Fausto Bucheli Jr


May 15, 2023

Edited By

John Davey
The Ultimate Guide To Car Insurance Discounts

There are many car-related expenses that are beyond your control. These can include registration fees, fuel, tires, and repair costs.

But one essential car-related expense that you can control is car insurance. Research shows that the average American spends between $1,700 and $1,900 per year on vehicle insurance.

This means that you could be paying around $140 to $160 per month for your auto insurance.

With the rising cost of living, many of us can do with saving dollars wherever we can. In this article, we take a closer look at the discounts you could qualify for to help you save money on your auto insurance.

Loyalty-Based Discounts

If you buy more than one insurance product from an insurance company, you could be eligible for some fairly substantial discounts.

Multi policy discount

Average savings: 5%

If you have two or more products with an insurance company, then you can look forward to receiving a discount on these policies.

For example, you may want to take out car insurance and home insurance with the same company, in which case you will be eligible for a discount.

Be aware that some companies only offer discounts on one policy in the bundled package, so be sure to check where the discount will be applied and how much it will be.

Multi car discount

Average savings: 12%

When you have more than one vehicle listed on your policy, you can often look forward to an excellent car insurance discount.

Although you can add any car to your auto insurance policy, the one requirement to receive this discount is that all the cars that you have insured under one policy are kept at the same address.

Continuous insurance

Average savings vary

Some car insurance companies may offer you a good rate if you have had unbroken car insurance—even if you have changed from one company to another.

The actual discount that you are likely to receive will depend on how long you have been paying your car insurance premiums without a break.

Driver-Based Discounts

You can get some of the best car insurance discounts if you maintain a clean driving record.

Key Point: What Is a Clean Driving Record?

In the U.S., a clean driving record is one without any at-fault car accidents, traffic-related convictions, points, or moving violations. It is also an insurance record that is free from any recent claims.

If you have any points for moving violations or traffic-related convictions on your record, then you may need an SR-22 certificate or FR-44 certificate to get car insurance.

With an SR-22 or FR-44 certificate, you will pay more for car insurance. However, you could still be eligible for some substantial discounts, with some of the discount deals in this guide.

Safe driver discount

Average savings: 20%

If you have been accident-free for between three and five years, you can qualify for an auto insurance discount.

Usually, your car insurance company will apply this discount automatically either at the policy start date or at your renewal date if you have remained accident-free throughout the year.

Teen driver discount

Average savings: 20%

Since teens tend to be inexperienced behind the wheel, when you add them to your insurance policy, your car insurance bill may increase substantially.

For this reason, car insurance companies will reward your teen for learning how to drive well.

When your teen enrolls in and completes a defensive driving course, this will be rewarded with lower car insurance rates.

Good student discount

Average savings: 25%

For young drivers, rates are particularly high until you turn 25. However, if you are able to maintain a B average, you will qualify for special car insurance discounts as high as 25%.

This is known as a good student discount. To qualify for this discount, you will need to be a full-time student and provide proof of your grades to your insurance company.

Defensive driving discount

Average savings: 15%

Insurance companies reward drivers who take defensive driving lessons from a certified or registered school. These classes teach drivers how to handle any road, traffic, and weather conditions to help them avoid accidents.

A defensive driving course costs approximately $25 and will take a few hours to complete. The savings that you will enjoy far exceed the cost of taking this course.

Away from home student discount

Average savings: 25%

You could qualify for great auto insurance discounts if you have more than one car, and one of them is being used by your child who is attending college more than 100 miles away.

Be sure to ask your insurance agent about this discount during your next renewal.

Senior driver discount

Average savings: 10%

Drivers who are over the age of 55 may qualify for additional discounts on their car insurance premiums.

Some auto insurance companies will also reward drivers who are over the age of 55 for taking a mature driver improvement course online.

This course covers similar topics to a defensive driving course and helps you to improve your driving according to the latest defensive driving techniques.

Military and federal employee discount

Average savings: 15%

If you have serviced the United States through military, navy, or airforce employment, or if you are a federal employee, you will be able to find auto insurance companies that honor your service.

Many auto insurance companies will provide discounts to active military and federal employees, as well as veterans and retirees.

Discounts for How You Quote and Buy

Depending on how and where you find auto insurance quotes or purchase your car insurance, you could earn some fantastic discounts.

Early shopper discount

Average savings: 3%

If you don’t need car insurance right away, you could qualify for an early shopper discount. To qualify for this discount, some insurance companies will require you to get a quote with them before your current policy expires.

Some insurers even stipulate a specific time frame during which you will need to get a quote before your policy goes into full effect. This time frame is often around seven days.

Online quote discounts

Average savings: 5%

If you ask for your car insurance quote and buy your insurance online, some insurers will offer you a discount. This discount may also apply if you accept and finalize your car insurance policy online.

Sign online discount

Average savings: 10%

If you are comfortable signing your car insurance documents online, then depending on your insurer, you may be given a good discount on your auto insurance.

Paperless and auto-billing discount

Average discount: 3%

If you opt to receive your insurance card, documentation, invoices, and statements via email or via your insurance company’s app, you could be eligible for a discount of around 3%.

Pay in full discount

Average savings: Vary

This is one of the most common car insurance discounts. If you pay your car insurance premiums in full for the year, most insurers will offer you a substantial discount. It’s important to note that this discount varies from one insurer to another.

Automatic payment

Average savings: Vary

If you are unable to pay your insurance premiums in full up front, some insurers will offer you a discount for setting up an automatic payment every month from your checking account, credit card, or debit card.

Vehicle-Based Car Insurance Discounts

While new cars, cars with advanced safety features, and electric vehicles can be expensive to buy, you can help to offset the cost of these vehicles with a discount from your insurance company.

Alternative energy discount

Average savings: 5%

If you drive an environmentally friendly car, you can save money on both gas and your car insurance. Some insurance companies will provide you with a discount irrespective of whether you own or lease your car.

Anti-theft devices discount

Average savings: 15%

An anti-theft device can save you money on your auto insurance costs, while also helping you to feel safer. There are many insurers who will offer discounts if you have protective devices such as alarms or steering wheel locks.

New car discount

Average savings: 10%

Most insurance companies will offer you a discount if your car is less than three years old. However, there are often specific conditions attached to this discount.

For example, you may need to have a car that is the current, or previous year’s model, and you may need to be its first owner.

Safety equipment discount

Average savings: 10%

Most car insurance companies will offer you a discount for having specific safety equipment installed, such as dual airbags.

Anti-lock brakes discount

Average savings: 10%

Most major insurers will require you to have an anti-›lock braking system (ABS) installed by an approved technician or provider, in order for your vehicle to qualify for this discount.

Passive restraint discount

Average savings: 30%

Passive restraint equipment includes front airbags and seatbelts. Since 1983, all new cars have been fitted with this equipment.

For this reason, most insurance policies will feature this discount if your car was manufactured after 1983.

If you don’t see this discount on your car insurance quote, be sure to speak to your insurance agent about it.

Daytime running lights

Average savings: 3%

Similar to your nighttime headlights, daytime running lights are considered to be a good way to reduce collisions. While car manufacturers do not always equip cars with this feature, having them could earn you a discount on your car insurance premiums.

Usage Based Car Insurance Discounts

There are many insurers that will reward safe driving through monitoring gadgets that are fitted to your car and track your driving habits.

These devices track driving habits such as:

  • Speeding.
  • Hard braking.
  • Mileage.
  • Time of day driven.
  • Trip.

Based on the data collected over six consecutive months, your car insurance company will decide whether you are eligible for a usage-based discount or rewards program.

The discounts can be substantial and will often amount to anything up to 30% of your car insurance premium.

Affiliation Discounts

Depending on where you work and the type of position you hold, you may be eligible for discounts on your car insurance. These can often be bundled with other insurance discounts such as a paid in full discount, safe driving habits, automatic payments discount, and so forth.

Employer-based discounts

Average savings: Vary

Some employers are able to negotiate bulk auto insurance rates for their employees. If your company does this, you should be able to enjoy a discount on your car insurance while you work there.

Even though your employer has negotiated a good deal, we do recommend that you still shop around for the cheapest car insurance quotes, as you may be able to secure a lower rate elsewhere. To start the process, simply head to the top of this page and enter your zip code.

Profession-based discounts

Average savings: Vary

Many major insurers will offer perks to policyholders who work in a specific field or industry. For this reason, the potential savings can be significant.

The types of professions that do qualify for discounts vary from one insurer to the next, but teachers, doctors, and first responders are often included.

Organizational discounts

Average savings: vary

Some insurance companies offer membership discounts to specific organizations. These organizations vary from insurer to insurer.

For example, some insurers will provide discounts to policyholders who have a membership with the AAA, or hold an AARP card.

Other insurers will give you a discount if you belong to an alumni association.

How to Get the Best Auto Insurance Discounts

Car insurance discounts are not always straightforward. Each auto insurance company has its own set of discounts that it can offer you.

A good way to approach this is to use this car insurance discounts guide to understand where you could possibly qualify for an insurance discount, and make a list.

Once you have done that, then you can consider the factors below to maximize the savings that you can secure for your car insurance policy.

Request detailed information about discounts

You don’t need to wait until your next renewal date to check whether or not you are eligible for a car insurance discount.

Review the discounts available on your auto insurance companies website and check with a representative or insurance agent whether you qualify.

If you are planning on switching over to a new auto insurance company, you should always investigate the potential discounts and chat to an insurance agent who can confirm whether these discounts are still available.

Terms of service can change, so a discount that may have been available some time ago, may not be relevant at the time you are asking for a quote.

Consider the overall auto insurance premium cost and not just the discounts on offer

Although special car insurance discounts can save you a lot of money on your insurance premiums, remember to review the overall cost of the insurance, rather than the number of discounts you receive.

For example, an insurance company that offers no discounts, could in fact be cheaper in insurance premiums than another insurer who charges a higher premium, along with several discounts.

Call an insurance agent to get personalized coverage

Although you could lose your online purchase discount, it can be useful to speak to an insurance agent directly to discuss which discounts may be applicable to you.

If you don’t see the discounts that we have mentioned on your insurance policy documentation, then call your insurance company directly and inquire about the discounts they offer.

Check and compare insurance rates before buying a new car

It is true that some cars just cost more to insure than others. Fortunately, there are ways to check how much your car insurance is likely to be before you actually invest in a new car.

Cars with high theft rates or powerful engines, as well as cars with customized paintwork and aftermarket features, may cost more to insure.

The easiest way to get an idea of how much your new car is going to cost to insure, is to use our car insurance quotes comparison tool.

All you need to do is enter your zip code, followed by a few details regarding you, your car, and your driving history, and we will provide you with quotes from all the best car insurance companies available in your area.

Maintain a good credit profile

Having a good credit score will show your insurance provider that you have a history of paying your bills on time.

If you are someone with a good credit history, you will pay less for car insurance.

Improving your credit score if you don’t have a good history, will help you to unlock lower car insurance rates.

Raise your deductible

An auto insurance deductible is the amount of money that you will need to pay out-of-pocket before your car insurance company will pay for the cost to repair your vehicle.

For example, if you are involved in an accident and the damages to your car are going to cost $5,000 to fix and the deductible that you have chosen is $500—the insurance company will pay $4,500 towards the claim.

You will be responsible for paying the difference, or your $500 deductible.

When you first take out car insurance, you can discuss how much of a deductible you are willing to pay towards a claim.

If you settle on a higher deductible, your car insurance premium will be lower; and if you choose a lower deductible, your premiums will be higher.

Knowing which deductible to choose comes down to your personal preference and financial situation, but a higher deductible will always reduce the premium you pay.

If you are a safe driver with a clean driving record, there is less of a chance that you will need to claim. You may also be able to opt for a higher deductible if you have money available in savings should the unexpected happen.

Get Cheap Car Insurance Coverage for Your Vehicle Today with

Finding a good car insurance rate is essential, and we recommend that you compare your current car insurance with other options on an annual basis, close to your renewal date.

Getting the best insurance for your car can be hard work, as you really need to compare as many car insurance quotes as possible before finalizing your coverage.

Fortunately, we are here to help you find the car insurance coverage you need, at the best possible price.

Just head to the top of this page and enter your zip code. You will find a wide selection of insurance quotes to choose from.

Once you have an idea of the auto insurance premiums that you could be paying, contact the insurers that are offering you the cheapest rates to get a formal quote.

Getting car insurance should be quick, simple, and stress-free, and you deserve to get the best insurance rates possible.

At, we’ve got you covered!