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Types of Car Insurance Discounts

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When you're shopping for affordable car insurance, it's a good idea to find out if you qualify for any discounts. Insurance companies offer different discounts as a way to attract and keep customers. There are a lot of ways to get discounts on car insurance. That's why it's good to compare car insurance quotes from several insurers.

Common car insurance discounts

  • Multi-policy discount: If you have homeowners, renters, motorcycle or life insurance policy, bundling them with your car insurance is one of the most common car insurance discounts. Bundling auto and home insurance is often one of the bigger discounts you can snag. You can save up to $235 per year, according to Consumer Reports.
  • Multi-car discount: If you're insuring more than one vehicle, most insurance companies will offer a discount.
  • Pay in full discount: Some insurers offer a discount if you pay for the full term up-front. If you can't afford to pay it all at once, some insurers offer discounts if you set up your monthly payments with an automatic payment plan.
  • Car safety features: If your car has safety equipment such as anti-lock brakes, air bags and daytime running lights, you may qualify for a discount.
  • Good driver discounts: If you have no accidents or tickets, you might qualify for a discount. While the definition of a "good driver" will vary from company to company, generally if you don't have any moving violations or at-fault accidents in the last three to five years you should qualify.
  • Defensive driver discounts. Some insurers will offer discounts if you take a defensive driving course.
  • Good student discount: If you're enrolled full time at a high school or university and maintaining at least a B average, you may be able to get a good student discount. Note the eligibility rules vary by insurance company.
  • Low-mileage discount: Typically, if you drive under 7,500 miles per year, you can qualify for a low-mileage discount.
  • Occupational discount: Military, law enforcement and educators are just some of the occupations that might earn you a discount.
  • Professional organizations and alumni associations: Members of business groups, military organizations, recreational organizations, fraternities and sororities, honors societies and college alumni associations are just a handful of ways you might be able to save.

Discounts vary by state and insurer. Ask your insurance agent to review possible discounts to make sure you're getting the ones you're entitled to. Below is an example of the types of discounts offered by several different insurance companies.

Ways to get discounts on car insurance by company
GeicoEsuranceNationwideState FarmUSAA
Car safety featuresYesYesNoYesYes
Good driver>5 years>3 years>5 years>3 years>5 years
Good studentYesYesYesYesYes
Low-mileageNoNoNoNoYes
OccupationalYesYesNoNoYes
Pay in fullNoYesNoNoNo

Tips for getting auto insurance discounts

  • The percentage of the discount can be misleading. You might have noticed that insurers offer discounts "up to" a certain percent. Discount percentages vary by state.
  • Discounts may only apply to certain coverages, not your entire bill. Discounts for air bags or seat belts might only apply to your medical payments or your personal injury protection. Anti-theft device discounts might only apply to comprehensive coverage. Anti-lock brake discounts might only apply to collision coverage.
  • Some discounts are required by state law. In New York, if you have daytime running lamps, you are entitled to a discount on your liability, collision, no-fault and medical payment coverages. Many states, like Florida, require insurers to give discounts to senior drivers who have completed a state-approved safe-driving course.
  • Discounts aren't always automatic. Make sure you ask! Don't assume your insurance company will automatically apply discounts to your policy. It's smart ask your agent to review your policy to see if you qualify for discounts. For example, if you haven't had any accidents or traffic violations in the past three to five years, call your insurer about a safe-driver discount.
  • Discounts can be capped. You might qualify for multiple discounts but the insurer may limit the total discount percentage. Speak with your insurer to find out which discounts give you the best price for your total premium.
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