Get the cheapest quotes on your auto insurance
Enter your ZIP code to see insurers near you.
You won’t find any shortage of car insurance discounts out there, but companies aren’t always forthcoming about how to claim them. Find out how to identify and take advantage of each type of discount and save more money.
Car insurance deals and savings
Insurance companies don’t always advertise their discounts to established customers, so remember to ask about what they can offer. Discounts vary by state and insurance company. Compare the possible discounts you could qualify for and you could save.
Safe drivers can save up to 31%
Get a discount if you have a clean driving record with no violations within the past three years.
Students save big with discounts up to 35%
Young drivers can save up to 35% with the Smart Student discount. Stack more discounts for being a good student and more.
Cut your bill in half
Safe, low-mileage drivers who track their driving save an average of 50% on their rates.
Military drivers save up to $725
Members who switched to USAA saved an average of $725 a year on their auto insurance.
Safe cars get a 40% discount
Have safety features installed in your car? Get up to 40% off car insurance.
Good grades net 25% off
Students can stack up savings for good grades and safe driving.
Can I multiple car insurance discounts?
Depending on your insurer, discounts can stack to save you 50% or more on your premiums. How much you can save is affected by your provider’s selection of discounts and what you’re eligible for.
To stack discounts, you need to be eligible for more than one. An example of this might be getting a hybrid car discount of 5%, a claims free discount of 15% and a discount for paying in full of 5% — which would give you a total of 25% off your premium. That means if your original premium was $1,300 for a year, it would drop to $1,105 — a yearly savings of $195.
Keep in mind that discounts will only ever stack up to a certain point — even if you’re eligible for more. Car insurance companies are in business to make money, and your rates need to be high enough to offset claims being paid out and turn a profit.
Compare car insurance companies by provider
How much each discount can save you
Safe driver | $50 to $500 or 15% | Drive without getting in an accident or making a claim for a certain period of time |
Good student | 10% to 35% | Get a B average (3.0) or higher in high school or college |
Paid in full | 5% to 10% | Pay upfront or sign up for autopay |
Bundle | 5% to 10% | Combine multiple cars or insurance policies with the same provider |
Low mileage | 20% to 50% | Your car is garaged, you don’t drive much or you drive during low traffic times |
Defensive driver | 10% to 20% | Pass a driver safety or skills course |
Security | 5% to 25% | Your car has a device that makes it harder to steal, like an alarm or tracking device |
Safety device | 5% to 33% | Drive a car with antilock brakes, airbags, etc. |
Electric, hybrid | 5% to 10% | Choose an electric, hybrid or low emission car |
Military | 5% to 10% | Serve, have served or have an affiliation with the military |
Low income | 50% to 75% or more | Have a low income in states that require insurance |
Homeowner | 10% to 25% | Own a home instead of renting |
Occupation | 5% to 15% | Be employed in education, healthcare, government, nonprofit and other occupations |
Online quote | 5% | Get a quote, switch or sign up and get a discount on your first term |
Types of discounts on car insurance to look out for
Knowing the meanings of common terms that you’ll come across can help you more effectively capture applicable discounts.
- Autopay
Some insurers provide a discount when you set your insurance account to automatically draw monthly payments from your bank or card. Check your policy terms or call your provider to ask if it supports an autopay discount.
- Bundle, Loyalty, Multicar or Multipolicy
Most providers offer a discount when you insure more than one car or take out more than one type of insurance product with them.A multicar policy covers more than one vehicle on the same policy. A multipolicy combines different insurance products, like homeowners and car insurance. They’re often referred to as “bundling” or “loyalty.” Typically insurers are more likely to openly advertise these discounts.
- Defensive driver or driver improvement
Many providers offer a discount for taking a driving course. This discount is usually limited to certain groups, like young drivers, seniors and inexperienced drivers. Depending on the provider, only select driver courses are approved, so you should get in contact with an agent before taking a course.
- Electric, hybrid or green.
Some providers offer a discount to owners of green cars, including hybrids and electric vehicles. This can help offset typical premium increase that comes with an electric car, which is usually due to higher claim costs.
- Good student
Students who maintain a certain grade-point average, usually 3.0 or better, can be rewarded with a discount. Depending on the provider, this discount is typically available to unmarried, full-time high school or college students between the ages of 16 and 24.
- Homeowner
Because homeownership is often equated with financial responsibility, homeowners can be rewarded with a discount simply for owning their home. This is separate from bundling your homeowners insurance.
- Low income or low cost
Some states require insurers to provide affordable insurance to eligible, low-income drivers. Contact your insurer if you think you may qualify.
- Low mileage, pay as you go or telematics
If you don’t drive your car often, you may be eligible for this discount. One of the factors insurers use to determine the cost of insurance includes the typical amount of miles driven in a day. Drivers can also save money by getting a pay-as-you-go policy, which allows you to only pay for the miles you drive.
- Military or veteran
Some providers show their appreciation to service members by offering a discount to active military, veterans and their family members. You may be able to add this discount online if you weren’t able to when signing up — if not, simply call your provider.
- Occupation
Drivers in certain occupations are considered a lower risk to insurers. Fields of employment that are often recognized include: educators, scientists, medical professionals, engineers and first responders.
- Online quote or e-sign
When you obtain insurance online, it saves the provider money. Some providers reward drivers for this with a discount. Ways that you can get the discount include getting a quote online, applying online or e-signing your documents.
- Pay in full
When you pay for your policy upfront, many providers will give you a discounted rate. Usually policies renew on a six-month schedule.
- Safe driver, responsible driver, accident-free or claim-free
When you drive responsibly, some providers will offer a discount. To qualify in most cases, you must have a clean driving record or be accident free for a set amount of time — typically the previous three years. You can also get a discount when you don’t make a claim for a specified amount of time.
- Safety device or safe vehicle
Newer cars, as well as many older models, come with safety features to help keep the driver and passengers safe. Some of these safety features that can get you a discount include: antilock brakes, airbags, automatic seat belts, blind spot sensors, lane departure warning, daytime running lights, adaptive cruise control and good safety ratings.
- Security or antitheft
Security devices help prevent your car from being stolen, which insurers like. It can save them the cost of having to replace your car if it were stolen. Antitheft devices can include passive — ones that automatically engage when the engine is turned off — and active, ones that the driver turns on manually. Keep your provider up to date with any new safety features you add, it could end up saving you a few dollars.
Car insurance discounts you may be eligible for
Ask an expert: Which car insurance discounts can help me save?

Randolph Rice
Founder of Brian So Insurance
Two of the factors that determine your rates are whether your car has an Autonomous Emergency Braking System (AEBS), and whether you drive your car less than 13,000 miles per year.
Having AEBS can prevent many rear-enders. And the less you drive your car, the less likely you are to cause an accident. Drivers who answered yes to either can qualify for car insurance discounts.
What to watch out for with car insurance discounts
Discounts can help you save a significant amount of money, but their main purpose is to bring in new customers.
With car insurance being such a competitive market, be cautious when deciding on a policy. Read the terms and conditions and be aware of a few pitfalls you could run into, like:
- Time limits. Some deals may only apply for a limited time. There’s a big difference between getting 10% off for one year or two.
- Exclusions. As with the policies themselves, exclusions can also apply to discounts. Customers who are already earning discounts are often excluded from earning more, or may only qualify for up to a certain amount off.
- Rising premiums. Getting 25% off your car insurance is nice, but you’re not saving money if the insurer raises your premiums by 26% soon after. For general car insurance, insurers are able to set their prices and change them without notice.
- “Up to” discounts. Just because a discount states up to 25% doesn’t automatically mean you’ll receive that percent off. The highest discount amounts might only be offered to a specific type of driver or coverage holder, so it’s best to call and ask which discount amount you qualify for.
Bottom line
Taking advantage of the many car insurance discounts available to you is as simple as knowing where to look. Explore all your options when shopping for car insurance so you don’t miss out on any savings.