Your Guide to Car Insurance Discounts

Most companies offer car insurance discounts based on your driver profile, vehicle, payment choices, policies, and driving history.
Written by Jessica Barrett
Edited by R.E. Fulton
Almost all insurance companies offer
car insurance
discounts based on factors like your driver profile, driving history, the type of vehicle you own, the way you pay for your insurance, and whether you have multiple insurance products.
  • Most drivers qualify for at least one auto insurance discount with their insurance provider.
  • You can usually stack discounts to increase the total savings on your insurance policy premium.
  • Not all discounts are offered in all states or by all auto insurance companies—so check with your provider to learn about your discount eligibility and available discounts.
  • If you’re not eligible for discounts from your current provider,
    shop around for car insurance quotes
    from other companies and compare their discounts.

5 types of car insurance discounts

Most car insurance companies break their discounts into major categories:
Discount category
What it includes
Driver profile discounts
These discounts are based on things about you—your age, driving habits, and how many years you’ve been insured, for example.
Driving history discounts
Your driving history comprises factors like whether you’ve had any speeding tickets, serious moving violations, or been involved in any at-fault accidents.
Vehicle discounts
If you own a newer vehicle or have an anti-theft device installed in your vehicle, you might be able to save on your annual rate.
Payment discounts
How you pay for your insurance policy can reduce your premium—like if you pay in full or sign up for online billing.
Policy discounts
Insurers reward you for bundling multiple policies, so it’s a good idea to insure your home and any other vehicles you own with the same company.
The insurance industry is very competitive and every company wants to offer you the lowest rate they can—so most discounts are applied automatically based on the information you share when requesting a quote. If you experience changes throughout the course of your policy, reach out to your insurer. Accepting a new job or becoming part of a new organization can lead to greater savings.

Driver profile discounts

Discounts in this category reward you for having certain features. If you’re a student, senior, or in the military, for example, you may qualify for a discounted car insurance premium.
Here are some of the most common driver profile discounts to reduce your car insurance costs:
Get it for…
Affiliation discount
Being involved with a personal, professional, or school association
Military discount
Being an active or past member of the U.S. military
Senior discount
Being over the age of 55 (or 60 in some states) and completing an approved driver education course
Being a full-time student in high school or college and maintaining at least a B average in your studies
Attending college at least 100 miles away from your family’s home without a car
Maintaining continuous insurance coverage without any lapses
Homeowner discount
Owning your home—bonus if you insure it with the same company as your auto insurance

Vehicle discounts

Some vehicles are already cheaper to insure than others—but if your vehicle has certain safety and security features, your insurance company might discount your policy a little more. Unless you’ve added an aftermarket feature, these discounts are usually applied automatically.
Here are some of the most common vehicle discounts:
Get it for…
New car discount
Owning a car that’s less than three model years old
Anti-theft discount
Having a factory-installed or aftermarket anti-theft device in your vehicle
Safety equipment discount
Having equipment like daytime running lights, anti-lock brakes, seat belts, airbags, and advanced safety features in your vehicle
Alternative energy discount
Owning a vehicle that isn’t powered by gas (not available in all states)

Payment discounts

The way you pay for your policy can make a difference in your total premium—like signing up for online billing, paying in full upfront, and signing up for your policy in advance.
Here are some of the most common payment discounts:
Get it for…
Paying your premium in full instead of in monthly installments
Automatic payment discount
Setting up direct withdrawals from your checking account without using a card
Paperless discount
Signing up to receive your policy documents and bills online
Signing up for a policy before your renewal date
Not missing a payment for a specific period of time

Policy discounts

Your policy choices can have a substantial impact on your premium—especially if you opt to bundle multiple policies with the same insurance company. Not all insurers offer policy-based discounts, so check with your provider.
Here are some of the most common auto policy discounts:
Get it for…
Bundling/multi-policy discount
Buying more than one type of policy with the same insurance company—like auto + renters or
home insurance
Multi-car discount
Purchasing policies for more than one vehicle with the same insurance company
Customer loyalty discount
Staying with the same insurer for a certain length of time

Driving history discounts

Your driving history plays a big part in calculating your car insurance rate—but a good driving record can also score you discounts on your policy.
Here are some of the most common ones based on how you drive:
Get it for…
Exhibiting safe driving and maintaining a clean driving record with no accidents or claims for at least three years (also known as a good driver discount)
Low-mileage discount
Driving less than 10,000 miles each year
Telematics discount
Signing up for your insurer’s telematic program—many usage-based insurance plans include an initial discount plus further discounts based on the way you drive
Defensive driving discount
Completing an approved defensive driving course that is not court mandated

Farmers offers the most car insurance discounts

Insurance company
Number of discounts
American Family
Liberty Mutual
State Farm
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Ask your insurance company! Not all insurers advertise their discounts, so it’s always worth asking what they offer and if you qualify.
Some insurance companies refer to this as a good driver discount, others call it a safe driver discount, and still others offer it as an accident-free discount. 
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