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Car insurance premiums vary by driver. Your location, age, credit score, gender, and driving record are just a few of the things that affect your rate.[1] For some drivers, car insurance premiums can be expensive. To help you save money, many car insurance companies provide discounts to eligible drivers.

Quick Facts
  • Insurers offer discounts for driver history, vehicle type or equipment, driver affiliations, and more.

  • Discounts reduce premiums by a specific percentage, such as 10%, 15%, or even 30%.

  • Virtually every insurer offers some type of discount.

  • Comparing car insurance rates is the best way to find an affordable policy with discounts you qualify for.

Types of car insurance discounts

Most car insurance companies offer discounts with varying savings potentials. However, some of the most common auto insurance discounts fall into categories, like vehicle-related discounts and policy-related discounts.

Driving history discounts

If you consistently practice safe driving habits, you might be able to qualify for special car insurance discounts.

For example, Progressive offers an average savings of $146 for drivers who enroll in Snapshot, the app-based safe driver discount program. State Farm also offers a safe driver discount program, called Drive Safe & Save, which offers a discount of up to 30%.

For drivers with no accidents on their records in the past three years, Progressive offers an average discount of 31%. If you’re a GEICO customer, the average discount for drivers who have been accident-free for five years is 22%.

These are some of the most common driving history discounts:

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If you have no recent accidents on your driving record, you may get a lower average rate than someone with accidents on their record.

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Defensive driver course

Many insurance companies provide a discount to drivers who complete an approved defensive driver program.

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Low mileage

If you drive less than a certain annual mileage, you might be able to qualify for a low-mileage discount.

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Telematics-based safe-driving app

Safe-driving apps use telematics to track your driving habits, like braking, acceleration, and mileage. If you demonstrate safe driving behaviors, you could get discounts for your car insurance.

Many drivers can qualify for car insurance discounts based on the vehicle they have.

For example, if you’re a GEICO customer, you could save up to 23% by having an anti-theft device in your vehicle. GEICO also offers discounts for having airbags (23%) and antilock brakes (5%).

Here are some vehicle-related discounts that many popular car insurance companies offer:

  • Alternative fuel: If you drive a hybrid or an electric vehicle, some car insurance companies give you a discount on your premium.

  • Anti-theft device: Many insurance providers offer a discount if your car is equipped with an anti-theft device.

  • New car: Depending on your insurance company, you can sometimes get a discounted premium if you insure a new vehicle.

  • Safety equipment: If your car has certain safety equipment, like antilock brakes or collision warning systems, you could save money on your auto insurance. 

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Affiliation discounts

Some auto insurance companies offer affiliation discounts. For example, GEICO offers a discount of 15% for military members and a discount of 12% for federal employees. GEICO also offers savings to people who work for specific employers and organizations.

Liberty Mutual is one of a few insurance companies that offer special coverage and discounts for teachers and school employees. For instance, qualifying teachers can get vandalism loss protection with no deductible in most states.

Here are several groups that can often qualify for affiliation discounts:

  • Military and veterans: If you’re an active-duty service member or a veteran, you can find insurance companies that offer military discounts.

  • Teachers: A handful of insurance companies provide teacher car insurance discounts to qualifying educators and school employees.

  • Federal employees: If you work for the government, you might be able to find car insurance companies that offer federal employee discounts.

Best Military Car Insurance

Best Military Car Insurance

Driver-specific discounts

Driver-specific discounts can have a high savings potential. For example, if you switch to Progressive and bundle your policies, you can save up to 20%. Allstate’s average policy bundling discount is 25%, and USAA’s average bundling discount is 10%.

Many car insurance companies also offer car insurance discounts for students. GEICO’s good student discount yields an average savings of 15%, and Progressive’s average discount for students with good grades is 10%.

These are some of the most common driver-specific discounts:

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Good student

Young drivers who are full-time students and get good grades in school can usually qualify for a lower car insurance premium.

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If you own a home rather than rent, you could save money on your auto insurance policy.

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Student away at school

Students who attend school away from home and don’t have a car with them can sometimes get a car insurance discount.

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Customer loyalty

If you’ve been with your insurance company for a certain number of years, it may lower your premium.

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Insuring multiple vehicles on your car insurance policy usually results in a car insurance discount.

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Most car insurance companies offer discounts if you bundle two or more insurance policies, like auto insurance and home insurance.

Policy-related discounts can be an easy way to save money on your car insurance premium.

For example, if you purchase a new policy at least seven days before the effective date, AAA will give you an automatic discount of 5%. Many insurance providers, like American Family and Auto-Owners, offer savings for paying in full and signing up for automatic payments.

These are a few of the policy-related discounts that many car insurance providers offer:

  • Automatic payment: Many car insurance companies offer a discount to drivers who enroll in automatic payments for their monthly premiums.

  • Early shopper: If you purchase a new car insurance policy before your old one expires, you could qualify for a discount.

  • Pay in full: Drivers who pay their annual premium up front and in full can usually save money on their annual rate.

  • Paperless statements: If you sign up for paperless policy statements, you might get a discounted premium.

What company has the most car insurance discounts?

Many national and regional car insurance companies offer discounts to customers. However, every car insurance provider offers different discounts, and some have more discounts than others. Before buying car insurance, it’s a good idea to research insurance companies to see which one has the best discounts for your situation.


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According to Progressive’s website, drivers can save an average of $650 on their car insurance policy. Progressive advertises various car insurance discounts, with savings for having continuous insurance, adding a teen driver to your policy, owning a home, and having no recent accidents on your record.

You can also save money by enrolling in Progressive’s app-based safe driver rewards program, called Snapshot. Drivers who demonstrate safe driving habits can save an average of $146 on their premium with Snapshot.

Liberty Mutual

Liberty Mutual customers can get access to many car insurance discounts. The company offers savings for military personnel and veterans, shopping early, having no recent claims or violations on your record, purchasing a policy online, and signing up for automatic payments.

In addition, drivers can save money when they participate in RightTrack, Liberty Mutual’s telematics-based safe driver discount program. There’s a 10% discount for enrolling and an additional discount of up to 30% for completing the program.


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Allstate is an excellent car insurance company for drivers who want the best discounts. Allstate offers savings for having an anti-theft device in your car, setting up automatic payments, enrolling in paperless billing statements, being a good student, insuring a new vehicle, and consistently paying your premiums on time.

Like many other national car insurance companies, Allstate has a safe driver rewards program, called Drivewise. In addition to tracking your driving behaviors, you can also complete challenges within the app to earn Allstate Rewards points.


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GEICO stands out for its impressive list of vehicle-related discounts. You can save money if your vehicle has airbags, antilock brakes, an anti-theft system, and daytime running lights. You can even get a discount by simply wearing your seat belt every time you get behind the wheel.

GEICO also has savings for military service members, going on emergency deployment, federal employees, and members of select affinity groups. You can also sign up for GEICO’s DriveEasy program, which provides a discount based on your driving behaviors.


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Travelers has discounts for safe drivers, continuous insurance, hybrid and electric vehicles, homeowners, and insuring a new vehicle. The company also offers several discounts for young drivers, including savings for good students, students attending college away from home, and completing an approved driver education course.

Through Travelers’ Affinity Car & Home Program, you can also qualify for discounts if you belong to a participating member group. Drivers who are eligible for this program can access exclusive savings that aren’t available to other customers.


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Nationwide offers many discounts to drivers who want to save money on their car insurance. You can find savings for accident-free drivers, good students, taking a defensive driving course, having an anti-theft device in your vehicle, and signing up for paperless policy statements.

In addition, Nationwide has a safe driver rewards program, called SmartRide, which carries a 15% discount for enrolling and a discount of up to 40% when you demonstrate safe driving habits. Infrequent drivers can also save money through Nationwide’s usage-based SmartMiles program.


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Compared to other large insurance companies, Farmers offers fewer discounts. The only discounts mentioned on Farmers’ website are savings for having no recent accidents or violations and bundling your policies. Farmers does advertise state-specific discounts, but you need to contact an agent to find out what discounts are available where you live.


Erie offers a handful of car insurance discounts. It advertises more discounts than Farmers, but not as many as other companies, like Progressive. Through Erie, you can get savings for paying in full, having safety features in your vehicle, bundling your policies, and having a good driving record. Erie also offers special savings for young drivers.

If you drive infrequently or aren’t currently using your vehicle, Erie also offers a reduced-usage discount. You can get this discount if you don’t use your car for at least 90 consecutive days during the policy period.

How Insurify rates car insurance companies

Insurify uses an in-house, proprietary method to rate and review the best car insurance companies. The Insurify Quality Score uses more than 15 crucial criteria, including average premiums, customer satisfaction, discounts, third-party ratings and more to calculate a final score for a company. Criteria are weighted by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings. With the Insurify Quality Score, Insurify is able to provide quantitative ratings for drivers to better compare car insurance companies and make informed decisions to meet their coverage needs.

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How to reduce car insurance costs

Taking advantage of discounts is one way to lower your car insurance costs. Here’s how else you can potentially lower your premium.

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Speak to an agent

If you think you’re paying too much for car insurance, or just want to lower your premium, it doesn’t hurt to speak to an agent. An agent can make sure you’re taking advantage of all the discounts you’re eligible for and provide additional suggestions for lowering your auto insurance rate. For example, you might be able to raise your deductibles or adjust your coverage limits to reduce your premium.

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Maintain good credit

In most states, car insurance companies can use credit-based insurance scores, which means your credit score can affect your premium.[2] Drivers with good credit usually pay the lowest rates, whereas drivers with poor credit often pay much higher rates. Improving your credit and maintaining a good score can help you get cheaper premiums.

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Shop around

The first car insurance quote you receive might not be the cheapest. Before purchasing a car insurance policy, shop around and get quotes from several companies. Comparing quotes makes it easy to find the cheapest premium for the coverage you want.[3] You can use a quote-comparison platform to simplify the process.

Car insurance discount FAQs

Here are answers to commonly asked questions about car insurance discounts.

  • Can you get a discount on car insurance?

    Yes, many car insurance companies offer discounts to customers. You can commonly find discounts for bundling your policies, taking a defensive driving course, and having no recent accidents on your record. However, car insurance companies offer different discounts.

  • What discounts should you ask for when buying auto insurance?

    When purchasing auto insurance, you can ask the agent if you qualify for certain discounts. For example, you might be able to save money if you pay in full, enroll in automatic payments, or sign up for paperless policy statements.

  • How do you negotiate cheaper car insurance?

    Most insurance companies aren’t willing to negotiate a cheaper car insurance rate. However, you can typically lower your car insurance costs if you improve your credit score, choose high deductibles, look for discounts, and shop around to compare quotes.

  • What is a no-claims discount?

    A no-claims discount is available to drivers who have no recent car insurance claims on their record. Insurance companies generally view drivers without recent claims as less risky and may offer them discounted car insurance rates.


  1. III. "What determines the price of an auto insurance policy?." Accessed April 4, 2023
  2. NAIC. "Credit-Based Insurance Scores." Accessed April 4, 2023
  3. III. "Nine ways to lower your auto insurance costs." Accessed April 4, 2023
Elizabeth Rivelli
Elizabeth Rivelli

Elizabeth Rivelli is a freelance writer covering insurance and personal finance. She has extensive knowledge of various insurance lines, including property and casualty, health, and life insurance. Her byline has been featured in dozens of publications, including Investopedia, Forbes, Bankrate, NextAdvisor, and