A smart driver’s guide to vehicle-based car insurance discounts

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The car you drive can greatly impact your car insurance costs. With the right vehicle, you could tap into money-saving car insurance discounts, such as discounts for anti-theft devices, anti-lock brakes, backup sensors, daytime running lights and more. 

Learn about vehicle-based discounts before you purchase a vehicle to optimize your car insurance cost savings. Alternatively, you can see which vehicle-based discounts you already qualify for. 

We explore common vehicle-based discounts and how to lock in these potential savings. 

What are vehicle-based car insurance discounts?

A vehicle-based discount is granted based on the characteristics of your vehicle. If your vehicle has the right features, you could unlock significant savings. In general, the discounts are tied to safety features or energy-saving components. 

Car insurance discounts for safety devices

The right safety devices can help you avoid an accident. Insurance companies offer savings in return for the lower risks associated with your vehicle. 

In the following sections, we explore safety devices that can lead to savings and how much you can expect to save for each feature. 

Airbags

Airbags deploy automatically to protect passengers during a severe crash. Not only can airbags protect you during a crash, but they can also lead to insurance savings. Drivers with driver and passenger airbags save an average of 2% on their premiums. Additionally, those with side impact airbags save an additional 2% on average. 

Anti-theft devices

Anti-theft devices can prevent your vehicle from getting stolen or help you recover it after a theft. In either case, insurance companies reward drivers with anti-theft devices. 

On average, drivers with an active disabling device or audible alarm save 1% for each feature. Those with a passive disabling device or tracking device save 2% for each feature.

Anti-lock brakes

Anti-lock brakes are designed to prevent skidding when you brake hard. In an emergency, the feature can help you maintain steering control. On average, drivers who use a vehicle with this feature save 3% on their premiums. 

Backup sensor

A backup sensor alerts you when there’s something behind your vehicle. It can help you avoid bumping into things – or people – with your car. Since this feature can reduce potential accidents, insurance companies reduce rates for vehicles that have it. On average, drivers save 4% on their premiums when insuring a car with this feature. 

Daytime running lights

Daytime running lights offer a layer of protection against accidents. These lights make you more visible to drivers who might not see you. If your vehicle has daytime running lights, you’ll save an average of 2% on your car insurance premiums. 

Driver alertness monitor

A driver alertness monitor lets you know when you might be drowsy or distracted. The reminder is designed to get you to pull over and rest. Since an alert driver has a better chance of avoiding an accident, this feature is a positive one for insurance companies. On average, vehicles with this feature enjoy 2% lower premiums than those without it. 

Lane departure warning

Drifting over the lines into another lane can cause an accident. A lane departure warning system alerts you when your tires hit a lane-dividing line on the road. Drivers with this feature in their vehicles can save 1% on their premiums. 

Rearview camera

A rearview camera can help you navigate in reverse with more confidence. It allows you to see anything behind the vehicle so you avoid running over it. If you drive a vehicle with this feature, you’ll see an average savings of 1% off your premiums. 

Top car insurance companies that offer discounts for safety devices

Top insurance companies like Allstate, State Farm and Geico offer discounts for safety devices. See the average savings from major insurers in the table below.

Auto insurance discounts based on vehicle ownership

Leasing or owning your vehicle can greatly impact your car insurance costs. In general, you can tap into more savings with a leased vehicle. But, of course, your costs can vary. 

The difference is due to the lender or leasing company’s requirements. Since your lender is likely to require more insurance, you’ll pay more for coverage. 

We break down the savings opportunities below. 

Insurance discount if you own a car

Drivers who own their vehicle save an average of 5% on their car insurance premiums. While vehicle ownership is often more expensive on a monthly basis, at the end of your loan term you’ll get to keep the vehicle. 

Insurance discount if your car is on lease

Drivers who lease their vehicles save an average of 17% on their auto insurance premiums. In general, leasing a car is more affordable on a monthly basis. But the catch is that you won’t own it at the end of your lease term. 

Top insurers that offer discounts based on vehicle ownership

The top insurers that offer discounts based upon vehicle ownership are Amica, Chubb and Travelers. See their discounts in the table below.

Car insurance discounts based on purchase status

A purchase status discount is provided for buying a new vehicle. Many insurers are willing to offer a discount to new vehicle owners because new vehicles have the latest safety features and fewer mechanical issues tied to wear and tear. On average, drivers with a new vehicle save 7% on their car insurance premiums. 

Top insurers that offer discounts based on new car

If you buy a new car, you’ll save money on your car insurance with certain insurers. Amica, Geico and Farmers offer discounts for new vehicle purchases. See their discounts in the table below.

The bottom line

While car insurance can get expensive, the good news is that discounts can add up quickly. Never be afraid to ask about discounts when shopping around. Finding the right discount could be a game-changer for your car insurance costs. 

“My suggestion would be to always seek out discounts when purchasing or renewing car insurance,” says Michael Benoit, a licensed property and casualty insurance broker. “It’s important to regularly review your policy and see if you qualify for any new discounts, such as good driver discounts, low mileage discounts, or multi-policy discounts.”

What our expert says

Michael BenoitLicensed property and casualty insurance broker

“It's important to regularly review your policy and see if you qualify for any new discounts, such as good driver discounts, low mileage discounts, or multi-policy discounts.”

Resources & Methodology

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a 2023 Honda Accord LX with a good insurance score and no violations on record for a full coverage insurance policy with limits of 100/300/50 and $500 comprehensive and collision deductibles. We analyzed 2,677,890 records, 4,686 ZIP codes and 1,252 cities nationwide.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.