7 Reasons You're Not Getting the Car Insurance Discounts You Deserve

Are you a safe driver? Does your car have any safety features, like anti-lock brakes? Do you have more than one policy with the same insurance company? If so, you ought to be receiving a discounted auto insurance rate. In fact, many insurers offer an entire menu of potential discounts, each designed to make insuring your vehicle less expensive. If you're not getting the car insurance discounts you're eligible for, it's likely due to one of these reasons.

1. You're unaware of what's available to you

It's not uncommon for details to fall through the cracks. One important detail associated with auto insurance is the number of discounts available to policyholders. Whether you meet face to face with your insurance agent or work with an online insurance company, now is the time to ask to see a list of discount options. Options vary by company, so it's important to know what's available to you and which discounts you qualify for.

But it's up to you to ask.

2. Your insurance company has an incomplete picture

Given the sheer number of clients an insurance agent has on their roster, it's impossible to know everything about each policyholder. If you have not already done so, now is the time to let your insurer know more about your vehicle, your driving habits, and a little about your life. For example:

• Letting them know about any security or safety features on your vehicle will normally score you a discount.
• If you've taken a safe driver course, it's typically worth a discount.
• If you work from home and don't put many miles on your car each year, your insurer will want to know. It gives them a reason to reward you with a discount.
• If you have a young driver on your policy who also happens to be an excellent student, most insurers will give you a price break.
• Does your insurer know what you do for a living? If not, you should let them know. Insurance companies regularly offer discounts to members of the military and policyholders who work in specific professions.
• If you're a member of a nonprofit or civic organization, it's worth mentioning. Either might just score you a discount.

3. You've underestimated how seemingly small factors impact rates

Insurance companies are all about weighing risks. Here are some of the signs that a driver represents a higher risk:

• Speeding tickets or traffic violations on their record
• Accidents on their driving record
• Drives an expensive car to repair
• Drives a powerful car known for its speed

Even if you've been with the same insurance company for years, don't be afraid to ask your agent about how the company came up with your premium. Was there something in your profile that raised a red flag? The only way you can work toward lowering your rate is to understand why it's higher than you'd like it to be.

4. You're not taking advantage of the simplest discounts

Oddly enough, several of the easiest discounts to score are also the easiest to overlook. They include:

• Bundling: Bundling simply means carrying more than one policy with the same insurance company. For example, if you carry a home and auto policy with Allstate, you can expect a discount of up to 25%. But it doesn't have to be home and auto. Perhaps you have a homeowners and boat or RV policy with the same company. No matter what the combination might be, ask about how big a price break you can expect.
• Paperless: Allowing your insurer to contact you via email rather than old-fashioned snail mail is also a simple way to receive a small discount.
• Auto-pay: Insurance companies worry that policyholders will pay their premiums late or miss them altogether. When you sign up for automatic payment, that gives the company permission to withdraw your premiums from your checking account on their due date. In return, most insurers will hook you up with a sweet discount.

5. You have a low credit score

Studies have shown that drivers with poor credit scores tend to make more auto insurance claims. While legislatures across the country debate that issue, all but four states (Michigan, Massachusetts, California, and Hawaii) allow auto insurers to consider credit scores when determining rates.

Fortunately, it's not a "forever" problem. With a little time and patience, millions of consumers have managed to boost their credit scores.

6. You drive a high-risk vehicle

Due to their popularity with car thieves, some vehicles are more likely to be stolen than others, and that increases the rate insurers charge the owners of those vehicles for coverage. Luxury cars also tend to cost more to insure due to the higher costs associated with repairing them.

If you drive a high-risk vehicle, it's even more important to dig for the deepest discounts you can find.

7. You haven't shopped around yet

Regarding insurance, it doesn't pay to stand around. If your insurance company does not offer the number or type of discounts you desire, check around to see if another company does. There really is no downside. The worst thing that can happen is that you learn you already have the lowest rate available. And it's just possible that you'll find better coverage at a lower price.

Remember, the trick is to be proactive and thoroughly explore your options. If your insurer is stingy with discounts, another insurance company is likely to offer many more. This is your money, and you shouldn't feel compelled to spend more than necessary on auto insurance.