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Car insurance discounts can lower your rates on average by as much as 27%, but it can be much more than that, depending on your driver profile and the insurance company. Typically, safe driver and accident-free auto insurance discounts net the most savings, followed by car insurance discounts for college students. Price breaks for auto and home bundles, those for certain types of jobs and for customer loyalty also net savings. Here we’ll provide all the car discount information you need to find the most savings.

Discount Average savings
Good/safe driver/claims-free27%
Student away18%
Good student16%
Multi-policy home14%
Multi-policy condo12%
Primary use farm12%
Loyalty three to 20 years11%
New car10%
Higher education9%
Electronic signature9%
Paid in full9%
High-tech safety devices (when available)9%
Enroll discount for usage-based9%
Vehicle owned9%
Daily commute less than 14 miles each way8%
Driver training8%
Low mileage under 7,5008%
Advance purchase (seven to 10 days)7%
Primary use pleasure7%
Multi-policy renter6%
Senior defensive driver course5%
Electronic funds transfer5%
Low mileage 7,500 to 14,9995%
Multi-policy life4%
Multi-policy umbrella4%
Anti-lock brakes3%
Air bags2%

How to get discounts on car insurance

Here are the best ways to get a discount on car insurance:

  • Ask your agent or insurance company which discounts are available, and then have the ones you qualify for applied to your policy.
  • Keep a clean driving record, and if you have for the past three to five years, so no accidents or moving violations, you will be eligible for a “good driver,” or “safe driver” car discount
  • Buy your home or condo insurance from the same insurance company to get a bundle discount
  • If you’re a student, earn good grades for a “good student” discount
  • Check to see if your occupation qualifies for an auto discount with your insurer
  • Pay your bill in full, and sign up for paperless or electronic funds transfers
  • If possible, drive less than 10,000 miles to get a low-mileage discount
  • Take a defensive driving or training course to get a driver training discount

Types of car insurance discounts

Auto insurance discounts fall into five general categories:

Auto insurance discounts based on your profession

Some insurance companies offer auto insurance discounts to drivers who are teachers, firefighters, police officers, engineers, lawyers, scientists or are in the military, among other occupations. The average professional auto insurance discount is 12%, and what you pay will depend on your insurance company and your job. Below you’ll see the breakdown of discounts for various jobs.

Occupation Average rate Rate after discount Average $ savings Average % discount
Fire Fighter$1,818$1,611$20712%
Civil Servant$1,818$1,618$20111%
Law Enforcement$1,797$1,606$19111%

Car insurance discounts for teachers

Not all insurance companies offer professional discounts. Of those surveyed, we found the following companies offered higher than average professional discounts for firefighters, police, lawyers, engineers, scientists, civil servants, and teachers. Below you’ll see their higher than the average (12%) car insurance discount for teachers.

Company Rate before discount Rate after discount $ savings % discount

Military discounts

Active and retired military members as well as members of the National Guard or Reserves qualify for military auto insurance discounts, generally of about 15%. USAA applies discounts based in part on the person’s military status and rank. A special storage discount (up to 90%) is also sometimes offered to service members who are deployed or otherwise away and have their vehicle stored in a secure location. Other special discounts are available, such as allowing a temporary coverage interruption, with some insurers if a military member is deployed overseas, so be sure to ask. USAA and Geico both offer military discounts and other special services for military members.



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Car insurance discounts for college students

College students get some of the highest discounts, 16% to 18%, under certain conditions, namely if you attend school at least 100 miles away from home and if you get good grades. If you are under the age of 25, go to a college that’s at least 100 miles from home and only drive your parents’ car when home on vacations and holidays, you can earn a “student away” discount. Any student age 16 to 25 who attends school full-time who maintains a grade point average of at least a 3.0, (or other criteria such as being in top 20% of the class) can earn a good student discount.

Discounts for student away at school

A student away at school get a discount of 18%, on average, but it can be much higher. Your particular discount amount will depend on your company, driver profile and state, but you can see below which carriers offer student away discounts that are higher than average. Most insurers offer a student away car discount if your child attends college at least 100 miles away from home.

Company Rate before discount Rate after discount $ savings % discount
New Jersey Manufacturers$3,656$2,003$1,65345%
West Bend Mutual$2,949$1,661$1,28844%
State Farm$2,921$1,775$1,14639%
Union Mutual$3,367$2,222$1,14634%
American Family$4,922$3,259$1,66334%
Auto Owners$2,632$1,993$63924%
Bear River$4,186$3,249$93622%
Safety Insurance$2,975$2,334$64122%

Discount for good students

The average driver discount for good students is 16%. Below you’ll see companies offering above the average savings for good students. How much you’ll pay will depend on your insurance company, your state and particular driver profile, but you can see that in some cases a student discount can be higher than the average. You will have to provide information to your insurer that documents your grade point average. Generally a good student discount is awarded to those who are under age 25 and maintain a 3.0 average. That means you can get a good student discount if you are still in high school.

Company Rate before discount Rate after discount $ difference % difference
West Bend$3,446$2,458$98929%
Kentucky Farm Bureau$6,059$4,599$1,46024%
Shelter Mutual$6,373$5,048$1,32521%
State Farm$4,793$3,828$96620%
North Star$4,708$3,843$86518%
American Family$3,332$2,725$60718%

Car insurance discounts by driving history

Driver discounts on your car insurance policy can be huge if you have a clean driving record and no accidents. Thankfully, discounts relating to your driving performance, typically over the past three years, are among the most common discounts.

Discount for accident-free

Drivers with no accidents for three years or five years could save an average of 26% to 30% on their car insurance premiums. The amount of time for accident-free auto insurance discounts depends on the insurance company’s criteria. Accident-free discounts may be applied in tiers, so you may get a driver discount for three-years, and then a higher one after five years. 

Insurance companies who offer a driver discount for being accident-free include:

  • Allstate
  • American Family
  • Elephant
  • Farmers
  • Geico
  • Infinity
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Travelers

Good driver discount for safe drivers

Good driver (safe driver, claims-free) discounts average 27%, up to 30% in some cases. A good driver discount is typically available to those who have a clean driving record and no moving violations for the past three to five years. Here is a list of insurers who offer good driver car discounts:

  • AAA
  • Allstate
  • American Family
  • Auto Club of Southern California
  • Auto-Owners
  • Country Insurance
  • CSAA Insurance Group
  • Direct General
  • Erie Insurance
  • Everest (Arrowhead)
  • Farmers
  • Geico
  • Infinity
  • Mercury
  • MetLife
  • Metromile
  • National General
  • Nationwide
  • Progressive
  • Safeco
  • State Farm
  • The General
  • Travelers
  • USAA

Discount for low mileage

Low mileage discounts average 3% to 8%, but up to about 10%. Savings for driving less depend on the amount of miles you travel. As a result, the average discount varies based on mileage as follows:

Mileage under% average discount

Below you’ll see how major carriers compare for above average low-mileage discounts

Company Rate before discount Rate after discount $ Savings % Savings
United Financial$1,908$1,630$27815%
Norfolk & Dedham$1,587$1,374$21413%
State Farm$1,488$1,325$16311%
Farm Bureau$1,882$1,680$20311%
CSAA Insurance Exchange$2,312$2,090$22210%

Discounts by car safety features, age and anti-theft device

Generally, insurers give a discount if your car is not more than three years old, has factory-installed safety devices, such as airbags or anti-lock brakes, or that have anti-theft equipment. Below are the details on what you could save on your policy.

New car auto discount

The discount you get for insuring a new car, generally, one that is under three years old, is 10%, on average, but can be up to 23%. Below are rated for top carriers for new car auto discounts.

Company Rate before discount Rate after discount $ Savings % Savings

Discount for installing an anti-theft device

Drivers whose vehicles have an anti-theft device or a vehicle recovery system attached to it get an average of 2% off their rate, but it can be as high as 13% or even 23% in some cases, depending on your insurer. Below see the top insurers offering above-average savings for anti-theft equipment.

Company Rate before discount Rate after discount $ Savings % Savings
Direct General$1,233$1,170$645%
North Star$2,224$2,130$954%
Safe Auto$3,141$3,012$1284%
Standard Fire$1,651$1,586$654%

Discount for having safety features (Airbags, ABS/anti-lock brakes)

Safety features, such as airbags and anti-lock brakes (ABS), net an average discount of 2% to 3% but can be much higher in some cases. Here’s how top carriers compare on higher than average discounts for airbags.

Company Rate before discount Rate after discount $ Savings % Savings
New York Central Mutual$2,993$2,747$2468%
New Jersey Manufacturers$1,728$1,637$915%
Standard Fire$1,653$1,588$664%

Defensive driving or driver training discount

Taking a driver training course could save you an average of 8%, depending on your insurance company, driver profile, and state laws. The course must be state-approved, and usually, you can take just one over a certain time period to qualify for the discount.

Other ways to get car insurance discounts

Bundling auto and home for a multi-policy discount

If you buy your home insurance from the same carrier that provides your auto coverage, you can garner an average savings of 14%, but some auto-home bundle discounts are as high as 30%. Below are higher than average discounts for bundling auto and homeowners insurance.

Company Rate before discount Rate after discount $ Savings % Savings
Vermont Mutual$1,627$1,075$55234%
Southern Farm Bureau$1,827$1,382$44524%
Mid Century$2,212$1,692$52124%
American Family$1,299$1,015$28322%
SC Farm Bureau$1,854$1,467$38721%
State Farm$1,602$1,291$31119%
Safety Insurance$1,186$957$22919%
Oklahoma Farm Bureau$2,451$1,982$47019%
Secura Supreme$1,181$958$22419%
Mississippi Farm Bureau$1,863$1,526$33818%
American Family$1,585$1,299$28618%
North Star$2,224$1,824$40018%
New York Central Mutual$2,993$2,464$52918%
Quincy Mutual$1,517$1,258$26017%
Auto Club Group$2,536$2,102$43417%
AAA Texas$2,079$1,737$34316%
Interinsurance Exchange Of The Automobile Club$2,263$1,897$36616%
Pioneer State$2,291$1,927$36416%
United Financial$1,505$1,273$23215%
American Farmers & Ranchers Mutual$1,926$1,639$28715%
Oregon Mutual$1,051$895$15615%

Multi-policy discount for having a renter or condo policy

You can get an average discount of 12% for a multi-policy discount, or bundling condo coverage with your auto coverage, for renters it’s half that, 6%. The major insurance company with the highest condo bundle discount was Progressive (29%) and Memberselect for renter bundles (25%). Bundling with life insurance or an umbrella policy nets an average savings of 4% for each.

Early renewal discount

Early renewal, also called advance purchase, nets a savings of 7%, but it can be up to 15%, on average. Allstate, Progressive and Grange offer early renewal discounts higher than average for those who pay to renew a policy seven to days in advance.

Loyalty discounts

Keeping your car insurance policy with the same insurer over a number of years also can help you save money by earning a price break for customer loyalty. Insurers reward customer loyalty with average driver discounts of about 11%. You may qualify by having an insurance policy with the same insurer for three, five or 10 years. Amica, State Farm, Allstate, Memberselect and Progressive are insurers who offer more than the average for loyalty discounts.

Paid-in-full discount

Paying your bill upfront, rather than monthly, can snag a 10% average price break, but it can be up to 18%, depending on your insurance company. Progressive and Grange both offer discounts for paying in full that are above average, around 18%.

Car insurance discounts by company

Each insurer has its own menu of discounts, there is no standard among companies. To get an overview of what’s offered, review the information in the chart below. You’ll learn which insurers best match your driver profile for discounts.

Company Low Mileage Multi-Policy Multi-Vehicle Paid In Full Own Home Loyalty Air Bag Anti-Lock Anti-Theft New Car Good Student Teen Driver ed Student Away Driver Training Safe Driver Accident Free Mature Driver Job Discount Transfer From Competitor Start Quote Online/Buy online Early Signing Auto Pay Paperless Affinity
American Familyxxxxxxxxxxxxxxxx
Auto Club of Southern Californiaxxxxxxxxx
Country Insurancexxxxxxxxxx
CSAA Insurance Groupxxxx
Direct Generalxxxxxxxxxxxxx
Erie Insurancexxxxxxxxxxxxxx
Everest (Arrowhead)xxxxxx
Liberty Mutualxxxxxxxxxxxxxxxxx
National Generalxxxxxxxxxxxx
State Farmxxxxxxxxxxxxxx
The Generalxxxxxxxxxxxxxx
The Hartfordxxxxxxxxxx

Car Insurance Discounts

  • Pay-per-mile policy: Check to see if you can get a low-mileage plan, for example, MetroMile, Allstate Milewise, or Nationwide SmartMiles.
  • Usage-based insurance: Check into a usage-based program such as Progressive’s Snapshot, Allstate’s Drivewise, or Nationwide SmartRide. Those are just a few examples. Most major carriers have one of these plans.
  • Low mileage discount: Ask your insurer about discounts for low mileage.

Frequently Asked Questions

How do I find cheap car insurance?

When looking for cheap car insurance, what saves you the most is comparing car insurance quotes to see which car insurance company is the cheapest. No two car insurance companies will have an identical price for the same policy. That’s because they each assess risk differently and use their own formulas for calculating rates. As a result, rates differ by hundreds of dollars among insurance companies, which is why it literally pays to shop around. For instance, our experts conducted a rate analysis and found the average potential savings is about $1,000 when comparing rates on full coverage, or the difference between the highest and lowest price, for the same policy.

Can you negotiate lower car insurance rates?

No, you can’t negotiate with companies to get a lower car insurance rate. Insurance underwriting, or how companies decide what you pay, is governed by state laws and regulations. So, though you can’t get lower rates through haggling, you can get low rates by comparing rates every six months or so, by dropping coverage on cars that are older than 10 years and have little value and by getting all the discounts that match your driver profile.

How long do I have to be with my insurance company to get a discount?

In some cases, you might be able to get a car insurance discount immediately, depending on the company and type of policy you have. For example, you may qualify for bundling discounts or safety features installed in your vehicle.

Some discounts are applied after completing specific actions like a defensive driving course or going paperless and switching to digital before you become eligible for a discount.

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Michelle Megna


Michelle, the former editorial director, insurance, at QuinStreet, is a writer, editor and expert on car insurance and personal finance. Prior to joining QuinStreet, she reported and edited articles on technology, lifestyle, education and government for magazines, websites and major newspapers, including the New York Daily News.