Best car insurance discounts

Car owners in nearly every state are required to carry car insurance, making a policy a common part of most American budgets. But while most drivers have to account for the cost of a car insurance policy, car insurance costs can balloon quickly depending on your needs and how much coverage you select. That can make the idea of finding cheap car insurance seem impossible.

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Luckily, that’s not the case for most drivers, as many car insurance companies will offer discounts that can help make your policy more affordable. To help you make sure you’re maximizing your discounts, Bankrate compiled a list of the most popular car insurance discounts offered by the best car insurance companies. This information may be useful to ensure you’re getting the right coverage for the best price.

Types of car insurance discounts

Auto insurance discounts typically fall under a few categories. Depending on what each car insurance company offers, you could earn a discount based on your individual profile, driving history or your car’s features.

Because discount eligibility and amounts vary for every insurance company, it’s important to shop around with different carriers when looking for 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 it.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

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    Young driver discounts

    Young drivers face some of the most expensive car insurance rates of all age demographics, but there are ways to earn discounts. To save money on car insurance for young drivers, some carriers offer a discount for completing a safe driving course designed for teen and young drivers, while others offer telematics programs intended to help young drivers practice safe driving habits.

    Offered by major insurance companies like: Farmers, Progressive, State Farm

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    Student discounts

    Adding student discounts is another chance to save on your car insurance premium. By maintaining a good GPA (typically a B-average or higher), high school and college students may be able to add a Good Student discount to their policy. Additionally, college students who attend school far away from home and don’t take a family car with them may also be able to qualify for a distant student discount.

    Offered by major insurance companies like: Allstate, Farmers, Travelers

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    Military discounts

    Some insurance companies also offer discounts specifically for military members. Whether you are on active duty or active reserves, or retired or honorably discharged, you and qualified family members may be able to qualify for an extra discount.

    Offered by major insurance companies like: Geico, Liberty Mutual, USAA

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    Professional discounts

    Many insurance companies offer special car insurance discounts for particular professions. Certain professions like those in the medical, educational, engineering and financial fields may be able to inquire if their career qualifies them for a discount.

    Offered by major insurance companies like: Farmers, Geico, Liberty Mutual

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    Organizational discounts

    Membership in an organization could qualify you for another car insurance discount. While discounts are most commonly advertised for federal employees, alumni group members or employees of associated companies, asking your insurance agent if your particular membership qualifies you for a discount is the best way to find another savings opportunity.

    Offered by major insurance companies like: Farmers, Geico, Travelers

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 many driving-based discounts you could qualify to earn savings for your driving.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

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    Safe driver discounts

    To qualify for a safe driver discount, a driver must not have been involved in an at-fault accident or received a conviction for a moving violation, like a speeding ticket, within a certain number of years. The amount of time and discount percentage may differ depending on the insurance company, so it’s worth shopping around to see what different carriers offer you.

    Even if you have a mark on your motor vehicle record, you can still work toward being a safe driver and receive potential savings. Many insurance carriers now offer usage-based telematics programs, which track safe driving habits. There is often a discount just for signing up, and you may be able to earn the maximum discount based on how well you perform during the testing period.

    Offered by major insurance companies like: Geico, Nationwide, USAA

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    Low-mileage discounts

    The average driver puts around 13,500 miles per year on their car. Drivers who have lower annual mileage — usually less than 10,000 miles per year — may qualify for a low-mileage discount. If you normally drive less than the average U.S. driver or only drive occasionally, a program specifically for low-mileage drivers could be worth a look. Most auto insurance companies also request odometer readings every year to calculate your rates correctly.

    Offered by major insurance companies like: Allstate (Milewise), Nationwide (SmartMiles)

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    Defensive driving course discounts

    Considerations when shopping for car insurance for seniors may look different compared to that of other age groups, but there are discounts this demographic may be eligible for as well. Taking a defensive driving course, for example, could be informative and earn drivers another discount on their car insurance.

    Offered by major insurance companies like: Farmers, Geico, Nationwide

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.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

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    Safety features discounts

    Most new cars may come with a few standard safety features, such as anti-lock brakes, passive restraint, and air bags. You may even be able to customize your car to include more safety add-ons. However, keep in mind that every car insurance company is different, and the qualifications for safety features and discount amounts may vary.

    Offered by major insurance companies like: Allstate, Geico, Travelers

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    Anti-theft discounts

    Comprehensive insurance covers theft of your car, which can be costly for your insurer and inconvenient for you. For this reason, some carriers may offer an additional anti-theft discount for deterrents installed in your car.

    Offered by major insurance companies like: Farmers, Geico, Nationwide

Loyalty-based discounts

Once you have found a company that works for you, you may earn additional discounts for being insured with the company, especially if you bundle your car insurance with home, life, boat or another type of insurance.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

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    Multi-car discounts

    If you are insuring more than one car, including both vehicles on a single policy could be an easy way to earn a discount. Keep in mind that the car needs to be registered to you or your spouse if you are married.

    Offered by major insurance companies like: Geico, Liberty Mutual, Progressive

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    Multi-policy discounts

    Bundling is a common discount offered by most major insurers. Whether you own your home or rent, having both your car insurance and your homeowners or renters insurance with one company could give you a discount on the premiums. There may also be bundling discounts available for bundling your auto insurance with other policies, like life or umbrella.

    Offered by major insurance companies like: Nationwide, State Farm, Travelers

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    Continuous policyholder discount

    Depending on the carrier, this discount could be interpreted in two ways. Some insurance companies, like Progressive, may offer this discount to new policyholders based on how many years they were continuously insured at a previous carrier. Other insurance companies may consider how many years an insured has been with them, although it is common that it’s not included as a discount, but factored into the overall premium before discounts.

    Offered by major insurance companies like: Progressive, Travelers, USAA

Other car insurance discounts

We’ve covered the most common car 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. Based on our analysis of average premium data from Quadrant Information Services, single drivers pay an average of $1,674 per year for full coverage car insurance, while married drivers pay around  $1,625 per year.

Homeowner discount

As homeowners are generally more financially stable than renters, they may be able to receive a discount on their car 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:

1. Research a carrier website. This could be the easiest way to get an idea of what discount opportunities are available and if any could apply to you.
2. Ask a licensed agent. Because most websites for large insurance companies provide general information, there may be additional discounts specific to your state. A licensed agent will be your best resource in this case.
3. Bundling your home and auto. Out of all the discount opportunities available, bundling multiple insurance policies with a single carrier tends to be one of the best ways to maximize your savings. Consider getting a quote for homeowners insurance or another policy type when shopping for car insurance to see if a single provider can meet your multiple insurance needs.

Frequently asked questions

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    Where do I find all the discounts added to my policy?

    All included discounts on your car insurance policy can be found in your policy declarations page. If you’re still in the quoting process, it will be on the quote completed by the company. You can use this to compare carriers to one another to see which one offers you more discounts and how much the discount decreases the premium.

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    Is it possible for my car insurance rates to increase if I use a telematics program?

    Whether or not your car insurance premiums will be adversely affected by using a telematics program will depend on the carrier. Some insurance companies structure the program so that your rates are affected if you drive poorly while others do not. Check with your insurance agent to learn more about the specific program they offer before enrolling.

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    Does my mileage affect my car insurance premium?

    Most car insurance companies will ask for an odometer reading when you start your policy, and may also request one every year thereafter to get a sense of how much you drive. Drivers who are on the road more often tend to pay higher rates compared to low-mileage drivers. If your commute or annual mileage has changed recently, check with your insurance agent on how this might affect your car insurance rates.