Insurers discount their rates for good drivers and those who take safety and security precautions. Depending on the insurer, you can often lower your rates from 5 to 35 percent. Insurers generally offer discounts for:
- Clean Driving Record - No violations or accidents.
- Safety Features - Anti-lock brakes, air bags and passive restraint systems (i.e., automatic seat belts).
- Defensive Driving - Clean violation record, driver's education courses for teenagers and defensive driving or accident prevention courses for adults (insurance discounts for the latter are required in some states).
- Security Systems - Alarms, electronic locks and disabling devices.
- Changing Driving Habits - Commuting by public transit, using a company vehicle for work-related travel and car-pooling.
- Buying Home Owners and Auto Policies from the Same Company - If you own a home and an automobile and you are insured by two different companies, check into the cost of carrying both policies by one insurer.
- Higher Deductibles: You can also lower your insurance rates by requesting higher deductibles. Increasing your deductibles on collision and comprehensive coverage from $100 to $250, or even $500, will bring your rates down. Moreover, you may not need collision and comprehensive coverage if you drive an older car.
- Multi-Car and Multi-Policy Discount: Companies give additional discounts for multiple vehicles under the same policy, and for combining your home or tenants policy.