Updated: May 23, 2024
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Car insurance discounts can significantly reduce your rates, making premiums more affordable. Common discounts include bundling, safe driving and good student options. Your status as a homeowner or member of a professional association can also lower your premiums.
You can stack discounts to save even more money. To get the cheapest rates, choose the most affordable insurer and apply for every discount you qualify for.
Car InsuranceDiscountsCommon discount types include driver safety, policy-based, driver profile and vehicle discounts.
Discount deals can provide substantial savings, but your final quote is what matters most.
Speak to your agent or insurer to discover the discounts you are eligible for and the potential impact on your premiums.
Why Trust MoneyGeek? MoneyGeek gathered information from various state insurance departments and Quadrant Information Services to study prices for several driver profiles and locations. The cost of insurance varies based on factors internal and external to the driver. The best way to find the lowest rates is to shop around and compare offers.
Car insurance companies reward drivers with discounts for good driving, loyalty and safe cars. Many insurers also offer savings based on your professional affiliations, driver's education or how you manage your policy.
Insurers typically offer home and auto bundles, student discounts, good driver discounts and multiple car discounts. Sometimes you can bundle auto with other policies, such as renters insurance, umbrella insurance, life insurance, boat insurance or pet insurance.
You can qualify for some discounts right away, while others, like accident-free rewards, may build over time. Taking proactive steps such as completing a defensive driving course or consistently wearing seatbelts can unlock further savings.
The number of discounts you receive isn’t as significant as the actual rate you pay for car insurance, but taking advantage of discounts is one of the best ways to find cheap car insurance without sacrificing quality service.
Quickly Explore Discounts
Safe driver discounts are available to policyholders who maintain a clean driving record, consistently use seatbelts and complete safety education courses.
Car Insurance Discount | Description | Eligibility | Insurers With Discount |
|---|---|---|---|
Safe Driving Discount | 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 three to five consecutive years, you may be eligible for a safe driving discount. | Allstate, Auto-Owners, GEICO, Progressive, State Farm, Farmers, Travelers and USAA |
Defensive Driving Discount | Rewards 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 a state-accredited course can help you qualify. | GEICO, Nationwide, USAA and State Farm |
Driver's Education Discount | Provides a discount for young drivers who have completed a driver's education course. These courses deliver comprehensive instruction on safe driving practices and may be required for young individuals to obtain a driver's license. | Completing a recognized driver's education program can make you eligible for this discount. | Allstate, GEICO, Travelers, USAA and State Farm |
Seat Belt Use Discounts | Offers a discount to 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. | GEICO |
Claims-Free Discount | Rewards policyholders with lower car insurance rates for not filing any claims over a specified period. | Drivers who maintain car insurance without filing any claims for a consecutive period, typically three to five years, may be eligible for this discount. | State Farm, Allstate, GEICO, Progressive and Nationwide |
Low Mileage Discount | Reduces your car insurance rates if you drive fewer miles than the average policyholder each year. | Drivers who drive significantly fewer miles annually than the average, typically under a specified threshold, like 7,500 miles, are eligible for this discount. | Allstate, State Farm, Progressive and Nationwide |
Telematics Program | Tracks your driving behavior through a mobile app or plug-in device in your vehicle to potentially lower your car insurance rates based on safe driving habits. | Drivers who enroll in a telematics program and demonstrate safe driving behaviors through monitored data are eligible for potential discounts. Some insurers may raise your rate if telematics detects poor driving habits. | Progressive (Snapshot), Allstate (Drivewise), State Farm (Drive Safe & Save) and Nationwide (SmartRide) |
Dozens of regional and national insurers offer these discounts, beyond those listed here. The only exception is the seatbelt discount, which only GEICO offers.
Being a safe driver does more than earn you discounts — it shows insurers that you're a low-risk policyholder. This good driving record can lead to cheaper car insurance rates right from the start.
By consistently practicing safe driving, you keep the roads safer and enjoy ongoing savings on your insurance costs.
Insurers reward thoughtful management of your policies. Paying your policy early or consolidating your home and auto policies can secure significant savings. Grouping all your cars under one policy can also yield discounts.
Note that dozens of regional and national insurers offer these discounts, beyond those listed here.
Car Insurance Discount | Description | Eligibility | Insurers With Discount |
|---|---|---|---|
Home and Auto Bundle | Combine your home and car insurance with one company to save money. | Available if you have both a home and a car and choose to insure them with the same company. | Farmers, GEICO, Allstate, Auto-Owners, Nationwide, Progressive, USAA and State Farm |
Multi-Car Discount | Get a discount when you insure more than one car with the same company. It's a smart way to save. | Eligible if you insure multiple vehicles under the same policy. | Auto-Owners, Farmers, GEICO, Nationwide, Progressive, State Farm, Travelers and USAA offer this discount. 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 Discount | Pay your premium for the full term of the policy, which can be either six or 12 months, all at once to lower your overall cost. | Eligible when you pay your entire premium for the policy term upfront. | Allstate, Auto-Owners, Farmers, Progressive and Travelers |
Automatic Payment Discount | Set up auto-pay for your premiums to save money and time. It’s convenient and often cheaper. | Eligible if you sign up for automatic payments from your bank account. | Allstate, Farmers, Nationwide and Progressive |
Paperless Discount | Receive bills and policies online to get a discount. It’s good for the environment and your wallet. | Eligible if you opt into receiving all your insurance documents electronically. | Allstate, Auto-Owners, Farmers, Nationwide, Progressive and Travelers |
Loyalty Discount | Stay with the same insurer without a break to qualify for this discount. It rewards loyalty and consistency. | Available if you have continuous insurance coverage, with no gaps, from the same provider. | Allstate, Farmers, GEICO, Nationwide, Progressive, Travelers, USAA |
Early Sign-Up Discount | Sign up for a new policy before your current one expires. It’s proactive and can lead to savings. | Eligible if you apply and sign up for a new policy before your old policy ends. | Allstate, Auto-Owners and Travelers |
Online Quote Discount | Get a quote online and receive a discount. | Eligible if you obtain your insurance quote through the company’s website. | Progressive |
Responsible Payment Discount | Pay your premiums on time to get this discount. It's straightforward and rewarding. | Available if you make consistent, on-time payments for your premiums. | Allstate if you haven't received a cancellation notice for non-payment in 12 months; Auto-Owners for those who've paid on time for three years; and Farmers for those who have had no late fees for 12 months. |
Loyalty Discount | Stay with the same insurance company for several years to receive this discount. | Eligible if you stay with the same insurer for a designated number of years. | Travelers and USAA |
Your car choice heavily impacts your insurance rates. You can stack discounts for each safety feature on your vehicle, further lowering your costs.
Note that dozens of regional and national insurers offer these discounts, beyond those listed here.
Car Insurance Discount | Description | Eligibility | Insurers With Discount |
|---|---|---|---|
New Vehicle Discount | Save money when you insure a brand-new car. This because they have enhanced safety features to help drivers avoid accidents. | Eligible if you're the first owner of a new car. | Allstate, GEICO, State Farm, Travelers and USAA |
Anti-Lock Brakes | Get a discount for having anti-lock brakes, which help you stop safely. | Eligible if your car has anti-lock brakes installed. | Allstate, Auto-Owners, Farmers, GEICO and State Farm |
Anti-Theft System | Lower your insurance cost with a system that deters car thieves. | Eligible if your vehicle is equipped with an anti-theft device. | Allstate, Auto-Owners, Farmers, GEICO, Nationwide and State Farm |
Airbag | Airbags protect you in crashes. Get a discount for having them. | Eligible if your car has factory-installed airbags, especially multiple ones. | Auto-Owners, Farmers, GEICO and State Farm |
Alternative Energy | Driving a car that uses alternative energy can save you money. | Eligible if you own a hybrid or electric vehicle. | Travelers; Farmers provides this discount to those living in California |
Daytime Running Lights | Cars with daytime running lights are safer and get insurance savings. | Eligible if your car's equipped with daytime running lights. | Farmers, GEICO and State Farm |
VIN Etching | Etching your VIN on your car windows can prevent theft and lower rates. | Eligible if your car has its VIN etched on the windows. | Farmers |
Before purchasing a car, learn about the average cost of car insurance for that model to enhance savings. You can also use a car insurance calculator to identify potential discounts for which you could qualify. By preparing and familiarizing yourself with typical rates, you can find an affordable plan that fits your needs.
Young drivers can offset high insurance costs by taking advantage of student car insurance discounts for good grades or membership in student organizations, significantly reducing their premiums.
Note that dozens of regional and national insurers offer these discounts, beyond those listed here.
Car Insurance Discount | Description | Who Is Eligible? | Insurers With Discount |
|---|---|---|---|
Good Student Discount | Save money because you get good grades in school. Insurers reward smart studying. | Full-time high school and college students with a 'B' average or better. | Auto-Owners, Farmers, GEICO, Nationwide, Progressive, State Farm, Travelers and USAA |
Student Away-From-Home Discount | Get a break on car insurance when you’re at school far from home. | Students studying over 100 miles away from home without a car. | Allstate, Auto-Owners, Farmers, Progressive, State Farm and Travelers |
Student Affiliation Discount | Get a discount through clubs or groups you join at school. | Members in certain fraternities, sororities or honor societies. | GEICO and Liberty Mutual |
Driver’s Education Discount | Taking a driving class can mean savings on insurance. Learn to drive and lower your cost. | Drivers who complete a qualified driver's education course. | State Farm, GEICO, Allstate, Nationwide and Farmers |
Drivers under 25 typically pay the highest car insurance rates. Consider adding teen drivers to an existing policy to get cheaper rates. If a college student only drives during breaks from school while at home, they may qualify for a student away-from-home discount.
Organizations you're affiliated with may have discounts arranged with your insurer. These group affiliations leverage collective bargaining to offer policyholders special rates on their insurance policies.
Note that dozens of regional and national insurers offer these discounts, beyond those listed here.
Car Insurance Discount | Description | Eligibility | Insurers With Discount |
|---|---|---|---|
Professional or Alumni Discount | A professional or alumni discount can be easy to use to reduce costs. | To get this special pricing, you must belong to specific professional organizations or alumni associations. | GEICO, Farmers and Travelers |
Employee Discounts | Working for certain companies could mean cheaper car insurance. Some insurers offer deals because of your employer's relationship with them. | To qualify, you must be an employee at a company with a discount agreement with the insurance provider. | GEICO and Travelers |
Homeowners Discount | Being a homeowner can cut your car insurance bill. Insurers think homeowners tend to be more responsible, which earns you a discount. | If you own your home, you're in luck! Just show proof of homeownership to your car insurance company and enjoy the savings. You don't need to have both home and auto coverage with the same insurer to qualify — this is not the same as a bundling discount. | Farmers, Progressive and Travelers |
Military and Veteran Discount | Our troops deserve extra thanks, and that comes in the form of car insurance discounts. Active-duty service members and veterans get better rates. | Are you serving, or have you previously served in the military? This discount is for you. Provide your military credentials to your insurer to get this benefit. | USAA, GEICO and Farmers |
There are dedicated discounts for the following professions:
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.
| Affinity organization |
| Air bag |
| Anti-lock brakes |
| Anti-theft system |
| Bundling |
| Daytime running lights |
| Defensive driving |
| Driver's education |
GEICO, Auto-Owners and Travelers offer the most car insurance discounts.
MoneyGeek found that, even without discounts, GEICO and Travelers are the cheapest car insurance companies.
| GEICO | Number of Discounts18 |
| Auto-Owners Insurance | Number of Discounts14 |
| Travelers | Number of Discounts14 |
| Allstate | Number of Discounts13 |
| Progressive | Number of Discounts12 |
| USAA | Number of Discounts12 |
| Nationwide | Number of Discounts8 |
The price difference between insurers can be significant. Choosing the company that best suits your needs is key to driving down rates. Once signed up, stacking additional discounts can further reduce your costs.
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, certain insurance providers may 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.
To get car insurance discounts, follow these five simple steps:
Look for the best car insurance companies that offer a wide range of discounts and competitive rates.
Review the eligibility requirements for each discount category to determine which ones you may qualify for.
Contact insurance agents or insurer customer service representatives to inquire about available discounts and how they can be applied to your policy.
Once you've selected an insurance provider, inform your agent or insurance provider of the discounts you are eligible for and complete the necessary steps to apply them to your policy.
If you qualify for any specific driver profile or vehicle discounts, be prepared to provide supporting documentation, such as academic records for good student discounts or proof of anti-theft devices for anti-theft system discounts.
Each insurance provider may have different discount offerings, eligibility requirements and discount amounts. Before buying a policy, 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.
MoneyGeek responded to your frequently asked questions about car insurance discounts to help you lower your premiums and maximize your savings.
Yes, you should always ask for available discounts when purchasing car insurance. Discuss options with your agent and explore which deals you qualify for to lower your premium. Some insurers do not list their discounts online, so it's essential to contact your agent for all discount details and to learn what you are eligible for.
MoneyGeek found that GEICO and Travelers are often the cheapest car insurance companies for most drivers. To maximize savings, compare these rates and factor in applicable discounts.
A car insurance discount is a reduction applied to your premium based on qualifying factors like safe driving, multiple policies or vehicle safety features. These discounts lower the overall cost of your insurance, making it more affordable.
About Mark Fitzpatrick
Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.
