Car Insurance Discounts

Car insurance discounts are opportunities offered by insurance carriers to help you save money on your monthly premiums. 

The national average cost for car insurance is $1,311 per year. This rate varies depending on multiple factors and can get more expensive for young drivers, drivers with a history of incidents, and drivers of luxury cars. 

Since some form of car insurance is required in most states, insurance carriers will reward individuals who have safe vehicles, are good drivers, and have other positive factors in order to lower the costs of car insurance premiums. 

An independent insurance agent can also help you find all the car insurance discounts you qualify for. Not only will they help get you matched to the right coverage, but they'll also make sure all the discounts you earn are applied. But first, here's an overview of many common types of car insurance discounts. 

Types of Car Insurance Discounts

What auto insurance discounts are available depends first on which car insurance company you go through. The types of auto insurance discounts offered vary by carrier. 

Here are some of the most common car insurance discounts:

• Driver safety discounts
• Personal driver status discounts
• Policy discounts
• Vehicle features discounts
• Affiliation discounts

Driver Safety Car Insurance Discounts

Driver safety discounts are common types of car insurance discounts offered by many different auto insurance companies. These common car insurance discounts offer incentives for drivers to complete local defensive driving courses or driver safety courses that can improve driving behaviors and reduce the risk of accidents or traffic violations. 

Defensive driving types of auto insurance discounts can often score you a discount of between 10% and 15% on average. By taking just one of these courses, you can save more than $150 per year on your car insurance. What auto insurance discounts are available specifically varies by carrier, however.

Car Insurance Companies That Offer Driver Safety Discounts

Car Insurance Company	Defensive Driving Course Discounts	Low Mileage Discounts	Accident-Free/Safe Driver Discounts	Telematics Discounts
Nationwide	Yes	Yes	No	Yes
Progressive	Yes	Yes	No	No
Travelers	Yes	Yes	No	Yes
USAA	Yes	Yes	No	No
Allstate	Yes	Yes	No	No

Defensive Driving Car Insurance Discount

If you complete a defensive driving course in your area, you could earn a car insurance discount of between 10% to 15% on average. Discounts on car insurance for defensive driving courses are available from many different insurance companies, as shown above. 

A defensive driving course teaches how to navigate in all kinds of weather and traffic conditions to reduce the risk of accidents on the road. These defensive driving course discounts for car insurance might be available from your current carrier, just ask them.

Accident-Free and Good Driver Car Insurance Discounts

Four out of the five car insurance companies we compared offer accident-free and good driver car insurance discounts. Safe driver discounts on car insurance can earn you an average of 10% off your car insurance premiums. 

Your car insurance company might also offer you a discount if you've had no accidents on your record for the past few years. The percentage of discounts for car insurance you earn for being accident-free will vary by insurer. 

Low-Mileage Car Insurance Discounts

Some car insurance companies offer discounts on car insurance if you don't use your vehicle as often as many folks do. Low-mileage discounts for car insurance can earn you up to as much as 20% off your premiums. 

While the average driver in the US travels around 12,000 miles per year in their own vehicle, if you drive an average of 7,500 or less per year, you might qualify for a discount. Ask your current insurance company about getting a low-mileage discount if this applies to you.

Telematics and Usage-Based Car Insurance Discounts

Many different car insurance companies also offer telematics discounts or usage-based discounts on car insurance. Many insurers, such as USAA, offer apps for drivers to download to their smartphones. With the driver's permission, the app tracks their driving behaviors when they're on the road and reports the data to the insurance company. 

The discount applied to your premiums will vary depending on how you perform. Practicing safe driving behaviors can help increase your chances of getting higher discounts for car insurance.

Personal Driver Status Car Insurance Discounts

Driver status discounts are types of car insurance discounts that can earn you a discount of between 5% and 25% on your premiums depending on which status applies to you. Good student discounts, student-away-from-home discounts, and senior driver discounts are all common examples of types of auto insurance discounts in this category. 

These common car insurance discounts are offered by many different carriers, but the percentage discount you're awarded will vary by insurance company. For example, good student discounts alone can range from 5% to 25% on average depending on the insurer. Ask your car insurance company or independent insurance agent what auto insurance discounts are available.

Car Insurance Companies That Offer Personal Driver Status Discounts

Car Insurance Company	Good Student Discounts	Student-Away-From-Home Discounts	Senior Driver Discounts	Government/ Professional Association Discounts
Nationwide	Yes	Yes	No	Yes
Progressive	Yes	Yes	No	No
Travelers	Yes	Yes	No	Yes
USAA	Yes	Yes	No	No
Allstate	Yes	Yes	No	No

Good Student Car Insurance Discounts

If you can provide proof of full-time student status to your car insurance company and maintain a B average or above, you might earn a nice discount on your coverage. Good student discounts are common discounts on car insurance and can range from an average of 5% to 25% in savings depending on the insurance company and grade point average. 

Good student discounts for car insurance are available from all five of the carriers we compared. Double-check with your carrier to see if you qualify for good student discounts for your car insurance.

Student-Away Car Insurance Discounts

Student-away-from-home discounts on car insurance are also offered by many different carriers if you have a student living on campus or in an off-campus apartment away from home. The student's vehicle must be kept at home, and the school must be more than 100 miles from home. 

While the exact percentage varies by carrier, you can earn savings of between 5% and 25% on your premiums if you qualify for this discount for car insurance. This is just one way that college students can earn car insurance discounts.

Senior Car Insurance Discounts

Drivers who are over age 55 can earn senior or "mature driver" discounts on car insurance if they're offered by their carriers. These discounts for car insurance also vary by carrier, but on average fall between 5% and 10%. 

Discounts can be enhanced by completing a mature driver improvement course and getting a certificate. These courses are similar to defensive driving courses and offer a refresh for senior drivers, as well as new information and traffic laws to be aware of. Check with your carrier to see if they offer senior car insurance discounts.

Policy-Related Car Insurance Discounts

Depending on your car insurance policy, you might qualify for certain related types of car insurance discounts automatically. You'll have to ask for other types of auto insurance discounts. 

Bundling discounts are common car insurance policy-related discounts that are offered when you buy more than one type of coverage through the same carrier. All policy-related discounts can vary from an average of 3% up to 25% in savings. Ask your independent insurance agent what auto insurance discounts are available.

Car Insurance Companies That Offer Policy-Related Discounts

Car Insurance Company	Homeowners Discounts	Bundling Discounts	Early Signing Discounts	Paid-in-Full Discounts	Electronic Billing Discounts
Nationwide	No	Yes	No	No	Yes
Progressive	Yes	Yes	Yes	Yes	Yes
Travelers	Yes	Yes	Yes	Yes	Yes
USAA	No	Yes	No	No	No
Allstate	No	Yes	Yes	Yes	Yes

Homeowner Car Insurance Discounts

You can sometimes earn discounts on car insurance for being a homeowner, even if you don't get your home insurance through the same carrier as your auto insurance. Homeowner discounts for car insurance can be applied to your uninsured/underinsured motorist coverage, personal injury protection, or liability coverage. 

While the discount varies by carrier, Progressive specifically offers a discount of 3% for drivers who are homeowners and qualify for savings. Ask your carrier if they offer any car insurance discounts just for being a homeowner. 

Bundling and Multi-Policy Car Insurance Discounts

Getting two or more types of coverage through the same insurance company can help you earn a bundling discount or multi-policy discount. These discounts for car insurance can range between 5% and 25% in premium savings. 

If you get your auto insurance and another coverage, such as home insurance, umbrella insurance, or boat insurance from the same carrier, you'll likely qualify for one of these great discounts on car insurance. Be sure to ask your independent insurance agent about bundling and multi-policy discounts if they aren't automatically applied to your coverage.

Early Signing Car Insurance Discounts

Finding a new auto insurance policy before your current policy expires can help you earn discounts on car insurance of between 3% and 10% from some carriers. This discount isn't offered by every car insurance company, so you'll have to shop around. 

Travelers, specifically, awards these discounts for car insurance to customers who get a new car insurance policy at least three days before their current policy expires. Of the five insurance companies we compared, three of them offer early signing discounts.

Paid-in-Full Car Insurance Discounts

Sometimes, a car insurance company will offer you a discount of between 5% and 10% if you pay your entire premium upfront. Whether you're given bi-annual or annual premiums, if you make one lump sum payment instead of monthly payments, insurance companies are likely to reward you with discounts on car insurance. 

Of course, you'll have to choose this option yourself and let your insurance company know you'd like to pay your insurance premium this way. Keep in mind that these discounts for car insurance aren't available from every carrier, so check with yours to find out.

Paperless and Electronic Billing Car Insurance Discounts

Going paperless with your billing and other statements can help you save a bit on your car insurance, too. While many insurers offer discounts on car insurance of between 5% and 10% for going paperless or choosing the option for e-billing statements, others offer a flat discount. 

Nationwide, for example, gives you a flat $30 discount for the year when you set up automatic payments and paperless billing. If you're currently receiving paper statements and would like to reduce waste and save some money on your insurance, ask your carrier about going paperless and earning discounts for your car insurance.

Customer Loyalty Car Insurance Discounts

Some car insurance companies reward customers with discounts for car insurance just for sticking with them over time. If you continue to keep your coverage through the same carrier for a period of a few years or more, they may start to grant you a loyalty discount. 

These discounts on car insurance vary by insurer but can save you up to 20% on average. If you've been with the same carrier for multiple years, ask them about earning a loyalty discount if you continue to stay with them.

Vehicle Features Car Insurance Discounts

Some types of auto insurance discounts may be less obvious but easy to earn. Sometimes, even the features included in your vehicle can help you earn discounts on car insurance. 

Safety features help earn drivers common car insurance discounts. Anti-theft devices and safety equipment can help reduce your risk to an insurance company, and in turn, be offered a discount on your premiums. 

Though not all insurance companies offer these types of car insurance discounts, many do. Check with your specific carrier to see if you qualify for savings thanks to a vehicle features discount and what auto insurance discounts are available through them.

Car Insurance Companies That Offer Vehicle Features Discounts

Car Insurance Company	Anti-Theft Device Discounts	Safety Equipment Discounts	Alternative Energy Discounts	New Car Discounts
Nationwide	Yes	No	No	No
Progressive	Yes	No	No	No
Travelers	Yes	No	Yes	Yes
USAA	Yes	No	No	Yes
Allstate	Yes	Yes	Yes	Yes

Anti-Theft Car Insurance Discounts

If you have an anti-theft device installed in your vehicle, you reduce the risk of your car being stolen. Car insurance companies can offer you discounts on car insurance thanks to this reduced risk, often ranging between 5% and 15% on your comprehensive coverage. 

If you didn't have an anti-theft device before but got one installed later, let your car insurance company know and check to see if it qualifies you for a new discount. These discounts for car insurance aren't offered by every car insurance company.

Vehicle Safety Equipment Car Insurance Discounts

Vehicle safety equipment also helps reduce risks for drivers, such as the risk of injuries to themselves and their passengers. A couple of examples of vehicle safety equipment include anti-lock brakes and airbags. 

The percentage discounts on car insurance offered for vehicle safety equipment vary by insurance company. Ask your car insurance carrier if you qualify for any discounts for car insurance due to having safety equipment.

Alternative Energy Car Insurance Discounts

If you drive an electric car or hybrid, you might qualify for further discounts on your car insurance. Insurers like Travelers even grant discounts whether you own your vehicle or lease it. 

The percentage of discounts for car insurance offered for alternative energy vehicles varies by insurance company and isn't offered by all carriers. Check with your specific insurance company to see if you qualify for savings.

New Car Auto Insurance Discounts

Buying and insuring a new vehicle can help you save money on car insurance, too. These discounts on car insurance typically apply to the physical damage coverage section of your policy. 

Different carriers define "new car" in different ways, such as being restricted to within the past two model-years or less. Discounts for car insurance percentages also vary by carrier, but 10% is a common average.

Affiliation Car Insurance Discounts

You might stand to earn another type of car insurance discount thanks to a specific group you belong to. Your employer or school can also earn you common car insurance discounts. The exact percentage of the discount offered varies depending on the type of affiliation you have and the car insurance company you go through. 

These types of auto insurance discounts are offered by many different car insurance companies and can include employer discounts, professional discounts, organization discounts, and military or veteran discounts. Ask your independent insurance agent what affiliation auto insurance discounts are available. 

Car Insurance Companies That Offer Affiliation Discounts

Employer-Based Car Insurance Discounts

The company you work for may have negotiated a deal on car insurance for its employees. Check with your employer to see if you could be earning a discount on car insurance. 

Once you change companies, however, you'll likely lose this type of discount. The exact percentage of discount for car insurance offered depends on your employer and the car insurance company.

Profession-Based Car Insurance Discounts

Teachers and first responders are two common examples of professions that can earn special discounts on car insurance. Depending on the type of work you do, you could stand to save a bit of money on your car insurance premiums. 

The exact percentage of discounts for car insurance offered varies by your profession and the car insurance company. Check with your insurer to see if you qualify for any extra savings based on your profession.

Professional and Academic Organization Car Insurance Discounts

If you belong to a professional or academic organization, you might qualify for discounts on car insurance. If you belong to AARP, for example, you could earn special discounts for car insurance. 

The exact percentage offered varies depending on the car insurance company and which type of organization you belong to. If you belong to an organization, ask your car insurance carrier if you qualify for this type of discount.

Military and Veteran Car Insurance Discounts

Active military members and veterans alike can earn special discounts on their car insurance, as can federal employees. You can expect to earn discounts for car insurance ranging between 5% and 15% if you qualify. 

Ask your insurance company about its military and veteran car insurance discounts and see if you qualify for any extra savings. This discount may not be offered by every car insurance carrier.

How Hard Is It to Get Car Insurance Discounts?

The short answer is, not very. You do not need a perfect driving record to qualify for discounts.

Some proactive things you can do to qualify for car insurance discounts include:

• Buying a safe vehicle
• Maintaining a clean driving record
• Taking driving safety courses
• Shopping multiple carriers

In addition to what you can do, an independent insurance agent can learn about you and your driving habits and help you find even more savings.

How Do I Get Car Insurance Discounts?

Some discounts, like those based on gender, marital status, location, and age will be automatically included in your premiums without you needing to do anything. In order to get additional not-so-obvious discounts, it's best to work with an independent insurance agent.

An independent insurance agent knows the right questions to ask and can shop and compare discounts from multiple carriers. Since independent agents aren't bound to one company, they can comparison shop between carriers and help you find the best deal.

Does My Car Affect My Car Insurance Discounts?

In short, yes. If you're shopping for a car, you can start working with an independent insurance agent to compare insurance costs before you even sign the papers. Here's what goes into calculating insurance for a new (or new-to-you) car:

• Value: The cheaper the car, the cheaper the premiums.
• Safety: New features like rear cameras, pedestrian detection, and emergency braking can lower premiums.
• Cost of repairs: If a car costs a lot to repair, this factor can increase your premiums because your carrier wants to break even.
• Theft risk: If your car has a statistically higher risk of being stolen, this factor can also increase your premiums.
• Engine size/power: The more powerful your car, the worse an accident might be, so a large engine can increase your premiums.

Getting discounts on your car insurance doesn't have to stop when you pick a policy. Keeping your agent updated on major life events like marriage or a job change can help you qualify for discounts you missed the first time around.

The Benefits of an Independent Insurance Agent

Now that you know how car insurance discounts work, there's no need to do the hard work yourself. Our independent insurance agents stay on top of the industry and all the latest discounts so you don’t have to. They'll shop and compare quotes from multiple car insurance companies for you and provide you with only the results that offer the best blend of coverage and cost.