hey this is jeremy from shine insurance and our video today is the 8 most common auto insurance discounts. so let's get started. you're gonna learn today, well, pretty straightforward, we're gonna dig into the eight most common discounts. now, insurance policies are based on discounts as i'm about to show you, so understanding what they are,
which ones you have, which ones maybe you don't have is the key to really understanding if you're paying the right amount for your insurance policy or you're paying too much. so by watching this video, you're gonna have a real sense of, you know, what are the discounts that you have, and what might you not have, and need to get. so those eight discounts are as follows.
number one is safe driving. number two is accident-free. number three is credit. number four is the multi-s. number five is age and gender. number six paid in full. seven is loyalty and intro. and finally, association or job. these are the eight common discounts
and i'm gonna dig a little deeper into each of those in just a second. i wanted to just let you know first, though, i've created an infographic for you, something that you can download and have these eight discounts on a document so it makes it easier for you to make sure that you truly do have them or talk to your insurance agent about them. if you want to download that infographic
you can do it right here or you can do it down in the show notes. alright, let's talk about a rookie mistake. well, the rookie mistake for this video is not understanding your discounts, and making sure your company has applied them. insurance companies aren't motivated to necessarily apply all the discounts. good insurance agents absolutely do
but, you know, sometimes things get left off or just forgotten and so to be able to look and make sure you have each one of these or know why you don't have them is a key. so rookie mistake is just not paying attention. by watching this video, you guys are already a rock and rollin' on that one. let me give you a quick example of how discounts work in auto insurance.
an auto insurance quote always starts really really high, so the highest price you could possibly have is where the quote starts. in this example, let's say it's $1000 a year. then a bunch of discounts get applied. those discounts can bring your premium down dramatically, sometimes 30, 40, 50%, those discounts are being applied and bringing your premium down to more
what you would expect it to be. so in this example, 30% came down, $300 a year less, and so what you're actually paying for your insurance is $700. so the discount saved you $300 a year in this example and that's pretty common. 30 to 40% in discounts, depending on how many of them you get,
is a very common change in premium. it's just important to remember that your insurance policy actually starts really high and then the discounts bring the price down. okay, let's dig in to them. driving safely obviously has tons of advantages. one is the price of your insurance. when you get a ticket, it's noted on your insurance policy and that can often result in higher premiums.
it can be connected with accidents or other things to increase your premiums or to remove discounts for safe driving. so that's number one, safe driving's good anyway but it also affects your insurance premium. number two is accident free, so no accidents equals cheaper insurance. pretty simple, right? how much depends on the company.
some companies "forgive" a single accident, although they do charge you in your premium, for that accident forgiveness, so it's not exactly free, but most will hit you pretty hard especially if there is more than one accident. if you get in two accidents, three accidents in the last three to five years, your insurance premium is going to be extremely high
because those accidents are piling up and insurance companies are going to take away discounts for that. so that's basically accident-free. number three, this one's, you know, not paid attention to very often but a huge factor in your insurance premium, is credit. if you have low credit,
then you're not getting any discounts associated with good credit. if you have good credit, then you're getting those discounts and those discounts can be significant, so your credit can be a major factor in your auto insurance premium, and alright. number four is the multi-s, and there are two of them.
the first one is a multi-policy discount and it's, so this is a sometimes it's called bundling, you'll see commercials about this. you get a discount for putting together your home and auto, or your renter's and auto insurance. so if you have auto insurance and you live in a house, whether that's rented or home, you need to make sure that your auto and home
are bundled together, unless there's some, you know, extenuating circumstance. putting those together is going to give you a discount on both auto and home, especially if you're a homeowner. it's a large discount on your homeowner's premium when you put your auto together with your home. so that's the multi-policy discount. and then a lesser known one is the multi-car discount.
if you have one car, you don't get this discount. when there are two cars on the policy, most companies will have a multi-car discount so you actually get a discount for having multiple cars in your household. so that's the multi-s, the multi-policy discount and the multi-car discount. alright, let's talk about age and gender, number five. well, age, you know, the most significant age
one is if you're a young driver. young drivers see significantly higher insurance premiums. that tends to go down after five years of driving experience and then again at age 25. insurance companies look at who gets in accidents. they know where accidents come from and they know young drivers have a much higher likelihood of getting into accidents and so insurance discounts are based on that.
if you're older, you've got a lower likelihood of getting into an accident, so we're gonna give you a discount for that. so age is a factor and gender is a factor as well. women generally pay less for insurance because ladies have fewer accidents than guys. again, based on statistics. insurance companies are looking at actual payouts on insurance claims and deciding, okay,
we noticed that 60% of claims are men and 40% of claims are women so we're gonna provide a discount for women and not give that discount to men because we see that difference, so, that is the gender discount, and the age and gender discount. number six, paid in full, and that's pretty straightforward.
if you want to pay your policy in full, not spread it out monthly or quarterly or any of those kinds of things, you're gonna get a discount for that. you know the most expensive one is paying monthly by mail so if you're paying monthly right now, one way to save a little bit of money is set up automatic payment with your insurance company.
they should give you some kind of discount for that, and that'll, you know, help out your pocketbook. but paying in full, if you want to get the discount for that, then that's what you need to do. number seven, loyalty and introductory. this is interesting cuz it's two very different approaches, to, you know, these discounts. two opposite approaches here.
some companies offer introductory discounts that fall off in future years. so they're gonna give you a discount cuz they want that number to look low when you're deciding what insurance company to go with, and they're hoping you'll go with them. to me, that's kinda crummy and a little sleazy, like, you know, if you're going to have a discount just for bringing somebody on board
and then take that discount away the next year, like, you just shouldn't have the discount in my opinion. but lots and lots of companies do that, especially the big ones. they'll give you a number the first year and then that discount will drop off in next year's. so that is introductory discounts.
others offer a discount for each year you stick around so this is a loyalty discount. you know these are people who, err companies, that are saying, well we want folks to stick around. we're gonna reward them for doing so by offering, you know, usually it's like 2% per year up to five to ten years or something like that. so you're getting a discount for every year you stick around.
to me, it makes a lot more sense to do it that way, you're rewarding people for being loyal, and that's awesome. interestingly, some companies also provide a discount for how long you were with your previous insurance company, so they'll look when they're offering a quote to you, and say, well, so-and-so was there at the old company for six, seven years. looks like they're pretty loyal.
we're gonna give them a discount for that and kinda continue that cuz we can see their loyalty. so loyalty and introductory is number seven, and finally number eight, associations and employment. companies offer a variety of discounts for what you do for a living and associations you're a part of. so some examples.
being a teacher, it's a huge one and a lot of insurance companies have significant discounts up to 10% even for being a teacher, so if you're a teacher, that's definitely one to share with your insurance agent. see if there's a discount for that. others are, you know, aarp or a part of different associations, you know. if you're a part of something like that,
let your insurance agent know. there may not be a discount for it, but there's no hurt in asking and seeing if it's there. so that's number eight. alright, so what did we learn? well, we went through the eight most common discounts. that included safe driving, accident-free, credit, the multi-s, multi-policy, multi-car,
age and gender, paid in full, loyalty and intro, two opposite approaches there, and association or jobs. so those are the eight most common discounts and again, if you want this on an infographic, go ahead and just, you know, click down in the show notes we'll connect with a pdf that you can download and you know, keep for yourself. alright?
we've got some other shine videos if you're interested in them. the first one is the new home buyers guide. 20 minute video that really digs in from the moment you decide that you want to buy a house all the way through closing and paying your mortgage payment. we kinda break the whole thing down for you. and that video is real popular on youtube
and we think for good reason, cuz it's got a lot of great information in there. five steps to a homeowners claim. if you just want to understand how homeowner's claims work or if you're experiencing a homeowner's claim, this is a great little video just to kinda walk you through real quickly how it works. and then if you just wanna laugh,
deep fried turkey fails. there's some examples of folks not behaving very well, making some poor decisions when it comes to deep-frying turkeys and you can laugh and maybe learn a little bit at the same time. finally, last steps in this video are twofold. first, please subscribe to our channel if you haven't done so already. we try and make great videos just like this one
that explain things as quickly and succinctly as possible. by subscribing to our channel, you'll make sure to get that in your inbox or in your youtube feed. and then finally, if you could just share this video with your friends and family, if you feel like it helped you out, just kinda share it with those folks out on social media. i always feel like good information is only great if you share it with others.
alright, until the next time, have a wonderful day.
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