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Car Insurance Discount Guide (2022) - Insurify
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Edited by Jackie Cohen
Last Updated June 15, 2022
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Owning a car comes with a lot of costs, from registration and gas to the occasional repair. Many of these costs are out of the driver’s control, but one way you can keep your costs down is by lowering your car insurance costs. There are all kinds of discounts you can get on your car insurance. We’ll help you get started by identifying some of the most popular ones.
Another way you can find cheap car insurance is to compare car insurance quotes to find an affordable policy. Insurify pulls together quotes from all the top insurers so you can find the right policy for you.
Quick Facts
- Many major and regional insurers offer discounts on car insurance.
- There are three key kinds of discounts: driver-based, policy-based, and bundling.
- You may have to request discounts, as insurers may not proactively offer them.
Which insurance companies offer discounts?
How do I qualify for car insurance discounts?
Depending on your car insurance company, there are many ways to qualify for discounts. Some discounts are dependent on your driving history–if you have a clean record, you can save!
Most insurance companies, from Allstate to USAA, have insurance policy discounts of some kind. It pays to investigate the possible discounts you may qualify for.
Learn more about the available discounts from GEICO, Liberty Mutual, Nationwide, State Farm, and other car insurance companies to see which offers the best auto insurance discounts.
There are three key types of discounts on your insurance premiums that you may qualify for: driver-based discounts, policy-based discounts, and bundling discounts. Learn more about each kind of driver discount below.
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Driver-Based Discounts
Discounts based on your driving record reward you for things you’ve done (or in some cases, things you haven’t done). You can get discounts on your insurance coverage for things like remaining accident-free, not committing moving violations like speeding, taking a defensive driving course, or otherwise having safe driving habits.
Qualifying for driver-based discounts can save you a huge chunk of change on your car insurance rates. Some of the most common discounts in this category include:
Good driver discount: Also known as a safe driver discount, this common offering rewards drivers who don’t have at-fault accidents or other traffic violations in the last three to five years of their driving history.
Good student discount: Teen drivers who maintain at least a B average in high school or college qualify for lower rates based on their good grades, which can help lower the high cost of insuring young drivers.
Defensive driving discount: Pass a defensive driving or driver education course to gain this discount.
Low-mileage discount: Don’t drive much? Qualify for a reduced-mileage discount by proving that you drive under a certain mileage threshold (typically 10,000 miles per year). Some insurance companies may require you to install a mileage tracker to prove your eligibility for this discount.
Safety features discount: Choose a car with features like airbags, antilock brakes, or anti-theft devices to qualify for this addition to your auto policy. Most new cars have this technology built-in.
Professional and academic membership discount: Certain organizations partner with insurance companies to give drivers additional discounts based on membership, such as university alumni groups and trade or professional organizations.
See More: Best Car Insurance Companies
Policy-Based Discounts
Car insurance companies will also reward policyholders for structuring their policies a certain way. Get lower car insurance premiums by doing things like insuring multiple cars with the same company or staying with the company for a long time. Many companies offer discounts in this category, including:
Paperless billing: Switch to receiving bills by email, and get a small discount on your insurance coverage.
Automatic payments: Paying for your comprehensive coverage can be out of sight, out of mind with this feature—and it can get you a discount on your insurance, too.
Customer loyalty: Most insurance companies will reward you for staying with them for many years. The longer you stay with a company, the better the discount you may qualify for. Ask an insurance agent periodically whether you qualify for any loyalty discounts.
Multi-car discount: Insure multiple cars in your household with the same company, and receive a multi-vehicle discount.
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Bundling Discounts
Bundling discounts are some of the most popular discounts out there. Consumers love them because buying multiple kinds of insurance from the same company simplifies the process of managing different accounts. Most insurance companies offer some kind of multi-policy discount for bundling your car insurance with homeowners, renters, or life insurance.
See More: Cheap Car Insurance
How to Save More Money on Car Insurance
Different companies offer different discounts, so it pays to shop around. Use Insurify to find the best companies that offer the most discounts on your policy.
Frequently Asked Questions
Comparing quotes from multiple insurers is the best thing you can do, but there are other strategies you can use to save money. One popular way is to choose a policy with a higher deductible.
You should review the discounts you’re receiving at least once a year or once per policy term to see if you qualify for any new discounts. This is also a good time to shop around for a better rate.
You may be able to save up to 35 percent on your car insurance costs, depending on your insurance company and which discounts you qualify for.
Some car insurance discounts only apply to part of your coverage. For example, seat belt discounts may only apply to medical payments. Why? Those are the parts of your insurance that pay for injuries to your passenger. Another example: anti-theft discounts may only apply to comprehensive coverage because that’s the part that pays for car theft.
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The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.
Insurance Writer
Jennifer Pendell is a personal finance expert. She specializes in breaking down dense subjects to make them easier for consumers to understand, with a particular interest in homeowners, renters, and auto insurance concepts. She studied at the University of Iowa.