In today’s economy, it’s often necessary to clip coupons and pinch pennies to stay financially stable.
You may have to cut back on dining out or limit your movie ticket purchases to once a month instead of once a week. Or perhaps, you need to cancel your magazine and newspaper subscriptions in favor of free online sources. And in some cases, you may have to completely forego some of your more expensive activities such as skiing or traveling.
However, if there’s one thing you shouldn’t cut back on, it’s insurance. Health insurance, car insurance, and home insurance offer necessary protection in times of emergency. Additionally, some insurance is required by law—and if you don’t have it, you have to pay penalty fees.
While you can’t cut back on insurance, you can lower your monthly premiums so you don’t have to pay as much for the same amount of coverage. As a reward for good behavior or loyalty, many companies offer the following discounts, so you can save money on a regular basis.
Good Student Discount
Are you going to school? You may qualify for a discount if you get good grades. The good student discount can apply to younger teens just learning to drive as well as older students still working toward their degrees.
In most cases, the only requirements are that students must maintain a certain grade average and that they provide transcripts as evidence.
Good Driving Discount
Insurance companies love good drivers. The longer you drive without getting in an accident or receiving a ticket, the more money you save for the company—and those savings get passed onto you!
In some cases, the discount increases when you maintain a clean driving record for a set number of years. Sometimes this discount is worked into your rate automatically, while in other cases you may need to ask if you qualify and double-check with your insurance provider to see if the discount is being applied.
Hybrid or Electric Vehicle Discount
Going green with a hybrid or electric vehicle isn’t just great for the environment; it’s also great for your budget. Electric and hybrid vehicles get more miles per the gallon, and in some cases, it can give you a discount on your insurance premium.
Just make sure that your vehicle is identified by the Insurance Bureau of Canada. Insurance companies use an assigned code to approve your car as eco-friendly.
Safety Features Discount
Insurance companies offer discounts for vehicles with a variety of different safety features, such as anti-lock brakes and airbags. Some companies also offer discounts for approved anti-theft devices installed on your car, so long as these devices are approved.
This discount is great if you own a newer car with these features already installed. However, you can still qualify for this discount if you pay to install approved after-market items. Keep in mind that each provider has a different list of qualifying safety features, so ask your company about potential discounts before installing any new equipment.
If you have more than one car, then it helps to insure both vehicles through the same company. While you’ll still have to pay insurance for both cars, many companies offer a discount if you have two cars on one policy. Additionally, some insurance companies offer both home and auto insurance, so you could bundle your policy together into one bill.
Savvy shoppers know they can switch their insurance provider to snag the latest, most exciting deal available. Comparing quotes and prices will ensure that you have the most coverage for your budget.
However, many companies would prefer that you stay with them for a long time, and they reward that loyalty with additional discounts. Better still, you don’t have to do anything extra to qualify for these discounts—simply stick with your original provider.
Senior drivers are less likely to get in an accident than teenage drivers. Consequently, many insurance companies offer discounts for senior members over 50.
You may need to brush up on your driving skills by completing and passing a defensive driving course, but the discounts will be worth it.
Don’t forget to ask about a possible low-mileage discount. Many retired seniors cut back on their driving time, so you may be able to save money if you stay under a certain mileage cap per year.
Ask About Available Discounts
These discounts are a great way to save money on your monthly premiums. But, remember that some discounts are only available at certain insurance companies, so you may have to shop around before you find a good policy for you.
If you’re not sure which discounts are available or if you qualify for these discounts, ask your insurance company for more information. You might be able to save hundreds of dollars each year—so don’t wait!