Guide to Car Insurance Discounts & Rates

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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-free	27%
Accident-free	26%
Student away	18%
Good student	16%
Multi-policy home	14%
Multi-policy condo	12%
Primary use farm	12%
Profession	12%
Loyalty three to 20 years	11%
New car	10%
Higher education	9%
Electronic signature	9%
Paid in full	9%
High-tech safety devices (when available)	9%
Enroll discount for usage-based	9%
Vehicle owned	9%
Daily commute less than 14 miles each way	8%
Driver training	8%
Low mileage under 7,500	8%
Married	8%
Advance purchase (seven to 10 days)	7%
Homeowner	7%
Primary use pleasure	7%
Multi-policy renter	6%
Senior defensive driver course	5%
Electronic funds transfer	5%
Low mileage 7,500 to 14,999	5%
Multi-policy life	4%
Multi-policy umbrella	4%
Paperless	4%
Anti-lock brakes	3%
Air bags	2%
Anti-theft	2%

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:

Car insurance discounts based on your profession
Car insurance discounts for students
Car insurance discounts related to driving history
Car insurance discounts related to your vehicle
Car insurance discounts related to your policy

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
Scientist	$1,814	$1,582	$231	13%
Engineer	$1,817	$1,592	$224	13%
Lawyer	$1,814	$1,595	$220	12%
Teacher	$1,775	$1,560	$215	12%
Fire Fighter	$1,818	$1,611	$207	12%
Doctor	$1,796	$1,590	$206	12%
Farmer	$1,838	$1,637	$201	11%
Civil Servant	$1,818	$1,618	$201	11%
Law Enforcement	$1,797	$1,606	$191	11%

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
Grange	$1,626	$1,256	$370	23%
Progressive	$1,666	$1,297	$369	22%
Meemic	$2,146	$1,859	$287	13%
Geico	$1,795	$1,557	$238	13%

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.

QuickTake

Discount Comparison

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
Geico	$4,556	$2,246	$2,311	51%
New Jersey Manufacturers	$3,656	$2,003	$1,653	45%
West Bend Mutual	$2,949	$1,661	$1,288	44%
State Farm	$2,921	$1,775	$1,146	39%
Union Mutual	$3,367	$2,222	$1,146	34%
American Family	$4,922	$3,259	$1,663	34%
Grange	$2,471	$1,647	$824	33%
Allstate	$3,962	$2,689	$1,273	32%
Westfield	$3,017	$2,277	$740	25%
Owners	$5,106	$3,859	$1,246	24%
Erie	$4,152	$3,143	$1,009	24%
Auto Owners	$2,632	$1,993	$639	24%
Amica	$4,543	$3,444	$1,099	24%
Bear River	$4,186	$3,249	$936	22%
Safety Insurance	$2,975	$2,334	$641	22%

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	$989	29%
Kentucky Farm Bureau	$6,059	$4,599	$1,460	24%
Progressive	$6,571	$5,074	$1,497	23%
Alfa	$6,470	$5,004	$1,466	23%
Shelter Mutual	$6,373	$5,048	$1,325	21%
Nationwide	$4,458	$3,544	$914	21%
Depositors	$4,724	$3,769	$955	20%
State Farm	$4,793	$3,828	$966	20%
Allied	$4,269	$3,413	$856	20%
Owners	$4,237	$3,389	$847	20%
Cincinnati	$4,330	$3,464	$866	20%
Amco	$4,755	$3,819	$936	20%
Allstate	$9,249	$7,529	$1,720	19%
North Star	$4,708	$3,843	$865	18%
American Family	$3,332	$2,725	$607	18%

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
7,500	8%
7,500-9,999	6%
10,000-11,999	5%
12,000-14,999	3%

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

Company	Rate before discount	Rate after discount	$ Savings	% Savings
Progressive	$1,327	$1,020	$307	23%
Infinity	$2,423	$1,954	$469	19%
Farmers	$1,065	$899	$167	16%
United Financial	$1,908	$1,630	$278	15%
Allstate	$2,436	$2,088	$348	14%
Norfolk & Dedham	$1,587	$1,374	$214	13%
Grange	$1,626	$1,411	$215	13%
Nationwide	$2,285	$1,997	$288	13%
Travelers	$2,292	$2,019	$273	12%
State Farm	$1,488	$1,325	$163	11%
Farm Bureau	$1,882	$1,680	$203	11%
Citizens	$2,043	$1,839	$204	10%
CSAA Insurance Exchange	$2,312	$2,090	$222	10%
Geico	$1,612	$1,462	$150	9%

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
Progressive	$1,327	$1,020	$307	23%
Grange	$1,626	$1,411	$215	13%
Amica	$4,944	$4,413	$531	11%
Geico	$1,396	$1,264	$131	10%

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
Progressive	$1,327	$1,020	$307	23%
Grange	$1,626	$1,411	$215	13%
Financial	$6,168	$5,654	$514	8%
Direct General	$1,233	$1,170	$64	5%
Country	$1,262	$1,208	$54	4%
North Star	$2,224	$2,130	$95	4%
Safe Auto	$3,141	$3,012	$128	4%
Standard Fire	$1,651	$1,586	$65	4%

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
Progressive	$1,327	$1,020	$307	23%
Grange	$1,626	$1,411	$215	13%
Financial	$6,168	$5,654	$514	8%
New York Central Mutual	$2,993	$2,747	$246	8%
Allstate	$4,961	$4,662	$299	6%
New Jersey Manufacturers	$1,728	$1,637	$91	5%
United	$3,780	$3,607	$174	5%
Fremont	$2,617	$2,506	$111	4%
Standard Fire	$1,653	$1,588	$66	4%

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	$552	34%
Grange	$1,626	$1,129	$497	31%
Bristol	$2,713	$1,893	$820	30%
Progressive	$1,666	$1,177	$489	29%
Acuity	$1,527	$1,123	$404	26%
Adirondack	$2,348	$1,742	$607	26%
Memberselect	$2,898	$2,163	$734	25%
Farmers	$1,373	$1,026	$348	25%
Southern Farm Bureau	$1,827	$1,382	$445	24%
MMG	$1,039	$793	$245	24%
Mid Century	$2,212	$1,692	$521	24%
Fremont	$2,617	$2,007	$610	23%
American Family	$1,299	$1,015	$283	22%
Allstate	$4,961	$3,883	$1,078	22%
SC Farm Bureau	$1,854	$1,467	$387	21%
Citizens	$2,537	$2,014	$524	21%
Allmerica	$4,048	$3,226	$822	20%
MetLife	$2,572	$2,052	$520	20%
Patriot	$1,211	$969	$242	20%
Grinnell	$2,240	$1,792	$448	20%
State Farm	$1,602	$1,291	$311	19%
Safety Insurance	$1,186	$957	$229	19%
Oklahoma Farm Bureau	$2,451	$1,982	$470	19%
Colonial	$2,082	$1,684	$399	19%
Secura Supreme	$1,181	$958	$224	19%
Pemco	$1,271	$1,038	$233	18%
Mississippi Farm Bureau	$1,863	$1,526	$338	18%
American Family	$1,585	$1,299	$286	18%
North Star	$2,224	$1,824	$400	18%
Hanover	$5,040	$4,142	$898	18%
New York Central Mutual	$2,993	$2,464	$529	18%
Quincy Mutual	$1,517	$1,258	$260	17%
Auto Club Group	$2,536	$2,102	$434	17%
AAA Texas	$2,079	$1,737	$343	16%
Interinsurance Exchange Of The Automobile Club	$2,263	$1,897	$366	16%
Citizens	$6,406	$5,385	$1,021	16%
Pioneer State	$2,291	$1,927	$364	16%
Palisades	$1,613	$1,358	$255	16%
Depositors	$1,518	$1,279	$239	16%
Allstate	$3,032	$2,556	$476	16%
United Financial	$1,505	$1,273	$232	15%
Travelers	$2,292	$1,944	$348	15%
American Farmers & Ranchers Mutual	$1,926	$1,639	$287	15%
Nationwide	$1,798	$1,531	$267	15%
Oregon Mutual	$1,051	$895	$156	15%

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

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.

Michelle Megna

Contributor

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.

Guide to Car Insurance Discounts