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Car Insurance Discounts - Save On Your Auto Policy

Auto insurance companies offer discounts that can lower your "premium," the agreed-upon dollar amount you must pay to receive auto insurance coverage for a specified period of time. Some of the best discounts are multi-car discounts, which apply to a policy that covers more than one vehicle, and multi-policy discounts, which apply when a customer purchases more than one type of insurance from the same carrier (usually, home and auto).

Some of the best discounts are multi-car discounts.

But there are a lot of other auto insurance discounts, too. For example, you can get a discount for staying accident-free, having a car with safety or anti-theft devices, renewing your policy early or paying in full, maintaining low mileage, purchasing a new car, garaging your vehicle for a long period of time and taking a defensive driver or driver education course.

While every auto insurance company offers discounts, every carrier's discounts have their own restrictions on eligibility, availability and savings. For example, USAA offers a discount for low mileage, but the discount is not available to policyholders who reside in Hawaii and North Carolina. 

While auto insurers put a cap, or limit, on the percentage of savings an individual policyholder can receive at any given time, many auto insurance customers can see an overall savings of 30% on their insurance rate after applying several discounts. That savings can really add up, especially over the long haul.  Here's more.

What Are the Best Car Insurance Discounts?

Ready to save big? Below, we summarize how to claim the most common car insurance discounts (so you can add those savings back into your pocket).

Discount Type

Conditions

Multi-Car Bundling

Have more than one car under the same auto insurance policy

Multi-Policy Bundling

Bundle your car insurance with another policy (e.g., homeowners, condo, renters, life insurance)

Electric and Hybrid Car Drivers

Drive an electric or hybrid car

Anti-Theft Devices

Install features that help prevent auto theft (e.g., car alarms, kill switches, VIN etching)

Defensive Driver

Complete an insurer-approved course about safe driving strategies (typically available to drivers 55+ years old)

Driver Education

Complete driver education courses that teach safer driving practices (typically available to drivers 25 years old and younger)

Early Bird

Renew your auto insurance policy before its effective date

Friends and Family

Be a relative or friend of an existing policyholder

Good Driver

Adopt safe driving behaviors and hold a claims history free of at-fault accidents for a certain period

Homeowner

Be a homeowner (does not always require purchasing a homeowners policy)

Low Mileage

Your vehicle's mileage falls below a certain threshold

Affinity

Belong to a certain group (e.g., military, school, clubs)

New Car

Register for car insurance with a recently purchased vehicle

Occupation

Hold a certain job or title (e.g., educator, first responder)

Preferred Payment

Register for automatic payments, pay your full policy upfront or pay online

Renewal/Loyalty

Renew your policy with the same insurance company

Safety Features

Install devices that contribute to safer driving or drive a vehicle with those features pre-installed (e.g., anti-lock brakes, adaptive headlights, backup cameras)

Storage

Your vehicle is garaged for an extended period

Good Student

Earn good grades and achieve academic accolades

Student-Away-at-School

Driver's school campus is a certain distance away from home and driver does not have regular access to the vehicle

Telematics

Opt in for technology that tracks the driver's driving behaviors (e.g., speeding, braking, driving hours)

Multi-Car Bundling

If you have more than one car on the same auto insurance policy, you can get a multi-car discount. However, every vehicle on the policy doesn't have to have the same amount of coverage. For example, if you are driving a brand-new financed car, you'll probably want liability, collision and comprehensive coverage at the very least, but if your spouse has an old car that's completely paid for, your spouse may opt for only liability coverage. No matter the amount of coverage on each car, you'll still be eligible for a multi-vehicle discount.

Multi-Car Discounts

Company

Discount

AAA

Up to 27%

Amica

Up to 25%

Geico

Up to 25%

Farmers

Up to 15% with Signal app

Progressive

4%

Multi-Policy Bundling

Most insurance companies offer savings when you bundle your car and home insurance policies, whether your auto insurance policy covers a car, a truck or, say, a motorcycle and your home insurance policy covers a single-family house, a condo or, say, a mobile home.

With a "combined deductible" you pay only one deductible no matter how many claims you file for the same loss event.

Some companies provide "combined deductibles" when you bundle, which means you have to pay only one deductible no matter how many separate claims you file for the same loss event. Say your car was stolen with your laptop in it and you bundle home and auto: you'd only pay one deductible even though your laptop would be covered by home insurance and your auto would be covered by comprehensive car insurance.

Bundle Discounts

Company

Home

Condo

Renter

State Farm

Up to $965

N/A

$722

Nationwide

$646

N/A

N/A

Amica

Up to 30%

Up to 30%

Up to 30%

American Family

Up to 29%

Up to 29%

Up to 29%

Allstate

Up to 25%

N/A

N/A

Erie

16%-25%

Up to 20%

Up to 20%

Acuity

Up to 20%

Up to 20%

N/A

Farmers

20%

15%

15%

Progressive

20%

5%

5%

Travelers

Up to 10%

N/A

N/A

USAA

Up to 10%

Up to 10%

Up to 10%

Hartford

Up to 5%

Up to 5%

Up to 5%

Other Common Car Insurance Discounts

On top of bundling, drivers can enjoy discounts earned through safer driving, saving the environment, completing driver education courses and more. The following discounts are standard offerings in the auto insurance industry:

Electric and Hybrid Car Discounts

Highlighting the need for a greener planet and encouraging positive action, some auto insurers give a discount to drivers whose vehicles run on electricity. For example, Farmers, Travelers, Liberty Mutual, Mercury Insurance and The Hartford offer eligible drivers a discount on hybrid and electric vehicles.

Anti-Theft Devices Discount

 To help combat auto theft, many auto insurers will lower an auto insurance rate when the insured vehicle has one or more of the following anti-theft devices:

  • Audible car alarms

  • The Club and other manual disabling devices

  • Kill switches, which cut off a car's electricity

  • Transponder keys and other automatic disabling devices

  • Remote disabling devices

  • Vehicle identification number (VIN) etching

  • OnStar, LoJack and other, perhaps GPS-enabled tracking devices

Geico offers a discount of up to 25% to policyholders who install an anti-theft alarm system in their vehicle, which applies to the cost of comprehensive coverage. 

Keep in mind that while not required by any state, comprehensive insurance is the only coverage that will replace your stolen vehicle when it is not recovered.

Defensive Driver Education Discount

Defensive driving means vigilant, risk-averse driving despite road conditions and the actions of others. Allstate, Costco, Dairyland, Farmers, Geico, MetLife, Nationwide, State Farm, Travelers and other auto insurance carriers offer a discount for policyholders who take an insurer-approved course on defensive driving. 

AAA's defensive driver discount can shave as much as 20% off a policy. Safeco's defensive driver discount lasts for three years but is only available to policyholders who are 55 years old or older. A typical course covers the following areas:

  • Scanning the roadway and adapting to surroundings

  • Following and stopping distances

  • Adjusting speed to suit road conditions

  • Reaction times

  • Road hazards (e.g., railroad crossings) and vehicle emergencies

  • Right-of-way, passing and sharing-the-road strategies

Driver Education Discount

Auto insurers offer savings opportunities when you complete driver education courses because they raise your awareness of driving dangers. Geico, The General, The Hartford and most other carriers offer these programs. 

Infinity offers a discount to California and Florida drivers who are at least 55 years old who participate in the Mature Driver Improvement Course, which discusses how aging affects driving abilities, brushes up drivers' behind-the-wheel skills, and explains new traffic laws and new vehicle technology, among other topics.

AAA promises a discount of up to 4.7% when your teen driver successfully completes an approved driver education course. Encouraging "young drivers to think more about safety and practice safe driving habits," State Farm's robust Steer Clear program has several requirements to achieve certification:

  • Participants must be under the age of 25 and have a driver's license but no at-fault accidents or moving violations in the previous three years.

  • Complete five training modules, which involve instructional videos, driving scenarios and quizzes.

  • Complete five hours of driving in at least 10 trips.

  • Receive mentoring from a family member or friend who will "monitor and guide" the participant's driving

Early Bird Discount

Many carriers provide a discount for signing up or renewing a policy early. Auto insurance companies frown on lapses in auto insurance coverage. In fact, many carriers consider drivers who let their policy lapse to be high-risk drivers, and high-risk drivers always pay higher-than-average insurance rates. 

Many carriers provide a discount for signing up or renewing a policy early.

For example, if you purchase an American Family policy at least seven days before your previous carrier's policy runs out, you'll get a discount. Similarly, you can snag Allstate's "early signing" discount of up to 10% when you sign your policy at least seven days before the policy's effective date, while Nationwide offers a discount of at least 3% for signing up 10 days early.

Early Bird/Renewal Discounts

Company

Discount

Farmers

Up to 15% with Signal app

Allstate

Up to 10%

American Family

Up to 10% 

Nationwide

Starting at 3%

American Family

10% 

Find Car Insurance With the Most Discounts

Family Discount

In a way, the family discount is a kind of loyalty discount. USAA offers a 10% discount to USAA auto insurance customers whose parents have a separate USAA auto policy. Any time a vehicle is added to a single Nationwide "family plan," the savings benefit not only the new driver but everyone else listed on the policy. 

Pro tip: If a young, inexperienced driver lives in your household, that driver will most likely get a cheaper rate if they are added to your existing policy, rather than paying for a separate policy

Good Driver Discount

Allstate, Geico, Liberty Mutual, Nationwide, State Farm, Travelers and many other auto carriers offer those that practice safe driving and avoid at-fault accidents a way to save on their premium. Also known as a "safe driver" discount, the requirements for obtaining the good driver discount can vary by the auto insurer. For example, Geico's good driver discount applies if the policyholder has been accident-free for at least five consecutive years. Allstate's Safe Driving Bonus program gives policyholders a bonus every six months if they don't have an accident, and the accumulated discounts are directly deposited to the policyholder's bank account.

Good Driver Discounts

Company

Discount

Progressive

$146

Nationwide

Up to 10%

Geico

Up to 22%

USAA

Up to 30%

21st Century

Up to 20%

American Family

Up to 20%

Liberty Mutual

Up to 30%

Homeowner Discount

While most auto insurers offer a discount for bundling your car and home insurance, other insurers offer a discount for just owning a home. For example, Liberty Mutual offers a discount if you buy a new home, while Infinity offers a similar discount but only to Florida, Texas and Arizona residents. Hanover, Farmers and other carriers also offer this discount.

Low Mileage Discount

If your commute has been cut in half because you got a new job that's closer to home or you've started to carpool to work, you should ask your insurance agent about a low-mileage discount. After all, your likelihood of getting involved in an accident decreases when you drive less. Retirees and folks 55 years old or older are great candidates for a low-mileage discount.

American Family policyholders who drive less than 7,500 miles per year can qualify for additional savings. While AAA's low-mileage discount can save eligible policyholders up to 19%, Nationwide's SmartMiles program offers a flexible auto insurance rate that is based on how many miles the policyholder drives in a month. Allstate, State Farm, Travelers and other carriers also offer this discount.

Affinity Discounts

Many auto insurers offer discounts for policyholders who are members of particular associations. This discount is also called an "affinity" discount. At Geico, for instance, former and current members of the U.S. military, including the National Guard and the Reserves, can get an auto insurance discount of up to 15%. Geico's "eagle" discount can save federal employees up to 12% on their auto premium. In fact, Geico recognizes more than 500 different membership groups, from the Registry of Interpreters for the Deaf and the National Society of Black Engineers to the Executive Women's Golf Association, the American Society of Radiologic Technologists and the American Kennel Club.

New Car Discount

New car discounts are available to drivers with recently purchased vehicles. Auto insurance carriers offer new-car discounts because newer models typically have a host of cutting-edge safety and anti-theft features. Also, brand-new vehicles cost less to insure because they are typically under the manufacturer's warranty for the first five years. 

At AAA, purchasing a brand-new car or owning a car that is less than three years old can shave up to 30% off your auto coverage. To qualify for Allstate's new-car discount, you must be the first owner of a vehicle that is the current model year or one year prior. Every auto insurer has their own new-car criteria, so be sure to ask your insurance agent. 

Occupation Discount

You may be pleasantly surprised to learn that your job could help you save money on your auto insurance premium. Teachers and other educators can get a sweet discount from Meemic Insurance, Horace Mann and Plymouth Rock. Police officers and detectives can snag a car insurance discount from Allstate, California Casualty, Farmers, Nationwide, Liberty Mutual, USAA and Travelers. Farmers Insurance offers a 15% discount to physicians, surgeons, dentists and veterinarians.

Preferred Payment Discount

Many insurers will give you a discount on your auto insurance premium when you pay for your insurance a certain way. Most auto insurance companies consider each of the following discounts as distinct and separate:

  • Automatic Payments: Also called an "electronic funds transfer" (EFT) discount, this savings perk rewards policyholders whose monthly premium is automatically drawn from their bank account. USAA's discount for automatic payments can save you up to 3% on your premium.

  • Pay in Full: Liberty Mutual will give you a policy discount if you pay your premium in one or two lump-sum payments. 

  • Paperless: Allstate's eSmart discount rewards you for paying your premium online.

  • Online Purchase: Liberty Mutual applies this discount when a customer completes their auto insurance purchase online.

Renewal Discount

If you renew your policy with the same auto insurance carrier, you may be in line for a renewal discount, which is sometimes called a "loyalty" discount. 

 Infinity will reward a loyal customer with this discount, no matter how much car insurance they purchase. At AAA, policyholders can save up to 5% after only one year of continuous auto coverage. Kemper, State Farm, USAA and other carriers also offer this discount.

Safety Features Discount

If your vehicle is equipped with certain safety features, you may qualify for a car insurance discount. Safety devices protect not only the policyholder, their passengers and their vehicle but also other drivers, their passengers and their respective vehicles. 

Allstate offers a discount just for having anti-lock brakes, while Farmers has a discount just for having daytime running lights. If you have one or more of the following safety features, you could be paying less for your auto insurance than you do now: 

  • Forward collision warning

  • Lane-departure warning

  • Anti-lock brakes

  • Adaptive headlights

  • Blind-spot detection

  • Backup cameras

  • Shatter-resistant glass

  • Daytime running lights

  • Stability control, which avoids rollover accidents

While many safety features come standard on any new car, many safety-enhancement devices can be installed on older cars, which means you could qualify for this discount with a little effort.

Storage Discount

If you plan to keep your car permanently garaged for a certain period of time, you could earn a discount: After all, not driving your car will dramatically decrease your chances of experiencing any kind of accident. If you store your vehicle in a secured location and never drive it over an agreed-upon time period, USAA's storage discount could score you a 60% savings on your car insurance. Deployed military members who garage their vehicle on a military installation can save up to 15% on their USAA coverage.

Good Student Discount

You can enjoy a 5% to 15%+ discount on your auto insurance policy if you're a good student that earns awesome grades, makes the dean's list, and has other academic accolades, according to the International Risk Management Institute (IRMI). 

At Geico and The General, students must maintain a B average or higher to qualify for this discount. At AAA, students with a 3.0 GPA or higher can score their parents a 14% savings on select policy coverages.

Good Student Discounts

Company

Discount

Auto-Owners

Up to 20%

21st Century

15%

Geico

Up to 15%

AAA

14%

Progressive

10%

Student-Away-at-School Discount

Students not using their vehicle because they're away for the semester may qualify for a discount on their car insurance. Young, inexperienced drivers pay the most for auto insurance because they present the greatest risk to auto insurers. When your young, inexperienced driver goes away to college, your vehicle is much less likely to be involved in an accident while the student is away. Many auto insurers offer a discount in recognition of this fact.

At Travelers, a policyholder could score savings if one of their dependents goes to school at least 100 miles away from home and uses the family car only when home on college breaks; however, the away-from-home student must be no older than 25, and the policyholder must provide proof of the student's away-at-school status. AAA's student-away-at-school discount offers up to 46.7% in savings, though restrictions apply. 

Telematics Discount

Opting into your auto insurer's telematics program, which tracks your on-the-road conduct, can earn you a discount if you practice safe driving. Using smartphone apps and plugged-in or hard-wired devices, auto insurers' telematics programs are designed to heighten a driver's awareness of their braking, acceleration and nighttime driving habits as well as how many miles they drive. Such programs also help drivers to notice their bad habits, such as speeding and sudden braking. 

Telematics Discounts

Program

Discount

KnowYourDrive by American Family

Up to 20%

Drivewise by Allstate

16%

RightTrack by Liberty Mutual

Up to 30%

My Journey by MetLife

Up to 30%

Drive Safe & Save by State Farm

Up to 30%

Safepilot by USAA

Up to 30%

Discounts for Just Having Auto Insurance

While you can get discounts on your auto insurance, your auto insurance carrier may get you discounts on other products and services. For example, USAA auto insurance will qualify you for discounts on theme parks, hotels, FTD flowers, Goodyear tires, cellular service and more. If you have AAA auto insurance, you can get discounts on cruises, dining, electronics, entertainment, health and wellness products, car rental services, travel insurance and more.

Getting Discounts on Car Insurance

Most insurers offer discounts, and every insurer has their own eligibility requirements, restrictions, savings and availability as well as a cap on how many discounts one policyholder can receive. 

It's important to find out which discounts you may be eligible for, and to make sure you get the savings you deserve. If you're ready to see which discounts you can apply for maximum savings on a new policy with a top insurance company, just enter your zip code below and answer a few questions for a free quote.

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