Discount Car Insurance: What They Are and How to Get Them

Discount car insurance is easy to find if you take advantage of available savings. Common car insurance discounts include multi-policy, multi-car, good driver, good student, and occupational discounts. However, the same auto insurance discounts aren’t available everywhere, and the discount amounts can be different. The best discount auto insurance will offer low rates and multiple discounts to bundle.

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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 4, 2022

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Here's what you need to know...

  • Car insurance companies offer discounts based on your driving record, your vehicle, and your policy
  • Discounts can equal significant savings, especially if you are able to bundle multiple reductions
  • Car insurance discounts usually consist of a maximum amount and may only be offered on certain coverages

Finding discount car insurance is a must for any driver looking to save money. One of the easiest ways to save is to take advantage of car insurance discounts. Car insurance companies typically offer a variety of discounts, and drivers can even bundle them for maximum savings.

However, discounts may only apply to one coverage and not to your whole policy. Discounts can also have limits or requirements that you aren’t aware of. For example, a car insurance student discount is only offered to students with a minimum of a B average.

To find the most affordable discount car insurance, shop around. Every company will offer various rates and discounts, so ensure that you compare multiple options to find your best deal.

If you’re looking for discount auto insurance, enter your ZIP code to compare free car insurance quotes from companies in your area today.

What are common car insurance discounts?

There are many factors that affect car insurance rates, such as your age and driving record. Once these components have been calculated, your rates are determined. However, most car insurance companies offer another way to lower your rates.

Insurance rate discounts are offered to drivers for a variety of reasons. However, they are usually based on your driving history, your vehicle, and your policy. Examples include a safe driver discount, an anti-lock brakes discount, and a multi-policy discount.

This table displays a list of car insurance discounts offered by top insurance companies. Available discount amounts are listed as well.

Car Insurance Discounts by Company
Car Insurance DiscountsAllstate (%)American Family (%)Farmers (%)GEICO (%)Liberty Mutual (%)Nationwide (%)Progressive (%)State Farm (%)Travelers (%)USAA (%)
Adaptive Cruise ControlN/AN/AN/AN/A5xxN/AN/AN/A
Adaptive HeadlightsN/AN/AxN/A5xxN/AN/AN/A
Anti-lock Brakesxxx555x5xx
Claim Freexxx26x10x152312
Continuous CoveragexxxxN/AN/AxN/A15N/A
Daytime Running Lightsxxx155xN/Axx
Defensive Driverxxxx105105103
Distant StudentxxxxN/A10xx7x
Driver's Edxxxx10N/A101583
Driving Device/AppxxN/Ax30402050305
Early SigningxxxxN/A8xN/A1012
Electronic Stability ControlxxxN/A5xxN/AN/AN/A
Emergency DeploymentN/AN/AN/A25N/AN/AN/AN/AN/AN/A
Engaged CoupleN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Family LegacyN/AxN/AxN/AN/AxN/AN/A10
Family PlanN/AxxN/AN/A25N/AN/AN/AN/A
Farm VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Federal EmployeeN/AN/Ax810N/AN/AN/AN/AN/A
Forward Collision WarningN/AN/AN/AN/A5xxN/AN/AN/A
Full PaymentN/Axxx$5N/AxN/A7.5N/A
Further EducationN/AN/AN/Ax1015N/AN/AxN/A
Good CreditxxN/AN/AN/AxxxN/AN/A
Good Studentxxx1522.510x2583
Green VehiclexN/A5N/A10N/AN/AN/A10N/A
Lane Departure WarningN/AN/AN/AN/AxxxN/AN/AN/A
Life InsurancexN/AN/AN/AN/AxN/AN/AN/AN/A
Low Mileagexxxxxxx30xx
Military GaragingN/AN/AN/AN/AN/AN/AN/AN/AN/A15
Multiple DriversN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Multiple Policies1029x102010121713x
Multiple Vehiclesxxx25102010208x
New Customer/New PlanN/AN/AN/AN/AxN/AN/AN/AN/AN/A
New GraduateN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Newer VehiclexN/AxxN/Axx401012
Newly LicensedN/AN/AN/AN/A5N/AN/AN/AN/AN/A
Occasional OperatorN/AN/AN/AN/AN/AN/AN/AN/AN/Ax
On-Time PaymentsxN/AN/AN/AN/AN/AN/AN/A15N/A
Online ShopperN/AN/AN/AN/AN/AN/A7N/AN/AN/A
Paperless DocumentsxxxN/AN/A5$50N/AN/AN/A
Paperless/Auto BillingxxxN/Ax$30x$233
Passive Restraintxxx40x20x40xx
Recent RetireesN/AN/AN/AN/A4N/AN/AN/AN/AN/A
Roadside AssistanceN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A
Safe DriverN/AN/Ax15N/A3531152312
Seat Belt UseN/AN/AN/A15N/AN/AN/AN/AN/AN/A
Senior DriverxN/AxN/AN/AN/AN/AN/AN/Ax
Stable ResidenceN/AN/AN/AN/AN/AxxN/AN/AN/A
Students & AlumniN/AxN/Ax107N/AN/AN/AN/A
Switching ProviderN/AxxN/A10N/AxN/AN/AN/A
Utility VehiclexN/AxxN/AN/AN/AN/AN/AN/A
Vehicle Recoveryxxx153525x5xx
VIN EtchingN/AN/AxN/A5xxN/Axx
Young DriverN/AN/AN/AN/AxN/AxN/AN/A$75
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You can see that discounts may have a huge impact on your car insurance rates. While most companies let you bundle multiple discounts for the most savings, chances are that you won’t be able to qualify for all of them.

Continue reading as we break down the three main categories of car insurance discounts.

How can you get discount car insurance based on your personal factors?

The first way you can obtain deals on auto insurance is based on your driving record. You can save on discount car insurance rates simply according to your performance.

These are some examples of discounts that you can acquire:

  • Good driver discount – Every company will have different requirements, but most will reward you for not getting tickets or causing an accident for a certain number of years. The savings are usually between 10%-40%, but discounts will vary by company.
  • Student driver discount – Students with at least a B average can qualify for a good student discount of up to 25%, depending on the company. Students will typically need to provide a report card or a transcript to acquire the discount.
  • Veterans discount – Active duty military and veterans are offered discounts from numerous car insurance companies. Some insurers, such as USAA, only offer coverage to members of the military.
  • Occupational discount – Discounts for certain occupations are offered by some car insurance companies. Some common examples include a health care workers discount, a first responders discount, and an educators discount.

If you use telematics and your insurance company offers usage-based coverage, you may be able to receive a discount for safe driving and low mileage.

Every car insurance company offers its own list of discounts. Although some of these discounts may not be proffered by every company, you can shop around to find the cheapest discount car insurance quotes.

What discount car insurance is based on your vehicle?

According to, many newer vehicle safety features are standard. And many discounts are offered based on these safety features, since these features are more likely to save your insurance company money.

These common discounts are based on your vehicle:

  • New car discount – If your car is only a few years old, it is more likely to have accident avoidance systems, such as cameras, to lower accident rates.
  • Vehicle safety discounts – Safety systems such as anti-lock brakes, restraint systems, and airbags help reduce bodily injuries and maintain low rates.
  • Anti-theft discount – An alarm helps prevent your car from being stolen; therefore, companies won’t have to replace your hijacked vehicle.

Keep in mind that, if you have an expensive or custom vehicle, your initial rates will be much higher since it will be more costly to repair. In fact, if you have a classic or custom car, you will need extra coverage to replace those expensive parts.

Which car insurance discounts are based on your policy?

Your policy itself can also help you save.

Car insurance discounts based on your policy include the following:

  • Multi-policy discount – This discount is for bundling different types of policies, such as home, auto, and boat.
  • Multi-car discount – You can receive a discount for maintaining all of your vehicles on the same policy.
  • Continuous coverage – Allowing your insurance to lapse can result in huge headaches and fees because insurance companies want to know that you are continuously covered. 
  • Paid-in-full – This discount is applied if you pay for your entire policy up front.

Simply electing to use one insurance company for all of your coverage needs — and paying in advance — can offer big savings.

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What discount car insurance tips do you need to know?

Car insurance discounts can have a significant impact on your rates. However, there are some things to know before expecting a drastic decrease in your coverage amount.

First, not all car insurance companies offer the same discounts. Even though your current company may offer a discount, it doesn’t mean that a new company will as well. Check to determine which discounts are available before switching to a new company.

Second, not all discount amounts are the same. Even if a new company offers the same discount, the amount of the reduction may be dissimilar. Some discounts can be misleading because they consist of a maximum amount. For example, if a discount is up to 30%, you may only qualify for a 15% reduction.

Next, some discounts are only offered on specific coverages, not on the whole policy. For example, your anti-theft discount will likely only be applied to your comprehensive coverage which covers theft.

Discount Car Insurance: The Bottom Line

Car insurance discounts are offered for a variety of reasons according to whether or not you are a safe driver, the types of features on your vehicle, and how many policies you possess. Most car insurance companies offer a multitude of discounts that you can bundle for maxiumum savings.

However, not all discounts are available from every car insurance company, and the discount amounts can also vary. Ensure that you ask questions before you assume that the reductions are similar everywhere.

Before you purchase discount car insurance, compare multiple companies to find the most affordable rates with the best car insurance discounts available to you.

Now that you know how to get discounts on car insurance, enter your ZIP code to compare free quotes from car insurance companies near you.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

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