How To Get Discounts on Car Insurance

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From insuring multiple vehicles and bundling home and auto insurance to earning good grades and completing a defensive driving course, there are several types of car insurance discounts that can help lower your rate. Keep reading to learn some common discounts that your insurance carrier may offer and how you can apply them to your policy.

Key Takeaways

  • Car insurance discounts are varied, including bundling discounts, safe driving discounts, anti-theft discounts and many more.
  • The amounts saved can be as small as 3% or as high as 60%.
  • The types of discounts that are available can vary based on the insurance company and your state.
  • However, there are qualifications that must be met before a certain discount can be applied, such as having a clean driving record, being a certain age, holding a specific job, earning a certain GPA or joining some type of organization.

common car insurance discounts infographic

What Types of Car Insurance Discounts Are There?

Read below for an overview of some common types of car insurance discounts and how you can qualify.

1. Bundling

Insuring multiple cars on the same auto insurance policy can qualify you for a multi-car discount.


Multi-Car Discount


Up to 27.3%[1]


Up to 25%[2]

State Farm

Up to 20%[3]

In addition, you can qualify for a multi-policy discount or bundle discount if you buy auto insurance plus home, condo or renters insurance from the same carrier.


Discount for Bundling Auto & Homeowners Insurance

Auto & Condo Insurance

Auto & Renters Insurance

State Farm

Up to $1,073[3]


Up to $684 on auto insurance[3]


Up to 20%[4]



American Family

Up to 23% for home insurance and auto insurance[5]

Up to 23%[6]

29% on auto insurance and 15% on renters insurance on average[7]


Up to 25%[8]

Up to 15%[9]



16% to 25%[10]

Up to 25%[11]

Up to 25%[11]


Up to 20%[12]




20% on average[13]




Up to 10% on car insurance(7% in Texas and Oklahoma)[14]




Up to 10%[15]

Up to 10%[15]

Up to 10%[15]

The Hartford

Up to 5% on auto insurance and 20% on homeowners insurance[16]

Up to 5% on auto insurance and 20% on condo insurance[16]

Up to 5% on auto insurance and 20% on renters insurance[16]

2. Electric and Hybrid Car Insurance Discounts

Emphasizing the importance of environmental sustainability, various auto insurance companies offer discounts to drivers of electric vehicles. Travelers and The Hartford are a couple of examples of insurance companies that offer this type of eco-friendly car insurance discount.

3. Anti-Theft Device Discounts

To deter vehicle theft and promote security, many auto insurance companies offer reduced rates on comprehensive coverage for vehicles equipped with anti-theft devices such as audible car alarms, manual disabling devices, electrical kill switches and remote disabling devices. GEICO, for example, provides up to a 23% discount for vehicles fitted with an anti-theft alarm system.[2]

4. Defensive Driver Discount

Auto insurance discounts may be available to policyholders who complete an approved defensive driving course as a refresher on safe driving techniques, such as scanning the road, maintaining safe following distances and understanding the rules of who has the right of way and when to pass other cars. Some insurance carriers that offer this discount include Dairyland, GEICO, MetLife, Nationwide, State Farm and Travelers.

5. Driving Education Course Discounts

Sometimes called a driving training discount, some auto insurance companies offer this type of discount to drivers who complete a qualified driving education course. AAA, for instance, extends a discount of up to 4.7% for California drivers who successfully finish an approved driver education course.[17]

However, this discount may be available only below a certain age. For example, State Farm's Steer Clear program is aimed at drivers under 25 years old with a clean driving record for the past three years.[18]

6. Early-Bird Car Insurance Discounts

Auto insurance companies often offer discounts to customers who buy or renew their policies ahead of time, which is especially useful for avoiding a lapse in coverage. For instance, American Family Insurance provides a discount for customers who purchase a policy at least seven days before their current policy expires.[19] Allstate offers an "early signing" discount for policies signed at least seven days before their start date.[20]

7. Good Driver Discount

Numerous auto insurance companies offer discounts to good drivers who maintain a clean driving record and avoid at-fault accidents. This discount, commonly referred to as a "safe driver" discount, varies in its requirements across different insurers:

  • 21st Century offers one of the most substantial discounts with savings of 20% or more on average for those without a ticket or accident for three years.[21]
  • GEICO also provides a good driver discount of up to 22% to policyholders who have remained accident-free for at least five consecutive years.[2]
  • Allstate's Safe Driving Bonus program rewards policyholders with a bonus every six months, provided they have not been involved in any accidents during that period.[22]

8. Homeowner Discount

If you’re a homeowner, it may be possible to save on your car insurance premium, as homeowners are sometimes perceived as more responsible and financially stable. Liberty Mutual, for instance, grants a discount to those who purchase a new home. Infinity also offers a similar discount to homeowners in Florida, Texas and Arizona.[23] Other insurance carriers like Hanover and Farmers provide similar homeowner discounts as well.

9. Low Mileage Discount

A few insurers, including American Family, AAA and USAA, offer discounts to low-mileage drivers who stay below a mileage threshold each year. For example, American Family's discount applies to those who drive less than 7,500 miles per year.[19] AAA stands out with a significant discount for qualifying policyholders in California, potentially reducing premiums by up to 19%.[24] USAA's low mileage discount is accessible in many states, excluding Hawaii and North Carolina.[25]

10. Affinity Discounts

Affinity discounts are available to drivers who are members of select organizations. GEICO's affinity discount program, for example, recognizes over 500 different membership groups, offering savings to federal employees, members of the military and the American Library Association and more.[2][26]

11. New Car Discount

Some insurance carriers offer a discount for insuring a newly purchased vehicle because newer models usually come equipped with advanced safety features and anti-theft technologies. Additionally, brand-new vehicles may cost less to insure, as they are generally covered by the manufacturer's warranty for the first couple of years. For instance, Allstate provides a new-car discount but to qualify, you must be the first owner of a vehicle that is either from the current model year or the year prior.[27]

12. Occupational and Job-Based Car Insurance Discounts

Many insurance companies offer discounts to individuals with specific professions. For example, educators can save on car insurance through Meemic Insurance, Horace Mann and Plymouth Rock. Similarly, police officers, detectives and other law enforcement professionals can earn a discount if they choose Liberty Mutual as their carrier.

13. Preferred Payment Discount

Insurance companies often provide discounts based on the method of payment for your auto insurance premium, such as:

  • Automatic payments (EFT discount): This discount rewards policyholders who have their monthly premiums automatically withdrawn from their bank accounts. For example, USAA offers a discount that can save policyholders up to 3% on their premiums if they opt into automatic payments.[28]
  • Pay in full: Some insurers, like Liberty Mutual, offer a discount to policyholders who pay their premiums in one or two lump-sum payments instead of monthly installments.
  • Paperless: Allstate provides the eSmart discount for policyholders who choose to manage and pay their premiums online.
  • Online purchase: Liberty Mutual offers a discount for customers who complete their auto insurance purchase entirely online.

14. Renewal Discounts

Some insurance companies reward policyholders who renew their policy with a renewal or "loyalty" discount. Infinity, for instance, offers a loyalty discount to its customers regardless of the amount of car insurance they purchase. AAA offers California policyholders a chance to save up to nearly 6% after just one year of continuous auto coverage.[10]

15. Safety Features Discount

If your vehicle is equipped with certain safety features, such as anti-lock brakes, adaptive headlights and warnings for forward collision and lane changes, you may be able to save with a safety features discount. Insurers value these features because they promote safer driving and reduce the likelihood of you getting into an accident and filing a car insurance claim.

Allstate, for instance, offers a discount specifically for vehicles equipped with anti-lock brakes. Farmers provides a discount for cars that have daytime running lights. These features are recognized for their role in preventing accidents or reducing their severity.

16. Storage Discounts

If you plan on putting your vehicle in long-term storage and won’t be driving it, tell your insurance company because you might be able to snag a storage discount. After all, your car likely won’t get into many accidents if it’s not on the road. USAA offers a notable storage discount, which can lead to a 60% reduction in car insurance costs for policyholders who store their vehicles in a secure location.[25]

17. Good Student Car Insurance Discounts

According to the International Risk Management Institute (IRMI), good students who achieve excellent grades, make the dean's list or earn other academic honors can enjoy discounts ranging from 5% to over 15%.[29]

For instance, GEICO offers a discount for students who maintain a B average (or higher). AAA also provides a substantial discount for students who have a GPA of 3.0 or higher in certain regions. In this case, the savings, which can be up to 14.5%, are applicable to select policy coverages and are often extended to the student's parents' policy.[30]




Up to 20%[31]

21st Century

15% on average[21]


Up to 15%[2]



18. Teen Driver Discount

Adding a teenager to your auto policy can cause rates to skyrocket due to the teen driver’s driving inexperience and higher likelihood of getting into an accident. Fortunately, some insurance companies offer teen driver discounts that can help offset this rate increase. Keep in mind there may be age restrictions and possibly a minimum amount of time you need to be insured before you can add a younger person to your policy.

19. Students-Away-At-School Discounts

When a student is away at college and not using their family vehicle, many auto insurance companies offer a discount recognizing the reduced risk of accidents. This is particularly relevant as young, inexperienced drivers typically face higher insurance rates due to their increased risk profile.

Travelers Insurance provides a discount for policyholders whose dependent students are under the age of 25 and attend a school at least 100 miles away from home and only use the family car during college breaks.[32] In California, AAA also offers a substantial student-away-at-school discount, which can result in savings of up to 46.7%.[17]

20. Mature Driver Discount

Some insurance providers offer a mature driving discount for senior drivers who complete a senior driving course, which may actually overlap with the defensive driving discount mentioned earlier. The Senior Driving Discount of America states that insurance companies can award a discount of up to 15%.[33] Certifications for this program can be good for up to three years with savings averaging up to $500 on car insurance.[33]

21. Usage-Based Car Insurance Discounts

Enrolling in your auto insurer's telematics program can lead to discounts on your insurance premium if you demonstrate safe driving habits such as braking and accelerating gently and avoiding nighttime driving. This data is typically tracked via mobile app or a device that plugs into your vehicle. Usage-based car insurance is available from most national insurance carriers, although the amount you can save will vary:



Nationwide's SmartRide

Up to 40% plus 10% signup discount[34]

Liberty Mutual's RightTrack

Up to 30% with a 10% signup discount[35]

Root Insurance

Up to 30%[36]

State Farm's Drive Safe & Save

Up to 30%[37]

USAA's SafePilot

Up to 30% plus 10% signup discount[38]

American Family's KnowYourDrive

Up to 20% plus 10% signup discount[39]

Allstate's Drivewise


Esurance's DriveSense


Farmers' Signal


GEICO’s DriveEasy/DriveEasy Pro


22. Discounts Based on Your Car Insurance Carrier

Some insurance companies may offer their policyholders ways to save on more than just car insurance. For instance, USAA members can also access discounts on theme parks, hotels, floral arrangements, Goodyear tires, cellular services and more. Similarly, AAA auto insurance holders can save on cruises, dining, electronics, entertainment options, health and wellness products, car rental services and travel insurance.

How To Get Car Insurance Discounts

Asking your carrier is the most straightforward way to get a car insurance discount, as some are available in select states. In addition, discounts are not always automatically applied and you may even need to provide documentation, such as a school transcript for a good student discount.

The maximum discount is not always applied either and you may only get a 10% discount even though the discount advertises up to 25% car insurance savings. Another thing to note is discounts may apply only to a certain type of coverage and not your total premium. For example, discounts for having anti-theft devices may result in savings only for the comprehensive coverage portion of your policy.

What Insurance Carriers Offer the Most Car Insurance Discounts?

You’ll find that the most common discounts such as multi-policy, multi-vehicle, good driver and safety features are available from most national insurance carriers, although more niche discounts such as one for driving an electric vehicle may be less common so you’ll need to ask around.

However, choosing the insurance company with the most discounts may not always result in the lowest rate or the best service. Different carriers use different underwriting methods so you may find that one insurance company quotes a lower rate than another despite offering fewer discounts. As a result, shopping around is the best way to get the most affordable policy.

If you want to quickly shop around and get matched with an insurance agent who can help you find a policy that meets your budget and coverage needs, enter your zip code below.

Find Affordable Car Insurance Today


Does every insurance carrier offer car insurance discounts?

Most insurance carriers will offer some discounts on auto insurance, although the number of discounts can vary from one provider to the next.

Can I get an auto insurance discount if I have good credit?

There generally is no discount specifically for having a good credit score. Instead, in some states, insurance companies use your credit score as a metric when calculating your overall premium so having good credit may contribute to a lower rate.

Can I ask for a discount on my car insurance?

You can directly ask your carrier about their available discounts and see if you can qualify for any.


  1. AAA. “Multi-Vehicle Discount.” Accessed Nov. 21, 2023.
  2. GEICO. “Car Insurance Discounts - Savings on Auto Insurance.” Accessed Nov. 21, 2023.
  3. State Farm. “Save Up to $1,073 on Auto & Home Insurance.” Accessed Nov. 21, 2023.
  4. Nationwide. “Bundle Insurance and Save Money.” Accessed Nov. 21, 2023.
  5. American Family. “Homeowners Insurance Discounts.” Accessed Nov. 21, 2023.
  6. American Family. “Save Money With Condo Insurance Discounts.” Accessed Nov. 21, 2023.
  7. American Family. “American Family Insurance Discounts.” Accessed Nov. 21, 2023.
  8. Allstate. “Homeowners Discounts.” Accessed Nov. 21, 2023.
  9. Allstate. “Condo Insurance Discounts.” Accessed Nov. 21, 2023.
  10. Erie Insurance. “Homeowners Insurance.” Accessed Nov. 21, 2023.
  11. Erie Insurance. “Bundle Insurance and Save Money.” Accessed Nov. 21, 2023.
  12. Acuity Insurance. “Bundle Home and Auto Insurance.” Accessed Nov. 21, 2023.
  13. Farmers Insurance. “Available Insurance Discounts.” Accessed Nov. 21, 2023.
  14. Travelers Insurance. “Bundle Your Insurance and Save!” Accessed Nov. 21, 2023.
  15. USAA. “Bundle and Save!” Accessed Nov. 21, 2023.
  16. The Hartford. “Car and Home Insurance Bundle.” Accessed Nov. 21, 2023.
  17. AAA. “AAA Policyholders.” Accessed Nov. 21, 2023.
  18. State Farm. “Enroll and Enjoy Steer Clear® Insurance Savings.” Accessed Nov. 21, 2023.
  19. American Family. “Car Insurance Discounts & Special Offers.” Accessed Nov. 21, 2023.
  20. Allstate. “Car Insurance Discounts.” Accessed Nov. 21, 2023.
  21. 21st Century Insurance. “The Insurance You Want With the Savings You Deserve.” Accessed Nov. 21, 2023.
  22. Allstate. “Safe Driving Bonus Program.” Accessed Nov. 21, 2023.
  23. Infinity Insurance. “Do You Qualify for These Auto Insurance Discounts?” Accessed Nov. 21, 2023.
  24. AAA. “AAA Policyholders.” Accessed Nov. 21, 2023.
  25. USAA. “Auto Insurance Discounts.” Accessed Nov. 21, 2023.
  26. American Library Association. “Benefits of Personal Membership.” Accessed Nov. 21, 2023.
  27. Allstate. “Insurance Discounts for New Cars.” Accessed Nov. 21, 2023.
  28. USAA. “Auto Insurance Quotes.” Accessed Nov. 21, 2023.
  29. International Risk Management Institute, Inc. “Good Student Discount.” Accessed Nov. 21, 2023.
  30. AAA. “Ask an Agent: How Can I Save On Auto Insurance for My Teenager?” Accessed Nov. 21, 2023.
  31. Auto-Owners Insurance. “A-O Blog.” Accessed Nov. 21, 2023.
  32. Travelers Insurance. “Student Away at School Discount.” Accessed Nov. 21, 2023.
  33. Senior Driving Discount of America. “The Senior Driving Discount of America Offers Online Courses That Could Save You up to 15% Off Car Insurance Premiums.” Accessed Nov. 21, 2023.
  34. Nationwide. “Usage-Based Insurance With Nationwide.” Accessed Nov. 21, 2023.
  35. Liberty Mutual. “RightTrack.” Accessed Nov. 21, 2023.
  36. Root Insurance. “Discounts for What Matters.” Accessed Nov. 21, 2023.
  37. State Farm. “Be Rewarded With Drive Safe & Save Discounts.” Accessed Nov. 21, 2023.
  38. USAA. “Save Up to 30% On Your USAA Auto Insurance Premium for Being a Safe Driver.” Accessed Nov. 21, 2023.
  39. American Family. “Usage-Based Car Insurance With KnowYourDrive App.” Accessed Nov. 21, 2023.

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