Surprising Insurance Discounts that Could Save You Money in 2019
December 14, 2016
“Let’s review our insurance policy!” said no family, ever, in the second half of December. There’s simply too much going on right now—between the shopping, wrapping, baking, and socializing—to sit down and reevaluate your coverage. But lots of things can happen during the year that affect your eligibility for certain discounts…
So why not add a quick reminder to your 2019 calendar? When January rolls around, here are six auto insurance discount opportunities you’ll want to explore:
Low Mileage Insurance Discount
Did you recently retire? Start working from home? Join a carpool with your coworkers? If you think you’re driving less than you used to, you may be a good candidate for a low-mileage discount. Different providers set different standards in defining exactly what “low mileage” means, but the scale usually runs between 7,500 and 15,000 miles per year. Ask your insurance agent for details. On a related note, trading in your old wheels for a hybrid may also create an insurance discount opportunity.
Good Student Insurance Discount
Adding a teenager to your insurance policy can equal a premium increase of 50 to 100 percent—which, for some parents, is almost as frightening as the thought of your kids behind the wheel. One way to offset the spike is to encourage your new driver to maintain his or her grades. That’s because many insurance providers offer “good student” discounts to inexperienced operators (with zero to six years of driving experience), who are enrolled as full-time high school or college students. Exact terms—including minimum GPAs—vary, so check with your agent. Also keep in mind that having multiple good students (despite making you very proud) probably won’t increase the discount exponentially.
Student Away-at-School Insurance Discount
Is your child heading to college or moving out this summer? In that case, it’s definitely time to get your policy reevaluated and/or re-rated. Depending on your circumstances (e.g. the distance of the college from your home), your child may be reclassified as an “occasional driver,” which could prompt significant savings.
Association Membership Insurance Discount
They say, “being a member has its privileges,” but who knew they were talking about auto insurance discounts?! Members of groups like AAA or certain professional trade groups may qualify for discounts offered through a specific carrier or insurance broker. For example, here at C&S Insurance, we offer a discount to members of MNA (Massachusetts Nurses Association) or MARN (Massachusetts Association of Registered Nurses). Active members of either association—or their immediate family members—are eligible for a five percent discount on auto insurance.
Charitable Giving Insurance Discount
At least two local auto insurance carriers will discount your policy by five to six percent, in recognition of your charitable donations. Specifically, MAPFRE offers eligible customers a “Marketing Partner Discount,” when they donate $25 or more to the Pan-Mass Challenge. Arbella offers a six percent discount to customers donating $50 or more to The Jimmy Fund/Dana Farber, Special Olympics of Massachusetts (SOMA), or the Melanoma Foundation of New England. So for example, if you’re paying $2,500 each year on auto insurance (as many families with teen drivers are), this type of discount could save you $125—while supporting a worthwhile cause.
Paid-in-Full Insurance Discount
Some insurance companies will charge you an extra fee if you opt to pay your premiums on a month-to-month basis. That fee can range from a few dollars per month to as much as 20 percent of your annual total. So if you have the cash on hand, it might make sense to pay for the entire year. If you’re not a fan of online bill pay, an upfront payment also eliminates the chore of having to stamp and mail your insurance payment each month.
Paperless Insurance Discount
Speaking of online billing, a lot of carriers are moving toward paperless operations—providing digital statements and bills versus the old-school, physical copies. If you’re willing to get on board, you can probably snag a small discount and/or eliminate the carrier’s service charges when you enroll.
Final thought: Although insurance discounts can be tempting, your personal savings potential is relative to how much your premium costs in the first place. By choosing a more ideal carrier, you may be able to save above and beyond the value of a specific promotion—which is one reason why it makes sense to consult with an agent, instead of shopping insurance rates and insurance discounts online.