The average cost of auto insurance in Arizona is estimated to be between $1,247 and $1,355. In comparison, the national average is reported to be between $1,365 and $1,425. Insurers calculate auto insurance premiums based on various factors including your location, driving record, credit score, gender, age, and more. The majority of insurers offer different types of discounts. These discounts may be small or potentially save you up to 25% on your car insurance.
Discounts to Offset Rising Premiums
According to ABC15 News in Phoenix, auto insurance rates in Arizona rose by almost 30% from 2014 to 2018. Janet Ruiz, with the Western Insurance Information Institute, explained that some increases are the result of new forms of technology being added to vehicles. Features such as rear cameras and heated seats are common in new vehicles. Insurers recognize that these advancements lead to higher costs for replacement parts following an accident. Ruiz says that prices may stabilize as the new advanced safety features begin to reduce the volume and severity of crashes. In the meantime, consumers are encouraged to determine what potential discounts they may qualify for to reduce insurance price increases.
In business, demographics are sets of characteristics that statistically identify populations and segments of the marketplace. One type of discount that insurers commonly offer is marketed as “senior” or “retiree” discounts. Often, these discounts are geared towards those over the age of 55 or 65. Another commonly seen discount applies to homeowners. Those who own a house or condo may find offers that provide some savings. Some insurance companies offer discounts to those who bundle their auto and homeowners insurance policies, as long as the policies are with the same company.
Students may receive discounts as well. Those in high school or college may qualify for “good student” discounts as long as they maintain good grades. Many insurers think students with higher grade point averages are more responsible and are less likely to be involved in accidents. Qualifying for these academic discounts may be based on grade point averages or other academic thresholds. Insurance companies may seek to attract young drivers who could potentially develop into loyal, long-term customers.
Discounts for Groups & Affiliations
Some auto insurance discounts are available for those who are members of certain groups, clubs or have other affiliations. Those associated with the military are likely to qualify for discounts. Many discounts are for those in active duty military service, veterans and their family members. Drivers who are members of AAA or AARP are commonly afforded discounts as well. Some insurers will market their discounts to business associations or alumni groups. School teachers are often able to qualify for car insurance discounts as well.
Discounts for Customer Loyalty or Preferred Payment Methods
A discount incentive may be offered for younger drivers who choose the insurance company that their parents use. Often young drivers are simply added to their parent’s policies. Adding teenage drivers to the policy can be costly because they are viewed as higher risk. Parents may encourage younger drivers to obtain their own insurance coverage. In this situation, an insurer may employ a “legacy” discount. Customer “loyalty” discounts are also common for those who have maintained coverage for some period of time. If your policy is expiring soon, a competing insurer may be willing to provide you with a financial incentive to switch.
Many insurance companies impose a “billing fee” for those who make monthly installment payments on their policies. This cost can be avoided by paying for the policy in advance—often a six-month period. Many insurers also offer discount incentives for automating processes associated with billing. These may include enrolling in their “automatic” program for electronically paying your premium. This is where payments are made via bank account or credit card as a form of “paperless” billing.
Discounts for “Bundling”
Most insurance companies that offer a variety of different insurance products offer “multi-policy” discounts. For example, those who also have their homeowners or life insurance with their auto insurance provider will be eligible for discounts. Those who have multiple cars or add a motorcycle or recreational vehicle may also receive discounts. Often, in addition to enjoying discounts, insurance customers prefer the added ease and convenience of having their policies with a single company.
Discounts Based on Driving History, Mileage & Training
Drivers with a clean driving record, which does not contain traffic violations or accidents, will generally obtain better auto insurance rates. Some insurers also offer discount incentives for avoiding accidents and insurance claims. These may be called “good driver” or “accident-free” discounts. Some companies offer specialty auto insurance policies for those who do very little driving. Several start-up insurance companies have also introduced policies that use a form of automated tracking for “pay-per-mile” coverage. Low-mileage policies through mainstream carriers may be available for those who drive less than 7,500 miles annually.
Some insurers will offer discounts for completion of a recognized defensive driving program or educational course. There are limited standards within the car insurance industry for such discounts; however, they may be available to you. Often these educational programs cost drivers as little as $25.
As technology has progressed, some insurance companies have employed methods of monitoring driver behavior. For example, customers who are willing to plug in tracking devices to the vehicle’s diagnostic system can earn discounts. These devices are capable of detecting the driver’s speed of acceleration, sudden braking, and the amount of time spent driving. To qualify for a discount the driver may have to allow for a lengthy monitoring period to demonstrate safe driving habits.
Vehicles that have certain features and equipment may also qualify for discounts such as:
- Vehicles with automatic daytime running lights that turn on when driving. This feature makes the vehicle more visible to others on the road and reduces the likelihood of collisions.
- Some insurers have offered discounts for those insuring hybrid or electric vehicles. These discounts are commonly referred to as “green vehicle” or “eco-friendly” driver discounts.
- Installing a vehicle security system or anti-theft devices may qualify you for discounts that will save money on comprehensive coverage.
- A few insurance companies will offer discounts for many of the advanced safety features available on newer vehicles. Some of these include sensors that monitor the driver’s blind-spot and automatic emergency detection and braking systems.
Agency for Automobile Insurance in Casa Grande
Those who are seeking auto insurance offering superior protection at an affordable price are encouraged to contact The Gebhardt Insurance Group. Our customers benefit from our ability to assess their specific insurance needs. We can find the right solution for you among the dozens of car insurance companies we work with. Call (520) 836-3244 to speak with one of our friendly insurance professionals today!