Yes, car insurance companies do offer a special type of discount to policyholders that have more than one type of insurance with that company. This discount is usually known as a multi-policy discount, a multi-line discount, or a bundle discount.

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Insurance providers are happy to provide their customers with more than one insurance policy, and be a policyholder’s “go-to” company for their insurance needs, since this makes them more money, and increases customer loyalty. Insurance companies also give loyalty discounts.

What are the categories that car insurance discounts are divided into?

Car insurance discounts are typically divided into five different categories. These categories are vehicle equipment, driver’s education, driving history and habits, customer loyalty, and driver affiliations.

Vehicle equipment usually means what type of safety features a car has, such as airbags, anti-lock brakes, anti-theft systems, and daytime running lights. Driver’s education discounts are offered to drivers that have taken special driving courses like defensive driving or drivers education, or if the policyholder is a student and wants to be eligible for a good student discount.

The driver’s history and habits category is mainly for the good driver discount, which can also be known as an accident-free discount. This category is also where a deductible rewards program would be classified, since most deductible rewards programs are offered for those with a driving history free of accidents.

Customer loyalty discounts are for policyholders that have been with the insurance provider for a longer period of time or a policyholder that has many different types of policies with the same company.

The driver’s affiliations category takes into account what organization or profession the policyholder is involved with, such as the military or federal government. This could also include membership in an auto club or other group affiliation.

What are the most common car insurance discounts?

If the policyholder has a newer car they will most likely be eligible for multiple vehicle equipment discounts. These discounts include an airbag discount, an anti-lock brake discount, an anti-theft system discount, and a daytime running lights discount.

A car with just driver-side airbags can be eligible for as much as a 25% discount, while a car with driver and passenger side airbags can be eligible for as much as 40%. Some companies also require side airbags to be eligible for the higher percentage discount. While most cars made in the past 20 years have either driver-side airbags or both driver- and passenger-side airbags, side airbags tend to come in much newer cars.

An accident-free discount, which is also commonly known as a good driver discount, can offer as much as a 26% discount. Some companies offer a deductible rewards program as well. For this discount program, the policyholder has to have their car insurance policy for a certain amount of time and then go a certain amount of years without having an accident. Once reaching this time requirement, the policyholder’s deductible will be reduced by a certain amount, usually $100, for every year the driver goes without having an accident.

Some car insurance companies offer a discount of up to 15% to drivers that always wear a seatbelt. This discount usually applies to medical payments coverage or personal injury protection coverage.

Driver’s education discounts offer great discounts to younger drivers who usually cost a lot more to insure. Teenagers are the most expensive age group to insure since they are inexperienced drivers. If the teen takes a driver’s education course, which is available through most high schools, and passes it, they could be eligible for a discount.

A good student discount offers up to a 15% discount for young drivers. To be eligible for this discount the student usually has to be a full-time student ages 16 to 25, and has to have at least a 3.0 grade point average.

What is a multiple policy discount?

Multi-car, multi-line, and renewal discounts are all offered to the most loyal car insurance policyholders. A policyholder can earn a discount of up to 25% when they insure more than one car with the same car insurance company.

The policyholder can earn just as much of a discount if they have more than one type of insurance policy with the same company. Usually this discount is given to a policyholder that has both their car and home insurance with the same company.

A renewal discount up to 30% is given to policyholders that choose to stay with the same insurance provider.

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