lower.
Living in a Gated Community
Gated communities are also deterrents to thieves. Living in one means that there is less chance of a burglary in your home and that the insurance company will have to pay out for these damages.
Living in a Homeowners Association Community
An HOA, or homeowners association, maintains specific standards within a neighborhood. If your home is in a community with an HOA, you may qualify for a discount because of these maintenance standards and enhanced security. Many HOAs also have neighborhood watch programs that serve as a deterrent.
Making Improvements to Your Home
Specific improvements that you make to your home, especially if your home is older, may allow you to get a discount from your insurance company. These improvements could include upgrading wiring, installing new windows, smart-home technology, installing leak sensors, etc. You must check the details of your specific company to see what might qualify.
It is common knowledge that smoking will increase the risk of an accidental fire incident. Therefore a company may provide rewards for homeowners that do not have this increased risk. Some companies may offer an incentive if your household consists of non-smokers.
Discounts Specific to Medical Insurance
Medical insurance is a bit trickier than auto insurance or homeowners insurance, as you cannot apply specific metrics (such as driving habits, alarm systems, etc.) to someone’s health. Measuring good health is much more difficult to quantify.
However, you may still want to check with your specific company to see if they offer any incentives or discounts for committing to maintaining a healthy lifestyle or engaging in healthy activities.
If you can prove that you are making efforts towards a healthier lifestyle, you may be eligible for additional savings. For example, you may be able to link an activity tracker (such as a Fitbit) to your insurance plan and track metrics such as steps taken, sleep, activity, and weight management.
Additionally, your company could offer you a discount if you regularly maintain your annual preventative maintenance visits and submit your yearly blood work results. Sometimes these discounts do not come directly in terms of savings on your premium, especially for employer-sponsored plans, but rather may be rewarded through programs that offer payouts, gift cards, or other monetary rewards.
Many health insurance companies offer their subscribers a prescription discount card that helps reduce the costs of deductibles or copays associated with prescription medications. This discount will not give a specific reduction on your premium, but it is worth mentioning because it does help you save money on medical costs and is one that many people overlook. For people that require daily medications, this savings can be a lot of money.
You should always see if your health insurance plan provides this benefit for you and take advantage of it if they do. If your insurance company doesn’t directly offer it, many other companies on the market have options available for you at little or no cost. Although it might take a little more digging to find out what is available for medical insurance, It doesn’t hurt to check with your company to see what rewards and benefits they might offer to you for working on staying healthy.
Other Types of Insurance Discounts
We’ve covered most of the various discounts you can expect larger insurance companies to offer. However, there are other specific times that you might want to be aware of that provide additional opportunities to save money.
Look and see if your company has times of the year when they run promotions, such as holidays. Even if these discounts primarily seek new subscribers, you can always speak with them and negotiate to apply them to your policy.
You will notice that around specific holidays, such as Christmas and New Year (or Open Enrollment time for health insurance), companies will run television ads and may offer additional discounts. If you’re looking to switch companies, keep your eyes open during these times and see what these companies have to offer.
Many insurance companies will offer potential clients a discount if they enter their information on an insurance comparison website, such as Valuepenguin.com, NerdWallet, or EverQuote. After you provide your information and details about the type of insurance you are shopping for, you will shortly receive a quote by email.
The quote (or quotes) that you receive may include a special discount that you can receive if you respond to the email solicitation and move forward with the offer.
Coupon Code Promotions
Finding coupons for discounts on insurance premiums can be a challenging endeavor. Companies do not run many coupon-code-based promotions as other companies and retailers often do. Check with the popular coupon websites while shopping around.
A glance at sites like Groupon, RetailMeNot, Rakuten, or SlickDeals might yield a promo code for savings or opportunities for cashback. They also could be an excellent way to alert you about current promotions the company is running. Type in the insurance company’s name on the site and see what results you obtain.
What Else Should I Know About Insurance Discounts?
To stay competitive in the market, most larger insurance companies will offer various discounts to win business. Some companies might make it easier for you to see all of the deals that you are eligible for in one spot. Others might make you do the digging and research yourself to analyze the best options for your policy.
For example, State Farm offers a “Discount Double-Check” program to their customers. This program assigns a representative to your account to ensure that you receive all of the discounts offered by the company for which you are eligible. Discuss this idea with your company to see if they offer a similar option or their program version.
Discounts like paperless billing are pretty much available across the board. They are effortless to take advantage of (often just clicking a checkbox within your account to activate this option). Keep in mind, these discounts are usually small and probably will not save you a lot of money on their own.
Competitive Insurance Discounts
Companies are so competitive that they are constantly revising their offerings and incentives to meet the needs of their customers. We know that dealing with insurance (getting it, switching it, maintaining it) can be tedious and unenjoyable, so most people choose it one time and then stick with what they have, which doesn’t always mean the best price or value. It does you a disservice to adopt this method.
You should review your auto and homeowners insurance policies twice a year. Some customers make a point to revisit them every six months. For medical insurance, review it annually during your company’s open-enrollment period. To make it easier, jot down life changes or events throughout the year. Refer to that list when comparing different companies.
We hope you have found the information we’ve provided to be helpful and that it leads to some extra money in your pocket this year.