How to Score Savvy Savings on With Car Insurance Discounts

You already know that shopping around can score you lower car insurance premiums. But there's another great strategy for spending less with your insurance company: chasing down every car insurance discount available to you.

Your potential for savings through discounts ranges up to hundreds of dollars per year. See how much you can shave off your car insurance premium with this overview of 15 common car insurance discounts.

Car insurance discounts that apply automatically

These are discounts insurers should automatically roll into your rates using your application information depending on your circumstances. It can't hurt to ask about them if you think you qualify and don't see it on your quote proposal. 

1. Clean driving record discount

Your clean driving record can save you 10% to 30% on your car insurance premiums, according to Value Penguin.¹ You qualify by having no recent accidents or violations on your driving record. "Recent" usually means within the last three to five years. 

Notably, the state of California requires auto insurers to reward good drivers with a minimum 20% discount. To qualify, you must have been licensed for at least three years, have no more than one violation on your record in the last three years, and have no DUI-related convictions in the last 10 years. Certain felony convictions will make you ineligible for the discount.² 

If you don't have a clean driving record, your best course of action is to take a driver safety course and implement your learnings. Allow time to build between now and your last infraction -- eventually you'll be rewarded with lower premiums. 

2. Safe driver discount

Safe drivers have good driving habits -- they don't drive late at night, they don't speed, and they don't hit the brakes hard. Insurers only know these details about your driving if you agree to use a tracking app or device. Policies that require this type of monitoring are known as telematics programs.

Telematics programs have a privacy trade-off, but the advantage for safe drivers is cheaper car insurance. Policygenius reports that safe driving can trim your auto insurance premiums by 20%.³ 

Progressive, Nationwide, State Farm, and Allstate have telematics programs, with average discounts ranging from 3% to 53%.⁴

3. Homeowner discount

Auto insurers that offer discounts to homeowners will usually ask if you own or rent during the application process. Answer yes and you automatically get the discount. Note that if the insurer can't verify your home ownership during underwriting, you'll have to provide proof. 

According to NewYorkMotorInsurance.com, Progressive, AARP, Allstate, and Liberty Mutual quote lower auto rates to homeowners. The discount can be as high as 20%.⁵

4. Safety equipment discounts 

Owning a car with factory-installed safety equipment can also result in lower insurance premiums. Insurers like to see features such as: 

• Anti-lock brakes

• Automatic seatbelts

• Airbags 

• Blind spot detection

• Lane departure warning 

• Rearview camera

• Anti-theft system

• Tire-pressure monitoring system 

Normally, the insurer will use your car's VIN to determine which safety features are on your vehicle. If you have aftermarket safety equipment on the car, let the carrier know. It may earn you a bigger discount. 

5. Loyalty discount

You're eligible for a loyalty discount when you stay with the same carrier, usually for three years or more.  

According to Policygenius, USAA, GEICO, State Farm, Allstate, and Progressive have loyalty discounts. Some will lower your premium by up to 10%, while others offer free policy upgrades, like accident forgiveness.  

6. Multi-car discounts

Most major auto carriers offer discounts for insuring more than one vehicle -- if you garage all the insured cars at the same address.  

CarInsurance.com reports that GEICO, State Farm, Travelers, and Progressive have multi-car discounts ranging from 8% to 25%.⁶ 

Car insurance discounts to request

Aside from discounts that apply automatically, there are a number you can potentially request from your agent or carrier.

7. Low mileage driver 

According to the Federal Highway Administration, the average driver travels 13,476 miles by car each year.⁷ Standard auto policies often assume you're average unless you tell them otherwise. 

If you normally drive less than the average, let your insurance provider know. The steepest discounts go to drivers who record less than 6,000 miles annually, but you might get a smaller discount for driving 8,000 or 10,000 miles per year.

U.S. News & World Report ranks these nationwide providers as some of the best for cheap, low-mileage insurance:⁸ 

• USAA

• GEICO

• State Farm

• Nationwide

• Travelers

• American Family 

• Progressive

• Farmers

• Allstate 

Be prepared to prove your low-mileage habits by way of regular odometer readings.  

Another option for lower rates is a usage-based or pay-per-mile policy. Insurers like Root and Metromile offer these. They're often structured with a fixed monthly rate plus a per-mile rate. 

Usage-based policies will require you to use an app or tracking device that how far you drive and how you drive. Some insurers may raise your premiums if the app or device detects too many dangerous driving behaviors (like speeding). 

8. Student Discount

Keeping your grades at a B average or higher can lower your car insurance premiums by 3% to 15%.⁹ 

Auto insurers have varying rules for good student discounts. Some might want a B average, while others demand an A average. Most insurers require students to be unmarried, under 25 years old, and full-time attendees of high school or college. Students with poor driving records may be ineligible regardless of their grade-point average. 

Ask for this discount during the quoting process. Insurers will request a report card, immediately and periodically going forward.

9. Administrative discounts 

Make yourself more efficient to insure and carriers will reward you with lower rates. The usual administrative options here are: 

• Autopay: You provide payment information and permission for the insurer to collect your premiums automatically. 

• Pay-in-full: Pay for the whole policy term upfront, rather than making monthly or quarterly payments. 

• Paperless: Accept statements and communications by email in lieu of paper mail. 

10. Military 

Several large carriers provide premium discounts of 10% to 15% to former and current members of the military. Investopedia reports that USAA, GEICO, Farmers, Liberty Mutual, and Armed Forces Insurance offer military discounts.¹⁰

To qualify, you will need to show military documentation, such as active-duty orders or your discharge certificate. 

11. Low income (in three states)

California, New Jersey, and Hawaii have state-sponsored insurance programs that make car insurance more affordable for low-income drivers:  

• California Low-Cost Auto Insurance Program

• New Jersey Special Automobile Insurance Policy (SAIP)

• Hawaii Assistance to the Aged, Blind, and Disabled (AABD)

Car insurance discounts to work towards 

There are also discount programs you must pursue -- either by completing tasks or rearranging other insurance coverages. You'll probably put more work into qualifying for these, but the available discounts can be substantial. 

12. Senior driver discounts

According to WalletHub, 34 states plus Washington, D.C., have mandated discounts for senior drivers who complete an approved driver safety course.¹¹ The discounts range from 3% to 20%. 

Ask your insurer for the next steps. If you are eligible for a senior discount, you'll need to know where to find an approved course. AAA, AARP, and the National Safety Council have safe-driving programs available -- but defer to your provider on which program is best.

13. Defensive driver discount 

Defense driver discounts are like senior discounts, but they're open to drivers of all ages. If the carrier offers this discount, you'd qualify by showing completion of an approved driving course.

The availability of defensive driver discounts varies by carrier and by state. According to Policygenius, GEICO, AAA, The Hartford, Nationwide, and Farmers offer defensive driver discounts in certain states.¹²

14. Driver training for teens 

Teen drivers who complete an approved driving course may qualify for premium discounts from certain carriers, including:¹³ 

• Allstate

• Central Insurance Companies

• Commonwealth Casualty Company

• CSAA

• Erie Insurance

• The Hanover Insurance Group

• Liberty Mutual

• Mapfre

• Farmers

• USAA¹⁴

Find approved courses by asking your insurer or checking with your state's motor vehicle department. 

15. Bundling 

When you bundle your insurance, you hold more than one policy with the same provider. According to a Forbes analysis, bundling can save you up to 25%, or about 14% on average.¹⁵ 

Consolidating your home and auto insurance with the same carrier is a common way to bundle. If your auto carrier doesn't offer homeowners insurance, it's likely there is a partner that makes this bundle possible. Progressive, for example, works with other homeowners' insurance providers to support its bundling program.  

And don't fret if you're not a homeowner. You may qualify for a bundling discount by pairing other policy types -- say, an auto policy and a travel trailer policy. Ask your carrier for options.

Pay less for auto insurance 

Discounts can save you hundreds on your car insurance premiums. Just know that you might secure a handful of discounts and still not have the lowest rate available.  

Shopping around is still the best way to lock in the lowest auto insurance rates out there. Even better, ask for discounts while you shop around. That way, you pay less -- and have a better sense of what the various discounts are really saving you.