Car insurance discounts are one way to save without sacrificing coverage.
There are more than a dozen common car insurance discounts that can help offset rising insurance, fuel and vehicle repair costs. You may want to ask your auto insurance agent for a review of discounts to make sure you’re getting all the savings for which you qualify.
Types of Car Insurance Discounts
We looked at discount percentages when they were available from 11 of the nation’s largest auto insurance companies to find typical ranges. You may find higher or lower discounts from your own insurance company.
Multi-Policy Discount
A multi-policy discount often applies when you buy car insurance plus other policies from the same company. It’s also called a “multi-line discount” and commonly referred to as “bundling.” Bundling auto and home insurance is usually one of the biggest discounts you can score, often between 5% to 25% off. But if you’re not a homeowner, don’t worry, you can typically bundle car insurance with other insurance such as a condo, renters, motorcycles, boat, RV, and life insurance.
State Farm offers the best bundling auto and home insurance discounts with an average 23% discount for multi policies. American Family and Farmers each have an average 18% multi-policy discount. The overall bundling discount is 14%.
Multi-Policy Insurance Discounts by Company
| Company | % savings for bundling home and auto | $ savings for bundling home and auto |
|---|---|---|
| 23% | $787 | |
| 18% | $486 | |
| 18% | $732 | |
| 15% | $497 | |
| 15% | $535 | |
| 15% | $516 | |
| 11% | $484 | |
| 10% | $214 | |
| 7% | $226 | |
| 6% | $185 |
Keep in mind this is the auto policy portion of the discount. Depending on the company, you may also get a bundling discount on your other policy (home, condo or renters).
Multi-Car Discount
You can usually grab this multi-car insurance discount if you insure more than one car with the same insurance company. Typical discounts advertised are up to 8% to 25%.
Vehicle Safety Discounts
If your car has safety equipment like anti-lock brakes, airbags, and daytime running lights, you may get a discount. Daytime running lights are typically very small discounts, but airbag discounts for full-front seat airbags can be as much as 40% applied to your medical payments or personal injury protection coverage.
New Car Discount
Cars that are less than three years old can often qualify for a new car discount, often between 10% to 15%.
Related: Buying a New Car Insurance
Anti-Theft Device Discounts
If your car has anti-theft features, you can typically get a discount of up to 5% to 25% off your comprehensive coverage. Depending on the insurance company, you may be able to get anti-theft discounts for both factory-installed and after-market-installed devices.
About 41% of stolen vehicles are never recovered, according to the National Highway Traffic Safety Administration. Here are a few types of anti-theft devices that can help you recover a stolen car and potentially get you a discount:
- GPS-based systems: Some cars are equipped with services like OnStar or Toyota’s Safety Connect, which utilize GPS to help locate the stolen vehicle. Some systems, like the OnStar “Remote Ignition Block,” can stop a car thief from restarting your vehicle.
- Stolen vehicle recovery systems: These types of systems, like LoJack, help law enforcement track and recover your stolen car by sending a silent radio signal to a transceiver installed in the car. Your car insurance company may offer a discount, but you’ll need to provide proof of installation.
- VIN etching: This is a permanent engraving of the vehicle identification number (VIN) on a car’s windshield and windows. It’s used as a deterrent against car thieves who would have to remove and replace VIN-etched glass before selling your car. Some car insurance companies not only offer a discount for VIN etching but also could waive your comprehensive coverage deductible if your car is stolen.
Good Driver Discounts
Car insurance companies love good drivers and often reward them with savings. A car insurance company will typically require you to be incident-free for a certain amount of time. For example, if you haven’t had any accidents in five years, Geico car insurance has up to 26% in potential savings. If you haven’t had any accidents, car insurance claims or traffic violations, you could qualify for a discount. Good driver discounts often range between 10% to 40%.
Defensive Driver Discounts
Some insurance companies will give you a discount if you’re willing to take an approved defensive driving course. But keep in mind, this discount may only apply to qualified drivers of a certain age, typically 50 or older. Defensive driver discounts typically range between 5% to 10%. Some states mandate this discount for mature drivers.
Good Student Discount
If you or your student driver is enrolled full-time at a high school or college and meets certain requirements, you could qualify for a discount on the best car insurance for college students. Car insurance companies typically require the student to maintain at least a B average and be age 16 to 25. We found good student discounts ranging between 8% to 25%.
Student Away at School Discount
If your student is away at school and without a car, you may be able to get a discount. Requirements vary among car insurance companies, but the student typically has to be under age 25, more than 100 miles from home and with access to your car only while home during school vacations and holidays.
Pay In Full Discount
If you pay your full policy term up front, car insurance companies typically offer a discount.
Top companies show a discount range of 6% to 14% if you pay in full instead of breaking your insurance bill into monthly payments. Besides this discount, you will also save yourself from paying a monthly finance or service fee that some companies charge if you spread out the payments.
| Company | Paid in full discount % |
|---|---|
| Auto-Owners | 14% |
| Progressive | 11% |
| Allstate | 9% |
| Erie | 9% |
| Travelers | 9% |
| Farmers | 6% |
Electronic Funds Transfer (EFT) Discount
If you pay in installments, you may be able to get a small discount for using automatic withdrawals. The EFT discount can range from 3% to 6%.
Paperless Discount
If you’re willing to go paperless, you’ll get your policy documents and billing electronically. The insurance company may offer a small discount. This discount isn’t as popular as it once was, now that people tend to prefer paperless systems anyway. We found the average discount is 3% but ranges from 6% with Farmers to 1% with Progressive.
| Company | Paperless discount % |
|---|---|
| Farmers | 6% |
| Nationwide | 3% |
| Allstate | 2% |
| Progressive | 1% |
Online Quote Discount
Some car insurance companies will offer a discount if you get an online quote and sign up for a policy. This can range from 4% to 12%.
Early Bird Discount
Shopping around and buying a policy in advance of your current one expiring can bring about a discount. Companies vary on how many days in advance you need to buy to get a discount, but around seven to 14 days tend to be the sweet spot. The discount typically ranges between 2% to 15%.
We found that purchasing 10 days in advance from top companies resulted in discounts as high as 10% with Allstate and low as 3% with Nationwide.
| Company | Advance quote discount % |
|---|---|
| Allstate | 10% |
| Farmers | 8% |
| Auto-Owners | 6% |
| Travelers | 6% |
| USAA | 6% |
| Erie | 6% |
| Progressive | 4% |
| Nationwide | 3% |
Occupational Discounts
Depending on your occupation, you might qualify for discounts. For example, Liberty Mutual offers educators special policy features and Geico offers up to 15% off for military personnel. It’s a good idea to ask your insurance agent if your occupation qualifies for a discount.
Alumni Associations and Professional Organizations
This might include college alumni associations, fraternities, and sororities, and professional organizations (like your state’s bar association or a union).
Usage-based insurance program discount
Your insurance company might offer usage-based insurance (UBI), which adjusts insurance rates based on how often and how well you drive. Data is typically collected using a device installed using your car’s ODB-II port or collected from a smartphone app. Most UBI programs offer a discount for enrolling (between 5% to 10%) and then a discount based on your actual driving habits. The discount is typically applied at policy renewal time. If you’re a good driver, a typical UBI discount could be anywhere between 5% to 40%.
Note that a UBI discount might not apply to your entire policy. Also, with some auto insurers your rates could possibly go up if your driving score is low.
Examples of Usage-Based Insurance Discounts
| Company | Usage-based insurance program | UBI enrollment discount | Safe driving discount | Can poor driving result in higher rates? |
|---|---|---|---|---|
| Drivewise | Cash back amount varies | Cash back amount varies | Yes | |
| KnowYourDrive | 10% | Up to 20% | No | |
| Signal | 5% | Up to 15% at renewal; up to 10% for young drivers; eligibility to win money rewards for good driving scores | Yes | |
| Right Track | 10% | Up to 30% | Yes | |
| Mapfre | MotionSmart | 2% | Additional savings possible at policy renewal based on how safely you drive | Yes |
| MercuryGO | 5%; up to 10% if have a teen driver in program | 40% | No | |
| MetLife | My Journey | Up to 25% | 30% | No |
| SmartRide | 15% | Up to 40% | No | |
| Snapshot | Yes | Discount calculated after you complete the program and renew your policy (usually within six months) | Yes | |
| Safeco | RightTrack | Yes | 5% to 30% | No |
| Drive Safe & Save | Yes | Up to 30% | No | |
| IntelliDrive | Potential discount calculated based on the first 90 days of the program | Up to 30% at policy renewal | Yes, in some states | |
| SafePilot | 10% | 30% | No | |
| MissionSafe | 10% | 40% | No |
Car Insurance Discounts Tips
Jason Metz
Insurance Lead Editor
Penny Gusner
Insurance Senior Writer
Michelle Megna
Insurance Lead Editor
Les Masterson
Insurance Editor
Ashlee Valentine
Insurance Editor
Amy Danise
Insurance Managing Editor
Beware of the “up to”
Cheap car insurance is always nice, but car insurance discounts aren’t always what they seem. For example, you might think, “Big savings!” when you see a discount advertised with “up to 40% off,” but that doesn’t necessarily mean you’ll get 40% off your entire car insurance bill.
I’ve seen that the highest discount may be offered only to certain classes of drivers, or there may be other restrictions on getting the top amount.
Insurance Lead Editor
Some Auto Insurance Discounts Don’t Apply to Your Entire Bill
For instance, seat belt discounts might be applied only to medical payments coverage or personal injury protection, because those types pay for passenger injuries. I’ve found that anti-theft device discounts normally apply only to comprehensive coverage because that’s the coverage that pays for car theft.
Insurance Senior Writer
Some Car Insurance Discounts Are Required by State Law
You’ll get state-mandated discounts from any insurance company. For example, New York mandates a 10% discount on liability and collision coverage for three years for drivers who take a defensive driving course and send a certificate of completion to the insurance company.
Insurance Lead Editor
Discounts Can Be Capped
You may qualify for multiple discounts, but the insurance company usually limits the total possible discount percentage. For example, I’ve found you might add up discounts that look like 75% off your auto insurance, but the total given might be capped at 20%.
Insurance Editor
Not all Discounts Are Automatic
You might have to ask for certain discounts, especially if you’ve had the same policy for a few years. Your insurer won’t know that you had an anti-theft device installed in your car or that your student driver has excellent grades. I say the best way to save money on discounts is to ask your insurance agent regularly to review the available discounts.
Insurance Editor
Car Insurance Discounts Vary by State
A discount you see mentioned on an insurance company website might not actually be available in your state. I recommend checking with your insurance agent to identify which discounts are available to you.
Insurance Managing Editor
Best Car Insurance Companies 2025
With so many choices for car insurance companies, it can be hard to know where to start to find the right car insurance. We've evaluated insurers to find the best car insurance companies, so you don't have to.
Methodology
We used data from Quadrant Information Services to find average rates and discounts from each company. Rates are based on a 40-year-old female driver with a Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Car Insurance Discounts Frequently Asked Questions
What are the best discounts for car insurance?
Bundling (also known as a multi-line discount) is one of the best car insurance discounts available. You can typically get a 5% to 25% discount when you bundle your auto and home insurance. But if you’re not a homeowner, that’s OK. You can potentially get a discount by bundling your car insurance with condo, renters, boat, motorcycle or RV insurance.
Good driver discounts are another solid bet if you qualify. If you avoid car accidents and traffic violations, you can usually find discounts between 10% and 40%. Don’t be afraid to pick up the phone and ask your agent what other car insurance discounts you may be eligible for.
How long do you have to be with an insurance company to get discounts?
Eligibility for car insurance discounts varies by company and type of discount. You might qualify immediately for certain discounts, such as a bundling discount and discounts for vehicle safety features.
Other discounts can be triggered when you complete an action, like taking a defensive driving course, switching to paperless billing or paying your bill in full at renewal time. For a decent renewal discount, you may need to be with a company for some years, such as three, five or more.
How much is a good student discount for car insurance?
We found good student discounts range from 8% to 25%, depending on the car insurance company. Generally, to qualify for a good student car insurance discount, the student must be enrolled full-time in high school or college. Most car insurance companies require the student to maintain at least a B average and be age 16 to 25.
But good grades in a traditional classroom aren’t the only way for a young driver to earn a discount. You might be eligible for a discount if your teen driver completes a safe driving program. Here are some insurance programs that help teen drivers.
