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There’s no 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 them to save more money.
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Best car insurance discounts
How much will discounts affect my rate?
Discounts can greatly affect your rate. When you stack them all together, you can save upwards of 50%. That’s a lot of savings.
Insurance companies, in part, determine your premium based on your behavior behind the wheel. People who drive more and in busier areas, younger drivers and those who drive high-performance cars are more likely to file claims. On the other hand, more experienced drivers, people who drive cars with safety and security features and those who drive less tend to pay less. Insurance companies take all of this into consideration when determining premiums.
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Cheapest insurance for every driver
Find the best insurance for your individual situation, plus guides on how to uncover discounts.
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What discounts should I look for?
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 how much you could save.
| Discount | Average savings | How you could qualify for this discount |
|---|---|---|
| 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 |
Car insurance discount definitions
Knowing the meanings of common terms that you’ll come across can help you more effectively capture applicable 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.
Which company has the cheapest car insurance?
While some companies may seem to be the cheapest based on the number of discounts offered, you won’t necessarily get the best overall rate. And your exact quotes will depend on your location, driving history, vehicle and coverage choices, among other factors.
To find the most affordable insurance, compare total costs and what you get for that price — including coverage, mobile apps, customer support and perks like free roadside assistance. Compare sample quotes for cheap car insurance to get an idea of what you can get for the bare minimum coverage.
Cheap car insurance quotes with discounts included
| Company | Average annual rate | Learn more |
|---|---|---|
| Geico | $394 | Read review |
| USAA | $416 | Read review |
| Alliance | $435 | |
| Progressive | $536 | Read review |
| Grange | $557 | Read review |
| Mercury | $564 | Read review |
| Esurance | $609 | Read review |
| Kemper | $615 | Read review |
| 21st Century | $651 | Read review |
| Allied | $666 | Read review |
| Nationwide | $666 | Read review |
| Allstate | $693 | Read review |
| Liberty Mutual | $709 | Read review |
| State Farm | $726 | Read review |
| The Hartford | $727 | Read review |
| Average | $598 | Compare all reviews |
More ways to save on car insurance
To save even more on your insurance, keep these other options in mind:
- Buying a car that’s cheaper to insure. Cars that are cheaper and easier to repair cost less to insure. Keep prices down by buying something that’s inexpensive, safe and fuel-efficient.
- Driving defensively. You’ll always save money if you don’t make any claims. To avoid an accident, never drive while impaired, tired or distracted.
- Picking a higher deductible. The deductible makes a substantial difference to your premiums, and it’s worth adjusting to take advantage of savings. Just make sure you can afford that higher deductible if you do need to make a claim.
- Nominating drivers. Specify exactly who’s allowed to drive your car and prevent anyone else from getting behind the wheel. This can go a long way toward keeping premiums down.
- Parking safely. Many insurers will offer lower prices for a car that’s kept under a carport rather than on the street — and lower prices still when it’s kept in a secure, lockable garage.
- Choosing add-ons carefully. Where possible, choose a policy that gives you the flexibility to drop features you don’t need.
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.
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