Money

Affordable Auto Insurance: Get Those Discounts

By Jerry Edgerton

Updated on: June 7, 2010 / 2:36 PM EDT / MoneyWatch

Discounts on auto insurance might not seem controversial. But a California ballot initiative about them has stirred an argument. Proponents say Proposition 17 would save drivers money by letting them keep their discounts for continuous insurance coverage even if they change insurers. Opponents say Prop 17 would penalize military personnel and others who must suspend coverage and then resume their policy later--when companies would be allowed to add an additional fee.

Even if the California vote doesn't affect you, it's a good reminder of the numerous (sometimes arcane) auto insurance discounts that could save you a bundle on your policy.

Online auto insurer esurance.com gave us a rundown of some of the most widespread discounts and how much you may save if you qualify for them. (The discounts will vary depending on where you live, which company insures you and the vehicle you drive.) "Some discounts are mandated by state law," says John Swigart, esurance.com chief marketing officer. "But some companies offer unique discounts." (See Save on Car Insurance: Best and Worst States.)

Here is a look at key discounts you may qualify for. If they sound like a match, but you're not getting the price cuts, call your agent and ask.

Are you free of tickets and accidents? In addition to the misery involved, tickets and accidents will boost your auto insurance bill. Drivers with a clean record for three to five years-depending on company and the state-get discounts ranging from 15% to as much as 35% in California. Virtually all companies offer such discounts.

Do you belong to a professional or alumni association? Membership in professional groups such as medical associations or university alumni associations frequently qualify you for discounts of 5% to 15%.

Are you a teacher? If you are and belong to the National Education Association or a state education association, Horace Mann Insurance may have a 10% to 20% discount for you. The company sells insurance in all states except Hawaii and New Jersey and gives teacher discounts everywhere it sells except Washington, D.C.

Do you have a young driver or a good student on your policy? To help ease the pain of high premiums for drivers under 25, most beginning drivers who take a driver training course also qualify for a discount of up to 15%. Check also to see if the so-called good student discount may apply. If a high school or college student meets certain standards-usually a B average or better-the discount might be as much as 15%.

Can you qualify for a defensive driving discount? If you are 55 or older and voluntarily take a defensive driving course, you probably qualify for an auto insurance discount. These discounts often are about 5%. The courses are sometimes sponsored by state governments and sometimes by organizations like AARP. Check for details with your state and insurance company.

Are you in the military? Whatever the effect of California's Prop 17 on military families, that affiliation can save money in other ways. Many auto insurers give discounts of up to 15% for anyone who's on active military duty, retired from the military, or a member of the national guard or reserves.

Does your car have anti-theft measures? Installing a car alarm, having an anti-theft device, such as LoJack) and keeping your car in a garage (especially in an urban area) could result in discounts of up to 30%.

Do you have multiple policies with the same company? You usually can cut your auto insurance costs if you also have a homeowners or renters policy from the same company. For instance, at State Farm, having a homeowners or condo policy, too, cuts your auto premium by 17%. Add on a personal liability umbrella policy, and the break rises to 22%.

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