The average American will spend nearly $100,000 on auto insurance over their lifetime. Some of these costs are fixed, meaning there is little the consumer can do to change them. Young, inexperienced drivers will usually pay more for car insurance. Historically unsafe drivers or those with a number of traffic tickets will also pay more. Seniors also find themselves paying higher auto insurance premiums in their golden years.
But regardless of your age or driving history, there are ways to save on auto insurance. Read on to learn about regular auto insurance discounts and other ways to save.
Most Popular Car Insurance Discounts of 2021 – Insurance “Bundle”.
Multi-line discounts – “bundles” – are popular with most auto and property insurance companies. You will see it advertised on TV and online. Think of them as a corporate marketing trick that you can use to your advantage if you have more than one line of insurance.
The idea is that by grouping all your personal insurance lines with one company, you will save money. You will see most of the ads related to auto and home insurance discounts. But you don’t have to be a homeowner to take advantage of these auto insurance discounts. You can try incorporating other personal insurance lines.
Public Private Path to Bundle
In insurance parlance, the term “private line” explain the types of general insurance that ordinary consumers need. Among other things, this includes:
- Car insurance
- Homeowners insurance
- Renter insurance
- Life insurance
- Motorcycle insurance
- Ship insurance
- Recreational vehicle insurance
- Umbrella policy
- Stand-alone liability policy
So even if you’re not a homeowner, you can still combine your renter’s insurance with your car insurance or your boat and motorcycle policy with your auto insurance at a discount.
- Health insurance is also a private line, but it’s a different animal — a very large one — and isn’t usually part of a 2021 bundling agreement.
To purchase an insurance plan, collect all your documents. You will need your mortgage documents/lease agreement, you VIN, your SIM information and so on. Call a few different insurance companies and explain that you’re looking for a bundle discount. They will take your information and get back to you with an offer. Make sure you compare “apples to apples”, the cheapest insurance quote is not always the best choice.
Advantages and Disadvantages of Bundle Setup
1. Discount auto insurance bundle will save 5% – 15% on all policies.
Most bundle setups will save you money, at least in the beginning. DO Insurers lure new customers with very low premiums and then slowly increase their rates over time, even if you are a great customer who always pays on time and has no claims!
2. Enjoy working with an insurance company.
Multiple bundled customers also like to deal with one insurance company. This means fewer phone numbers to remember, and it would be nice to deal with one agent who truly understands your needs. Agent relationship is important for some clients!
3. But it will be frustrating to “unpack” later.
Eventually, you may find yourself looking for new insurance – no fault of your own! Californians, for example, have suffered severe fire damage in recent years thanks to droughts and population explosions. In 2018 onlyinsurance companies paid out $11.4 billion in fire claims.
Then in 2019, some insurance companies didn’t renew their clients and pulled out of California completely, or at least out of high-risk postal codes. Their plan customers are left scrambling for property insurance elsewhere, while their auto insurance discount for the plan is also gone.
Therefore, if you are in a forest fire risk zone or a coastal zone prone to wind storms, proceed with this insurance discount wisely.
There are other auto insurance discounts that can be achieved through various insurance companies.
Vocational Car Insurance Discounts for Professionals
Some insurance companies offer discounts to certain professionals. For example, although we’re not talking about Farmers Insurance, our research shows that Farmers offer discounted auto insurance for:
- Registered nurse
- Teachers, professors and educators
- Real estate agent
- And others
However, every insurance company is different. So be sure to talk about your career when getting offers. There may be a 5% discount on your car insurance!
Another discount that many people don’t know about is called an “affinity discount.” This could be worth another 5% of your insurance bill.
Affinity Car Insurance Discount
Affinity auto insurance discounts vary from one insurance company to the next. The concept is similar to the discount vocational above. The difference is that insurance companies choose whatever “affinity” they like and offer a discount there. Examples include members of fraternities and sororities, members of professional organizations, members of travel or dining clubs and the like.
But even if you’re not affiliated with a fraternity or club, you can still get discounted auto insurance for taking some driver education courses.
Car Insurance Discounts for Driver Education
Car insurance companies prefer to insure safe drivers. It makes sense: safe drivers will pay premiums on time, year after year, without accidents, tickets, or claims – so insurance companies make the most money with them.
If you want to save another 5% to 10% on your auto insurance, try taking a driver education course. Again, we are not speaking for any insurance company with this article. But as a rule, they will be happy to give you a discount on your car insurance once you have completed a defensive driver course, senior driver course, or youth driver class at school.
A 10% discount can be a lot of money for insurance companies, especially when insuring young drivers. You may find insurance companies choose to apply these discounts slowly over several years. They may give you 3% off the first year, 6% off the second, and 10% after that – if you stay accident/ticket free.
And you may need to recertify every few years. This is standard for senior driving courses, which will likely need to be renewed every five years to maintain your auto insurance discount.
In the end, $100,000 a lifetime is a lot to spend on auto insurance. Take advantage of every car insurance discount you can get for the rest of your life. Savings will add up to thousands of dollars!