7 Lesser-Known Auto Insurance Discounts

Discovering ways to lower your auto insurance premium rates can be easy by simply asking your agent to explain what discounts are available. The important thing to realize, however, is that, in most cases, you must ask in order to learn about the discounts for which you qualify. Available discounts, although they may differ from one insurer to another, can actually save you hundreds per year. Each time you take out a new auto insurance policy or renew existing coverage, you should ask again about discounts. Here are some of the lesser-known discounts to consider.

1. Bundling – Bundling discounts are offered by many auto insurers because it increases their business as well as providing you with a discount. If you have multiple autos, a motorcycle or boat, or even homeowner's insurance, covering all these with the same insurer can bring you significant discounts.
2. Telematics – some insurers, including Progressive, can install a tracking device in your vehicle that sends information back to the company letting them know your driving habits. They can learn how you drive, when you drive, how many miles you travel daily, how often you slam on your brakes, etc. They can get an accurate profile on your level of risk as a driver. Lower risk can produce lower premium rates.
3. Driving Safely – even without telematics, your insurer can tell how safely you drive by checking your driving record for accidents, moving violations, and claims activity.
4. Safety devices – while airbags and anti-lock brakes may not earn discounts with most insurers any longer, devices such as blind-spot detectors or rear-view cameras often will. Anti-theft devices, such as ignition cut-off switches, Lojack and car alarms may also give you a premium discount.
5. Prepaying – paying your entire annual insurance premium upfront or switching to paperless, online billing will often give you a discount.
6. Group membership – belonging to certain groups, such as AAA or AARP, can bring you a group discount from some insurers. You may also be eligible for having a certain profession, being in the military, or as a member of a certain labor union. Only one way to find out, though – ask!
7. Student – students maintaining a certain GPA may earn a student's discount. College students on their parents' policy and going to school 100+ miles from home and without a car may provide a discount for their parents' coverage.