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Car insurance discounts are a great way to lower your car insurance premiums. There are a range of discounts offered by car insurance companies, including good driver discounts, bundling discounts, and discounts for being a loyal customer.

When you’re shopping or renewing your car insurance policy, talk to your insurer about what discounts are available.

Types of car insurance discounts

Discount Estimated savings
Safe driver27%
Student away18%
Good student16%
Multi-policy home14%
Multi-policy condo12%
Primary use farm12%
Loyalty 11%
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%
Electronic funds transfer5%
Low mileage 7,500 to 14,9995%
Multi-policy life4%
Multi-policy umbrella4%
Anti-lock brakes3%

How to save on car insurance

There are many ways to get discounts and save on your car insurance premiums:

  • Ask your agent or insurance company which discounts can be applied to your policy.
  • Keep a clean driving record to receive 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:



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Professional employee car insurance discounts

Some insurance companies offer discounts to people in certain professions, such as teachers, firefighters, police officers, engineers, lawyers, scientists, and many 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 dollar savings Average percent discount
Fire Fighter$1,818$1,611$20712%
Civil Servant$1,818$1,618$20111%
Law Enforcement$1,797$1,606$19111%

Best companies for professional employee discounts

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 car insurance discount for teachers.

Company Rate before discount Rate after discount Dollar savings Percent 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 and have their vehicle stored in a secure location. Other special discounts are available, such as temporary coverage interruption. USAA and Geico both offer military discounts and other special services for military members.

Car insurance discounts for college students

College students get some of the highest discounts, some reaching as high as 18%. Any student age 16 to 25 who attends school full-time and maintains a grade point average of at least a 3.0 — or other criteria such as being in the top 20% of the class — can earn a good student discount.

Below you’ll find a list of companies that offer savings for good students. How much you’ll actually pay for car insurance will depend on your insurance company, your state and your particular driver profile.

Company Rate before discount Rate after discount Dollar difference Percent 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%

Away-from-home student discounts

Student away discounts are available to parents of student under the age of 25 who live at least 100 miles away from home. Below you’ll find average rates for different insurers.

Company Rate before discount Rate after discount Dollar savings Percent 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%

Car insurance discounts by driving history

You can save a lot on car insurance premiums if you have a clean driving record and no accidents. Insurers will typically look at your driving record for at least the past three years when determining your discount eligibility.

Accident-free discounts

Drivers with no accidents for three to five years could save up to 30% on their car insurance premiums. 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 discounts are generally offered to safe drivers who have a clean driving record and no moving violations for the past three to five years. Discounts can go as high 30%. 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

Low mileage discounts

Low mileage discounts can go up to about 10%. Savings depend on the amount of miles you travel. As a result, the average discount varies based on mileage as follows:

Mileage underPercent average discount

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

Company Rate before discount Rate after discount Dollar savings Percent 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

Generally, insurers offer discounts if your car is less than three years old, has factory-installed safety devices, such as airbags or anti-lock brakes, or has anti-theft equipment.

New car auto discount

The discount for insuring a new car is 10%, on average, but can be up to 23%. Below are the insurers rated as top carriers for new car discounts.

Company Rate before discount Rate after discount Dollar savings Percent savings

Anti-theft device discounts

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 23%, depending on your insurer. The graph below shows the top insurers offering above-average savings for anti-theft equipment.

Company Rate before discount Rate after discount Dollar savings Percent 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%

Safety feature discounts

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

Company Rate before discount Rate after discount Dollar savings Percent 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 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.

Other ways to get car insurance discounts

Bundling car and home insurance

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

Company Rate before discount Rate after discount Dollar savings Percent 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 discounts for having a renter or condo policy

You can get an average discount of 12% for a multi-policy discount, such as bundling condo coverage with your car insurance coverage. If you bundle your renters policy, the discount is 6%. The major insurance company with the highest condo bundle discount was Progressive (29%) and Memberselect for renter bundles (25%).

Early renewal discount

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

Loyalty discounts

Keeping your car insurance policy with the same insurer over a number of years also can save you 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 offer high 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.

Company Low mileage Multi-policy Multi-vehicle Paid in full Own home Loyalty Airbag Anti-lock Anti-theft New car Good student Teen driver course Student away Driver training Safe driver Accident free Mature driver Job discount Transfer from competitor Start quote online or 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

Frequently asked questions

How do I get affordable car insurance?

When looking for affordable car insurance, one of the best ways to save is to compare car insurance quotes from multiple companies. Insurers assess risk differently differently and offer different prices for different profiles. As a result, rates differ by hundreds of dollars among insurance companies, which is why it 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.

Can you negotiate lower car insurance rates?

No, you can’t negotiate with companies for a lower car insurance rate. Insurance underwriting, or how companies decide what you pay, is governed by state laws and regulations.

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

You may be able to get some car insurance discounts immediately. For example, you may qualify for bundling discounts or safety features installed in your vehicle.

Some discounts are applied after completing specific actions, like taking a defensive driving course. Other discounts may take a few years to receive, such as loyalty discounts.

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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.