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Most Common Car Insurance Discounts

Picture of Written by <a href="https://rateretriever.com/about/elizabeth-rivelli/"><span style="text-decoration: underline;">Elizabeth Rivelli</span></a>

Written by Elizabeth Rivelli

Written by Katie Dee

Picture of Edited by <a href="https://rateretriever.com/about/alyssa-dicrasto/"><span style="text-decoration: underline;">Alyssa DiCrasto</span></a>

Edited by Alyssa DiCrasto

Edited by Alyssa DiCrasto

Published on 2024-07-12

Read time: 3 min

Many car insurance companies offer discounts to help drivers save money on their premiums. However, every car insurance provider offers different discounts with varying savings potential. If you’re shopping for a car insurance policy, make sure to compare providers based on the discounts they offer and the amount of money you could save.

While car insurance discounts will vary based on the company, there are some car insurance discounts that are more common than others. In this guide, we’ll look at a few of the most common car insurance discounts and share which auto insurance companies offer the most car insurance discounts.

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Common car insurance discounts

Most reputable car insurance providers offer discounts. These are some of the most common car insurance discounts that you will find:

Discounts related to your vehicle and driving habits

Safe driver discount: Most car insurance providers offer a discount to drivers who have no recent accidents or violations on their driving record.

Safety feature discount: If you insure a car that has safety features, like an anti-theft device, anti-lock brakes, or a collision avoidance system, you can usually qualify for a car insurance discount.

Telematics discount: Many national car insurance companies offer a telematics-based safe driver rewards program that can help you save money by demonstrating safe driving habits.

Low mileage discount: If you drive under a certain mileage (usually less than 10,000 miles per year), you may be able to save money with a low mileage discount.

Discounts related to your policy and payments

Payment discounts: There are several common payment-related discounts that can help you save money on car insurance. These include paying your annual premium in full, enrolling in automatic payments, and signing up for paperless billing statements.

Multi-policy discount: If you purchase multiple insurance policies from the same company, like car insurance with home insurance or renters insurance, most insurers will give you a multi-policy discount.

Multi-vehicle discount: Insuring multiple vehicles on the same car insurance policy can usually help you save some money on the premium.

Discounts related to your driver profile

Defensive driving course discount: Customers who complete an approved defensive driving course can often qualify for a car insurance discount.

Homeowner discount: You can sometimes save money on car insurance if you own your home, rather than rent.

Military discount: Active duty military servicemembers and veterans can sometimes qualify for a special car insurance discount.

Affinity group discount: Some car insurance carriers give discounts to affinity group members, such as university alumni or employees of certain companies.

Discount for young drivers

Good student discount: Full-time high school and college students who maintain a minimum GPA or earn certain academic achievements can often qualify for savings on their car insurance.

Student-away-from-home discount: Students who attend school at least 100 miles away from home and don’t have access to their vehicle can usually get a discount on collision and comprehensive insurance.

Driver’s Education course discount: If young drivers complete a driver’s education course, they may be eligible for discounts at some companies.

How to get discounts on car insurance

There are several ways to get discounts on car insurance. When you apply for a policy, you will answer some questions that can be used to determine your eligibility for discounts. For example, you might be asked how many miles you drive per year, if you’re a homeowner, and what safety features your car has.

For other discounts, such as good student, military, or affinity group discounts, you will probably need to contact an agent. Ask them how you can qualify for the discount and what information is needed to verify your eligibility. Once the discount has been applied to your policy, you should see your premium go down.

Car insurance discounts by company

Every car insurance company offers different discounts, and some carriers offer a bigger selection of discounts than others. When comparing car insurance companies, it’s a good idea to pay attention to the discounts available, and the average savings (if advertised). Choosing a company that offers multiple discounts you can qualify for could help you get the most affordable policy for your coverage needs and personal situation.

How to get discounted car insurance

Besides car insurance discounts, there are several other strategies you can use to get car insurance at a lower price:

Choose a higher deductible: For car insurance policies that require a deductible, like collision insurance, choosing a higher deductible will reduce your monthly premium. On the other hand, selecting a lower deductible will result in a higher premium.

Pay your premium in full: Most car insurance providers offer a small discount to drivers who pay their annual premium upfront and in full. You might also be able to save money by paying bi-annually instead of monthly.

Maintain a clean driving record: Drivers with a clean record usually qualify for the best car insurance rates. Prioritize a clean driving record to get the most affordable premium for your situation.

Improve your credit score: In most states, car insurance companies use your credit history to determine how risky you are to insure. Drivers with good or excellent credit typically pay the lowest car insurance rates. If your credit score is low, improving your score could help you save money on car insurance.

Shop around and compare quotes: The cost of car insurance depends on many different factors, including the company that underwrites your policy. Comparing quotes from a few carriers can help you find the cheapest coverage. To get started, you can take our short quiz to see how much you can expect to pay for car insurance.

FAQs

Can I ask for a discount on my car insurance?

It’s always a good idea to ask an agent if you can get discounted car insurance. However, you will probably need to qualify for one of the discounts offered in order to save money. Some insurance companies don’t advertise all their discounts online, and some discounts may only be available in certain states, so it’s worth speaking to an agent about the ways you could save.

Do first responders get discounts on car insurance?

Some car insurance companies offer discounts for first responders, but it’s not very common. Liberty Mutual, California Casualty, and COUNTRY Financial are a few of the insurers that offer discounts for police officers, firefighters, EMTs, and other first responders.

Can you get a student discount on car insurance?

Students can get discounts on car insurance, but there are some eligibility requirements. Most insurance companies offer a discount to single, full-time high school and college students who maintain a ‘B’ GPA average or better. Students may also qualify for savings if they earn a certain score on standardized tests, like the SAT, ACT, or PSAT.

Do seniors get discounts on car insurance?

There are some car insurance providers that offer discounts to senior drivers, but not many. You may find car insurance companies that offer a discount to senior drivers who complete an approved defensive driving course. Seniors may also be able to get a discount if their insurance company offers an affinity discount to members of the AARP or similar organizations.

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