6 Little-Known Perks of Car Insurance Discounts

The most obvious perk associated with auto insurance discounts is the money you save. However, other, less-apparent perks put money in your checking account and even help keep you safe. Here, we peek into the other ways you can benefit by taking advantage of every car insurance discount available to you.

1. Gives you the chance to stack discounts

Before we move on to the other perks, let's linger on cost savings for a moment. Did you know that you can stack discounts? That's right; if you qualify for three or four different discounts, they can be stacked atop each other. Here's a sample of what that might look like for the average driver:

• The driver sets up auto-pay with their bank so their premiums are always paid on time. They score a discount of 5% (although all discounts vary by insurer).
• The driver also agrees to go paperless and receive all correspondence from the insurer via email. Their policy is discounted another 1%.
• The driver has had their license for decades and qualifies for a 10% mature driver discount.

Stacked, the driver's discounts are worth 16%, which is nothing to sneeze at.

2. Helps provide for your personal safety

Auto insurance discounts are typically tied to safe driving behavior. When an insurer offers you a discount for your clean driving record or completing a defensive driving course, you have a built-in incentive to drive carefully. By emphasizing safe driving, those discounts may just protect you from physical and financial harm.

3. Rewards the organizations you've dedicated yourself to

This lesser-known auto insurance discount is offered to members of certain professional groups and organizations. Let's say your insurance company offers a discount because you're a member of a civic organization in your town. That discount serves as a reminder that you're part of something bigger and may foster a greater sense of loyalty toward the organization.

4. Ultimately puts safer vehicles on the road

Nearly every auto company offers safety features, like airbags, anti-theft devices, and anti-lock brakes. Because there's a built-in financial reward associated with driving a safe car, drivers are encouraged to buy vehicles with built-in safety features.

The more everyday drivers seek to drive safe cars, the more auto manufacturers focus on advancing safety technology. The more cars on the road with safety features, the more accidents are avoided, and that's good for everyone.

5. Frees up money for the future

Auto insurance discounts aren't just about today. Like a 401(k) or an IRA, discounts are an investment in your future. That's because the money saved throughout the years of leveraging discounts adds up and can be redirected toward planning for your future.

6. Puts the reins in your hands

The variety of auto insurance discounts available allows you to tailor your insurance policy to meet your needs. If one insurance company is stingy with its discounts, you can always shop around to find an insurer with a full menu from which to choose. That way, you have a greater sense of control as you determine how much you're willing to pay. For example, if you want to receive a deeper discount, you might take a defensive driving course or pay your policy in full upfront each year.

The next time you shop around for auto insurance, remember this: You cannot fairly compare one company's rates to another until you've factored in the money you'll save by taking advantage of policy discounts.