Car Insurance Discount Guide (2022)
Updated August 19, 2022
Owning a car comes with many 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. You can get all kinds of discounts on your car insurance. We’ll help you get started by identifying some of the most popular ones.
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.
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!
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 type of discount below.
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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, and 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: If you don’t drive much, you may qualify for a reduced-mileage discount by proving that you drive under a certain 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 discount on 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 alum groups and trade or professional organizations.
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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 to 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 to receive a multi-vehicle discount.
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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.
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Different companies offer different discounts, so it pays to shop around. Compare quotes from companies in your area to see which are the best fit for you and your budget. Discounts can make a big difference in the affordability of an insurance policy, so make sure to ask often about what kind of discounts you qualify for.
Comparing car insurance quotes from multiple providers is the best way to save, but there are other strategies you can use to save money. You can choose a policy with a higher deductible, ask about insurance discounts you qualify for, and remove unnecessary coverage from your policy.
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% 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.
Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.
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.Learn More