It pays to be a safe driver. That’s because many insurance companies offer discounts for drivers with clean records. To see what discounts could apply to your auto insurance, click here to get a free Philadelphia auto insurance quote. Many of these discounts are tiered. The first one kicks in if you have no accidents or tickets for three years, and generally rates will be reduced again in five years. In most cases these discounts will be applied by your agent, but you should ask if you are getting a discount if you know you have a clean record. They may not be automatic. If they aren’t applied to your policy, or if your insurer doesn’t offer this discount, it may be time to change insurance companies. Another careful driver discount given by some insurance companies is called a “defensive driver discount.” This is given to drivers who take a state-approved defensive driving class. The classes which qualify you for a discount will vary from state to state and from insurance company to insurance company. Court mandated classes won’t qualify you for the discount, either.
Having a “safe car” can also earn drivers a discount on insurance. Passive Restraint Systems such as airbags or factory installed motorized seatbelts can earn some drivers discounts on their monthly insurance premiums. Anti-lock brakes or ABS (Anti-lock braking systems) are another safety feature for automobiles that are favored by insurance companies, as well as anti-theft devices like car alarms and lo-jack systems which deter theft and vandalism, or make it easier to recover your car if it is stolen, resulting in fewer claims for insurance companies to deal with and therefore lower their costs.
Other automobile discounts are awarded for a variety of good behaviors or lifestyle situations. For example, “good student” rates are sometimes awarded to drivers under 25 who meet certain GPA requirements. For teen drivers who are often expensive to insure, this discount can help, and is one of the few discounts available to young drivers. Older drivers aren’t left out of the savings, either. Seniors (65 and older) can also enjoy discounts, as well as 55 and older drivers who have already retired. If your car is used less frequently and endures fewer miles because you no longer driver to work every day, that’s the key.
If none of these categories describes you, there are yet other discounts on auto insurance available for owning a newer car, an economy car, or a vehicle which is good for the environment. Buying a “green” auto or hybrid can net you some additional cash on your federal tax return as well. Some states such as California add an additional state tax benefit for buying green vehicles. Other miscellaneous discounts are awarded for specific types of utility vehicles, for parents covering students under 21 attending schools more than 100 miles away, and for work vehicles used on farms or ranches. It doesn’t hurt to call your insurance agent to see which of these discounts you may be eligible for, and could pay off big in the long run.