Car Insurance Discounts [The Ultimate Guide]

There are nearly 60 common car insurance discounts. Car insurance discounts such as the good driver, multi-policy, and new vehicle discounts may reduce your monthly rates by up to 50%.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

UPDATED: May 5, 2022

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Unless you have the Midas touch and everything around you turns to gold, saving money is something you spend time thinking about. We do, too, and there are ways to save money that you probably haven’t considered.

Some people think so much about gold they wrote a song about it.

Let’s dance.

From clipping coupons to flipping off a light switch when leaving a room, there are many ways to save. Many companies advertise reduced rates or discounts on certain days of the week or at different times of the day. Ever taken advantage of the early-bird special at your favorite restaurant? What about catching an afternoon matinee at your favorite cinema?

How does 50 percent off sound? If you could save more than half, would you invest the time to read the fine print and see what the big fuss is about?

Sure, why not?

But what about car insurance? Can you save money on car insurance by taking advantage of a discount? Do you even know what discounts are out there? We do, and in this ultimate and complete guide, we’re going to show you everything you need to know about discounts and saving money on your car insurance.

In some cases, you could save hundreds, and perhaps, even thousands on car insurance.

Start comparison shopping today using our FREE online tool. Enter your ZIP code below to get started.

Table of Contents

How can I get a discount on my car insurance?

Let’s find out!

Not only can you get a witness, but you can also get a discount. Sometimes, all you need to do is ask. Unfortunately, insurance companies don’t always advertise what specific discounts are available to consumers.

We want to help you understand what discounts are available. If you are trying to obtain a quote online or want to speak directly to an agent, you’ll be informed and know what discounts are available.

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What’s all the shouting about?

Ferris Bueller may have had his day off, but life and its pitfalls never do. That’s why you need car insurance when accidents happen, to protect the ones you love and the experiences you share. Just make sure you’re not paying too much.

How do savings of up to 40 percent sound? We think that’s certainly worth shouting about!

Here’s what you need to know: not all discounts are available from all insurance providers. Your unique personal characteristics will determine whether you qualify for the “good student” discount or the “senior discount.”

One thing we know for sure: there are ways to save on cheap car insurance.

How can you find the best car insurance deals?

Know When to Protect Your Vehicle

Understanding coverage so you can get the best deal means knowing when to carry physical property damage on your car. The two types of coverage that make up personal property damage include collision and comprehensive.

If you have an older vehicle that you would probably replace if you were in an accident, you might not need collision and comprehensive coverage.

In most states, you’re required to have liability coverage (bodily injury liability and property damage liability), but comprehensive and collision coverages are optional. However, if you have an auto loan, your lender may require you to have these coverages.

There are all kinds of additional insurance coverage options, including personal injury protection, accident forgiveness, uninsured/underinsured motorist coverage, and more. Each type of coverage will increase your monthly premium, so think carefully about what you actually need.

Get Discounts for the Best Car Insurance Deals

So many different discounts are available from different insurance companies. While many of them are the same from company to company, others are unique. Therefore, as you are looking for deals, make sure you get every discount you possibly can. Sometimes finding the cheapest rates comes down to which company offers the greatest number of auto insurance discounts you qualify for.

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Shop Around to Find Deals

Probably the single most important thing to do when looking for the best car insurance deals is to shop around. Blindly accepting a policy renewal or going with the first quote you receive is simply not a wise decision.

However, shopping around for car insurance is much more than just comparing price.

You also need to look at independent feedback from outside sources to determine how dependable a company truly is. Even if you get quotes and share them with your current provider you may find that they are then motivated to lower your current premium just to keep your business.

Independent Information to Get the Best Deals

Once you have narrowed down your car insurance options by price, you need to check out the companies that are offering the prices you like.

Be very suspicious of any company whose quote is significantly less than everyone else’s is.

Carefully scrutinize the details and find out all you can about the company because if it is almost too good to be true, chances are there is something wrong.

Check out any company whose auto insurance quote you liked by getting their financial strength rating and outlook from one of the independent insurance rating companies, like Weiss Ratings or A. M. Best.

These organizations analyze all insurers and give letter grades so you can see how they fare and whether you can trust them to meet their financial commitments or not.

Learning about how an insurer fares according to actual clients is important too. Traditionally this type of information was gathered by word of mouth, but now it can be easily obtained by doing an online search for reviews or by consulting a research group like J. D. Power and Associates.

J.D. Power produces a yearly study on Auto Insurance Customer Satisfaction. The information the study provides will make it easy for you to decide if a given company is one you want to deal with or not.

By evaluating and tweaking the coverage you are looking for, getting all the discounts you possibly can and shopping around, you are sure to find a policy that is just perfect for you. The knowledge of how to get the best car insurance deal gives you a heads up in finding the perfect policy for you.

What are the most common discounts for car insurance?

We’re going to show you what auto insurance discounts are available. There will probably be some that are unfamiliar to you. Then we’re going to give a brief definition of each so you’ll be able to ascertain whether it applies to you.

Lastly, we’re going to show you which auto insurance providers offer the discount according to our independent research and how you can go about scoring the discount for yourself.

Here we go!

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What vehicle equipment discounts are available?

The following table lists all discounts under vehicle equipment and which companies offer them. Some companies offer the discount, but it’s often rolled into other discounts, and specific savings are unavailable.

Not all companies offer a discount.

A listed percentage amount is what you can expect to save if you meet specific requirements. You’ll need to check with your insurance provider to see if you qualify.

Car Insurance Discounts Available by Company
CompaniesAdaptive HeadlightsAdaptive Cruise ControlAnti-lock BrakesAnti-TheftDaytime Running LightsElectronic Stability ControlForward Collision WarningGreen VehicleLane Departure WarningNewer VehiclePassive RestraintVIN EtchingVehicle Recovery
21st CenturyN/AN/AYesYesYesN/AN/AYesN/AYesYesN/AYes
American FamilyN/AN/AYesYesYesYesN/AN/AN/AN/A30%N/AYes
Country FinancialYesN/AYes10%YesYesYesN/AN/A10%YesN/AN/A
Liberty Mutual5%5%5%20%5%5%5%10%YesN/AYes5%35%
Safe AutoN/AN/A5%N/A5%N/AN/AN/AN/AYes5%YesYes
State FarmN/AN/A5%15%N/AN/AN/AN/AN/A40%40%N/A5%
The GeneralN/AN/A8%8%N/AN/AN/AN/AN/AN/A8%N/A8%
The HanoverN/AN/A5%5%5%N/AN/AN/AN/AN/A5%N/AYes
The Hartford3%N/A3%3%3%N/A3%3%N/A3%3%N/A3%
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The following section will explain the safety features available on some cars. If you have an older model of car, some of these safety features may not be available.

Adaptive Headlights

What are adaptive headlights? Adaptive headlights are a more intelligent alternative to traditional headlights, and they can improve visibility at night for maximum safety behind the wheel. Many accidents occur at night because of reduced visibility.

The IIHS explains:

Drivers who have adaptive headlights can expect savings of up to 5 percent.

Adaptive Cruise Control

According to, adaptive cruise control (ACC) is an intelligent form of cruise control that slows down and speeds up to match the traffic flow around your car. As a driver, you would set the maximum speed, like with standard cruise control, and whether you want to remain two, three, or four seconds behind the vehicle ahead of you. Drivers can save up to 5 percent.

Anti-lock Brakes (ABS)

Anti-lock brakes are brakes that work with your regular braking system by automatically pumping them in the event of a sudden stop, according to ABS brakes are different from conventional brakes because when you press down hard on the pedal, one or more of the wheels can lock up. With the automatic pumping of ABS brakes, you can maintain control and ride to safety during a sudden stop. Drivers can expect savings of up to 10% with an anti-lock brake discount.


Does your car have an alarm? If so, it can save you money on your car insurance with an anti-theft discount.

The following video from Digital Trends explains:

Discounts vary by company, but some drivers can expect to save up to 25 percent on their car insurance.

Daytime Running Lights

Daytime running lights are designed to come on when your engine cranks and to turn off when you shut the engine down. Daytime running lights should not be confused with auto headlights, which turn on automatically when low light levels are reached. Many companies offer this discount, and drivers can expect to Daytime running lights.

Electronic Stability Control (ESC)

Electronic stability control helps maintain control of your car in adverse conditions. According to the folks at

ESC works by keeping the vehicle headed in the right direction, even when the vehicle nears or exceeds the limits of road traction.

Electronic stability control is a rare discount, as only three companies offer it. Drivers can save up to 5 percent.

Forward-Collision Warning (FCW)

Forward-collision warning systems use cameras, radar, or laser to scan the road ahead and alert the driver if the distance to a vehicle is closing too quickly. According to Consumer Reports, the systems alert the driver with an audible, haptic (touch), or visual cue. In 2015, 10 automakers announced that FCW would become standard equipment on all new vehicles. Drivers can save up to 8 percent with a forward-collision warning discount.

Green Vehicle

We are all doing our part to combat climate change and help the environment, but did you know your automobile can make a significant impact? A green vehicle is a car that is powered by alternative fuel or electricity. Vehicles are also green if they use combined fuel solutions such as gas/electric hybrids, pure electric vehicles, and solar cars. Drivers with a green vehicle can expect savings of up to 10 percent.

Lane Departure Warning

The lane departure warning feature is one of the advanced alert features found in many of today’s vehicles, and it works by regularly scanning your surroundings.

This video from the Insurance Institute for Highway Safety explains:

Progressive is the only major car insurance company that offers the lane departure warning discount. It’s automatically added when the VIN is added to the company system.

Newer Vehicle

To receive the newer-vehicle discount from insurance carriers, a vehicle must be five years old or newer. The reasoning behind this decision states that newer cars are equipped with new and modern safety features. Stipulations vary, but drivers can save up to 40 percent on medical-related coverage on ’94 models or newer.

Passive Restraint

A passive restraint discount is available for those vehicles that have built-in safety features such as airbags and seat belts. It is a safety feature that works without any action required on the part of the driver or passengers in the car. Drivers can expect to save up to 40 percent on medical-related coverage.

VIN Etching

VIN Etching is a procedure that etches a car’s vehicle identification number onto the glass and windows of a motor vehicle. The VIN is used to track stolen vehicles, and having the number etched on windows increases the chances that a stolen car will be located.

Another benefit of VIN Etching is that criminals tend to check windows for VIN etching and usually try to avoid taking those vehicles. Drivers can save up to 10 percent with a VIN etching discount.

Vehicle Recovery

A vehicle recovery system is a tracking system designed to help vehicle owners get their cars back after they’ve been stolen. Some of these systems include OnStar, Toyota Safety Connect, and Lojack.

Liberty Mutual leads the way with this discount with savings of up to 35 percent.

Now that we have looked at all of the vehicle equipment discounts available, let’s move on to safe driver discounts, where you as the driver play a significant role.

Backup Camera

Will installing a rear-view camera on my car affect my insurance rates? A few years ago the news media began reporting the fact that the federal government was considering mandating rear-view cameras on every new vehicle sold the United States.

As of May 1, 2018, rearview cameras are required in all new vehicles according to the NHTSA. The plan is to use these cameras in addition to other features such as Automatic Emergency Braking as standard vehicle features to ensure vehicles are safer by 2022.

Rearview cameras are thought to prevent accidents such as backing up over children or elderly.

These cameras can help increase a driver’s range of vision, but they are not replacements for physically turning around and checking your surroundings also.

Car insurance companies are always looking for ways to make cars and driving safer. It’s just common sense.

The safer our driving activities become, the less money the insurance companies pay out in claims every year, and the better off we all are.

Therefore, it is standard procedure for insurance companies to reward safety features by providing premium discounts for those cars that have them. Conversely, cars with no safety features pay higher rates.

As far as the rear-view camera is concerned, some studies suggest such devices make driving safer. They also tend to reduce the number of bumper damage accidents, especially on larger vehicles and motorhomes.

But since such accidents usually generate little or no damage, the financial implications for insurance companies are minimal. At this point, many are hesitant to offer significant premium reductions merely because a car has a backup camera.

Insurers will most likely wait to offer discounts for rearview cameras until there is significant proof that these backup cameras greatly reduce claims from accidents.

What is the safe driving discount?

Do you come to a complete stop at all stop signs, or do you perform a rolling stop at some less-traveled locations? Have you received a ticket? Have you caused an accident?

All these events and more can impact the cost of your car insurance.

Let’s find out how.

The following table lists all the safe driver discounts and companies who offer them. Some companies offer the discount, but it’s often rolled into other discounts.

CompanyClaim FreeDefensive DriverDriving Device/AppOccasional OperatorSafe DriverSeat Belt UseRoadside AssistanceFarm VehicleGaraging/Storing Your VehicleUtility Vehicles
21st CenturyYes5%NANAYesNANANANANA
American FamilyYes10%40%NAYesNANANANANA
Country FinancialYes5%NANAYesNANANANANA
Liberty MutualYes10%30%NANANANANANANA
State Farm20%5%50%NA15%NANANANANA
The HartfordYes10%10%NAYesNANAYesYesYes
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Not only can you save money on your car insurance by having certain safety features, but you can also save a ton of cash by being a safe driver. Up next, we’re going to explain the discounts in more detail. You’ll need to check with your insurance provider to see if you qualify.

Claim-Free or Accident Free

Accidents happen, we know, and they can raise your car insurance rates. That’s why one of the most significant factors to help you lower your car insurance is to avoid accidents altogether. Drivers who avoid filing a claim can secure savings of up to 35 percent.

Defensive Driver

A defensive driving course is a great way to save on your car insurance. It can help sharpen your skills by teaching defensive driving techniques and reaffirming forgotten skills to help you stay on the road if an emergency arises. Drivers who take a defensive driving course can expect savings of up to 10 percent.

Driving Device/App

Technology has changed the world and how it operates. It can also save you money on your car insurance. Many car insurance companies offer a driving device or app which monitors your driving to help reduce the cost of your auto insurance premiums. You get a discount for practicing safe driving habits. In the insurance industry, this is referred to as usage-based insurance.

Your driving skills can help you cross the finish line first and score savings of up to 40 percent with certain insurance providers.

Low Mileage

Have you recently changed jobs and now work from home? If so, you may be eligible for a low mileage discount. Insurers classify a short commute as anything less than 6,000 miles per year. On average, drivers can expect to save up to 30 percent when meeting specific stipulations.

Occasional Operator

An occasional operator discount applies to someone listed as a driver on a single-vehicle policy insured by another driver. The occasional operator must be someone who uses the vehicle less than 25 percent of the time to receive a discount. The discount will be based on the driver’s driving record and can be up to 25 percent.

Safe Driver

We all want to drive safely and arrive in one piece when we reach our destination. But did you know being a safe driver could pay off in other ways? How about putting money back in your wallet?

State Farm explains:

Most companies require drivers to use an electric device to monitor their driving to secure the highest safe driver discount.  Drivers can save up to 45 percent.

Seat Belt Use

Even though in most states, wearing your safety belt is now mandatory, it’s also a great move to make for you and your family.

According to the CDC:

Wearing a seatbelt can reduce the risk of serious injury by 50 percent.

Drivers can expect to save up to 15 percent with a seatbelt discount.

Roadside Assistance

Our research has shown that only one large insurance provider, Esurance, offers a discount for roadside assistance. Furthermore, the 5-percent discount is offered in California, Florida, and Washington only.

Farm Vehicle

Do you own a farm and use vehicles and equipment for business purposes? If so, the farm-vehicle discount may apply to you. Another discount you may qualify for is a low mileage discount because you live and work on the same property and likely put very few miles on your vehicle. Farm vehicle owners can expect to save up to 10 percent.

Garaging/Storing Your Vehicle

If you have a car you rarely drive, you may qualify for this discount. Storing a vehicle will not only save you wear and tear but also put money back in your wallet. USAA is the only car insurance company to offer this discount.

USAA customers can save 90 percent when they garage a vehicle. Remember, USAA is only available to those in the military and their immediate family members.

Utility Vehicle

If you drive a utility vehicle, which is any vehicle larger than a standard pickup truck, you may be eligible for a discount. Four companies offer this discount with savings of up to 10%. Drivers should be aware that other insurance companies may choose to add or subtract discounts at any time. The number of companies presenting a discount could extend in the future.

What car insurance discounts are available for young drivers?

Many of us have young drivers in our households, and car insurance rates for them can reach well into the thousands for yearly coverage. There are discounts available for cheap car insurance for students, and we’re going to show you which companies can help you keep these rates at a manageable level.

The following table lists all of the discounts for young drivers and companies who offer them. Some companies offer the discount, but it is sometimes rolled into other discounts.

CompanyDriver's EdDistant StudentFurther EducationGood StudentYoung DriverNew Graduate
21st CenturyYesNANAYesYesNA
American FamilyYesYesNAYesNANA
Country Financial10%NAYes25%10%NA
Liberty Mutual10%NA10%22.50%Yes5%
Safe Auto10%NANA10%NANA
State Farm15%YesNA25%NANA
The General8%NANA8%NANA
The Hanover5%5%Yes5%NANA
The Hartford3%3%NA3%NANA
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Driver’s Ed

Drivers who take driver’s education classes can also receive a discount on their car insurance.  But these classes aren’t just for young drivers. Some car insurance companies allow any driver to take state-certified courses, some of which are online.

Drivers can expect savings of up to 15 percent upon course completion. Check with your insurer first however, as not all companies accept online courses.

Distant Student

The distant student discount is available when a young driver listed on the parent’s policy goes away to college. For the discount to be viable, the student must have no access to the vehicle except over breaks, vacation, and summer. Drivers can expect to save up to 35 percent.

Further Education

Having a four-year degree or higher usually translates into a higher-paying occupation. College graduates can be saddled with student loan debt, but letting your car insurance provider know you’ve put in the effort could save you lots of money on your car insurance. Drivers who receive this discount can save up to 15%.

Good Student

As the parents of teen drivers can attest, their car insurance rates can stretch into the thousands. But there are ways they can help bring down the cost of their car insurance, and that is by making good grades. Regulations vary but usually state that the good student discount, Progressive offers a nice, can be awarded by maintaining a 3.0 GPA and is available to students 16 – 25 years of age. Drivers can save up to 25%.

Young Driver

Have a young driver in the house? Many companies offer a young driver discount.

Having young drivers in the house can be expensive, but by utilizing the young driver discount, savings of up to 10% can be obtained.

New Graduate

According to our research, Liberty Mutual is the only auto insurance carrier who offers the new graduate discount. College graduates often have better credit ratings and improved financial capabilities to pay bills on time. Besides, your income potential could impact your claims history. Individuals who have a higher earning power may be more likely to pay smaller repair costs out of their pocket rather than to file a claim. Drivers can expect to save up to 5%.

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Car Insurance Discounts for Policyholders

Do you pay on time? What about saving the environment by paying your bill online? Well, there’s a discount for that, too. Loyalty also has its rewards, as some car insurance companies offer a discount for long-term policyholders. Remember to check with your carrier to see if you qualify.

The following table lists all of the discounts for policyholders and the companies who offer them. Some companies offer the discount, but it is frequently rolled into other discounts.

Full PaymentEarly SigningContinuous CoverageLoyaltyFamily LegacyFamily PlanFast 5Multiple DriversMultiple PoliciesMultiple VehiclesNew AddressNew Customer/New PlanOn Time PaymentsOnline ShopperPaperless DocumentsPaperless/Auto BillingSwitching Provider
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Up next, we’re going to explain the discounts for policyholders in more detail. You’ll need to check with your insurance provider to see if you qualify.

Full Payment

Drivers can expect savings of up to 15% with specific providers. Many auto insurance companies also offer a paperless billing discount and discount for automatic payments.

Early Signing

The early signing discount is available to drivers who renew their car insurance policy before the current term ends. The early signing discount is rare, but if your insurance carrier offers the discount, you can expect savings of up to 15%.

Continuous Coverage

Drivers who maintain continuous coverage on their vehicles can expect to pay lower car insurance rates than those who don’t. A lapse in coverage not only puts you on the road uninsured, but it also puts those around you in danger, both financially and physically if an accident should occur. Plus, you can go to jail if you’re caught driving without car insurance. Policyholders can expect to save up to 15%.


Membership has its rewards, and so does being a loyal customer. Some insurance companies offer customer loyalty discounts of up to 7%. Even if you have moved to a new location and are switching providers, some companies will take into consideration the length of time spent with your previous carriers.

Family Legacy

Some things run in the family, including car insurance. If your family has a history of being with the same insurance company, make sure to ask if they offer a discount.

Drivers can expect to save up to 5% with the family legacy discount.

Family Plan

The more, the merrier is how the saying goes, and in this case, the more you have, the bigger the discount. The family plan discount offers substantial premium reductions with multi-driver and multiple vehicles. Stipulations vary by company, but drivers can enjoy savings of up to 25%.

Fast 5

This discount is exclusive to Esurance. According to Esurance:

The Fast 5 discount is a 5% reduction in car insurance premiums where quotes were initiated online.

Multiple Drivers

Other companies advertise bundling, which is the combination of multiple policies, vehicles, and other forms of insurance, but only one company offers a discount for multiple drivers. The Hartford offers this discount, and drivers can expect to save up to 5% on their total premiums.

Multiple Policies

Bundling? It’s a term we’ve heard many times before, but have you considered combining multiple policies? If not, you should, because it can save you up to 25% on your car insurance.

To qualify for the multi-policy discount, you need to buy insurance from a carrier that sells more than one line of insurance.

Multiple Vehicles

Where’s Flo and multi-car discounts:

With the multiple vehicle discount, drivers can expect to save up to 25% on their car insurance.

New Address

One thing to consider when it’s time to move:

The cost of your insurance might go up because of different regulations in your new state of residence.

Customers can expect savings of up to 5%.

New Customer/New Plan

Are you moving out of state? If so, you may be eligible for a discount on your car insurance if you change providers. The new customer can realize discounts of up to 10%.

On-Time Payments

Not only will paying on-time keep you legal and your car insurance policy from being canceled, but it could also save you up to 5% on your auto insurance. Plus, some companies will decrease your premium over time if you are a “good payer.”

Online Payments

Some providers will give you a discount if you pay your bill online. You’re saving them manpower and money.

Online Shopper

Shopping online can save you time and money, but did you know that it can save you money on your car insurance? In individual states, drivers can save up to 11% on their car insurance by shopping for and purchasing your policy online.

Paperless Documents

Going paperless can help you not only save the environment but save you money on your car insurance, too. In some cases, you can save much as 10% of your total premium by signing policy documents online.

Paperless/Auto Billing

Save a stamp by paying online and going paperless. Many car insurance companies offer a paperless/auto billing discount as an option.

This discount varies by the company, with amounts saved being anywhere as low as a few dollars up to 25%.

Switching Provider

Don’t become so mesmerized by the cute kitty that you forget about saving money on your car insurance when you change providers. How is that possible?

Switching things up can pay off big: drivers can expect savings of up to 10%.

Are you eligible for car insurance discounts based on life changes?

The following table lists all of the discounts based on personal stats and the companies who offer them. Some companies offer the discount but it is frequently rolled into other discounts.

NewlywedsGood CreditMarriedMembership/GroupNon Smoker/DrinkerOccupationRecent RetireesRenterHomeownerFederal EmployeeEngaged CoupleSenior DriverStable ResidenceVolunteer
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Up next, we’re going to explain the discounts based on personal characteristics in more detail. You’ll need to check with your insurance provider to see if you qualify.


Will you marry me? If someone you love says “yes,” then you should consider checking with your car insurance carrier to see if they offer a discount for newlyweds.

Newly divorced? You may be surprised to learn your car insurance rates might go up. These are just a few of the scenarios that car insurance companies use to determine insurance rates. Newly married couples can save up to 5% on their car insurance.

Good Credit

Having good credit can open a lot of doors: like doors to new homes and cars. But buying a new house and car can be expensive. One way to save money on your car insurance is by having a good credit score. Most companies consider a credit score of over 700 as good credit. Drivers who have a less than perfect credit score can expect to pay thousands more for their car insurance.


Walking down the aisle is the experience of a lifetime, but it can also be expensive. One way to save money is by notifying your car insurance company when you tie the knot and adding your spouse to your policy. Many people don’t realize that auto insurance companies take marital status into account when setting rates. Married drivers are considered more stable than their single counterparts, mostly because they are on the road less. Savings vary by company but can be up to 5%.


Drivers who belong to specific groups and organizations can save money on their car insurance.

Amounts vary, but customers can expect to save up to 20% through membership affiliation with companies like Costco and AARP.


Although it may not seem fair, the behaviors you exhibit can have a considerable impact on your wallet. Drivers who smoke, drink, or both pay substantially more for car insurance than those who don’t. Those drivers who drink are more likely to drive impaired, and those who smoke are more likely to be distracted, resulting in increased chances of being in an accident. 21st Century is the only major car insurance company to offer this a non-smoker/non-drinker discount.


Is your business risky? We’re not talking about the classic film Tom Cruise starred in, but the professions of some drivers. Research has shown that certain careers file more claims, which, in turn, can make auto insurance rates go up. Drivers can save up to 15% in some states.

Recent Retirees

The more you drive your car, the more likely you are to get in an accident. If you have recently retired, contact your insurance provider and ask them about a low-mileage discount. Drivers who regularly commute often do so in increased traffic conditions, thus increasing the chance of being in a fender bender. Drivers can take advantage of savings of up to 4%.


Renters have the same opportunity to save on their insurance as homeowners by insuring the contents of their residence and then bundling it with their car insurance policy. Only two companies, Amica and Esurance, offer this discount. Combined with an auto insurance policy, drivers with Esurance can save up to 30% off their renter’s insurance.


Owning your own home has a lot of benefits, but one you might not have considered is a discount on your car insurance.

Being a homeowner makes you less risky in the eyes of car insurance companies. What does this mean for you? How about savings of up to 12% on car insurance premiums.

Federal Employee

As a federal employee or one who works for the government, you may qualify for a federal discount on your car insurance. This category includes those who are in the military, work for the postal service, the IRS, and others. Drivers can expect to save up to 10 percent.

Engaged Couple

Here’s one thing to consider when you’re considering whether to pop the question: getting married is expensive! However, there are ways to save money, and one of them is adding your potential spouse to your car insurance policy. With savings of up to 10%, couples can choose to pocket that money or spend it on their wedding.

Senior Driver

We know you’ve heard about all of the senior discounts you receive when you turn 55 (some companies, age 50), but did you know your car insurance company could offer a discount too? Drivers aged 55 – 70 tend to have the lowest auto insurance premiums. Mature drivers can save up to 10% on their car insurance with some companies.

Stable Residence

To qualify for the stable residence discount, policyholders must have lived at the same residence for a year or more. The Hartford is the only major car insurance company that offers this discount of 5%, which is available to drivers who have lived at their current residence for at least five years.


Many of us across the country have become integral parts of our communities by using our spare time to volunteer with various service organizations. American Family Insurance recognizes its policyholders for their service by rewarding them with a volunteer.

Expert Advice on Discounts

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Many people don’t take advantage of the bundling discount.  Sometimes bundling auto insurance with either home, condo or renter’s insurance can result in pretty significant savings on both policies. Newer to the market is telematics discount which either by installing a device in their automobile or installing an app on their phone, insured’s can get a discount based on their own driving habits. Different companies look at different things.

However, since it’s relatively new most insured’s really don’t understand how it works or what they need to do to maximize the discount. Other discounts insured’s often don’t know about can include group discounts through either their employer, alumni associations, bank/credit unions.  It’s always a good idea to ask if these qualify you for any discounts.

Also there are advanced online driving classes that new driver’s can take besides the normal driver’s ed class that will provide an additional discount on their auto insurance. The more popular discounts include safe driving discounts, which are based on your driving record.  Low Mileage discount, Anti-Theft discount, and Good Student discount are pretty common.

Kristen Gryglik is an agent in the Boston area with 15 years of experience in the insurance industry.

Without a question the most popular discount is the Good Driver and Superior Driver discount.  In addition the home umbrella discount is also extremely popular. My opinion though is that the auto discount programs are feeding off of themselves.  I ask clients all the time the same question:  Would you Rather have a bigger Discount or a Lower Premium? It is the premium that ultimately matters and not how many specialized discounts that you can pile on.

Scott W Johnson is an Independent Insurance Agent, based in Marin County California

There are many ways people can save on their car insurance with discounts. Some of the most popular car insurance discounts include multi-vehicle, safe vehicle, safe driver, good student, low mileage, new car, pay-in-full, and affinity discounts such as military, educators, or first responders. Bundling your car insurance with your homeowners or renters insurance policy can also result in a discount.

Over the past few years, carriers have rolled out driver tracking programs, which use telematics technology to track driving habits and give users a personalized car insurance rate or discount. Some of the programs from large insurance companies include, Progressive, American Family, Farmers, State Farm, and Allstate.

There are also some car insurance companies that offer pay-per-mile car insurance, including Metromile. The company tracks how many miles you drive and charges you a customized rate each month based on how much you drove. If you don’t drive a lot, this could save you money on car insurance. Car insurance discounts available to you vary by carrier.

My tip would be to make sure you ask your agent or company about all the discounts available. Customers often do not know what discounts their insurance company offers. If you don’t ask about them, you could be missing out on discounts that you qualify for.

Lauren Emmons, Customer Success Manager at Clearsurance – independent, review & rating platform for insurance carriers, agencies, and agents; as well as a licensed Property & Casualty Insurance Producer in Massachusetts.

The most common discounts for car insurance on the market include:

  • Multi-policy (homeowners/renters/condo owner/motorcycle/life insurance)
  • User Based (app downloaded on phone that monitors driving)
  • Safe driver
  • Good student discount for full time high-school and college students (under 25)
  • Affinity discounts (occupation, military, college degree or college alumni)
    Defensive Driver (driving school/DUI schools)
  • Multi-vehicle
  • Paid in full discount
  • Monthly EFT (electronic funds transfer from checking account)
  • Early shopper
  • Paperless policy
  • Paperless billing

The most popular discounts applied are:

  • Multi-policy (homeowners/renters/condo owner/motorcycle/life insurance)
  • Good student discount for full time high-school and college students (under 25)
  • Affinity discounts (occupation, military, college degree or college alumni)
  • Monthly EFT (electronic funds transfer from checking account)

A discount that is becoming more popular now is the user based discount. It consists of downloading an app on your smart phone. It monitors if you text and drive or brake hard. It doesn’t report back to the company underwriters to increase your rates, but it gives you a report of the percentage of time you drive without distraction or if you brake hard. It’s a way to hold yourself accountable to not text and drive.

Tracey L. Wells is a licensed insurance agency owner with 23 years of experience.

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Frequently Asked Questions

Where can I find a list of car insurance discounts?

You’ve come to the right place. We’ve researched and compiled the most comprehensive list out there.

Car Insurance Discounts for Medical Students

Most car insurance companies do not offer a specific discount designed solely for medical students, but many do offer a discount for student drivers. These discounts can vary by insurance company, so you should take the time to learn more about the specific requirements for each insurance company’s unique student discounts.

However, in general, you may need to meet the following criteria in order to qualify:

  • Be a full-time student
  • Be a “good” student, such as having an A or B average or be on the Dean’s list
  • Be under the age of 25

Do part-time students qualify for discounts?

Car insurance companies offer various discounts for drivers. One of them, the Good Student discount, is commonly offered by many car insurance providers. If you are a good student, but are only a part-time student, you may wonder if you qualify for the Good Student discount.

In most cases, such as with Allstate and State Farm, one of the stipulations of the Good Student discount is that you are enrolled as a full-time student.

There may be other car insurance providers that offer the Good Student discount to part-time students, but in most cases they do not. The only way to know for sure whether the Good Student discount would apply in your case is to call the insurance company and ask them.

What are some unusual car insurance discounts?

There are a handful of strange and unusual discounts you may not have heard of before.

  • Telematics Discounts (Black Box) — see question below
  • Organizational Discounts
  • College Graduate Discounts

What is a Driving Device/App discount?

Not every app/device is identical, but they all seem to serve a single purpose. These units log how a driver performs on the road. The data saved and stored on the device tells a consistent tale about a driver’s safety and performance. This may also be called pay-as-you-go.

Depending on the particular insurance provider you work with, the program may require a mobile app or a plug-in device.

Once the app/device is in place, the program creates a log of driving figures including:

  • Location
  • Conditions
  • Performance
  • Handling

These three statistics craft a near-perfect biography of the driver. Where you drive your car factors into concerns over risk. You may have seen signs posted on highways stating “high accident area.”

Those signs exist to warn drivers to be extra careful. Someone who doesn’t drive on roads known for excessive risks and hazards becomes less likely to file a claim.

Similarly, someone who rarely drives through rush hour traffic or in bad weather conditions won’t be at as high of a risk for an accident.

Of course, how you drive plays a major role in the avoidance of risk. A person who stays in the right lane and never speeds decreases his/her chances of a collision.

Someone who doesn’t drive very much becomes even less of a risk.

With an effective app/device, a lot of good information about your driving habits gets conveyed to the insurance company.

Since you know the insurance company eventually learns your every move when driving, you likely will be extra careful. Either way, the insurance company cuts your rates for operating the program.

The rate discount could even be as high as 30 percent. And that is just for one discount. Several could possibly be bundled.

Will companies provide discounts for alarm systems in my vehicle?

Having a security system in a car does affect a person’s car insurance rates.

The majority of car insurance providers offer a discount for cars that have a security system.

Car security systems have a history almost as long as the automobile itself. Over the last few years, the security alarms available in cars have progressed beyond what most people thought possible just a few decades ago. Here are the most common types of security systems:

According to the Auto Tips & Advice website, there are some basic types of car security systems. These systems are:

  • Passive car alarms – This is the type of car alarm with which most people are the most familiar. It’s called “passive” because the driver does not need to activate it.
    • It comes standard on most new cars.
    • This type of system is armed automatically when the driver locks the car. It involves the automatic locks button on a key fob, so when the driver hits the lock button on their key fob, their car’s alarm is automatically turned on.
  • Active car alarms – An active car alarm works much in the same way as the passive car alarm except the driver has to physically arm the alarm themselves.
    • Often with this type of car alarm, there is a separate button on the driver’s key fob that they have to press to arm the car’s alarm system.
  • Silent car alarms – Since car alarms that make sounds (like the passive and active alarms) can be so disrupting and can often be triggered by innocuous situations that have nothing to do with theft, car manufacturers started producing silent car alarms.
    • The way a silent car alarm works is the alarm sends a signal to a device that the car owner keeps, most likely in their home. With some silent alarms, when the device is triggered it will actually call the driver on their phone.
    • The main downside to this type of car alarm is that often with a non-silent car alarm, the noise will scare the car thief away before they actually steal something. At the very least, a non-silent alarm will alert other people in the vicinity that there is something going on.

Let’s Wrap It Up

Let’s recap what we’ve learned: there are ways to save money on cheap car insurance. There are over 60 discounts available, a lot of which are available from the large insurance providers. Be sure and speak to your representative to see if you qualify.

Now that you’ve learned everything you need to know about car insurance discounts, is there something we’ve missed?

Another discount we need to know about? What about a new discount just out on the market? Let us know by commenting below.

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