Best States for Auto Insurance Discounts

Auto insurance discounts study shows best states for saving money

Auto insurance companies use discounts to compete for business and keep current customers happy. But how hard will you have to search to find a discount, and how much money can you expect to save?

Insure.com analyzed the availability and savings potential of 49 discounts in every state for several large car insurance carriers, collecting data on 24,988 potential discounts nationwide.

This discount information is now searchable in an easy-to-use auto insurance discounts tool on the Insure.com website.  Results are personalized to show discounts for which users are likely to be eligible.

“The right discount can knock hundreds of dollars off your car insurance bill,” said Insure.com editorial director Amy Danise. “But some may not be worth switching companies for. Drivers should also take into account that an insurer offering a big discount might also have a high base rate. That means you might save less than you expected.”

Missouri, Connecticut, Indiana and Wisconsin have the most potential discounts, with savings available more than 32 percent of the time. (See list below.)

Hawaii and North Carolina have the lowest number of available discounts, with carriers offering only 14 percent and 13 percent, respectively, of the discounts surveyed.

How discount-friendly is your state?

Here’s a look at the availability of the 49 discounts surveyed:

1. Missouri – 33.1%
2. Connecticut – 32.6%
3. Indiana – 32.3%
4. Wisconsin – 32.1%
5. Iowa – 31.7%
6. Kansas – 31.3%
7. Oklahoma – 31.1%
8. Nebraska – 30.2%
9. Pennsylvania – 30.1%
10. Kentucky – 30.1%
11. Ohio – 30%
12. Arizona – 29.9%
13. Alabama – 29.8%
14. Colorado – 29.7%
15. Maryland – 29.2%
16. South Carolina – 29.2%
17. New Mexico – 29.2%
18. Oregon – 28.6%
19. Florida – 28.4%
20. Tennessee – 28.4%
21. Illinois – 28.2%
22. Maine 28.2%
23. Arkansas 28.2%
24. California 28.1%
25. Minnesota – 28%
26. New Hampshire – 27.8%
27. North Dakota – 27.4%
28. Nevada – 27.3%
29. Mississippi – 27.2%
30. West Virginia – 27%
31. Georgia – 26.9%
32. Utah 26.9%
33. Virginia 26.9%
34. Idaho – 26.7%
35. Washington – 26.4%
36. Delaware 25.9%
37. Alaska 25.2%
38. South Dakota – 23.7%
39. Montana – 23.5%
40. New Jersey 23.5%
41. Washington, D.C. 23.3%
42. Wyoming – 23%
43. Rhode Island – 22.9%
44. Texas 22.1%
45. Louisiana – 21.4%
46. Vermont – 21.2%
47. Michigan – 20.9%
48. Massachusetts – 20.5%
49. New York – 20.3%
50. Hawaii – 14.5%
51. North Carolina – 13.2%

Good students (under age 25) can garner some the richest auto insurance discounts around. Marital status and low annual mileage also ranked highest for average savings. But the amounts can vary widely, with some auto insurance companies offering savings topping 25 percent while others offer single-digit savings for the same discount.

How big will that discount be?

Average discount savings (nationwide):

• Good Student – 16%
• Marital Status – 14%
• Annual Mileage – 11%
• Use of Car – 10%
• Concurrent Home Policy – 9%
• Payment Type – 9%
• Days Advanced Purchase – 8%
• Residence Type/Occupancy – 6%
• Persistency/Renewal Months – 6%
• Concurrent Life Policy – 4%
• Electronic Funds Transfer – 4%
• Attained Degree – 4%
• Vehicle Ownership – 4%
• One-Way Commute – 4%
• Days Per Week Driven – 4%

The easiest-to-find discounts

Some discounts are hard to find, such as those based on college and graduate degrees. Customers are most likely to find savings based on having a “good student“  driver or buying a homeowners, renters or condo insurance policy from the same company.

Percentage of time a discount is offered:

• Good Student – 77%
• Concurrent Home Policy – 68%
• Payment Type – 46%
• Marital Status – 41%
• Driver Training – 41%
• Use of Car – 40%
• Concurrent Life Policy – 37%
• Persistency/Renewal Months – 36%
• Electronic Funds Transfer – 34%
• Days Advanced Purchase – 26%
• One-Way Commute – 22%
• Residence Type/Occupancy  – 21%
• Annual Mileage – 13%
• Days Per Week Driven – 8%
• Vehicle Ownership –  7%
• Attained Degree – 6%

Insure.com’s discount tool is available at http://www.insure.com/car-insurance/discounts/

Methodology

Insure.com ran “base rates” for several carriers in each state for a 25-year-old single male driver with a high school degree, among other attributes. We then changed one parameter in the driver’s profile and ran the new rate – for example, we made him married, or a homeowner or a loyal customer. (Good student rates were run for age 18.) We then calculated the percentage difference between the two rates to determine the discount.

About Insure.com

Insure.com provides a comprehensive array of information on auto insurance, home insurance, health insurance, and life insurance. The site offers an extensive library of originally authored insurance articles and decision-making tools that are not available from any other single source.  Insure.com is owned and operated by QuinStreet, Inc. (NASDAQ: QNST), one of the largest Internet marketing and media companies in the world. QuinStreet is committed to providing consumers and businesses with the information they need to research, find and select the products, services and brands that best meet their needs. The company is a leader in visitor-friendly marketing practices. For more information, please visit QuinStreet.com.

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