5 Types of Car Insurance Discounts like AARP auto Insurance

70% of individuals believe that owning cars adds up the liabilities – while as a matter of fact, You can save money on car insurance without losing coverage by using discounts.

In that case, owning a car becomes like an asset.

There are many different discounts available that can help you save money on things like insurance, gas, and fixing your car.

This article covers 5 types of such insurance and their discount. 

5 Types of Car Insurance Like AARP Auto Insurance and their Discount 2024

To make sure you’re getting all the discounts you qualify for, ask your car insurance agent to check for you. 

That aside, here are 5 Types of Car discount and their discount percentage:

5 Types of Car Insurance Discounts like AARP auto Insurance

#1. Liability Insurance

First up is liability insurance. It’s super important for your car. It teams up with comprehensive and collision insurance to give you solid coverage.

If you cause an accident, liability insurance kicks in.

It saves you from paying lots of money out of your own pocket. It covers expenses you’re responsible for, like repairing the other person’s stuff or covering their medical bills. 

Your costs aren’t covered though, you’ll need something like collision or health insurance for that.

You don’t need every type of car insurance, but you definitely need liability insurance. It’s required by law in almost every U.S. state.

#2. Comprehensive Insurance

Comprehensive insurance protects your car from a bunch of bad stuff that could happen. Think wildfires, fallen trees, theft, vandalism, and more.

You pick a deductible – that’s the amount you pay before your insurance helps out. There’s also a limit based on what your car is worth.

No matter where you live or how lucky you feel, bad stuff can happen. With comprehensive insurance, you’re covered. It’s optional, but some lenders might make you get it.

#3. Collision Insurance

Collision insurance is like the flip side of liability insurance. It covers the cost of fixing or replacing your car after a crash.

It’s not required by law, but it’s smart to have. Even if you own your car outright, it’s a good idea.

Like comprehensive, collision insurance isn’t a must unless your lender says so.

But if you can’t afford to replace your car on your own, you need collision insurance. It’ll save you a ton if your car gets totaled.

#4. Full Coverage

“Full coverage” isn’t actually a policy you can buy. It’s a combo of coverages – liability, comprehensive, and collision.

If you’ve got all three, congrats, you’re fully covered.

Full coverage can also include extras like roadside assistance or medical expenses coverage. They’ll bump up your premium, but they’re worth it for the peace of mind.

#5. Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage isn’t for people without insurance. It covers your medical bills if an uninsured driver hits you or if it’s a hit-and-run. 

It doesn’t cover your car though.

Underinsured motorist insurance protects you if the other driver doesn’t have enough insurance to cover your bills. It’s important to have in case of accidents.

Benefits of Being Covered by Insurance Policies

About 40% of individuals who run away from taking insurance policies consider it as liability. But how true can that be? Let’s find out:

#1. Protection from Loss

Insurance helps ease the financial burden when things go wrong, providing money when you need it most.

It not only saves you from financial stress but also helps ease your mind during tough times.

#2. Peace of Mind

Having insurance gives you a sense of security. You pay a bit of your income to ensure you’ll have help down the line if something bad happens.

This assurance means you’re covered for accidents, emergencies, or other unexpected events.

#3. Sharing the Risk

Insurance works by spreading the risk among many people. Instead of one person bearing the full burden, everyone chips in a bit through premiums.

This way, when someone needs help, there’s a fund ready to support them.

#4. Assessing Risk

Insurance companies evaluate how likely it is that something bad will happen and how much it might cost. 

They use this information to determine how much coverage you need and how much you’ll pay.

This way, you’re protected from unforeseen events and their consequences.


Always read the fine print and understand exactly what the discount covers before getting too excited about potential savings.

For instance, if you see a discount advertised as “up to 40% off,” it doesn’t mean you’ll automatically get 40% off your whole bill. 

Getting cheap car insurance is great, but don’t be fooled by discounts that seem too good to be true.

Additionally, insurance companies also use the money they collect from premiums to invest in things like stocks and bonds, helping.

By this they make more money and protect themselves from losses

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