Best car insurance discounts
Key takeaways
- Insurance companies offer discounts for safe driving, demographic factors, vehicle safety, customer loyalty and other factors, such as good grades or automatic payments.
- Exploring available discounts with your current insurer or switching to a company with more discounts that fit your profile could save you money on car insurance.
- In addition to discounts, you may be able to lower your car insurance premium by raising your deductible, practicing safe driving or shopping often for new rates.
Car insurance is a legal requirement in most states, but the cost of this mandatory financial protection is on the rise in 2024. With inflation and car repair costs driving up the price of coverage, smart application of discounts is one of the best ways to reduce auto insurance costs. To help drivers identify and seek out the discounts with the greatest savings potential, Bankrate’s insurance editorial team reviewed available discounts from a wide range of auto insurance companies to find the best options.
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How to get car insurance discounts
There are two primary ways to use auto insurance discounts to your advantage. First, if you have an active auto insurance policy, review the discounts currently applied to your policy and see if your insurance company offers other discounts that could lower your rates. You can review your policy’s declarations page on your own or speak to your insurance agent and request a thorough policy review. Ask your agent how to get car insurance discounts that fit your profile.
If you’re not satisfied with the discounts you’re currently getting, look at discount options available from other car insurance companies and consider switching carriers for a lower rate. While some discounts, such as bundling discounts and multi-car discounts, are fairly standard across carriers, discount amounts, eligibility terms and unique discounts can vary considerably between companies.
Types of car insurance discounts
Bankrate’s team of insurance experts has identified four main categories of car insurance discounts: driver-based or demographic discounts, driving-based discounts, vehicle-based discounts and loyalty-based discounts. Your insurer may also have other miscellaneous discounts, but these four categories cover the bulk of the common auto insurance discounts offered by most carriers.
Because eligibility and the amount saved for each discount on auto insurance vary by insurance company, it’s important to shop around with different carriers when looking for cheap car insurance. After receiving quotes back, review the discounts and their impact on your insurance rates, and check if you might be missing any of the discount opportunities below.
Driver-based discounts
Some car insurance discounts are based on a driver’s characteristics, such as their age group, profession or membership in an affiliated group. While certain discounts may be applied automatically, it never hurts to ask if you don’t see a discount you think you’re eligible for on your declarations page.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Young driver discounts | Varies by program | Young drivers between the ages of 16 and 25 |
| Student discounts | Varies by school level and GPA | High school or college students who are currently enrolled full-time |
| Military discounts | *Up to 25% | Active and former military members, and some qualified family members |
| Professionals discounts | Varies by industry | Individuals who are in qualified industries, such as education or health care |
| Organizational based discounts | *Up to 12% | Individuals who are members of or employed by partner organizations |
*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.
Driving-based discounts
Having a clean driving record is generally the best way to qualify for many safe driving discounts, as it indicates to insurance companies that you are less likely to file claims. However, even without a spotless record, there are still some driving-based discounts you could qualify to earn auto insurance savings for your driving.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Safe driver discounts | Varies | Safe drivers who have not been in an at-fault accident or received a moving violation conviction |
| Telematics discounts | *Up to 40%, if performing well | Drivers who enroll in a telematics program to share live driving data with their insurer and avoid unsafe habits like hard braking |
| Low-mileage discounts | Varies based on miles driven | Drivers who do not commute daily and drive very infrequently |
| Defensive driving course discounts | *Up to 5% | For people who are looking to improve their driving skills and reaction times |
*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.
We asked Bankrate staff members who have gotten an auto insurance discount based on their driving about their experience. What we heard: while this type of discount might not make a huge dent in your premium, it’s a helpful tool to keep your rates a bit lower.
Safe driving discount
“I chose Progressive because it offered an attractive rate and came with the opportunity to earn more discounts for safe driving. I opted into the telematics program and consider myself a cautious driver, but the additional discount I earned was small.” – Bankrate employee
Low mileage discount
“Telling the auto insurance carrier about my reduced mileage reduced the premium a little.” – Bankrate employee, Progressive customer
Vehicle-based discounts
Your car’s installed features, such as anti-lock brakes, adaptive cruise control, daytime running lights and safety features, may make driving safer and help you to avoid accidents. Depending on your car insurance carrier, you may earn a discount for these features due to your lower risk.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Safety features discounts | *Up to 5% | Vehicles that have specific safety features outlined by the insurance carrier |
| Anti-theft discounts | *Up to 23% | Vehicles that have anti-theft features outlined by the insurance carrier |
| Hybrid/electric vehicle discounts | Varies by carrier | Hybrid or electric vehicles |
| New vehicle discounts | *Up to 15% | Vehicles three-model-years-old or newer |
*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.
Loyalty-based discounts
Once you have found a company that works for you, you may earn additional discounts for staying insured by the company, especially if you bundle your car insurance with home, life, boat or another type of insurance.
| Discount type | Potential savings | Who the discount is for |
|---|---|---|
| Multi-car discounts | *Up to 25% | Drivers who insure more than one registered vehicle at their household |
| Multi-policy discounts | *Up to 25% | Policyholders who bundle two or more policies with a single carrier |
| Continuous policyholder discount | Varies by company and length of being insured | Policyholders who have maintained coverage either on their own or with the same carrier for several years |
| Legacy discount | *Up to 10% | Policyholders under 25 who open a standalone account after being insured on a parent’s account with the same company |
*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.
My advice for people looking to save money on auto or home insurance is to bundle your coverage. Allstate has among the best bundling discounts out there. But keep in mind, bundling isn't the best option for everyone. Splitting policies might be the most cost effective and that's why it's important to do your homework when choosing a provider.— Linda Bell, Senior Writer, Bankrate
Other car insurance discounts
We’ve covered the most common auto insurance discounts, but more opportunities to save on car insurance may be available. Below are some discounts that all insurers may not offer, but they are worth asking about to see if you can include them.
New policyholder discount
To incentivize drivers considering switching their car insurance companies, some carriers may offer a new policyholder discount. This additional discount may be applicable for the first period of the new policy and eventually fall off.
Married discount
Compared to single drivers, car insurance for married drivers may be cheaper. Single drivers pay an average of $2,348 per year for full coverage car insurance, while married drivers typically pay $2,205 per year, based on our September 2024 analysis of average premium data from Quadrant Information Services.
Homeowner discount
As homeowners are generally more financially stable than renters, they may be able to receive a discount on auto insurance due to having a lower likelihood of needing to file claims. If your insurance company doesn’t offer home insurance, making a multiple policy discount unavailable, you can ask if a homeowner discount is available.
Billing discounts
Depending on your billing and payment method, you may be able to earn more discounts on your policy. The most commonly seen are paperless billing, automatic billing and paid-in-full discount, but check with your insurance agent to see if there may be anything unique to your company that you can participate in.
How to find the best car insurance discounts
Shopping for car insurance can be an involved process. You may be considering how much car insurance you need, what coverage options to include and which carrier will give you the most competitive premium. Knowing the available discount opportunities and taking advantage of them could make a huge difference in finding the best car insurance policy within your budget. Below are some tips on finding car insurance discounts:
- Research a carrier website. This is a good place to start. Most carriers list discounts you could be eligible for and any additional information about eligibility guidelines and how to claim the cost-savings.
- Ask a licensed agent. They can provide even more specific information regarding discounts you’ve already identified and share details about state-specific discounts you may not know about.
- Talk to friends or family. Referrals are a great way to find an insurance company that offers generous discounts. You may find that the discounts are more attractive than your current provider offers, and it could be worthwhile to switch insurance companies to receive the same level of coverage at a lower rate.
Other ways to save on car insurance
Discounts could help to lower your car insurance premiums, but other smart saving strategies include:
- Compare rates often. As the insurance market continues to respond to inflation, carriers may change rates often — so shopping around whenever your policy is up for renewal could save you money.
- Practice safe driving. A clean driving record puts you at a significant advantage when looking for affordable car insurance. In addition to qualifying you for discounts, it also ensures you’ll pay a lower base rate for coverage.
- Build your credit. In most states, your credit history plays a major role in the amount you pay for auto insurance. Moving to a higher credit tier could reduce your car insurance costs.
- Raise your deductibles. If you have full coverage on your policy, raising the deductibles attached to your comprehensive and collision coverage could slightly reduce your premiums. Be careful, however, not to select a deductible you can’t realistically pay in the event of a covered loss.
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