Best Car Insurance Discounts (2024)

Best Car Insurance Discounts

While you can expect to pay around $119 monthly on average for full coverage car insurance, factors outside of your control — like age, gender, and location — can cause your rates to be higher. However, shopping for the best car insurance discounts is one of the best ways to get the cheapest car insurance quotes.

You can find various standard discounts at most insurance companies, but not all insurers offer the same discounts or discount amounts. Also, many discounts only apply to specific coverages rather than the entire policy.

Generally, insurers’ car insurance discounts consider the policy, driver, and vehicle. So while your vehicle might be eligible for an anti theft system car insurance discount, you may also qualify for a good student discount if you have good grades.

While comparing best car insurance by vehicle quotes, check to see how to get discounts on car insurance and verify if you qualify for any, or speak with a company representative if you’re unsure. Keep reading to learn more about the best car insurance discounts and the companies with the best discounts.

Read more: Car Insurance Discounts To Ask for

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Standard Types of Car Insurance Discounts

We examined car insurance discounts from some of the nation’s top insurance companies to find the ones offering the greatest discount percentages. Drivers should compare discounts and their amounts to other companies to find the best car insurance discounts.

However, if a car insurance company has several discounts but starts out with high rates, it may not be the cheapest, even after the discounts apply, so comparing car insurance quotes when shopping for discounts is important.

Kentucky Farm Bureau car insurance discounts provides excellent car insurance coverage with a variety of substantial discounts, ensuring that policyholders can save money while enjoying comprehensive protection for their vehicles.

Read more: How much is car insurance? 

Multi-Policy Car Insurance Discount

Some car insurance companies offer a multi-policy discount, allowing policyholders to buy car insurance alongside a different policy type from the same company. You may also hear it called home and car insurance discounts, multi-line discount, or bundling. Bundling home and car insurance can produce significant savings for policyholders, but you can also save if you bundle other products like motorcycle, condo, or renters insurance.

Of the companies we examined, the multi-policy discount percentage ranges from 2% to 26%, depending on the insurance product you’re bundling with car insurance. Farmers car insurance currently offers the highest multi-policy discount percentage of 26% if you bundle home and car insurance.

On the other hand, Loya Insurance, known for their commitment to affordable coverage, offers a variety of Loya car insurance discounts to policyholders who maintain safe driving records or choose to bundle multiple policies.

Read more: Persistency Car Insurance Discount

Multi-Vehicle Car Insurance Discount

Generally, you can get a multi vehicle car insurance discount for insuring more than one vehicle with the same insurer, and policyholders could save anywhere between 8% and 25% on coverage.

Businesses with multiple vehicles can significantly benefit from a fleet car insurance discount, making it a cost-effective solution for comprehensive coverage.

However, some companies may require both vehicles to be garaged in the same household to qualify for the discount, so check with an insurance company representative for details on eligibility.

Read more: Arizona Car Insurance Discounts

Vehicle Safety Discount

Cars equipped with safety equipment like airbags, daytime running lights, and anti-lock brakes may qualify for a safety features car insurance discount. While you generally won’t get a big discount for daytime running lights, discounts for airbags and full-front seat airbags reach as high as 40% for your medical payments or personal injury protection coverage.

Read more: Safety Car Insurance Discounts

With the rise of intelligent vehicle features, many insurers now offer a smart technology car insurance discount, rewarding drivers who use technology to improve safety and reduce the risk of accidents.

New Car Insurance Discount

Purchasing a new car could earn you a discount on your car insurance. With some companies, cars less than three years old can get a new car insurance discount. The discount percentage generally ranges from 10% to 15%.

Anti-Theft Device Car Insurance Discount

Anti-theft features award policyholders at some companies a discount ranging from 5% to 25% off their comprehensive car insurance coverage. In addition, you could get an anti-theft car insurance discount for factory-installed or after-market devices, depending on your insurer.

According to the National Highway Traffic Safety Administration, over 700,000 drivers fall victim to car theft in the U.S. annually, so car insurance companies know vehicles equipped with anti-theft devices are less likely to get stolen and require a claim. Below is a list of specific anti-theft devices that could help you locate a stolen vehicle and receive a car insurance discount:

• GPS systems:
• Stolen vehicle recovery systems:
• Vehicle identification number (VIN) etching:

Read more: GPS Tracker Car Insurance Discount

If you’re wondering whether your car insurance company offers an anti-theft device discount for factory installed or after-market devices, speak with an insurance company representative. Some companies may exclude after-market devices from their list of devices eligible for the discount.

Good Driver Discount

Car insurance companies know safe drivers with a clean record are less likely to file claims, so some companies will discount your rates if you go accident-free for a certain period which falls under the concept of the good driver car insurance discount.

Aside from the good driver discount, those who consistently demonstrate responsible financial habits have the opportunity to unlock added savings through the good payer car insurance discount.

Read More: Hidden Car Insurance Discounts

Safe Driver Discounts by Company

When comparing Geico vs. State Farm car insurance review, it’s worth noting that Geico offers potential savings of up to 26% if you maintain a clean driving record for five years. Meanwhile, State Farm also provides good driver discount.

Read more: Car Insurance Discounts for No Tickets

Defensive Driver Car Insurance Discount

Taking an insurance company’s approved defensive driving course could give you a defensive driver car insurance discount on your rates. Generally, you can get a discount of around 5% to 10%.

Some states require older drivers to take a defensive driver course to promote safe roads. As drivers age, they often go through physical and cognitive changes that could hamper their ability to drive safely. Defensive driving courses can lower insurance rates and allow older drivers to refresh their memory of road laws and safe driving practices. Some car insurance providers also have people over 50 car insurance discounts.

Read more: Car Insurance Discount for Women Over 50

Good Student Discount

Students enrolled full-time in high school or college who maintain a B average could qualify for a good student car insurance discount. Companies also generally require the student to be between 16 and 25. With some companies, you can earn 8% to 25% off your car insurance with a good student discount.

Read more: Amica Car Insurance Discounts

Good Student Discount by Car Insurance Company

Read more: American Family Car Insurance Discounts

Insurance companies consider young people high-risk drivers because of their driving inexperience, so they often pay higher rates on average. However, a good student discount allows young and teen drivers to offset the higher rates they pay, so if you’re looking for the best car insurance for 21-year-old drivers, find an insurance company that offers discounts catered to students, like a good student or student away at school discount.

Read more: Drivers Education Car Insurance Discount

Despite higher premiums associated with insuring young drivers, families can alleviate this burden by exploring teenager car insurance discounts, which are often available to those maintaining good grades or completing driver’s education courses.

Read more: Car Insurance Teen Discount Gps Tracker 

Student Away at School Car Insurance Discount

You could be eligible for a car insurance discount if a student on your policy is away at school without a car. Though eligibility requirements vary by insurer, students typically must be under 25, more than 100 miles away from home, and without access to your car except while at home, so if you fit some or all of the criteria above, speak with an insurance company representative to see if you qualify for a distant student car insurance discount.

Read more: University of Michigan Car Insurance Discount 

Pay in Full Car Insurance Discount

Paying for your car insurance policy in advance may afford you cheaper rates. For example, you could earn a discount between 6% and 14% from some of the top insurance companies if you pay your premiums upfront rather than monthly. Not only will you get a discount, but you could also save money on the monthly service fee some insurers charge for spreading out your bill.

Auto-Owners offers the highest pay in full car insurance discount percentage of 14%, but you should always get a quote to ensure you’re getting a good deal.

Electronic Funds Transfer (EFT) Car Insurance Discount

You could qualify for an electronic funds transfer discount if you pay your insurance bill monthly and enroll in automatic payments. The discount percentage ranges from 3% to 6%.

Paperless Car Insurance Discount

Some insurance companies will discount your rates if you receive your policy documents and billing electronically. However, since more and more people prefer paperless systems, the discount isn’t as widely available as it used to be.

The highest paperless car insurance discount percentage is Farmers, offering 6% off if you enroll in paperless billing, whereas Progressive only offers a 1% discount.

Online Car Insurance Discount

You can get a decent discount from certain insurance companies if you receive your quote online and purchase a policy. Online car insurance discount percentages range from 4% to 12%, depending on the insurance company. Taking advantage of an online car insurance discount program can lead to significant savings, making it a smart choice for tech-savvy customers looking to secure affordable and reliable coverage.

Read more: Online Payment Car Insurance Discount

Early Bird Discount

If you’re shopping around and decide to buy a policy before your existing one expires, you could get an early signing car insurance discount, depending on the insurance company. The amount of time you must buy a policy in advance to receive the discount varies by company, but generally, it’s around seven to 14 days. Discount percentages range from 2% to 15%.

With Allstate, you could receive up to 10% off your car insurance if you purchase your policy seven or more days before your existing one expires. On the other hand, Nationwide only offers a 3% early bird discount. Read more in our Allstate insurance review.

Allstate also offers a wide array of Allstate car insurance discounts, rewarding everything from safe driving habits to the use of anti-theft devices in vehicles.

Read more: Nationwide Car Insurance Discounts

Occupational Discounts on Car Insurance

Read more: Do Geico Employees get Car insurance discounts? 

Your insurance company could discount your rates if you have a specific occupation. For example, Geico offers a military discount of 15%, and Liberty Mutual provides unique Perkspot car insurance discount to educators. Always ask an insurance company you’re considering whether you can get a occupation car insurance discount.

Read more: Educator Car Insurance Discount

Low-Mileage Discount

Insurance companies see drivers who rarely drive as low risk, so many companies provide discounts to policyholders who drive under a certain amount of miles annually. This amount varies by company, so ask a representative if you could qualify for a low-mileage car insurance discount.

Alumni Association and Professional Organizations Discount

Some insurers offer discounts to policyholders who are members of certain alumni associations, fraternities, sororities, and professional organizations. Of course, the list of eligible organizations varies by company, so contact any insurance companies you’re considering to learn what organizations qualify for an alumni car insurance discount.

Read more: University of Florida Alumni Discounts for Car Insurance

Usage-Based Insurance Program Discount

You may also find that your insurance company has a usage-based insurance (UBI) program. UBI bases insurance rates on your driving habits, typically measured with a device installed in your car or from a smartphone app. Usually, you can get a 5% to 10% discount for simply enrolling in the program, with the opportunity to earn more savings based on whether you have good or bad driving habits.

Some typical driving behaviors monitored by UBI programs include hard braking, phone usage, acceleration, time of day driven, and speeding. You could receive a discount of up to 40% with UBI, depending on your driving habits.

Nationwide SmartRide car insurance discount offers the highest percentage discount of up to 40% for enrolled policyholders who maintain safe driving habits. Other UBI programs, like Allstate Drivewise and State Farm Drive Safe & Save, offer savings of up to 30%. Read our comparison of Allstate Drivewise vs. Nationwide SmartRide to see which program works for you.

Tips to Remember When Looking for the Best Car Insurance Discounts

Sometimes, advertised car insurance discounts seem too good to be true. When shopping around for the best car insurance discounts, there are several tips to remember. Though you might be enticed by a company that offers a discount of “up to 30%” off your insurance, that doesn’t always mean you’ll get that exact discount.

Consider the following tips when shopping around for car insurance companies:

• Don’t let “up to” fool you. An insurance company might advertise a discount of “up to” a certain percentage. However, you might not get that percentage. For example, certain drivers may only receive the highest discount.
• Some discounts won’t apply to the entire bill. For example, you may only receive a discount on medical payments coverage or personal injury protection with a seat belt discount since these coverages pay for injuries. Since comprehensive coverage pays for theft, an anti-theft device discount may only discount that coverage.
• State law requires some discounts. All insurance companies will offer discounts required by the state. New York drivers who take a defensive driving course and send a certificate of completion to their insurance company must receive a 10% discount on their liability and collision coverage.
• Insurers can cap discounts. While you might be eligible for several discounts, some companies may cap the total discount percentage you can receive. For example, after totaling your eligible discount percentages, you could find savings of 75%, but it won’t matter if your company caps the total at 25%.
• Not all discounts apply automatically. You may have to request certain discounts, particularly if you’ve been with the same insurer for several years. Obviously, your insurance company won’t know if you installed an anti-theft device or if your student has excellent grades, so regularly ask your insurer about eligible discounts.
• Discount availability varies by state. Even if your insurance company mentions a specific discount on its website, it may be unavailable in your state. Contact your insurance company and check to see if certain discounts are available where you live.

Also, remember that while some companies may offer several discounts, you may also have the highest average starting rates for car insurance with those companies, so you should always get a quote when shopping around for eligible discounts to ensure you’re not overpaying.

Read More: Germania Car Insurance Discounts

Affinity-Based Discounts

Some insurance companies offer discounts based solely on affiliation with an organization or employer. Discover the affinity car insurance discount and explore the various types of discounts offered by insurers to members of specific groups as you read on.

Employer Car Insurance Discounts

Some employers offer bulk car insurance rates to their employees, meaning you could find lower car insurance rates at your workplace. However, your employer car insurance discount will end if you leave your job. Even if your employer has an agreement with a car insurance company, you should still shop around for quotes because you could find cheaper premiums with another company.

Profession-Based Car Insurance Discount

Your car insurance company could discount your rates if you work in a specific profession. Discount amounts and eligible professions vary by company, so call a representative for more details. Generally, teachers and first responders get a discount from most car insurers.

Read More:

• Teacher Car Insurance Discount
• Mea Car Insurance Discounts

Many insurance companies offer an administrative car insurance discount as a way of acknowledging the typically low-risk nature of administrative professionals’ driving habits, particularly when it comes to company cars.

Read more: AFT Car Insurance Discounts 

You may also be able to get a federal employee car insurance discount.

Read more: Mayo Clinic Car Insurance Discount

Organizational Car Insurance Discount

You could also get a car insurance discount if you’re a member of a specific organization, which varies by company. For example, members of AAA or AARP could get a discount from some companies. Other companies also offer cheaper rates to members of a university or college alumni association.

Read more: AAA Car Insurance Discounts

Military and Veteran Car Insurance Discount

Military service members and veterans may qualify for a military car insurance discount with some car insurance companies, so call a company representative to see if yours offers one. If you’re a veteran or in the military, you should also consider a policy with USAA, as it has some of the lowest average rates. However, only military members, veterans, and their family members qualify for USAA car insurance.

As for their dedication and sacrifice, many insurance companies like USAA extend a veteran car insurance discount to those who have proudly served in the armed forces. Militaries often face unique challenges and risks in their line of duty, and as a token of gratitude, some insurance companies offer a first responder car insurance discount, easing the financial burden of car ownership for these heroes.

Read more: USAA Car Insurance Discounts

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Vehicle-Based Discounts

You can also find car insurance discounts based on the type of vehicle you insure. Look at the vehicle-based discounts below to see if any apply to your car.

Safety Features Car Insurance Discount

If a vehicle comes with certain safety equipment, drivers and passengers have greater protection from injury, decreasing an insurance company’s risk. You can’t get a safety features car insurance discount with every insurance company, but some, like Geico, offer one. If your car has certain safety features, like air bags or anti-lock brakes, ask your insurer about available discounts.

Read more: Passive Restraint Car Insurance Discount

Recognizing the enhanced safety provided by advanced braking systems, insurers often provide a reverse carmatic braking system car insurance discount, encouraging vehicle owners to invest in this innovative technology.

Read more: Carmatic Payment Car Insurance Discount

Anti-Theft Car Insurance Discount

Anti-theft devices decrease the risk to insure your car, like safety equipment.

Anti-Theft Car Insurance Discounts

If you have anti-theft devices in your vehicle, you should contact your insurance company to see if they offer an anti-theft car insurance discount.

New Vehicle Discount

You could get a discount on your car insurance if you drive a new car. However, each company’s definition of “new” varies, so contact your insurer for more details. Generally, cars less than three years old qualify for a new vehicle car insurance discount.

How to Get the Best Car Insurance Discount

If you’re still looking for more ways to save, read on for more ways to lower your car insurance premiums.

• Shop around. According to the Insurance Information Institute, you should get quotes from three insurance companies or more when you shop for coverage. Rates vary for various reasons, like your unique profile or location, so ensure you get a diverse array of quotes before deciding on coverage.
• Call an agent for personalized coverage. You could find an independent insurance agent to assist you in shopping for coverage and finding low rates for your unique situation. They could also help you locate discounts and specialized coverage you might be unable to find online otherwise.
• Increase your deductible. Your deductible is the amount you must pay before your insurance kicks in, so the higher your deductible, the lower your insurance rates. However, if you plan on raising your deductible, ensure you don’t increase it to an amount you can’t afford to pay out of pocket.
• Eliminate unnecessary coverages. You can lower insurance rates by cutting coverages you no longer need. For example, suppose you have an older car, and its market value exceeds the amount you’re paying for in insurance. In that case, you could drop full coverage car insurance and only carry minimum car insurance.
• Improve your credit. Insurers consider drivers with good credit as financially responsible and more likely to pay bills on time. If you have poor credit, improving your score could bring lower rates when your policy renews. If you’re struggling to increase your credit score, you could search for car insurance for people with bad credit.
• View rates before buying a new car. Some vehicles cost more to insure than others due to high MSRPs and expensive replacement parts. You could also pay more expensive premiums on cars with high theft rates or low 0-60 times.

Considering the tips above is the best way to find the best car insurance discounts.

The Best Insurers for Car Insurance Discounts

Some insurance companies offer more discounts than others, allowing policyholders to stack discounts for maximum savings. However, remember that some insurers also cap the discount percentage you can save.

Farmers has 23 car insurance discounts, the most of all the top companies evaluated. However, just because a company has the most discounts doesn’t mean they have the lowest rates. A company offering various discount options may have higher-than-average car insurance rates, so getting a car insurance quote is essential.

Certain companies may also have more available discounts for your situation and demographic. The table below shows discount availability across the top insurance companies.

Car Insurance Discounts by Company

Always compare quotes, coverage options, and eligible discounts before buying coverage to ensure the company meets your unique needs. For example, Progressive and State Farm don’t offer a military discount, so service members might find cheaper rates with a different company that caters to the military, like USAA.

Read more: Liberty Mutual Car Insurance Discounts

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The Bottom Line: Best Car Insurance Discounts

Car insurance discounts are a great way for policyholders of all demographics to enjoy savings on their monthly premiums. Generally, insurers base discounts on the policy, vehicle, and driver, giving customers several avenues to lower their rates.

Discount availability and amount vary by insurance company and location. So, to find the best car insurance discounts, drivers should shop around to find a company that meets their needs and budget.

Read more: Work From Home Car Insurance Discount

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