Are you buying a new car? Some auto insurance companies provide a discount for this type of purchase. It is one of the best ways to reduce your car insurance costs.

There are limitations on this discount, however. It often does not apply if the vehicle is older, for example. However, it can be ideal for anyone who is planning to purchase a new car.

Though many insurance agencies automatically apply this discount to your new policy, not all will. It is important for you to ask about it to ensure you obtain it.

When Does the New Vehicle Discount Apply?

Each insurer sets their own rules and requirements for the application of discounts. In this case, there's no exception. Most importantly, the vehicle needs to be brand new. That is, you are purchasing off the lot from a dealership. Many auto insurance companies require drivers to purchase the current model year. Some extend this requirement an extra model year, though. If you buy a new vehicle, but it is a year older, this discount can still apply.

What Is the Cost Savings for This Discount?

Again, each insurer is a bit different. However, most will provide a discount on the insurance protections you need of up to 15 percent. Some offer 10 percent. The amount of the discount depends on the vehicle, type of policy, and features you choose.

Why Is This Discount Present?

New vehicles are safer. They typically have no known flaws. Most carry a significant warranty for their protection. Drivers can expect to save money on features, too. If your new car features a security system or anti-lock brakes, this can increase your discounts. Anti-theft technology, in particular, is available in a growing percentage of newer cars.

Overall, insurers offer the new vehicle discount to drivers because these vehicles are considered a safe option with few known safety risks.

This is just one type of auto insurance discount available to you. Most drivers should expect to get other discounts as well. Discuss options for savings with your insurance agent. You may qualify for a multi-car discount, a bundling discount if you use numerous policies or a safe driver discount.

Most insurers are happy to help with discounts. They want you to be able to afford coverage. And, they want you to be a safe driver. They also want to keep your business, and discounts are a great way to reward customer loyalty. Take the time to ask Auto Insurance Discounters agent about this type of savings.