8 Common Mistakes That Cost You Car Insurance Discounts

Did you know that bundling your insurance policies can trim up to 25% off your premiums? And that's just one discount offered by insurance companies. Imagine qualifying for several discounts and stacking them for even greater savings.

If you're having trouble scoring auto insurance discounts, it may be that one of these issues is standing in the way.

1. You drive a frightfully powerful car

Many car enthusiasts love muscle cars with enough power to blow their socks off. If that describes you, that's okay, as long as you know that you probably won't qualify for a safe vehicle discount.

Insurance is all about crunching the numbers to figure out where the greatest risks lie. Simply put, powerful cars capable of moving at high speeds are more likely to be involved in accidents. To reward drivers for choosing safe vehicles, insurers make those cars cheaper to insure.

Takeaway: If you're concerned about a high insurance premium, consider trading your vehicle for a safer model.

2. You rack up the miles

If you're someone who puts a whole lot of miles on your vehicle each year, you're missing out on the low-mileage discount. Statistically speaking, the more miles you drive per year, the more likely you are to make a claim. No matter how careful a driver you are, you never know when someone else is going to run into you or your car will fall in a pothole the size of Nebraska.

Auto insurers tend to reward drivers who keep their annual mileage low with a sweet low-mileage discount.

Takeaway: If possible, cut your mileage by carpooling.

3. You are not what insurers consider a "safe driver"

It's no secret that speeding tickets and accidents can scare insurers off. In fact, if you pile up enough of either, you may find yourself on the receiving end of a cancellation letter from your insurance company. At the very least, you likely won't qualify for a safe driver discount.

Takeaway: The best thing you can do is slow down, drive carefully, and consider taking a defensive driving class. Many insurers offer discounts to those who complete the class.

4. You hop from insurer to insurer

Once you find an insurance company you like, stick with it. Better yet, bundle your coverage. For example, if you have homeowners or renters insurance, ask about bundling it with your auto policy. Sticking with one company and purchasing multiple policies should score you a loyalty discount.

Takeaway: Stop playing the field and find an insurer you like and trust.

5. You drive a car with few safety features

Again, insurance companies operate on statistics. The more safety features your vehicle has, the better insurers feel about its chances of surviving an accident. More importantly, the more confident insurers are that you will survive an accident. To reward you for driving a car with a nice array of safety features, insurance companies offer a vehicle safety features discount.

Takeway: The next time you purchase a car, check the Insurance Institute for Highway Safety's latest report on top safety picks just to see if any of the vehicles mentioned sends a thrill through you. And if you're driving an old car that you kind of love, consider having it retrofitted with updated safety equipment.

6. You have yet to go paperless

While it's not a huge discount, allowing your insurance company to correspond with you via email will trim your premiums a bit. And you can benefit the environment this way, plus declutter your mailbox in the process.

Takeaway: Either go online and check the paperless option (if your insurer includes the option) or call your agent and ask about changing the way you receive your mail.

7. You haven't signed up for auto-pay

Insurance companies adore knowing that they're going to be paid on time -- every time a premium is due. Given the speed with which auto insurance rates have increased since the pandemic, there's no doubt that insurers are dealing with more late and missed payments.

Takeaway: To ease your insurer's worries, sign up for automatic payments to be withdrawn from your checking account when payment is due, and ask how much of a discount you will receive.

8. You haven't asked

It's possible that you don't know about every discount available to you, and your insurance company does not realize you qualify. For example, your insurer may offer discounts to members of certain civic organizations, sororities, or fraternities. It may offer discounts to employees at specific companies or past and present members of the military.

Takeaway: Call your insurer and ask about discounts, or check your insurer's website to find a list of potential discounts.

It's nice to believe that insurance rates will decrease one day, at least by a little. Until that time, though, your best bet is to keep milking those discounts.