Car insurance discounts can lower your auto insurance bill a lot, or just a little. Sometimes it is hard to know if you are using all the discounts your insurance company offers. Not every insurance company gives the same discounts, but many offer savings for safe driving, having a safe car, a clean record, and even for paying bills in certain ways. You might be able to use many discounts at once.
How Much Can You Save?
Discounts can lower your cost by a few percent on some parts of your policy or by more than 25% off your total auto insurance. The amount you save depends on:
- The type of discount
- The insurance company
- Your insurance plan
- The state where you live
The biggest savings usually come from discounts for safe driving, bundling home and auto insurance, and insuring more than one car.
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17 Car Insurance Discounts
Here are some of the best car insurance discounts. Keep in mind that every company gives different discounts, and not all are available in every state.
- Safe Driver Discount
You usually need to be accident-free for at least a year to get this discount. - Defensive Driving Discount
Taking a defensive driving course (which may cost less than $25) can earn you a discount for several years. This discount is often for young and older drivers. - Low-Mileage and Usage-Based Discounts
Some plans reward drivers who drive less than average. You could save 20%-30% if you drive safely and fewer miles. - Safety Feature Discounts
Cars with safety features like anti-lock brakes and daytime running lights can earn discounts. For example, front seat airbags can lower your personal injury protection (PIP) or medical payments cost. - New Car Discount
Newer vehicles with advanced safety features may earn up to 15% off your premium. - Anti-Theft Discounts
Having anti-theft devices in your car may earn you up to 23% off comprehensive coverage. - Multi-Car Discount
Insuring more than one car with the same company can save you around 12% on your policy. - New Customer Discount
Some companies give discounts to new customers as a way to encourage drivers to switch to them. - Customer Loyalty Discount
Staying with the same company for a long time can earn loyalty rewards, though these discounts alone may not save you a lot compared to switching for better rates. - Military, Veteran, and Federal Employee Discounts
Discounts are available for military members, their families, and federal employees. For example, some companies offer up to 15% off for active duty or retired military. - Student Discounts
Teen drivers with a B average or better can get discounts. College students who keep their car parked at home might also earn a break. - Homeowner Discount
Even if you do not bundle your home or renters insurance with your auto insurance, you might still get a discount if you are a homeowner. - Alumni and Professional Organization Discounts
Membership in certain groups or alumni associations may give you extra savings on your car insurance. - Multi-Policy Discount
Bundling your auto insurance with another policy, like home or motorcycle insurance, can lead to big savings. - Continuous Insurance Discount
If you never let your coverage lapse, some companies will give you a discount even if you are a new customer who stayed with another insurer for a long time. - Paid-in-Full Discount
Paying your premium for six months or a year all at once can earn you a discount. - Paperless Billing and EFT Discount
Signing up for automatic bank payments and paperless billing can lower your premium a little more.
8 Tips for Getting the Best Auto Insurance Discounts
- Contact Your Agent
Check with your insurance agent every year to see if you now qualify for a new discount. Some discounts depend on your age or where you live. - Shop Around
Get quotes from other car insurance companies. Compare similar coverages and deductibles to see if you can get a lower rate by switching. - Bundle Your Policies
Buying more than one type of insurance (like auto and home) from one company can save you 10% or more. - Keep a Clean Driving Record
Avoid accidents and speeding tickets. Safe driving not only protects you, it can lower your insurance rates. - Consider Telematics
Some companies offer pay-per-mile insurance. A small device in your car tracks how much and how safely you drive. This can lower your rates if you drive less or safely. - Install Safety Devices on Older Cars
Adding modern safety features like collision warnings or anti-theft devices to older cars can lower your premium. - Get Credit for Your Kids’ Good Grades
Insuring teen drivers can be very expensive. Many companies offer a discount if your high school or college student maintains good grades. - Keep Tabs on Your Finances
Set up automatic payments and pay your premium in full when you can. Good credit can also help lower your rates.