Guide to Car Insurance Discounts (2026)

Safe driving discounts are common, though they’re structured in different ways, including general discounts and more specific programs. For instance, State Farm’s Steer Clear program is designed for young drivers who remain accident- and ticket-free for three years, while GEICO offers all family members in a household a discount if they remain accident-free for five years.

Telematics discounts are becoming more common in the industry, especially with top auto insurers. These discounts are applied when a smartphone app, such as the Drive Safe & Save app from State Farm, monitors your driving habits to ensure you’re meeting the minimum safe driving standards that the program requires. It’s important to note, though, that some telematics programs could lead to higher rates if the insurer’s app detects poor driving habits.

Although a good driver discount is common, defensive driving course discounts are less common ways to increase savings for safe driving. Insurance companies like State Farm offer small discounts for drivers who complete an eligible safe driving program. Some insurers only offer this discount to older drivers.

A low-mileage discount is a way that you can save money by keeping your mileage below a set amount each policy term. Hugo is one example of an auto insurer that offers a pay-as-you-go option for coverage specifically designed for low-mileage drivers.

A good student discount is a common discount across most auto insurance companies, including State Farm, Nationwide, Progressive, and more. Insurers reward full-time students in high school or college with policy discounts for maintaining good grades, which are usually defined as a B average.

Though not as common, parents of college students could also take advantage of away-from-home discounts, which may lower monthly payments if the student lives primarily at their college campus away from home and doesn’t have regular access to a private passenger vehicle. Generally, the school will need to be at least 100 miles from the student’s home address in order to qualify for this discount.

A homeowner discount rewards a policyholder’s homeowner status without necessarily requiring the driver to also insure their home with the same insurer.

Military discounts, which typically offer reduced premiums for active-duty military members, are hit or miss at many insurance companies. Current and former military members and their spouses should consider USAA, which offers coverage exclusively to the military community. Children of USAA members are eligible for USAA membership as well.

GEICO is one car insurance company that offers a largely unpublished discount for eligible alumni, federal employees, and members of professional organizations.

A bundling discount is one of the most common car insurance discounts. It may be referred to as a “multi-line” or “multi-product” discount, but these all refer to taking out multiple insurance products from the same company, such as a home insurance policy and an auto insurance policy. Most insurance companies that sell multiple products offer a bundling discount.

Loyalty discounts are just that: discounts awarded to longtime policyholders when they remain with an insurance company for a set number of years. This discount incentivizes you to continue renewing your policy.

Unfortunately, some car insurance companies may engage in a practice called price optimization, which offers you a discount but raises your rates in a way that nullifies it, such as a 20% rate increase with only a 10% discount. That’s why it’s important to compare quotes to see which insurer can offer the lowest premium possible and to ensure you’re getting every discount you qualify for.

Paid-in-full discounts usually require you to pay for your entire policy term up front in one lump sum to receive the discount.

You can earn a multi-car discount when you have more than one vehicle on the same policy. Some insurers may categorize this under a “multi-product” or “multi-line” bundle, while others have a separate discount specifically for multiple vehicles on one policy.

An early bird discount involves getting a free quote and purchasing a policy from a new insurer before your active policy at a competitor ends. The designated time frame for the discount is generally within five days of policy expiration.

You typically earn a paperless discount when you opt out of correspondence by U.S. mail and instead receive all communications about your auto policy digitally.

A handful of auto insurers offer a discount for policyholders who have new cars. A “new” car may be defined as a vehicle that’s from the current model year or less than 3 years old.

An anti-theft auto insurance discount may be available for vehicles with factory-installed or aftermarket security systems installed.

An alternative energy discount is typically available for owned or leased vehicles that run on alternative fuel sources in addition to standard gasoline. Examples include hybrid, electric, propane, and natural gas vehicles.

Few car insurance companies offer passive restraint discounts, which are savings incentives if a vehicle built after a specific year has factory-installed airbags or another passive restraint system.

An uncommonly advertised discount, drivers with factory-installed anti-lock brakes on their vehicles may receive a discount depending on the model year.