Life Hack: Insurance Discounts You Never Knew Existed

Blog | August 13th, 2020

In life, anything can happen, which is why it’s so important to save money. Even though the importance of saving money might seem like common knowledge, millions of Americans struggle to save money every year. 

Outside of having a cushy savings account, there’s something else that can help when the unexpected happens, and that’s insurance. Unfortunately, insurance doesn’t come cheap, and your rates might be contributing to your lack of savings. According to NerdWallet, the average American pays $1,427 annually for car insurance alone. That number only increases with more policies, and factors get added.

It makes you wonder if there’s any way to bring your rate down. There are many ways to lower your rates that are not so common. Keep reading to learn more.

Related: When You Should Start Saving For Each Major Life Event

Insurance Discounts: A Simple Way to Save

Insurance is something we all need. Whether it’s for your house, health, or car, it’s there to keep you protected in case of an emergency, but it doesn’t always come cheap. The price you pay might seem like it’s out of your control, but you have more of a say than you think.

There are many insurance discounts out there waiting for you, but you have to know what they are so you can ask about them. Keep reading to discover the insurance discounts you didn’t know existed.

Disaster-Proof Your Home

Making improvements to your home can lead to huge savings on your insurance. This is especially true if you live in an area that is more likely to get hit by a catastrophe. Updating things like your electrical system can significantly reduce your risk of damage should you ever experience a hurricane, earthquake, or any other natural disaster.

Boost Your Credit

Your credit score affects everything in your adult life. So it shouldn’t be a surprise that having good credit can also give you a nice little insurance discount. In fact, 95 percent of auto insurance agencies and 85 percent of home insurance agencies check credit when opening a policy.

Freshen up Your Driving Skills

Yes, you can get a handsome discount if you take a defensive driving course! Many of these discounts are targeted towards senior drivers, but younger drivers are eligible too. The average price is about 4 percent lower, but some providers offer a 10 percent discount.

Non-Smoker Discounts

Not smoking isn’t just beneficial for your health; it’s also good for your wallet. It can save you money on your renter and homeowner insurance. Since smoking indoors can potentially cause damage and spell disaster, insurance providers are willing to cut you some slack for not doing it.

Discounts From Your Deductible

Choosing a higher deductible might seem counterintuitive to saving money but on the contrary. Many insurance providers offer better rates on your premiums if you choose to pay a higher deductible. 

Discounts for Married Couples

Good news for all the couples living in wedded bliss: you get some extra discounts just for being married! This type of markdown applies to many different types of insurance, including home and auto. Even if you start with two separate policies, you can get a discount just for combining them into one.

Affiliate Discounts

Depending on who your employer or school is, there may be hidden insurance discounts waiting for you. Federal employees and military typically both enjoy lower insurance prices, but there are a number of companies and universities that offer up additional markdowns too.

Pay in Advance Discounts

Whenever you renew your policy or start a new one, you can decide to pay month-to-month, every six months, and in some cases, a year. Monthly payments may seem like the more affordable option, but actually, the opposite is correct. Paying further in advance can save you big money in the long run.

Discounts for Safety Features

No matter what type of insurance you have, it always pays to have certain safety features and measures to avoid a potential emergency. That’s why many insurance companies provide discounts for car features like anti-lock brakes and airbags. The same goes for homeowner’s insurance with house security features like burglar alarms and sensors for leaks reducing rates.

Bundle Your Policies

If you have multiple assets that need to be insured, then you’re in luck! It’s become standard practice for insurance companies to offer discounts when you use them for all your insurance needs—combining your policies for your car, home, boat, and even life insurance can save you significant money annually. 

Early Renewal Discounts

Insurance companies appreciate it when customers are proactive, so many of them are happy to reduce your premium if you renew your policy early. Not only are you saving them work, but you’re saving yourself money too.

Loyalty Discounts

Loyalty means a lot when it comes to insurance, and you can see this when you renew your policy. If you stay with the same provider for at least one year, you can expect to see your rates go down. 

Related: How to Stay Healthy & Limit Your COVID Exposure

Don’t Wait to Save Money on Insurance

Now that you know what discounts you want, it’s time to see if your insurance provider has them available. If not, you can always shop around and find a quote that feels right for your budget. Either way, you can start saving today, so get to it!