14 Discounts You Can Get on Your Auto Insurance

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What kind of discounts do car insurance companies offer, and how do I make sure I get all the breaks I deserve? --J.T., Minneapolis

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You’ll get some auto insurance discounts automatically, such as:

1) Breaks for using the same company for home or renters insurance

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2) Breaks for paying your bill in a lump sum

3) Breaks for choosing paperless billing

But you’ll need to let your insurer know that you qualify for other reductions. Discounts vary by insurer and state. Ask your insurer or check its website for a list. You may get a break if you:

4) Move or change jobs and have a shorter commute

5) Join a carpool

6) If you drive less than, say, 150 miles a week and practice safe driving habits, you could save 5% to 50% by signing up for a data-tracking program, such as Progressive’s Snapshot or State Farm’s Drive Safe & Save.

7) Drivers age 55 and older who are retired (and therefore no longer commuting) can get a discount of up to 10% from Allstate.

8) Several companies, including State Farm, offer a discount to drivers age 55 and older who take a defensive driving course.

Got kids? Here are some discounts for you:

9) You could get a discount of up to 25% if your young driver gets good grades.

10) There's a 10% break if your child takes a driver’s ed class.

11) Get up to 35% off if your child attends college at least 100 miles away and drives only when at home.

12) Plus, State Farm offers a 15% discount for good drivers younger than 25 who participate in its Steer Clear driver-safety program.

You may also be eligible for discounts through your work or alma mater:

13) Farmers Insurance gives discounts of 10% to 15% for occupations including educators, accountants and law-enforcement personnel.

14) Liberty Mutual offers discounts of up to 10% through 750 college alumni associations.

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As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.