Guide to Car Insurance Discounts (2024)

Farmers, GEICO, and Travelers offer the most discounts for drivers, including savings for members of eligible organizations.

Nick Dauk
Written byNick Dauk
Nick Dauk
Nick Dauk
  • 6+ years writing about insurance, travel, and personal finances

  • Contributor to brands like Credible

In addition to insurance, Nick specializes in writing about business, entrepreneurship, personal finance, and travel. He’s been featured in myriad web publications, including Fox Business.

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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Updated July 11, 2024

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American drivers pay an overall average cost of $1,918 annually for car insurance, according to Insurify data. Car insurance costs rose 24% in 2023 and are likely to rise 7% more in 2024. Discounts are just one of the ways drivers can save money on car insurance.

Some discounts are available to everyone, like getting a flat-rate discount for going paperless. Others require you to meet certain qualifications, like maintaining a clean driving record. When you compare car insurance rates, it’s important to know what discounts each insurer offers and which you may qualify for. 

Let’s look at some of the most common and uncommon discounts offered by the largest insurance companies in the U.S.

Quick Facts
  • Safe driving and good student discounts are among the most common discounts insurance companies offer.

  • One of the biggest discounts a driver can get is from USAA for storing a vehicle on a military base when the owner is on deployment.

  • Always ask your agent or insurer which discounts are available, as many insurance companies don’t advertise all their discounts online.

List of car insurance discounts

Car insurance discounts can range from as little as 3% for having daytime running lights on your vehicle to as much as 60% or more for storing your vehicle on a military base.[1] [2] The number of discounts and the savings potential vary between insurance companies.

Insurify reviewed discounts from the 10 largest insurance companies by market share to determine which offers the most, what savings are available, and how drivers can qualify. 

DiscountSavingsWho’s Eligible?
Passive restraint30%Owners of vehicles with specific factory-installed safety devices, like airbags
Telematics10%–30%Drivers who meet or exceed the safe driving habits required by a telematics program
Multi-car7%–25%Policyholders who have multiple cars insured under one policy
Bundling7%–25%Policyholders who have multiple insurance products from one company, like home and auto
Military15%–25%Active-duty military members, veterans, and those facing emergency deployment
Anti-theft23%Vehicles that have security systems or features either factory-installed or after-market installed
Good driver22%Drivers who aren’t involved in an at-fault accident or receive a ticket for a moving violation during a set period of time
New car10%–15%Vehicles less than 3 years old
Good student10%–15%High school and college students who maintain a B average or higher
Anti-lock brakes5%Vehicles with anti-lock brake features
Defensive driving course5%Drivers who complete an acceptable driver education course and meet other insurer requirements
Low-mileage discountN/ADrivers who maintain a limited mileage during their policy term
Student away-from-homeN/AStudents who live on campus at a college at least 100 miles from home and don’t have access to a vehicle
HomeownersN/APolicyholders who own their homes
Alumni/professional organizationN/AMembers of specific professional organizations or alumni clubs
LoyaltyN/APolicyholders who remain with the same company for a set period of uninterrupted time
Paid-in-fullN/APolicyholders who pay their full premium at the start of the term
Early birdN/APolicyholders who seek out car insurance quotes prior to their term ending
PaperlessN/APolicyholders who opt to receive all communication digitally

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Driver behavior discounts

Most drivers are aware that a good driving record can help keep premiums low. Most auto insurance companies offer a discount for good driving habits, as shown in the table below.[1] [3] [4]

DiscountSavings
Safe driverUp to 22%
Telematics10%–30%
Defensive driving course5%
Low-mileage discountVaries

Safe driver discount

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 discount

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.

How Does Usage-Based Insurance Work?

How Does Usage-Based Insurance Work?

Defensive driving course discount

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.

Low-mileage discount

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.

Driver characteristic discounts

Personal information, like age and address, will influence your rates. Discount categories are often based on driver characteristics, too. Some discounts reward you for affiliations with professional organizations, while others are designed to help young drivers lower their premiums. For instance, common discounts for students typically have specific GPAs and maximum age requirements.[5] [6]

DiscountSavings
Good student10%–15%
Student away-from-homeVaries
HomeownersVaries
Military15%–25%
Alumni/professional organizationVaries

Good student discount

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

Student away-from-home discount

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.

The Best Car Insurance for College Students (2024)

The Best Car Insurance for College Students (2024)

Homeowner discount

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

Military discount

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 can join this insurance membership program as well.

Alumni/professional organizations discount

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

Policy discounts

Policy discounts can lower your car insurance costs, though these types of discounts vary across the industry compared to vehicle-based and driving-based discounts. For instance, some insurance companies may offer a discount for getting a car insurance quote online prior to your next term, while others may offer customers a small discount when they opt for paperless communication.

Many companies offer at least one discount related to the different ways you can bundle an insurance company’s financial products, such as having multiple vehicles under one policy or combining an auto policy with a homeowners insurance policy.[1]

DiscountSavings
Bundling7%–25%
LoyaltyVaries
Paid-in-fullVaries
Multi-car7%–25%
Early birdVaries
PaperlessVaries

Bundling discount

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 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. For instance, 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.

Multi-car 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.

Early bird discount

The 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 timeframe for the discount is generally within five days of policy expiration.

Paperless discount

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.

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*Quotes generated for Insurify users within the last 10 days. Last updated on July 11, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from July 11, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

Vehicle-based discounts

Many national and regional auto insurance companies offer vehicle-based discounts. They typically affect car insurance rates only for newer cars rather than older vehicles. Some examples of vehicle-based discounts include having a vehicle with a factory-installed airbag, anti-theft features, or other modern safety features.

Keep in mind that these discounts may only apply to specific insurance coverage types, such as a discount of 10% off your comprehensive coverage cost, rather than a final discount for the full auto insurance policy.[7] [8]

DiscountSavings
New car10%–15%
Anti-theftUp to 23%
Alternative energyVaries
Passive restraint30%-40%
Anti-lock brakes5%

New-car discount

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

New Car Replacement Insurance: What to Know

New Car Replacement Insurance: What to Know

Anti-theft discount

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

Alternative energy discount

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.

Passive restraint discount

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.

Anti-lock brakes discount

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

Which company has the most car insurance discounts?

Farmers is far and away the leader when it comes to the number of discounts available, with a total of 23. It offers many of the common discounts its competitors provide, such as good student and multi-policy, but also offers unique discounts not commonly advertised, like one for daytime running lights.

GEICO has the second most discounts, at 16, with anti-lock brake and airbag discounts being its uncommon offerings. Following GEICO is Travelers, at 15; its discounts that stand out include new vehicle and continuous insurance discounts. 

Here is Insurify's top 10 ranking of the auto insurers with the most discounts, and their average monthly rates for full-coverage and liability-only car insurance.

Insurance CompanyNumber of DiscountsFull CoverageLiability Only
Farmers23$251$113
GEICO16$122$56
Travelers15$196$90
Progressive14$134$77
State Farm14$120$55
USAA12$100$46
American Family11$171$77
Liberty Mutual11$231$112
Allstate10$138$63
Nationwide10$186$85
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Tips for getting car insurance discounts

Car discounts can lead to lower rates, but don’t amounts and availability can vary by location. Keep these tips in mind when investigating any discount opportunities, even from top insurers:

  • Always review eligible discounts with your insurance agent. Discount programs and qualification requirements may change by the year. Never feel uncomfortable asking which discounts are available to you.

  • Pay attention to “up to” amounts. Many insurers advertise savings “up to” a specific percentage, but that doesn’t mean you’ll receive the highest advertised amount for your discount.

  • Identify which discounts vary by state. Not all discounts are available in every state, due to varying state regulations.

  • Understand which discounts could cost you money. Some incentives, like telematics programs, can increase your rate based on your driving habits, even if it does include an initial discount.

How to Get Cheap Car Insurance

How to Get Cheap Car Insurance

Car insurance discounts FAQs

Insurers base discount eligibility requirements on different factors and may not offer the same types of discounts in every state. Use these answers to commonly asked questions to help you identify where you can save the most money.

  • Which insurance company offers the most discounts?

    With 23 different discounts, Farmers offers more than national and regional competitors, including larger brands, like State Farm. It offers standard car insurance discounts, such as ones for anti-lock brakes, anti-theft devices, going paperless, and being a safe driver; some discounts that are unique to Farmers include ones for VIN etching, a Farmers-approved homing device, and cars using alternative fuel.

  • Can you ask for a discount on your car insurance?

    Yes, you can ask for a discount on your car insurance. The Insurance Information Institute encourages drivers to inquire about discounts when shopping for a new policy and throughout their policy term.[9] Many insurance companies don’t display all their available discounts on their websites, and some add new ones throughout the year. Asking your agent or insurer about discounts is one way to ensure you’re getting all the savings you qualify for.

  • What are some car insurance discounts for teen drivers?

    Teen drivers can lower the cost of coverage by qualifying for discounts designed for young drivers. Good student discounts typically reward students with a B average or higher. Insurance companies like Progressive offer discounts for drivers younger than 18 on a policy and college students younger than 23 who live more than 100 miles from home and don’t have a vehicle while at school.

Sources

  1. GEICO. "Car Insurance Discounts - Savings on Auto Insurance."
  2. USAA. "Auto Insurance Discounts."
  3. Statefarm.com. "Drive Safe & Save™ – Safe Driver Discounts."
  4. Statefarm.com. "Car Insurance Discounts Florida."
  5. Progressive. "Car Insurance Discounts & Info for Students."
  6. GEICO. "Military Discounts For Your Insurance Needs."
  7. GEICO. "Car Insurance Discounts - Savings on Auto Insurance."
  8. Statefarm.com. "Auto Insurance Discounts."
  9. III. "How to save money on car insurance."
Nick Dauk
Nick Dauk

Nick Dauk is a freelance writer specializing in business, entrepreneurship, personal finance, and travel. His work has been featured in Fox Business, BBC, The Edge, Business Insider, and Bisnow. Nick is a first-generation college graduate, having majored in Interdisciplinary Studies at the University of Central Florida. His eclectic coursework, combined with previous managerial roles in the retail and broadcast television industries, have helped him develop an interdisciplinary approach to writing.

For nearly a decade, Nick has created content for mom-and-pop businesses and global corporations. As a travel writer, his global adventures have also been featured on Inside Hook, Houston Chronicle, Culture Trip, and Matador. When he's not traveling, Nick can be found in Orlando spending time with his wife and toddler.

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications, Triple-I
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

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