Adding discounts to your car insurance policy can save you a bundle, but most companies won’t strain themselves to match you up with every discount they offer.

So, if you want to maximize your savings, you’ll need to find out just what discounts you can get and then compare car insurance quotes from providers that offer these deals. To help you get started, we’ve compiled a list of the most common car insurance discounts and how you can qualify for them today.

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COVID-19 Update: Companies offering temporary discounts

Most major insurance companies are offering new discounts, rebates, or temporary changes to payment plans in light of the novel coronavirus pandemic. Read below to see which car insurance providers might be changing their policies in the near term: 

CarrierPremium returnsCancellationsOther policy changes
Allstate/EsuranceReturning 15% of premiums to auto policyholdersCustomers can request a special payment plan that allows them to skip two premium payments without a penaltyExtended coverage if you want to use your vehicle for food delivery
American FamilyOne-time $50 checks per insured car to auto insurance policyholders
AmicaCustomers will see a 20% credit on their auto premiums for April and May 2020Through June 2, 2020, they will not cancel policies due to unpaid premiums and won’t charge late fees
Auto-Owners Insurance15% premium refund to personal automobile policyholders for the months of April and May 2020Customers can call the company to discuss options such as changing their due date, changing their payment plan or getting a payment extension
Chubb35% premium reduction for the months of April and May 2020. Will be applied on policy renewal
DairylandGrace period based on need
ErieReturning 30% of your auto premiums for a two-month periodCan offer customers options such as delayed payment dates, adjusting installments, changing pay plans and waiving penalties and fees
Farmers/21st Century25% reduction in April 2020 premiumCustomers can take extra time to pay and won’t have their policies canceled, through May 1, 2020. Customers will have until at least May 1 to make a mid-term payment, if one is due. Any unpaid balance will carry over to the next billing statement with no late fee or other penalty
GEICO15% credit on your next auto/motorcycle/RV premium termNo longer canceling policies for lack of payment
HanoverNone yetWaiving late fees and suspending non-payment cancellations through May 15, 2020
The Hartford15% discount on two months' worth of premiums from The Hartford
Liberty Mutual/Safeco15 percent refund for two months of policyholders’ personal auto premiumsOffering extended payment deadlines and waiving fees for customers who are impacted by the coronavirus
MercuryReturning 15% of monthly auto insurance premiums to customers in April and May 2020
NationwideOne-time premium refund of $50 per policy
NJMRefunding 15% of the equivalent of three months of premium payments to policyholdersWon’t cancel policies due to non-payment through April 30, 2020
Plymouth Rock25% credit on auto premiums from now until stay-at-home orders are lifted
Progressive20% credit on monthly premium for April, May, and "coming months"Waiving late fees, pausing collections, and stop canceling policies due to non-payment
State FarmWill credit policyholders an average of 25% of monthly premium between March 20 and May 31, 2020. Credit will apply to bills beginning in early June 2020
Travelers15% credit on April and May 2020 premiumsWill not cancel or stop renewal of coverage due to nonpayment through May 15, 2020. Travelers will not charge interest, late fees or penalties during this timeSuspending non-payment cancellations through May 15, 2020
USAAPolicyholders receive 20% credit of their monthly premiumsWill not charge late fees or cancel auto or property insurance for members who need more time to pay as a result of COVID-19, through June 17, 2020Extended coverage if you want to use your vehicle for delivering food or commercial supplies

Auto Insurance Discounts By Company

Most car insurance companies offer discounts that appeal to standard drivers: families with students, good drivers, and those undergoing life changes like moves, births, and marriages.

Click on the company to read more about the specific discounts offered: 

See more car insurance companies here to learn more about available discounts.

Most Common Types of Car Insurance Discounts

Several major insurance companies will offer these discounts or rebate programs.

Discounts Based on Driver History

These discounts are based on things you’ve done in the past (or haven’t done). Driver history discounts are quite common and are sometimes the most significant discounts that companies offer, so qualifying for these can save you a substantial chunk of change on auto insurance.

Good driver/Safe driver discount

Safe driving habits pay off! If you haven’t had any at-fault accidents or traffic violations during the past three years, most insurance companies will give you a good driver discount. A few providers require as much as a five-year perfect driving record to qualify.

Defensive driving discount

Passing a licensed defensive driving course can get you a reduced rate, although you’ll likely have to retake the course every year or two to hang onto the discount.

Driver training discount

Drivers under the age of 21 who take an approved driver training course may be eligible for a discount. Since car insurance rates for drivers under 25 tend to be extremely high, such a class could pay for itself by qualifying you for this discount.

Reduced mileage discount 

If you drive fewer than 10,000 miles per year, you can often get a better deal on your car insurance. Some insurance companies will require you to prove your low mileage by having you install a mileage tracker into your vehicle.

Group- and Membership-Based Discounts

Group discounts are related to who you are rather than how you drive. Anything from your job to the house you live in can conceivably get you a discount on your car insurance.

Professional and organizational discounts 

If you belong to specific organizations, such as AARP, or are a member of certain professions (among them police officers, nurses, teachers, federal employees, and even certified public accountants), you may be eligible for a discount. Check with your employer, professional organization, and any other group with which you enjoy membership; you can also ask the insurance company if any such discount is available.

Companies like Walmart and Home Depot have been known to offer car insurance discounts for qualifying employees.

Military service discount

Many insurance providers give substantial discounts to active service members, veterans, and their families. USAA will only insure military personnel, veterans, and their immediate relatives, and is regarded as one of the best insurance companies around.

Mature driver discount

Drivers age 50 and older who have taken and passed a licensed mature driver safety course may be eligible for this discount. Some insurers set higher age requirements to qualify as a mature driver.

Good student discount

Full-time students who meet specific requirements—for example, landing on the honor roll or starting college—can sometimes get a discount on auto insurance. High school or college students who earn good grades, usually a B average or higher, can help decrease the overall premium of a family’s auto policy.

Married couple discount

Believe it or not, you might qualify for a lower rate on auto insurance just by being married.

Homeownership discount

Owning a home may be enough to get you a discount, even if you don’t have your home insurance through the same company as your auto insurance. Of course, getting both insurance policies from a single insurer may allow you to combine this discount with the multi-product discount.

Vehicle-Based Discounts

The type of vehicle you drive and the features it carries may qualify you for certain discounts on your insurance.

Multi-vehicle discount

Insuring more than one vehicle on a single policy may result in a discount. Multi-car discounts are hallmarks of most insurance companies, so it’s best to bundle all of the cars in your household under a single policy to maximize savings—even if your level of collision or comprehensive coverage differs from vehicle to vehicle.

Green driving discount

Drivers of hybrid cars, electric cars, or other fuel-efficient vehicles may be eligible for car insurance premium discounts.

Safety features discount

Certain car safety features can get you a better rate. For example, airbags, daytime running lights, and antilock brakes are all desirable features to insurance providers.

Anti-theft device discount

Theft prevention devices such as alarms, dash cams, and passive disabling systems can get you a small discount on insurance. The discount usually won’t be big enough to make installing such systems worthwhile in and of itself, but if you’ve already got anti-theft features on your vehicle or you decide to get them for peace of mind, you might as well claim the discount.

Policy-Based Discounts

The choices you make about how your policy is structured, paid, and renewed may make you eligible for discounts. Your history with a particular company can also win you a break on your car insurance rates.

Multi-policy discount

Many carriers sell other insurance products besides auto insurance, including homeowners insurance, life insurance, and renters insurance. Buying more than one type of policy from a provider can earn you an economical bundling rate.

Customer loyalty discount

Sticking with the same insurance company through multiple renewal cycles may get you a better rate. Even if the company doesn’t promote such a discount, it’s worth asking if you can get one.

Early signing discount

Some insurers will give you a discount for signing up for a new policy with them while your previous policy is still in effect with a different insurer.

Lump payment discount/prepayment discount

If you pay your entire insurance premium upfront instead of breaking it out in two installments, you can usually get a discount on the whole.

E-discount

Choosing to go paperless by opting to receive all your insurance communications via email will often result in a small discount.

Automatic payments discount

Many insurance companies will provide a small discount for opting to have your insurance payments taken out of your bank account automatically.

Tips for saving money on car insurance

It’s essential to learn the basics of car insurance discounts and check with your insurance provider to make sure that you’ve been granted all the discounts for which you qualify. Still, there’s more to do if you want to save as much money as possible and score a cheap auto insurance policy.

The single most important thing you can do to cut your car insurance rates is to shop around at least once a year, or once every policy period. Getting a new set of car insurance quotes will show you just how your current insurer stacks up to the competition, and may also allow you to score a much better rate.

Even if you like your current company so much that you have no intention of changing, those quotes can give you leverage to get a break on your rates.

It works like this: find a real quote or two that are much lower than your current insurance company offers, then call up your insurer and tell them that Company X will give you the same policy for $200 less. Then ask your insurer if they can match that quote. You may not get your insurer to mark your policy all the way down, but you will likely get at least some additional discounts on your car insurance rates.

Look out! When shopping around for better rates, be sure to use a true quote comparison site, like Insurify, and not a lead generation site. Lead-gens are primarily tools for insurance agents looking for leads, and rarely if ever will they give you accurate quotes. A good auto insurance quotes comparison site like Insurify will provide you with real quotes and “apples to apples” policy comparison, allowing you to find the policy that best fits your needs and incorporates any and all discounts.

Happy shopping!

Updated June 24, 2020

Wendy Connick is the founder and owner of Connick Financial Solutions, a provider of tax and bookkeeping services and a QuickBooks Online Certified ProAdvisor. A long-time freelance writer, she specializes in business and finance articles on subjects including taxes, investing, and retirement. Wendy is an Enrolled Agent (EA), the only federally licensed tax practitioners who specialize in taxation and have unlimited rights to represent taxpayers before the IRS. She is a member of the National Association of Enrolled Agents and a certified volunteer for VITA (Volunteer Income Tax Assistance), an IRS-sponsored program to provide free tax help for low-income individuals and families.