Car Insurance Discounts: Find Savings That Apply to You

Car insurance discounts can lower the price of car insurance and make it more affordable for many drivers. While the discounts offered by each insurer can vary, most have bundling, safe driving and good student discounts. Be sure to take advantage of all available discounts a provider has and then compare quotes with other insurance companies to find the best rate.

Car insurance discounts usually fall into five categories:

• Safe Driver Discounts: Safe driver discounts are designed to reward policyholders who demonstrate safe driving habits and take proactive measures to reduce risks on the road. These discounts encourage responsible behavior behind the wheel.
• Policy-based: Policy-based discounts are related to the specific terms and conditions of the insurance policy. These discounts incentivize policyholders to adopt certain behaviors or choices that align with the insurance provider's preferences.
• Driver-Profile Discounts: Driver-profile discounts are associated with specific characteristics or circumstances of the policyholder. These discounts take into account factors beyond driving behavior and policy choices.
• Vehicle Discounts: Vehicle discounts are specific types of car insurance discounts that are based on the characteristics and features of your vehicle. These discounts are designed to incentivize and reward certain vehicle attributes that contribute to safety and security. These discounts acknowledge the safety features and technologies that reduce the risk of accidents or theft, resulting in potential cost savings on your car insurance premiums.

Safe Driver discounts reward policyholders for practicing safe driving habits and taking proactive measures to enhance their driving skills. This includes having a clean driving history, utilizing seatbelts and completing educational courses that teach safe driving habits and provide an understanding of traffic laws and signs.

Safe driving discounts are offered to policyholders with a clean driving record, free from accidents and traffic violations. Insurers typically require a specific number of years without incidents to qualify for this discount. For example, if you've maintained a clean driving record for five consecutive years, you may be eligible for a safe driving discount. Most widely available car insurance companies offer this discount, including Allstate, Auto-Owners, GEICO, Progressive, State Farm, Farmers, Travelers and USAA.

Defensive driving discounts are available to individuals who have completed an approved defensive driving course. These courses provide drivers with additional knowledge and skills to navigate challenging situations on the road. Eligibility requirements may vary, but completing an accredited course can help you qualify. GEICO, Nationwide, USAA and State Farm offer defensive driving discounts.

Driver's education discounts are designed for young drivers who have completed a driver's education course. These courses provide comprehensive instruction on safe driving practices and may be required to obtain a driver's license for young individuals. Completing a recognized driver's education program can make you eligible for this discount. Providers like Allstate, GEICO, Travelers, USAA and State Farm.

Seat belt use discounts reward policyholders who consistently wear their seat belts while driving. Insurers encourage responsible behavior and promote safety by offering this discount. Eligibility requirements usually involve confirming that all occupants of the insured vehicle wear seat belts. This discount is available from GEICO.

Policy-based discounts are applied based on the specific policy features and payment methods chosen by the policyholder. Those who have the opportunity to bundle a home and auto policy or stack policies with multi-car insurance can often maximize savings on their premiums. Policy and payment preferences such as pay-in-full, paperless or automatic payments may be able to shave off a small-but-notable percentage of the annual or monthly cost.

Home and auto bundle discounts are offered to policyholders who bundle their car insurance with other insurance policies, such as homeowners, renters or condo insurance. Combining policies with one insurer can lead to significant savings. Look for bundling options with Farmers, GEICO, Allstate, Auto-Owners, Nationwide, Progressive, USAA and State Farm, who all offer home and auto bundle discounts.

Multi-car discounts are available to policyholders insuring more than one vehicle with the same insurer. Shared family car discounts apply when multiple members of a family share a single vehicle for their insurance needs. Companies that offer multi-car discounts include Auto-Owners, Farmers, GEICO, Nationwide, Progressive, State Farm, Travelers and USAA.

Farmers offers a shared family car discount for families with a driver younger than 20 years old listed on the policy and if there are more drivers than vehicles.

Pay-in-full discounts are provided to policyholders who pay their premiums upfront for the entire policy term instead of opting for monthly payments. Though paying in full requires the highest up-front cost, it demonstrates financial responsibility and can lead to lower overall premiums. If you are prepared to pay in full at the start of your policy, look to Allstate, Auto-Owners, Farmers, Progressive and Travelers for this discount.

Automatic payment discounts are given to policyholders who set up automatic payments for their insurance premiums. By ensuring timely and consistent payments, insurers offer this discount as an incentive for policyholders. Allstate, Farmers, Nationwide and Progressive provide discounts for automatic payments.

Paperless discounts encourage policyholders to receive documents and bills electronically, reducing paper waste and administrative costs. Drivers who opt for paperless billing and documentation can qualify for this discount. Allstate, Auto-Owners, Farmers, Nationwide, Progressive and Travelers provide this discount.

You may be able to double up on discounts with automatic payments and paperless billing with Allstate, Farmers, Nationwide and Progressive, as these companies offer both discount options.

Continuously insured discounts are provided to policyholders who have maintained continuous coverage without any gaps or lapses in their car insurance policies. By consistently having coverage, policyholders demonstrate responsible behavior and commitment to maintaining insurance. If you've had continuous insurance, you may be eligible for this discount from Progressive.

Early signing or sign-up discounts are available to policyholders who sign up for a new policy with an insurer before their current policy expires. This discount from Allstate, Auto-Owners and Travelers rewards individuals for proactive planning and loyalty.

Online quote discounts encourage drivers to obtain insurance quotes online by providing a discount for doing so. By embracing digital channels, insurers can streamline the quote process and pass on the savings to policyholders. Progressive offers online quote discounts.

Responsible payment discounts are given to those who consistently pay their premiums on time without any late payments. By demonstrating financial responsibility, policyholders can qualify for this discount. You may be able to save with Allstate if you haven't received a cancellation notice for non-payment in 12 months. Auto-Owners may offer this discount for those who've paid on time for three years, and Farmers offers this discount to those who have had no late fees for 12 months.

Loyalty discounts are provided to policyholders who have been with the same insurer for an extended period. Insurers such as Travelers and USAA value long-term customers and offer this discount to reward loyalty.

Driver-profile discounts are based on certain characteristics or qualifications of the policyholder. This includes homeowners, low-mileage drivers and discounts for students, seniors or those with an affinity organization or eligible occupation.

Low-mileage discounts are available to policyholders who drive fewer miles than the average driver. Lower mileage indicates reduced exposure to potential accidents and can result in lower premiums. Eligibility requirements may vary, but generally, driving below a certain mileage threshold qualifies for this discount from USAA.

Good student discounts are one of the most common car insurance discounts and are offered to policyholders who are full-time students and maintain good grades. GPA or academic achievement eligibility will vary by provider. Encouraging education and responsible behavior, Allstate, Auto-Owners, Farmers, GEICO, Nationwide, Progressive, State Farm, Travelers and USAA.

Distant student discounts apply to policyholders who have a dependent child studying away from home. In general, to be eligible for this discount, the student must be attending an accredited college or university a certain distance away from their primary residence, and the student may be required to maintain a certain grade point average. Allstate, Auto-Owners, Farmers, Progressive, State Farm and Travelers may have unique eligibility requirements for this discount.

Homeowners discounts are available to policyholders who own a home. Insurers often consider homeowners as lower-risk policyholders, resulting in potential premium reductions. Farmers, Progressive and Travelers offer this discount and may be a great option for those who own their home.

Affinity organization discounts are offered to policyholders who are members of specific professional or alumni associations. These discounts leverage group affiliations to provide policyholders with special rates. Farmers and Travelers offer this discount for those who are an employee or retiree of certain businesses. GEICO may offer discounts to those who are a member or partner alumni, those with fraternity or sorority associations and some professional organizations.

Vehicle-specific discounts are car insurance discounts that are based on the characteristics or features of your vehicle. These discounts are offered by insurance providers to encourage safe driving, reduce risks or acknowledge the security features of certain vehicles. By qualifying for these discounts, you may be able to lower your insurance premiums.

New vehicle discounts are available to policyholders who insure a vehicle that is brand new or within a specific age range, typically the first three model years. Insurers offer this discount to encourage the use of modern safety features and reduce maintenance costs. Allstate, GEICO, State Farm, Travelers and USAA offer new vehicle discounts.

Anti-lock brake discounts are provided to drivers with vehicles that are equipped with anti-lock brake systems (ABS). ABS helps prevent wheels from locking during sudden braking, improving control and reducing the risk of accidents. If your car has an ABS system, you may be eligible for this discount, which can help lower your insurance premium. Allstate, Auto-Owners, Farmers, GEICO and State Farm offer anti-lock brake discounts, but the eligibility requirements vary and may need to be factory installed.

Anti-theft system discounts apply to vehicles equipped with anti-theft devices or systems that reduce the risk of theft or unauthorized access. By reducing the likelihood of theft, insurers can offer lower premiums. Allstate, Auto-Owners, Farmers, GEICO, Nationwide and State Farm offer discounts for those with anti-theft systems and alarms.

Airbag discounts are available to policyholders who have vehicles equipped with factory-installed airbags. Airbags enhance passenger safety by cushioning the impact during accidents, reducing the risk of severe injuries. Auto-Owners, Farmers, GEICO and State Farm offer this discount.

Alternative energy discounts are offered to policyholders who own or lease vehicles that use alternative fuels, such as electric or hybrid vehicles. Insurers incentivize eco-friendly choices by providing reduced premiums for these vehicles. Travelers offers this discount and Farmers provides this discount to those living in California.

Daytime running light discounts apply to vehicles equipped with daytime running lights (DRLs). DRLs enhance visibility during daylight hours, reducing the risk of accidents. Farmers, GEICO and State Farm offer this discount.

VIN etching discounts are provided to policyholders who have their vehicle identification number (VIN) etched onto the windshield and other windows of their vehicles. Farmers offers this discount as it helps deter theft and aids in vehicle recovery.

Auto-Owners offers a discount for teens who enroll in an eligible app on their phone that monitors their driving habits. If you install a honing device that can track and locate your car in the event it is stolen, you may be eligible for a discount from Farmers. Other insurers may also participate in telematic discount programs that set rates based on your driving habits and behaviors.

Car insurance discounts work by providing policyholders with reduced premiums based on certain qualifying factors. Insurers assess eligibility for discounts based on various criteria, such as driver safety, policy attributes, driver profiles and vehicle characteristics. Discounts are applied to the premium amount, reducing the overall cost of insurance coverage.

It's important to note that while a discount may be advertised at a certain percentage, the actual discount you receive may vary. Some discounts may only apply to a portion of the premium, and others may have caps or limits. Additionally, it's possible that certain insurance providers offer cheaper car insurance policies even before applying discounts. Comparing quotes and evaluating the overall cost of coverage can help you make an informed decision.

Discounts will help you save money on your premiums, but starting with an affordable company can significantly lower your car insurance costs before you even apply for discounts. Use the table below to check out the cheapest insurers for your age range and the coverage you need based on average quotes.

If you’re searching for specific discounts, choosing a provider that offers a wide range may be a good place to start. While discount types, names and selections may vary by location, many insurers offer some form of promotional discount. Use the table below to find providers with the most discounts.

Choose an insurer from the table below to review its discount offerings. Click the company name for a comprehensive review of cost, product offerings and customer satisfaction.

AAA offers 12 discounts, including bundling, multiple cars, early signing and anti-theft system discounts.

• Standout discount: AAA offers an affinity organization discount, which allows drivers in a qualifying partner organization or professional group additional savings on their car insurance.

Allstate offers 13 discounts, with most discounts available in the payment history category.

• Standout discount: Allstate offers a responsible payment discount, allowing drivers who don’t receive a cancellation notice for non-payment within a 12-month period to score savings on their car insurance.

Amica has 16 discounts, with the most discounts available in the driver profile category.

• Standout discount: Amica offers a legacy discount, which allows drivers under 30 who were insured on their parents’ Amica policy for at least five years to receive a discount on their own policy.

Esurance offers five discounts. These discounts fall into the policy and payment categories and include bundling, homeowners and online sign-up. Esurance does not offer home insurance, but drivers who rent can save if they bundle renters and car insurance policies.

Farmers boasts the most car insurance discounts (23) of any carrier. The company also provides more vehicle equipment discounts than its competitors, including discounts for VIN etching, anti-theft systems, alternative energy, anti-lock brakes and more.

• Standout discount: Farmers Insurance offers a honing device discount, which allows drivers to save if they install a device in their vehicle that tracks their location. This device can help drivers relocate their car if it’s stolen.
• Standout discount: Farmers offers a senior discount that gives reduced premium rates to people over 55 who have completed state-approved safe driver training in the last three years.

GEICO offers 18 available discounts, with most discounts under the driver-profile discount category.

• Standout discount: GEICO offers a federal employee discount to active and retired federal employees.
• Standout discount: GEICO offers an emergency deployment discount, allowing military drivers to save on their premiums if deployed for an emergency.

Liberty Mutual has 17 discounts across a broad range of discount categories.

• Standout discount: Liberty Mutual helps drivers of hybrid or electric cars save on their car insurance with alternative energy discounts.
• Standout discount: Liberty Mutual offers a military discount for active, retired and reserved military insureds.

Nationwide Insurance offers eight discounts on car insurance, with most in the driver profile and payment categories. However, most of these discounts are fairly standard and provided by most other companies. Drivers can take advantage of discounts for bundling, making automatic payments and going paperless. Nationwide also awards good student, safe driving, defensive driving and anti-theft system discounts to its customers.

Progressive Insurance provides 12 discounts, with most discounts offered in the payment category.

• Standout discount: Progressive offers three types of accident forgiveness, which prevents your insurance rates from increasing after your first at-fault accident.
• Standout discount: Progressive makes signing up for car insurance easy and affordable by offering their customers an internet discount for enrolling in their policy online.

State Farm gives customers 13 opportunities for discounts, mostly in the driver profile and vehicle equipment categories.

• Standout discount: State Farm offers a defensive driving discount, which allows drivers who complete a defensive driving course additional savings.
• Standout discount: Drivers under 21 who complete an approved driver education course are eligible for State Farm’s driver’s education discount.

USAA has 12 discounts, primarily in the driver profile category.

• Standout discount: USAA offers a vehicle storage discount, which allows drivers who insure store their car while it’s in storage to save up to 60% on car insurance.
• Standout discount: USAA offers a driver’s education discount, which gives drivers a discount for completing an approved driver safety course

Remember, each insurance provider may have different discount offerings, eligibility requirements and discount amounts. It's important to do your research, ask questions and consider your specific circumstances to find the most suitable car insurance policy with the best available discounts for you.