Car Insurance Discounts (Savings): Driver Safety, Status, Vehicle Usage and Policies

Car Insurance is a type of insurance policy designed to cover the cost of damages to your car, or the cost of replacing your car if it is stolen or written off, as well as costs incurred by injuries or property damage resulting from a car accident that you may be responsible for or where there is no pursuable third party. Car Insurance varies a lot depending on the car, coverage type, deductibles, age, location, and experience of the driver, and ranges from basic liability coverage to comprehensive coverage with additional levels of cover such as personal injury protection or roadside assistance. You can also save money on your car insurance with car insurance discounts, deals, and savings. There are numerous car insurance discounts available, including discounted insurance, car insurance deals, and discounted car insurance.

Some examples of car insurance discounts are listed below:

• Driver Safety Discounts - Discounts given to drivers who demonstrate safe driving habits such as not speeding, following traffic laws, and avoiding accidents.
• Status Discounts - Discounts given to drivers who have reached a certain status such as being a senior citizen, student, or military veteran.
• Vehicle Usage Discounts - Discounts given to drivers who drive their cars less frequently or for shorter distances.
• Policies Discounts - Discounts given to drivers who purchase additional policies such as gap coverage, towing coverage, or roadside assistance.

What is a Car Insurance Discount?

A car insurance discount is a reduction in the premium that you pay for your car insurance policy. Insurance discounts are offered by insurance companies as a way to encourage customers to purchase their products and to reward customers for certain behaviours or characteristics that are seen as less risky. There are many different types of car insurance discounts that you may be eligible for, depending on your insurance company and your personal circumstances. Some common examples of car insurance discounts include discounts for having multiple cars insured with the same company, having a clean driving record, being a good student, taking a defensive driving course, or having safety features on your car, such as airbags or anti-lock brakes. To find out if you are eligible for any car insurance discounts, you should contact your insurance company or an insurance agent. Car insurance discounts are a great way for drivers in the UK to save money on their premiums.

According to research by the Association of British Insurers, drivers who shop around for the best rates can save up to £260 a year. Examples of car insurance discounts that are available in the UK include discounts for having multiple cars insured with the same company, having a clean driving record, being a good student, taking a defensive driving course, or having safety features on your car, such as airbags or anti-lock brakes. To find out if you are eligible for any car insurance discounts, you should contact your insurance company or an insurance agent.

How do Car Insurance Discounts Work?

Car insurance discounts work by reducing the premium that you pay for your car insurance policy. Car Insurance Discounts are offered to customers that insurance companies believe are statistically safer drivers, less likely to have accidents, and subsequently less likely to make a claim. To apply for a car insurance discount, you will usually need to provide documentation to your insurance company or insurance agent, such as a copy of your driving record, transcripts, or proof of safety features on your car. Once you have provided the necessary documentation, and you have been approved for the discount, it will be applied to your car insurance premium. The amount of the discount may be a fixed amount or a percentage of your premium, and it may vary depending on the type of discount and the insurance company.

What are the highest Car Insurance Discounts based on Car Insurance Companies?

Car Insurance Companies offer different discounts for different reasons and depending on your circumstances some companies might offer better discounts for you than others. Multi-car policies, safe driver discounts and low mileage discounts are always that different insurance companies offer discounts to different drivers. It is best to do your own research to see which ways you can get car insurance discounts.

What are the Types of Car Insurance Discounts?

What are the Driver Safety Car Insurance Discounts?

The Driver Safety Car Insurance discounts include defensive driving discounts, accident-free discounts, safe driver discounts and low mileage discounts. These driver safety car insurance discounts are the main ways that you can try to get a discount on your auto insurance premium without changing your car or where you live.

1. Defensive Driving Discount

Some insurance companies offer discounts to drivers who have completed a defensive driving course, as they may regard this as making that driver safer and thereby less likely to have an accident. Defensive driving courses teach techniques that can help drivers avoid accidents and traffic violations, and completing one of these courses may qualify you for a discount on your car insurance premiums. To find out if you are eligible for a defensive driving discount, you should contact your insurance company and ask about their available discounts. They will be able to tell you what discounts you are eligible for and how to apply for them. It is best you check beforehand if doing this course will allow you to be eligible for a discount, as with some insurance companies this discount may be up to 10% of your insurance premium, but others will offer lower discounts and some will offer no discount at all.

2. Accident-free Discount

An accident-free discount is a type of car insurance discount that is offered to drivers who have not been involved in any accidents or traffic violations over a certain period of time. The length of time required to qualify for an accident-free discount may vary depending on your insurance company and the terms of your policy. To qualify for an accident-free discount, you must have a clean driving record for the required period of time. The amount of the discount will also vary depending on your insurance company, but it can be as much as 25% or more. To find out if you are eligible for an accident-free discount, you should contact your insurance company and ask about their specific discounts for safe driving. They will be able to provide you with more information about the discount and how to apply for it.

3. Safe Driver Discount

A safe driver discount is a type of car insurance discount that is offered to drivers who have a clean driving record and are considered to be low risk by their insurance company. To qualify for a safe driver discount, you must have a clean driving record with no accidents or traffic violations for a certain period of time, typically at least three years. The length of time required to qualify for a safe driver discount may vary depending on your insurance company and the terms of your policy. It is similar and often interchangeable with an accident-free discount. The amount of the discount will also vary depending on your insurance company, but it can be as much as 25%. To find out if you are eligible for a safe driver discount, you should contact your insurance company and ask about their specific discounts for safe driving, as they will be able to provide you with more information about the discount if they offer it.

4. Low Mileage Discount

A low mileage discount is a type of car insurance discount that can save money for drivers who do not drive very much. Some insurance companies offer low mileage insurance policies so that you pay less if you drive below a certain amount of miles. The disadvantage is if you do end up driving more than expected you may then have to pay more to get the insurance you need, or if you have an accident after driving more than your stated mileage, you may not be covered for any claims you need to make. The amount of the discount will vary depending on your insurance company and the terms of your policy, but it can be as much as 20% or more. To find out if you are eligible for a low mileage discount, you should contact your insurance company and ask about their specific discounts for low mileage. They will be able to provide you with more information about the discount and how to apply for it. If they do not offer a discount for lower mileage, it may be worth your time to look for an alternative insurance company, as this could save you up to 20% in car insurance premiums.

2. Driver Status Car Insurance Discount

Driver status car insurance discounts are types of car insurance discounts that are based on the status, occupation or personal circumstances of a driver, rather than being based on their driving credentials themselves. Different driver status car insurance discounts are more common than others, and discounts based on what job you have or on your lifestyle can vary a lot based on what insurance company you are with. The amount of discount also varies, but driver status discounts for car insurance can get you a discount of up to 20%. Therefore, if these discounts do apply to you, it can be worth looking around to find the right insurance company that can save you money on your car insurance premiums. If you get car insurance with Allstate you could get a good-student discount of up to 20% which could save you a lot of money in car insurance premiums, which is why driver status car insurance discounts are a really useful way to try and make your car insurance cheaper.

What are the Driver Status Car Insurance Discounts?

There are many driver status car insurance discounts available from different insurance companies, for students with good grades, people living away from home, professional drivers, military personnel or key workers and many more. They are good ways to reduce the costs of your car insurance if you are eligible for any of these car insurance discounts, so it is a good idea to look around to see if any insurance companies offer discounts for you.

1. Good-student Discount

Good-Student Discount is a discount available for students who achieve a minimum grade requirement and insurance companies reward them and view them as lower risk drivers and therefore discount their car insurance premiums. This is a fairly common discount available in the US, and there are many insurance companies who offer a discount to students with good grades. Car Insurance for students can be expensive, which is why this discount for having good grades can be so useful to save money on your car insurance premiums. Most insurers require students to achieve at least a B grade in their classes on average or to be within the top 20% of their class on average in order to earn a good-student discount on their car insurance. The percentage discount available from a good-student discount can vary a lot between around 4% to as high as around 20%, so it is worth looking around to see which discount and which insurance company could save you the most money on your insurance.

2. Academician Discount

Academic discount is a type of car insurance discount available to academics, teachers and other educational staff. Some insurance companies offer discounts to academics and those involved in educational roles, so it can be worth shopping around in order to find the best deal for you if you work or study in academics. In order to take advantage of an Academician discount, you might need to provide evidence of your academic status through your institution’s ID card. The level of discount available through an academician discount can vary a lot depending on the institution, the location and the level of coverage but can range from anywhere between 2% all the way to around 25%, so it is well worth enquiring as to what insurance companies may be able to offer this discount to you.

3. Away-from Home Discount

An Away-from Home discount is a discount available to car insurance policies where a student is a named driver on a policy but is away at school or college studying, and so therefore is using the car less. This student away at school discount is a way for parent’s to save money on their car insurance when they have their son or daughter on their policy when they go away to school, but they don’t want to completely remove them from their policy. This is a reflection of the reality that the student will not be at home to drive the vehicle very often as they are at school or college, and therefore the reduced risk to the insurance company leads to a reduction in insurance premium for the policyholder. The common criteria to be eligible for this discount includes the need to be a full-time student, living a certain distance away from home and not be driving the car to school. Away from Home student discounts are definitely worth investigating as a way for parents to save money on their car insurance without removing their college age children from their insurance – so they can still drive when they do come back home. With Travelers Insurance, you can save up to 7% with a student away to school discount, so it could save a significant amount of money to take advantage of an Away from Home discount.

4. Professional (Senior) Driver Insurance Discount

Professional or Senior Driver discounts are a type of car insurance discount that are aimed at rewarding experienced drivers due to them being a lower risk for insurance companies. Professional driver discounts are available through some insurance companies as more experienced drivers are generally less likely to have accidents and therefore insurance companies are happy to give them cheaper insurance premiums. These discounts are only offered by some insurance companies, and they usually depend on age, driving experience, and a history of no accidents or claims for at least the last 5 years. This discount can vary a lot for different insurance companies, but can frequently save around 5% with insurance companies that offer senior driver discounts.

5. Military and Federal Employee Discount

Military and Federal Employee discounts are a type of car insurance discount that allows military personnel and federal employees to get a discount on their car insurance premiums. Military and Federal employee discounts are fairly common, so if you are an active duty military personnel, a veteran or a federal employee it could be worthwhile to check which insurance companies offer this discount prior to purchasing car insurance in order to save money. To take advantage of these discounts, typically you will be required to supply proof that you are eligible for this discount through a military ID card, a veteran's ID card or a government employee ID card. If you have any of these ID cards or are in the military or a federal employee, it is worth shopping around to look for the best discounts for you as military and federal employee discounts can range from 5%-20% depending on the insurance company.

6. Seat Belt Use Discount

Seat belt use discounts are a type of car insurance discount available through some insurance companies to incentivize drivers to be safer and always wear a seatbelt whilst driving. The seat belt use discount is there because if drivers do wear seat belts they are less likely to suffer severe injury or death in the event of an accident and therefore the insurance company is less likely to have to pay very expensive claims. Whilst not many insurance companies do offer this discount, it is worth asking your insurers whether they have any such discount prior to taking out a policy, as the seat belt use discount can range from between 5%-15%. Whilst this extra incentive to wear a discount does exist in order to save money, it is also relevant to remember that wearing a seatbelt is a legal requirement in most states and territories.

7. Five-Year Accident-Free Good Driver Discount

The Five-Year Accident-Free Good Driver Discount is a car insurance discount that rewards drivers who have been accident free for a period of five years, and it can result in significant savings on car insurance premiums. Only some insurance companies offer a Five-Year Accident-Free Good Driver Discount, so it is worth checking beforehand if you think you may be eligible for it if your insurance company does offer it. Most car insurance companies will have a similar type of discount that will reward a history of safe driving, so shop around and find the best deal for you.

3. Policy Car Insurance Discount

Policy car insurance discounts are different car insurance discounts that you can get as a part of your car insurance policy. Homeowner discounts, loyalty discounts, multi-policy discounts and paying up front are all different types of getting policy car insurance discounts that can save you money. These different policy car insurance discounts are there to save you money on your car insurance, so it is worth checking if you are eligible for any of these discounts.

What are the Policy Car Insurance Discounts?

Policy car insurance discounts are a way of saving money on your car insurance. Here are the major policy car insurance discounts:

• Homeowner Car Insurance Discount: Car Insurance discount for owning a home
• Loyalty Car Insurance Discount: Car Insurance discount for being loyal to an insurance company
• Electronic Billing Car Insurance Discount: Car Insurance discount for electronic billing rather than paper
• “Paid in Full” Car Insurance Discount: Discount for paying your car insurance in full
• Early Signing Car Insurance Discount: Discount for signing up to a new car insurance policy before your last policy has finished.
• Bundling/Multi-policy: Discount for having multiple cars insured with one insurance company

1. Homeowner Car Insurance Discount

Homeowner car insurance discount is a car insurance discount available with some insurance companies for drivers who are homeowners, as they are seen as lower risk drivers than non-homeowners. Homeowner car insurance discounts can save drivers up to 10% on their car insurance premium, depending on the insurance company and the level of coverage and type of policy. Homeowners can get discounts from lots of different companies, not just on their car insurance too, as they are seen as more responsible and lower risk than non-homeowners.

2. Loyalty Car Insurance Discount

A loyalty car insurance discount is when an insurance company gives a customer a discount based on their loyalty for keeping their car insurance policy with that one company. Loyalty car insurance discounts are a way of rewarding customers who stay with one company and increase the incentive for that customer to remain with that company even longer by discounting their car insurance premium. This is often used by car insurance companies to try and keep customers that they regard as lower risk, as they have been with that company for a long time and have been low risk for that period of time. Loyalty car insurance discounts can save you up to 10% on your car insurance, so it is worth asking your car insurance company if they will offer you a discount if you have been with one company for a long time.

3. Electronic Billing Car Insurance Discount

An Electronic Billing Car Insurance Discount is a discount that some insurance companies offer to drivers who opt to receive their policy documents and bills via email instead of paper bills or posted documents. This electronic billing discount is to encourage customers to opt for electronic options for their documents as paper versions cost the insurance company more money, and because paper versions of documents are less environmentally friendly than electronic versions of documents.

4. "Paid in Full" Car Insurance Discount

A “Paid in Full” Car Insurance Discount is a discount offered by some insurance companies to customers who decide to pay their insurance premium in full rather than over instalments. Paid in full discounts are there to encourage drivers to pay for their entire car insurance policy up front, so that the insurance company can collect the entire premium up front, rather than receiving it on a monthly basis. Paid in full car insurance discounts can sometimes save you up to 5% in total car insurance premium, so it is worth asking your insurance company if they offer any discounts if you pay up front, In full.

5. Early Signing Car Insurance Discount

An early signing car insurance discount is a discount offered by some insurance companies to incentivize customers to sign up with them for their next car insurance policy, before their current car insurance policy has expired. Early signing car insurance discounts, sometimes called early bird discounts, are there to encourage a customer to agree to their next policy, even though they may have time to look around for a better deal still before their current policy ends. The discount is there to discourage customers from looking around for other deals, as the discount is only for a limited time before their current policy expires, and therefore encourages them to take up the new policy quickly. Sometimes early signing car insurance discounts can save anywhere up to 10% off your total insurance premium, so it is worth checking what insurance companies offer this, and how long the discounts are available for, before your policy ends.

6. Bundling/multi-policy

Multi-policy discounts, also sometimes known as bundling, is when an insurance company offers a discount to customers for having multiple policies with them. Bundling can even be when a customer has their home insurance and car insurance with the same company, and therefore the company may offer you a discount to reward your loyalty and to encourage you to have all your insurance policies in one place. For this reason, it can be worth looking into companies that can cover all of your insurance needs, as they may offer a discounted price if you are taking out multiple policies with them. Whilst the discount varies a lot, and not all companies offer multi-policy discounts, it can save you anywhere between 5%-20% to have all your insurance policies with one company, so it is worth asking your insurance company if they offer a multi-policy discount.

4. Vehicle Car Insurance Discount

Vehicle Car Insurance Discounts are discounts based on specific information, details or safety features that are added to your vehicle to make it a lower risk to insurance companies that makes them willing to lower your insurance premium. Different insurance companies offer different vehicle car insurance discounts depending on what they regard as important, so it is best to look around at what discounts different insurance companies offer before getting any extra safety features installed on your car.

What are the Vehicle Car Insurance Discounts?

Vehicle Car Insurance Discounts are based on discounts given to drivers for adding safety features to their vehicles, such as:

• Anti-theft car insurance discount: Immobilisers, tracking devices and alarms are all added anti-theft features that some insurance companies may give you a discount for having in your car
• Anti-lock Brakes Car Insurance Discount: Some Insurance companies offer discounts for vehicle with anti-lock brakes installed
• "New Car" Insurance Discount: A discount offered for new vehicles, due to them often having better safety features
• Passive Restraint Insurance Discount: features such as airbags and automatic seat belts are passive restraint features and lower the risk of serious accidents in vehicles
• Daytime Running Lights Discount: a safety feature that automatically turns some lights on to improve the cars visibility, particularly during the day.

1. Anti-theft Car Insurance Discount

Anti-theft car insurance discounts are a type of discount for your car insurance based on added safety features that reduce the likelihood of your car being stolen. The most common anti-theft discounts are for vehicles that have fitted immobilisers, tracking devices or alarms. These anti-theft features make your vehicles safer and less likely to be stolen from the viewpoint of an insurance company, and therefore they encourage drivers to add anti-theft features in order to make vehicles safer. Anti-theft car insurance discounts can lead to discounts of between 5%-10% but also take into account that some insurance companies will expect these features as standard in order to insure certain types of higher risk or older vehicles.

Anti-lock Brakes Car Insurance Discount

Anti-lock brakes are a safety feature that are very common in new cars and can earn discounts with car insurance companies who see it as a feature that reduces the risk of high cost claims. Anti-lock brakes are designed to stop your car from skidding when you brake sharply, and to give the driver more control to be able to steer and potentially avoid accidents as a result. Insurance companies see this as a beneficial feature to increase the safety of vehicles, prevent and minimise the likelihood of serious accidents, and therefore sometimes are willing to give discounts on car insurance premiums for cars that have anti-lock brakes. Anti-lock brakes discounts, if they are offered by a car insurance company, are usually up to 5%, but some insurers might insist on having this feature on certain vehicles for them to want to insure you at all, so it is worth asking your insurance company about it.

"New Car" Insurance Discount

A “New Car” Insurance Discount is a discount offered as an incentive by some car insurance companies to drivers in order to purchase a new vehicle, as they are often safer due to newer safety features and more modern car parts than older cars. Some Insurance companies offer this discount for new cars as a way to encourage drivers to sell their older and perhaps more dangerous vehicles, and purchase a newer car which insurance companies may believe is safer and therefore has a lower risk of high value claims or accidents. New car insurance discounts are not common, but sometimes if it is cheaper to insure a new car than an older one, this will be the reason, even if there is not a specific discount detailed or available, insurance companies always base their pricing off of statistical risks.

Passive Restraint Insurance Discount

A passive restraint insurance discount is a type of car insurance discount for the presence of passive restraint safety features being present in the car, such as airbags and automatic seat belts. These features are there to automatically make the vehicle safer without the input of the driver or passengers and therefore the presence of them in a vehicle is appealing to an insurance company, which is why some are willing to offer discounts to drivers who have passive restraints in their car. Some insurance companies will only insure vehicles with passive restraints, so it is worth checking with insurance companies before taking out a policy, to check your vehicle has the expected and required safety requirements.

Daytime Running Lights Discount

Daytime Running Lights Discount is a discount offered by some insurance companies for vehicles that have a safety feature whereby some safety lights are on automatically during the day, in order to increase the vehicle’s visibility and therefore make the vehicle safer. Daytime running lights are standard in some vehicles, and the discount for having them is not very common, but it can be worth checking around with different insurance companies to see if any are willing to give this discount if you do have this feature in your car.

5. Usage-based Car Insurance Discount

Usage-based car insurance discounts are discounts available on car insurance based on how you use your vehicle, with insurance companies offering incentives to use your car in a safer and more sensible way. There are car insurance discounts based on on-board diagnostics, black boxes, and reflect how and when you use your car, how much you drive, when you drive and all data derived from your driving habits, rewarding safer driving styles, times and habits with insurance premium discounts. Lots of companies offer telematics insurance, also known as black box insurance, for young drivers, and they reward drivers by keeping track of their driving data to ensure they drive safely with cheaper car insurance premiums, and can offer up to 50% discounts for the 2nd year of driving if they drive well for the first year.

What are on-board diagnostics for Car Insurance?

On-board diagnostics (OBD) is an important tool for car insurance companies to use in order to monitor the health of a vehicle. OBD systems are built into most modern cars, and they provide detailed information about the performance of various components within a vehicle. This data can be used by insurers to assess risk and determine rates accordingly.

Why is OBD Important for Car Insurance?

OBD is important for car insurance so that insurance companies can have accurate data as to the performance of the vehicle and helps identify issues with the vehicle that might affect the insurance and the likelihood of issues with the car. The OBD system works by monitoring different aspects of a car’s performance such as engine temperature, fuel efficiency, airbag deployment status, exhaust emissions levels and then that data is relayed back to insurers who can use it for their own analysis purposes or even send out alerts if any suspicious activity is detected with regards to the policyholder’s driving habits or maintenance schedule.

What are the Types of Usage-based Discounts for Car Insurance?

The main types of usage-based discounts for car insurance are low mileage, good driver, and telematics. These types of usage-based discounts are the main ways that insurance companies can assess how drivers use their cars and thereby give discounts for those who are lower risk drivers, whether it is because they do not drive much, they drive safely and well, or even if they drive at safer times of the day and on safer roads.

• Low mileage discounts: Rewards drivers who drive less and are therefore lower risk, with discounts on their car insurance premium
• Good driver discounts: Discount for those drivers who are deemed to drive safely or smoothly, with better driving habits
• Telematics discounts: Insurance companies can use telematics to assess how, when and where customers drive, and reward those with safer driving times and habits with car insurance discounts

1. Progressive Snapshot Car Insurance Discount

Progressive has a Snapshot car insurance policy that bases your car insurance premium on how much and how you drive and rewards better drivers with cheaper insurance. Progressive Snapshot Car Insurance is a scheme designed through telematics to track how and where you drive in order to make car insurance cheaper for better drivers and to give tips on how to drive safer for more dangerous drivers, charging them extra premiums for the increased risk their driving causes, or even cancelling their insurance if they are driving dangerously. Progressive’s Snapshot policy is there to encourage drivers to drive safer on the roads with the offer of cheaper insurance, and to reduce the risk to the insurance company by trying to prevent accidents and claims before they occur. According to Snapshot, drivers who do save money through having their insurance with them, save an average of $156 per year. It is worth noting that the average savings differ a lot in different States, though, and this average does not include higher risk States such as NY. In order to sign up to Snapshot insurance you simply need to sign up and download their app on your phone, and then as long as you have your phone in the car with you when you are driving it will track your driving data whilst you drive, and it will assess your driving through the app, which you can keep an eye on through their dashboard which will give you tips on your driving and tell you how much your car insurance premium will be. Alternatively, if you prefer not to have the app, or perhaps it is unavailable in your State or on your phone, you can get a plug-in sent to you for your car from Snapshot, which works in the same way of tracking your driving data and assessing it accordingly, for your speed, braking, accelerating, where and when you drive, and it totals the risks and bases your car insurance premium off of these factors. It is fairly similar to lots of car insurance telematics companies out there, but the option to use an app on your phone is a lot simpler and quicker than other companies who need to install a black box into your car in order to track your driving data.

2. Allstate Drivewise Car Insurance Discount

Allstate Drivewise Car Insurance is a car insurance policy from Allstate that can discount your car insurance premium by tracking your driving and then assessing and rewarding better and safer drivers with cheaper car insurance payments. Drivewise is a telematics scheme designed to encourage safer driving with the offer of discounts on your car insurance, and according to Drivewise you can save 40% or more if you drive safely with them. Drivewise offers savings just for activating Drivewise in the Allstate mobile app, and continues to offer policy credits on your insurance every 6 months for safe driving. They reward safe speeds, safe stops and safe driving hours with cheaper car insurance. They also have Drivewise Crash Detection, which is different from some other telematics, usage-based insurance. The Drivewise Crash Detection can recognize when you have been in an accident and the app gives you the option to call emergency services or roadside assistance, so you can get the help you need, or to file or record an accident on your insurance.

3. Travelers IntelliDrive

IntelliDrive is a car insurance program offered by Travellers that can discount your car insurance if you drive safely, but might lead to increased car insurance premiums if you drive more dangerously. Like other usage-based insurance programs, IntelliDrive gathers driving data from an app that you can download on your phone, and then assesses your driving over a 90-day period. Following that period, Intellidrive determines your driving performance and provides your car insurance premium upon renewal, based on your driving data. IntelliDrive claims that safe driving habits can lead to savings of up to 30% on your car insurance, whilst riskier driving may lead to increased premiums. Similar to other usage-based insurance programs, IntelliDrive collects your driving data associated with your braking, acceleration, speed, time of day, and phone use in order to assess how safe or dangerous a driver you are, and then to base your car insurance premium on that information over a 90-day period.

What do Insurance Companies audit for Car Insurance Discount?

Car Insurance Companies audit your personal information and your vehicle’s details when they assess how much your car insurance payments will be. Different insurance companies put different weightings on different factors but generally, insurance companies will all consider the vehicle, your personal details, information and history, your driving history and habits, and your loyalty to the insurance company and any other relevant discounts that you may be eligible for.

1. Vehicle Equipment

Insurance companies will look at and assess the standard of the equipment and the condition it is in, in your vehicle, in order to assess how safe they believe your vehicle to be. The safer and newer the vehicle equipment is, the more likely it is to lead to lower insurance premiums than older, more dangerous equipment. For example, more modern cars are fitted with more modern safety features and therefore insurance companies regard them as lower risk than older cars with fewer safety features.

2. Customer Loyalty to Insurance Company

Loyalty to an insurance company is often something that insurance companies consider that will impact how much of a discount they will give to a customer. Usually, the longer a customer has remained with an insurance company, the larger the discount will be, especially if they are claims-free or have not had any accidents in the time they have been with that insurance company. It does depend on a lot as some companies will not offer much of a discount for customer loyalty, but if you have been with an insurance company for a long time it might be worth asking whether they can offer any loyalty discounts for your car insurance.

3. Driver's Education and Personality

The education of a driver sometimes impacts the price of, as insurance companies prefer to insure students in particular with higher education and better grades, as they regard them as lower risk. This is why some insurance companies even offer good grade discounts or lower insurance premiums for those with higher qualifications.

4. Driving Habits and Driver History

Driving habits and driving history has a large influence on the price of your car insurance, and what price car insurance companies will be willing to charge you in order to cover your vehicle. Usage-based insurance programs assess your driving habits, and how and when you drive has a large impact on how likely you are to have an accident from the perspective of an insurance company, and as a result, how much an insurance company will charge you for your policy. Moreover, your driving history, specifically your history of accidents, claims or driving violations of any sort will have an impact on how much your car insurance payments will cost.

5. Driver Job and Occupation

Car Insurance companies will want to know what job a driver has, in order to assess their risk accordingly, as some jobs are regarded as higher risk occupations than others. Being a professional football player, for example, would be a higher risk to an insurance company than someone who works in an entry level admin job, and that is why insurance companies will want to find out and check what profession you work in before they insure you. If you claim to be in one occupation and in reality your job is completely different, this might even void your insurance completely, so remember to be as accurate as possible when it comes to giving your occupation and job title.

What are the Car Insurance Discounts based on Driver's Occupation?

Driver’s occupation can lead to an increase in car insurance premium if it is more expensive it can also lead to car insurance discounts as some jobs, particularly those involved with government organisations or emergency services, can often obtain discounts from car insurance companies.

• Military & Vet Discount: Military Personnel and Veterans can be eligible for discounts from some car insurance companies to reduce your car insurance premiums
• Federal Employee Discount: Working for the Federal Government can make you eligible for car insurance discounts to save you money on your car insurance payments
• Emergency Services Discount: Employees for emergency deployment departments can sometimes get car insurance discounts due to their occupation.

1. Military and Veteran Discount for Car Insurance

Some car insurance companies offer discounts for military personnel and veterans. If you work in the military or used to work in the military, it might be worthwhile to ask insurance companies if they offer any discounts on car insurance for military or former military personnel. Occupational discounts like this, if they are offered, are usually between 5-10% of the total insurance premium. You can get other discounts if you work in the military too, so it is always worth asking companies if they offer discounts for military or veterans.

2. Federal Employee Discount for Car Insurance

Federal Employees may be able to get a discount on their car insurance payments, as some insurance companies offer Federal Employee discounts. Federal Employee Discounts can save you up to 10% on your car insurance premiums, so if you work for the Federal Government, it is worth checking which insurance companies you might be able to get a discount from.

3. Emergency Deployment Discount for Car Insurance

Military personnel who are deployed for emergency or active duty service can be eligible for discounts on their car insurance. Emergency Deployment Discounts are there to save money for service members who may be suddenly called up for active duty and therefore will not be using their car as frequently as they were prior to being called up. This discount can apply on any vehicle that the service personnel was insured on to drive, even if it was not their vehicle. This discount means that the car insurance premium will be reduced, and sometimes will lead to a reduction in coverage for the period of time that the vehicle is not in use during deployment. This type of discount is only offered by some insurance companies, but can save up to 20% on car insurance payments for the period that the service personnel is deployed for, so it is worth asking your car insurance company if they offer it, should you be called up for active duty or emergency deployment.

What are the Car Insurance Discounts based on Customer Loyalty?

Car insurance companies can offer car insurance discounts for loyal customers, as a reward for remaining with them, and for a further incentive to remain with that company for even longer. These loyalty rewards can be in different forms, and for different types of loyalty, but the main thing is that some car insurance companies will give discounts to customers who remain with them for a long period of time.

• Multi-car discount: Multi-car discounts are a form of loyalty discount, by having multiple cars with one company you can get a customer loyalty discount and can save money overall.
• Bundling: Multi-line discounts, or bundling, is a type of discount that you can get by having multiple types of insurance with one company, such as house insurance and car insurance, and this type of loyalty discount can save you money by keeping all your insurance with one company.
• Automatic Renewal Discount: Automatic, or early renewal discounts, are rewards for remaining with an insurance company through an automatic process or by signing up again for another year early.

Some insurance companies offer these types of loyalty discounts, so it is worth looking around to find the best way for you to save money through loyalty discounts on your car insurance.

Other Driver Profile Car Insurance Discounts

Car Insurance companies can give discounts to other types of drivers too, depending on the occupation and profile of the driver or what they use the vehicle for.

• Farm-use discounts: Some insurance companies discount car insurance for farmers
• Married: being married can allow you to get a car insurance discount from some insurers
• Pleasure-use discounts: If you only use your vehicle for pleasure purposes as opposed to commuting to and from work, you may be able to get a car insurance discount

A simple calculation to compute insurance discounts is as follows: Discount = (Base Rate) * (Discount Percentage)

1. Farm-use discounts

Some car insurance companies will offer discounts to farmers to help reduce their costs, and perhaps because they are seen as lower risk drivers than people living in the city and driving in busy rural areas. If you are a farmer, you can look around to see which insurance companies may offer you the best discounts.

2. Married

A Married car insurance discount is a discount on your car insurance for a married couple who insure their cars with the same insurance company. Insurance companies who offer married car insurance discounts sometimes reduce the price of your insurance premium by up to 5% as an appreciation of the loyalty of the married couple both using the same insurance company and to encourage them to both keep their insurance with that company. It is also often cheaper to have your spouse listed as a second driver, than just a friend or another relative, as they are generally seen as lower risk. Generally, married couples are seen as more responsible and perhaps less risky on the road than single drivers, so that is why insurance companies are willing to discount them too.

3. Pleasure-use discounts

Pleasure-use discounts are a type of car insurance discount for drivers who only use their car for pleasure reasons, not for commuting or business use. Drivers who only use their car for pleasure-use are deemed as lower risk than drivers who commute to and from work in their car, as they often drive at busier times, on busier roads, and in more stressful situations than people who purely use their car for pleasure purposes. Moreover, pleasure-use discounts reflect the fact that drivers who only use their car for pleasure tend to drive a lot less than people who commute to and from work every day, or even use their car for business use. If you intend to only drive your car for pleasure, make sure you let your insurance company know, as you may be able to get a discount for anywhere up to 20% of your insurance premium.

Why is Car Insurance Discount Important to File a Car Insurance Claim?

Car insurance discounts can be important to consider when filing a claim, as car insurance discounts can reduce your overall costs when it comes to your insurance. Moreover, if you have proof of certain safety features in your car that lead to an insurance discount, this may mean you have a lower excess on your car than you otherwise might have. This means that the policyholder would have to pay less out of pocket for repairs than they otherwise would have to. Therefore, it is important to consider car insurance discounts when you take out your insurance and when you file a car insurance claim.