Auto Insurance Discounts (2024)

Auto insurance discounts are an easy way to lower your rates since auto insurance can be costly, and the best auto insurance companies offer various ways to save.

Discounts for car insurance usually fall into three categories: driver, policy, and vehicles. Examples include safe driver, multi-car, and anti-theft auto insurance discounts. So, you can still find affordable auto insurance for drivers with a bad driving record.

However, not all companies offer the same discounts, and discount amounts also vary. In addition, most discounts for car insurance only apply to certain coverages, not the entire policy. Learn how to get a multi-vehicle auto insurance discount by carefully comparing discounted rates from various companies. Pay close attention to eligible car insurance discounts to secure your best deal.

Keep reading to learn about discount car insurance and ways to earn savings on auto insurance. Policyholders with a proven track record of safe driving qualify for the good driver auto insurance discount, which gets you cheaper auto insurance premiums.

Common Types of Auto Insurance Discounts

There are various factors that affect auto insurance rates when you get a quote from a company, including age, driving record, vehicle, and ZIP code. Unfortunately, every driver’s factors are different, so rates vary widely based on the driver and insurance company.

Since coverage is so expensive, the best auto insurance companies reward extra savings to drivers with specific characteristics. Most car insurance companies base discounts on the driver, policy, and vehicle. Since so many discounts are available, most drivers can save considerably on their policies.

Common Auto Insurance Discounts

Vehicle Discounts	Driver/Customer Discounts	Personal Discounts
Active Disabling Device	Claim Free	Emergency Deployment
Adaptive Cruise Control	Continuous Coverage	Family Legacy
Adaptive Headlights	Defensive Driver	Family Plan
Anti-Lock Brakes	Driver's Education	Federal Employee
Audible Alarm	Driving Device/App	Further Education
Automatic Braking	Early Signing	Good Student
Blind Spot Warning	Full Payment	Homeowner
Daytime Running Lights	Good Credit	Life Insurance
Economy Vehicle	Loyalty	Married
Electronic Stability Control	Multiple Policies	Membership/Group
Farm/Ranch Vehicle	Multiple Vehicles	Military
Forward Collision Warning	New Customer/New Plan	New Address
Garaging/Storing	Occasional Operator	New Graduate
Green/Hybrid Vehicle	Online Shopper	Non-Smoker/Non-Drinker
Lane Departure Warning	On-Time Payments	Occupation
Newer Vehicle	Paperless/Auto Billing	Recent Retirees
Passive Restraint	Paperless Documents	Stable Residence
Utility Vehicle	Roadside Assistance	Student Away
Vehicle Recovery	Safe Driver	Student or Alumni
VIN Etching	Seat Belt Use	Volunteer

Read more: How to Get an Anti-Lock Brakes Auto Insurance Discount 

Remember that each insurance company chooses what types of auto insurance discounts to offer and the savings amount. So while one company may offer a 25% discount, another company may only provide a 10% savings or no discount at all.

In addition, each car insurance company determines when you’re eligible for a discount. For example, you may have to be with the company for several years to qualify for a loyalty discount.

Best Auto Insurance Discounts by Insurance Provider

When you shop for auto insurance, compare discounts, rates, and coverages. Discounts may make the difference in which company is cheaper for you.

Now we’ll look at the categories of auto insurance discounts potentially available to you.

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Driver-Related Auto Insurance Discounts

Your personal characteristics may help you find discount auto insurance. Everything from your driving record to where you work can save you money. Auto insurance companies offer savings for traits that make you a safer driver and save them money.

Let’s look at some driver-related discounts and how you can take advantage of them.

Safe Driver Auto Insurance Discount

It’s not a surprise that your driving record affects your auto insurance rates. Drivers with accidents, tickets, or DUIs pay much higher rates than drivers with clean record. Learn how auto insurance companies check driving records here.

Additionally, your driving record can earn you up to a 35% good driver discount on car insurance. Drivers who stay accident or claims-free for some time earn significant discounts since they’re less likely to cost the insurance company. The amount of time you must be accident-free and the safe driver discount amount varies by company. 

However, don’t worry if your driving record isn’t clear. In most states, accidents and tickets stop affecting auto insurance rates in three to five years. So, avoid adding dings to your driving record to get lower rates and earn a significant safe driver car insurance discount.

Defensive Driving Course Auto Insurance Discount

Defensive driving course requirements vary by state but typically teach essential, safe driving skills, such as how to drive in bad weather, avoid road rage, and the dangers of distracted driving. You can also earn a defensive driver auto insurance discount to lower your rates upon completion of a defensive driving course.

An important reason why you should take a defensive driving class is because it helps drivers avoid accidents. In addition, some states remove driver’s license points for taking the class, and some also allow you to take the class online at your own pace.

Good Student Auto Insurance Discount

While specifics vary by company, students with a high GPA earn a good student auto insurance discount, lowering notoriously high rates for younger drivers.

Most insurance companies require the student to maintain at least a B average, be enrolled full-time in high school or college, and be under 25 years of age. While requirements vary, you can earn a 25% good student discount on auto insurance for young adults, bringing high coverage rates down to a reasonable cost.

Driver’s Education Auto Insurance Discount

Drivers ed teaches new drivers how to drive safely, and most states require underage drivers to complete a course to get a license. Although driver’s ed is similar to a defensive driving course, it teaches young drivers the rules of the road in addition to safe driving skills.

Combine your good student and driver’s ed auto insurance discount for significant savings on auto insurance for teens. 

Away Student Auto Insurance Discount

Students away at school without a car earn a discount since they only drive when they’re home.

Although requirements vary, students typically must be enrolled full-time in school at least 75 miles from home and not take a vehicle. In addition, since the student lacks access to a car most of the time, most insurance companies offer significant savings. Learn more about auto insurance for children at college here.

Married Driver Auto Insurance Discount

Auto insurance companies offer an insurance discount for being married since statistics show that they’re less likely to engage in risky behaviors and are safer drivers. In addition, many married couples chose to bundle their insurance, resulting in more significant savings. Read more about the best auto insurance companies for married couples.

Remember that only about half of the top insurance companies offer a discount for married drivers. So, let your insurance company know if you’ve had significant life events like getting married because you may qualify for additional savings.

Military Auto Insurance Discount

Many auto insurance companies offer discounts of up to 15% for active and retired military members and their families. Expected savings include military, garaging, and deployment discounts.

For example, you can get a Geico auto insurance discount of 25% if a service member is deployed to an imminent danger area and stores their vehicle.

Although many insurance companies offer military discounts, USAA auto insurance only provides coverage to military members and their families. So, there isn’t a particular USAA military discount, but rates are generally much lower with USAA, even without the discount.

Read more: Auto Insurance Discount for Navy Federal Members

Disabled Veteran Auto Insurance Discount

A few companies offer disabled veteran auto insurance discounts. On average, disabled veterans can save 10% on their car insurance premiums.

Affiliation Auto Insurance Discount

Many insurance companies offer a specialized first responder auto insurance discount, acknowledging the crucial contributions of these dedicated professionals in the community. First responders and teachers generally receive up to a 15% discount on auto insurance. Learn more about auto insurance for teachers.

Some insurance companies also offer discounts based on the organizations and schools you’re a part of. Examples include AAA, AARP, various colleges, fraternities, sororities, and student organizations.

Low-Mileage Auto Insurance Discount

Some companies also offer up to 30% discounts for low mileage on auto insurance. Insurance companies know that less time on the road means a lower chance of an accident. Read more about auto insurance for infrequent drivers.

So, you might wonder whether annual mileage affects auto insurance rates. You must show proof of your mileage every year to qualify for a low-mileage auto insurance discount.

Policy-Related Auto Insurance Discounts

You may also be eligible for discounts based on your policy. So whether you have multiple cars or like to pay your bills online, you can save money.

Every car insurance company offers various discounts related to your policy, and not all companies offer the same discounts. Most auto insurance policyholders qualify for multiple discounts, such as multi-policy and paperless discounts. Adjust how you pay your bill and when you renew for easy ways to save.

Multi-Vehicle Auto Insurance Discount

Drivers save up to 25% if they insure more than one vehicle with the same company. In addition to getting a multi-vehicle auto insurance discount, it’s also easier to have all of your cars insured together.

Many insurance companies have apps that allow you to access all of your information in one place. Read more about the best auto insurance companies for multi-vehicle households.

Multi-Policy Auto Insurance Discount

Many companies offer discounts of up to 25% if you have multiple policies, such as bundling home, auto, boat, and personal liability coverage.

Insurance companies typically offer many insurance products that allow you to use one company for all your insurance needs. Not only does bundling all of your needs make it easier for you, but the insurer gains more policies. Learn more about how to save money by bundling insurance policies.

With many companies, you save more when you bundle more policies and may get additional savings on your other policies. For example, you can get 25% off of your auto insurance by bundling your home and auto, and you may save on your home insurance too.

Paid-in-Full Auto Insurance Discount

How you pay for auto insurance can also save you money. For example, you may qualify for a discount if you pay in advance or make payments.

So, how do auto insurance payments work? Many auto insurance companies offer a paid-in-full discount of up to 15% for drivers who pay their entire policy at the start. In addition, some companies offer savings if you choose to set up automatic payments throughout your term.

Read more: How to Get an Electronic Automatic Billing Auto Insurance Discount

Early Signing Auto Insurance Discount

If you renew your policy or start a new one 14 days before your current policy expires, you can get up to a 12% discount on car insurance. 

However, each company decides just how far in advance you need to sign up to receive the discount. While most companies prefer at least 14 days, some offer savings for less time.

Paperless Auto Insurance Discount

Many insurance companies offer a discount if you access your account through the app and get policy information online. Since most drivers prefer taking advantage of online options, discounts are usually around 5%.

Loyalty Auto Insurance Discount

Staying with your insurance company for multiple terms saves you money through the customer loyalty auto insurance discount. The required duration to qualify for the discount varies among companies. Although you can save up to 5% with a loyalty discount, not every company offers it.

Remember that the best way to save money is to shop around. So, although you may lose your loyalty discount, you may find much lower rates elsewhere.

New Customer Auto Insurance Discount

Switching auto insurance companies can mean lower rates and an extra one-time discount when you switch. However, Liberty Mutual auto insurance is the only one that offers a new customer discount from top companies. 

In addition, some companies offer a discount of up to 12% for getting an online quote. Learn more about how to get a free auto insurance quote online.

Vehicle-Related Auto Insurance Discounts

You may be surprised to learn that your vehicle can also lower your rates. While auto insurance on new or expensive cars is higher, there are ways to save.

When looking for discount car insurance, give accurate vehicle information to earn the most discounts. In addition, let your insurance company know if you’ve added features like an additional anti-theft device.

Many vehicle discounts only apply to your collision or comprehensive coverage. For example, comprehensive insurance covers a stolen vehicle — so anti-theft discounts only apply to that coverage.

New Car Auto Insurance Discount

A new car auto insurance discount is readily available due to the abundance of safety features in modern vehicles, which effectively reduce the risk of accidents. This exclusive 15% discount is typically applicable to cars less than three years old.

Anti-Theft Auto Insurance Discount

Most cars now come with anti-theft features, such as VIN etching and car alarms, which can save drivers up to 25% on their auto insurance. Be sure to inform your insurance company if you install anti-theft devices aftermarket to get the discount.

GPS tracking programs like OnStar and LoJack reduce insurance rates because they help recover your vehicle if it’s stolen. Since your comprehensive insurance covers stolen cars, that’s where your discount applies.

Remember, not all insurance companies offer identical discount amounts. For example, State Farm auto insurance discounts for anti-theft devices are as much as 15%. However, Geico auto insurance offers up to a 25% discount for the devices.

Safety Features Auto Insurance Discount

Auto insurance companies understand that the safety features of your car save them money. Not only do these features keep you safe, but they also help you avoid an accident and reduce claims.

Some insurance companies offer a general safety feature discount, and others give up to 5% discounts for each feature individually.

Standard safety features include airbags, seat belts, daytime running lights, cameras, automatic braking, lane assists, electronic stability control, and antilock brakes.

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Usage-Based Auto Insurance Discounts

How you drive your car can also help you get discount car insurance. Many larger auto insurance companies offer telematics programs that offer usage-based discounts, such as State Farm Drive Safe and Save, Allstate Drivewise, Liberty Mutual RightTrack, and Progressive Snapshot.

Typically, the insurer uses an app to track specific driving behaviors, such as speeding, phone use, acceleration, and hard braking. Then, you receive a discount based on how well you score.

This table shows usage-based auto insurance programs from top insurers and the saving amount offered.

Usage-Based Auto Insurance Savings by Provider

Keep in mind that some insurers raise your rates if you score poorly. Although telematics can make you a safer driver with immediate feedback, you don’t want your rates to increase either. For drivers with safe driving habits, usage-based discounts offer significant savings. 

Best Auto Insurance Companies for Discounts

When it comes to auto insurance, there isn’t a one-size-fits-all solution. Instead, your personal characteristics determine your rates and discounts. Additionally, each car insurance company determines discount amounts.

To get started, the map below shows the average full coverage auto insurance rates by state:

This table shows auto insurance discounts from top insurance companies. Remember, not all insurance companies offer the same discounts, so look carefully to see which insurer can provide you with the most savings:

Auto Insurance Average Monthly Rates by Coverage Type and Provider

Insurance Companies	Liability Rates	Full Coverage Rates
Allstate	$61	$160
American Family	$44	$117
Farmers	$53	$139
Geico	$30	$80
Liberty Mutual	$68	$174
Nationwide	$44	$115
Progressive	$39	$105
State Farm	$33	$86
Travelers	$37	$99
USAA	$22	$59

Compare discounts and rates when shopping for car insurance. Discounts may determine which company is cheaper for you.

Read the fine print when looking at discounts — some discounts are up to a certain percentage, meaning you may not qualify for the total discount. Also, car insurance companies don’t automatically apply discounts to your policy, so you may have to ask for specific discounts.

Tips to Get the Cheapest Auto Insurance With Discounts

Add discounts to your car insurance policy to get significantly cheaper rates. There are also other ways to get the lowest auto insurance rates available.

First, shop around. As we discussed, each company offers different discounts and rates. Compare multiple companies to find your cheapest auto insurance.

Next, learn what discounts are mandatory and available for you in your state. Then, ask for all eligible discounts, and bundle them for the most savings. Since not all discounts are automatic, you need to know what you’re eligible for and what your state requires. For example, all insurers in Louisiana must offer active duty military personnel a 25% military discount, according to the Louisiana Department of Insurance.

Remember, many discounts are up to a certain amount and don’t apply to your entire policy. For instance, some discounts only apply to comprehensive auto insurance coverage. So pay careful attention to the discounts your auto insurance company offers to know precisely how much you’re saving.

Also, change your personal factors to get the lowest car insurance rates. For example, improve your credit score and keep your driving record clean to get lower rates. You can also lower coverage and raise auto insurance deductibles to get the cheapest coverage possible.

In addition, think carefully when you buy a new car. You might wonder whether the age of a car affects auto insurance rates. Newer or more expensive cars have higher auto insurance rates since repair costs are higher.

Finally, make changes to your policy to add more discounts. So should I pay my auto insurance in full? Pay in full, go paperless and renew early to save even more. See what car insurance discounts your insurer offers and learn how to take advantage of as many as possible.

Read more: How to Get a Persistency Auto Insurance Discount

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How Auto Insurance Discounts Can Help to Lower Your Auto Insurance Premium

Discounts are an easy way to get cheap auto insurance rates if you’re struggling with expensive coverage. For example, discounts can bring your rates down to normal if you have high rates due to a bad driving record.

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— AutoInsurance.org (@AutoInsurance) May 2, 2023

Car insurance companies typically base discounts on the driver, policy, and vehicle. Most insurers allow you to bundle eligible discounts for the most significant savings. When shopping for insurance, compare discounts and rates. Every insurance company offers different discounts, and the discount amount also varies.

Common types of auto insurance discounts include safe driver, good student, multi-car, and occupational discounts. Many top insurance companies also offer usage-based discounts, which use telematics to monitor specific driving habits. How safely you drive determines your discount.

Shop around and obtain quotes for auto insurance for the most affordable prices.

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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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