Crazy Car Insurance Discounts

The good news about car insurance is that there are scores of auto insurance discounts you probably didn’t know about out there. The bad news is that you probably haven’t heard about a lot of these discounts because insurers seem to go out of their way to avoid telling you about them.

Another problem is that insurance companies don’t necessarily operate by logic. Many of these discounts are based on factors that have little or nothing to do with your driving record, so most of us don’t realize they exist and fail to ask about them.

Therefore we’ll try and provide a rundown of some of these discounts. The problem is that there are so many crazy auto insurance discounts out there we’ll probably miss a few.

Crazy Car Insurance Discounts You Didn’t Know About

Some really crazy insurance discounts that you might not know about include:


  • The home owner’s discount. Owning a home has nothing to do with your driving record, but it can lower car insurance rates. If you own your home, some insurers will give you a lower rate on car insurance. Be careful though; some insurance companies will try to lock you into bundled policies that can make it difficult to switch.


  • Good credit score discount. This isn’t as common as it used to be because a lot of states have sensibly banned the practice of using credit scores as a basis for car insurance rates. Other states will still give you a discount if you have a good credit score. The idea is people with a good credit score are more responsible and less likely to get into an accident. If you have a poor credit score, many insurers will give you a break if you have a good driving record.


  • Farm discount. Some insurance companies will give farmers a discount on auto insurance. You don’t have to own a farm to receive this discount; if you work on a farm, you can receive it. This discount can be a real savings for rural residents that have to drive more.


  • Good grades discount. Many insurers will give people who are under 25 and in school a discount if they get good grades; that usually means a GPA of 3.0 or better. This can be a real savings for parents of teenagers or college students. Something to be aware of is that this discount can be cancelled out by a bad driving record or accidents.


  • Teacher discount. Some insurance companies will give teachers a discount because they are viewed as more responsible individuals. Teachers should also check with their union; some teachers unions provide discounted car insurance for members.


  • Education level discount. Some insurance companies will give you a discount if you have completed a college degree. A few will actually give those with advanced degrees a big break.


  • Military discount. Those serving in uniform and their families can get a discount. The best place to look for this discount is insurance companies that specifically work with the military. Note: These discounts are usually only available to those on active duty. Veterans, reservists, and National Guard members may not qualify.


  • Income level discount. Some insurance companies give persons with higher income levels a break. The thinking here is that persons with more money will be less likely to file insurance claims. (i.e., A person with a gold card in her purse is likely just to pay minor costs and forget about them.) A working stiff scraping by is more likely to file a claim because he or she needs the money.


  • Telemetric discount. A telemetric device is a Wi-Fi gizmo that transmits information about your driving back to your insurance company. Some insurers will give you a break if you install one because it lets them know about your actual driving habits. For example, the insurer will know how much you actually drive and when you drive, factors that can determine your risk of getting into an accident.

A row of new 2010 Toyota Prius hybrid vehicles sit for sale in the car lot at the Toyota dealership in El Cajon

  • New car discount. Insurance companies offer those who buy a new car a discount because newer vehicles are in better condition and more likely to have the latest accident prevention devices. Please note this discount can be offset by the cost of the car. The more expensive the car, the higher the insurance premium.


  • Yearly or quarterly pay discount. Many insurers will give you a discount if you’re willing to pay for insurance on a yearly or quarterly basis. They offer a discount because fewer payments can mean less paperwork and lower expenses for them.


How to Get These Discounts

The best way to determine if you qualify for these discounts is to be willing to answer all the insurance company’s questions when you ask for a quote. If they ask you about your profession, your income level, your credit score, whatever, tell them even if it seems intrusive. Remember, answering those questions could reduce your payment by hundreds of dollars a month.

Finally, don’t be afraid to ask about discounts when you ask for an insurance quote. If you don’t see discounts offered, simply ask the insurance companies. Insurers want your business, and they might be willing to give you a special deal in order to get your money.
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