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 Hillary Kobayashi
Edited by Amy Bobinger
Almost all insurance companies offer
car insurance
discounts based on five factors: your driver profile, driving history, vehicle, payment methods, and insurance policy. Discounts can lead to significant savings on your insurance premium—especially if you can stack several together.

Car insurance discounts can help you save

Taking advantage of available discounts is one of the best ways for policyholders to pay less for car insurance. Some types of discounts are more significant than others, but stacking discounts can make quite a dent in your bill. 
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 if you retire or change jobs, make sure to reach out to your insurance agent to see if you are eligible for any new discounts. 

Five types of car insurance discounts

Most car insurance companies break their discounts down into five 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
You may be able to save by avoiding speeding tickets, serious moving violations, or at-fault accidents.
Vehicle discounts
If you own a newer vehicle or have an anti-theft device installed in your car, 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 often a good idea to combine your home insurance or life insurance with your car insurance.

1. Driver profile discounts

Discounts in this category reward you for having reached certain milestones or for having certain affiliations. If you’re a student, senior, or a member of 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…
Average savings
Being involved with a personal, professional, or school association
Maintaining continuous insurance coverage without any lapses
Being a full-time student in high school or college and maintaining good grades (at least a B average) in your studies
Up to 25%
Homeowner discount
Owning your home—bonus if you insure it with the same company as your auto insurance
Around 15%
Being an active or past member of the U.S. military
Up to 15%
Being over the age of 55 (or 60 in some states) and completing an approved driver education course
Up to 15%
Attending college at least 100 miles away from your family’s home without a car
Up to 25%

2. 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…
Average savings
Exhibiting 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%
Completing an approved defensive driving course that is not court mandated—young drivers can take advantage of this discount
Up to 15%
Driving less than 10,000 miles each year
Around 8%
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
Up to 30%

3. 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… 
Average savings
Anti-theft discount
Having a factory-installed or aftermarket anti-theft device in your vehicle
Up to 15–20%
Alternative energy discount 
Owning an electric or hybrid vehicle (not available in all states)
Up to 5–10%
New car discount
Owning a car that’s less than three model years old
Safety equipment discount
Having 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)
personal injury protection (PIP) coverage

4. 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…
Average savings
Setting up direct withdrawals from your checking account without using a card
Signing up for a policy before your renewal date
Paying your premium in full instead of in monthly installments
Paperless discount
Signing up to receive your policy documents and bills online
Up to 10%
Not missing a payment for a specific period of time
Up to 15%

5. Policy discounts

Your policy choices can have a substantial impact on your premium—especially if you opt to
bundle multiple insurance products
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…
Average savings
Buying more than one type of policy with the same insurance company—like auto insurance,
renters insurance
, and
home insurance
Staying with the same insurer for a certain length of time
Purchasing policies for more than one vehicle with the same insurance company
Up to 10% per car

The best car insurance companies for discounts 

Most car insurance companies offer a lot of discounts, but Farmers is currently the best auto insurance company for discounts, offering a total of 23 discounts to its policyholders. 
Our experts at
compiled a table of the number of discounts that are offered by major providers:
Line graph infographic who offers the most car insurance discounts? With most car insurance discounts at the top and the shortest at the bottom. Farmers has 23 discounts offered, American Family offers 18 discounts, GEICO offers 16, Liberty Mutual offers 13 discounts, Progressive has 13 discounts, Travelers offers 12 discounts, USAA also offers 12 discounts, Allstate offers 11, State Farm has 10 and Nationwide has 9 discounts.
Asking your car insurance company about your eligibility for discounts is a great way to save money on your annual premium. But if you're looking for cheap car insurance, you should do some comparison shopping.
The easiest way to compare quotes is to use the
app. Jerry can find you the best discounts and coverage based on your driver profile. With the
app, you can easily compare car insurance quotes from dozens of providers to find the cheapest car insurance. Simply download the Jerry app, enter your information, and start scrolling. 
Find the lowest car insurance rates—with or without discounts!
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What is the best way to find common car insurance discounts?

Check for available discounts when you request quotes. Not all insurers advertise their discounts, so it’s always worth asking what they offer and if you qualify.

What is the insurance discount for having no accidents?

Some auto 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. 

What are some other ways I can save money on my auto insurance rates?

You can try adjusting your deductible and coverage, practicing safe driving behaviors, improving your credit score, and shopping around for quotes from different car insurance companies. 

Meet our experts

Hillary Kobayashi
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information.
Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Amy Bobinger
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Licensed Insurance Agent — Expert Insurance Editor
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars.
Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.

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