Your Guide to Car Insurance Discounts

Written by Megan Lee and 2 others
Updated Mar 12, 2025

Most car insurance companies offer discounts based on your driver profile, vehicle, payment choices, policies and driving history.

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Almost all insurance companies offer discounts on their car insurance policies based on five factors: your driver profile, driving history, vehicle, payment methods and insurance policy. Discounts are worth exploring because they can lead to significant savings on your insurance premium — especially if you can stack several together.

Car insurance discounts can help you save

The insurance industry is very competitive, and every company wants to offer you the lowest rate they can, so most auto insurance discounts are applied automatically based on the information you share when requesting a quote. 

But if anything in your life changes, like retirement, changing jobs, or adding another family member to your plan, make sure to reach out to your insurance agent to see if you are eligible for any new discounts and to save money on auto insurance.

5 types of auto insurance discounts

Most car insurance companies break their discounts into five major categories: driver profile, driving history, vehicle, payment and policy.

Discount categoryWhat it includes
Driver profile discountsThese discounts are based on things about you — your age, driving habits and how many years you’ve been insured, for example.
Driving history discountsYou may be able to save by avoiding speeding tickets, serious traffic violations or at-fault accidents.
Vehicle / anti-theft discountsIf you own a newer vehicle or have an anti-theft device installed in your car, you may be able to save on your annual rate.
Payment discountsHow you pay for your insurance policy can reduce your premium — like if you pay in full or sign up for online billing.
Policy discountsInsurers reward you for bundling multiple policies, so it’s often a good idea to combine your home and life insurance with your car insurance.

A closer look at discounted car insurance

1. Driver profile discounts

Discounts in this category reward you for having reached certain milestones or for having certain affiliations. For example, if you’re a student, senior or a member of the military, 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.

DiscountGet it forTypical savings
Affiliation discountBeing involved with a personal, professional or school association.Varies
Continuously insured discountMaintaining continuous insurance coverage without any lapses.Varies
Good student discountBeing a full-time student in high school or college and maintaining at least a B average.Up to 25%
Homeowner discountOwning your home — bonus if you insure it with the same company as your auto insurance.Up to 15%
Military discountBeing an active or past member of the U.S. military.Up to 15%
Senior discountBeing over the age of 55 (or 60 in some states) and completing an approved driver education course.Varies
Student away at school discountAttending college at least 100 miles away from your family’s home without a car.Varies

2. Driving history discounts

Your driving history plays a big part in calculating your car insurance rate. A good driving record can also score you discounts on your policy.

Here’s how to get discounts on car insurance based on how you drive.

DiscountGet it forTypical savings
Accident-free or safe driver discountExhibiting safe driving behavior and maintaining a clean driving record with no accidents or claims for at least three years (also known as a good driver discount).Up to 30%
Defensive driving discountCompleting an approved defensive driving course that is not court mandated — elderly and teen drivers are often eligible for this discount.Up to 15%
Low-mileage discountDriving less than 10,000 miles each year.Up to 10%
Telematics discountSigning 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.Up to 30%

3. Vehicle discounts

Some vehicles are already cheaper to insure than others, but if your car has certain safety and security features, your insurance company may 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.

DiscountGet it forTypical savings
Anti-theft discountHaving a factory-installed or aftermarket anti-theft device in your vehicle.Up to 15–20%
Alternative energy discountOwning an electric or hybrid vehicle (not available in all states).Up to 5–10%
New car discountOwning a car that’s less than three model years old (age cut off varies).Up to 15%
Safety equipment discountHaving modern equipment like daytime running lights, anti-lock brakes, seat belts, airbags and advanced safety features in your vehicle.Up to 40% (may only apply to the cost of medical payments (MedPay) and personal injury protection (PIP) coverage)

4. Payment discounts

How you pay for your policy can make a difference in your total premium. Signing up for online billing, paying in full upfront and signing up for your policy in advance can help you save.

Here are some of the most common payment discounts.

DiscountGet it forTypical savings
Automatic payment discountSetting up direct withdrawals from your checking account without using a card.5%
Early sign-up discountSigning up for a policy before your renewal date.Up to 10%
Paid-in-full discountPaying your premium in full instead of in monthly installments.5–10%
Paperless discountSigning up to receive your policy documents and bills online.Up to 10%
Responsible payer discountNot missing a payment for a specific period of time.Varies

5. Policy discounts

Your policy choices can have a substantial impact on your premium, but not all insurers offer policy-based discounts, so check with your provider.

Here are some of the most common auto policy discounts.

DiscountGet it forTypical savings
Bundling or multi-policy discountBuying more than one type of policy with the same insurance company — like auto, renters and home insurance.5–25%
Customer loyalty discountStaying with the same insurer for a certain length of time.Up to 20%
Multi-car discountPurchasing policies for more than one vehicle with the same insurance company.Up to 25%

Best companies for car insurance discounts 

Most car insurance companies offer multiple discounts, but Farmers is currently the best auto insurance company for discounts. 

Here is a list of the number of discounts that are offered by major providers. If you’re looking for the cheapest car insurance, be sure to ask about available discounts.

Discounts offered:

  • Farmers – 19
  • American Family – 17
  • GEICO – 16 
  • Liberty Mutual – 13
  • Progressive – 14
  • Travelers -12
  • USAA – 12
  • Allstate – 11
  • State Farm – 12
  • Nationwide – 10
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Megan Lee

Megan Lee is an editor, writer, and SEO expert who specializes in insurance, personal finance, travel, and healthcare. She has been published in U.S. News & World Report, USA Today and elsewhere, and has spoken at conferences like that of NAFSA: Association of International Educators. Megan has built and directed remote content teams and editorial strategies for several websites, including NerdWallet. When she`s not crafting her next piece of content, Megan adventures around her Midwest home base where she likes to drink cortados, attend theme parties, ride her bike and cook Asian food.

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Everett Cook

Everett Cook is an award-winning journalist and editor with more than 10 years of experience across a variety of industries. In editing for Jerry, Everett’s mission is to help readers have a better understanding of the costs of owning or leasing a car and to better understand their vehicle in terms of insurance and repairs. Prior to joining Jerry, Everett was an editor for Axios. His previous work has been featured in The New York Times, The Los Angeles Times, The San Francisco Chronicle, The Atlantic, Atlantic Re:think, The Boston Globe, USA Today, and others. He’s also been a freelance writer and editor with experience in SEO, audience building, and long-term content roadmaps. Everett is a proud graduate of the University of Michigan.