Common Car Insurance Discounts

Take advantage of the many car insurance discounts to lock in the lowest rates for coverage. Learn more about the different types of car insurance discounts and their benefits below.

How do Car Insurance Discounts Work?

Car insurance companies calculate discount rates using various pieces of information such as your age, driving record, vehicle make and model, and your zip code. The insurance provider then uses information that assesses your driving risks. Your discount is then created based on those factors. Not all discounts are available in every area or for every driver.

The same information is used to determine if you’ll be charged a surcharge due to risky driving behaviors.

Discounts vary from one insurer to the next. State laws and the insurance company rules and guidelines also impact the discounts. You can determine the discounts available to you by visiting the insurance agency’s policy declarations page, although it may not detail the exact dollar amount of the discount.

Many insurance discounts apply only to specific types of coverage or incidents. Although receiving multiple discounts is possible, most agencies have a total discount amount they’ll reduce from your premium amount. For many insurers, this amount is set at 25%.Discounts are nice, but comparing policies periodically is still important if you want to keep the best rates. Annual comparisons ensure that you pay the best rates and receive the best discounts for your policy needs.

If you want the best insurance discounts, knowledge is power. Learn more about the available discounts and the type of money that it saves and take advantage of each discount you’re entitled to receive. The insurer can provide a list of all of the discounts they offer upon request. They should notify you of the discounts you qualify for as well, but with this information, you can ensure that you get all of the discounts, even if the insurance company doesn't suggest them.

When shopping for coverage, ask insurers about the discounts they offer. This way you can shop around and learn the best companies ahead of purchase.

Some of the most common auto insurance discounts you may qualify for include:

Driver Education Course Discounts

This discount saves drivers an average of 5%. It is available to drivers who complete an approved driver education course. Both classroom instruction and behind the wheel training is offered in these classes.

Defensive Driving Discount

This discount saves an average of 5% - 15% and is available to drivers who complete an approved defensive driving course. This course reduces accidents and keeps drivers safe.

Mature Driver Discount

Although usually less than 5%, this discount is nonetheless worth using if you are older than 55 and want to cut the costs of your coverage.

Good Student Discount

Good student discounts are available to high school and college students who carry a GPA of 3.0 or better and meet other criteria set forth by the auto insurance company. Discounts typically average 5% but can reach as high as 15%.

Drug & Alcohol Awareness Discounts

Another 5% discount available to any driver who completes a special course outline drug and alcohol awareness.

Good Driver Discount

Drivers save 10% - 25% with the good driver discount available to drivers who have a clean driving record for a period of three years or longer.

Low Mileage Discount

Another relatively small discount, the low mileage discount is offered to drivers whose vehicles have less than 10,000 miles on them.

Theft Prevention Device

Install a theft prevention device to minimize the risks of your vehicle being stolen and the auto insurance company rewards you with a premium discount ranging from 10% - 25%.

Multi-Car Discount

Drivers who insure multiple cars on one insurance policy can receive a discount of 10% - 25%.

Multi-Policy Discount

A 10% - 20% discount is offered to individuals who hold multiple policies with the same insurance provider. For example, insure a homeowner's policy with an auto insurance policy with the same company to earn this discount. Bundled policies usually get the best discounts.

Loyalty Discounts

A loyalty discount ranging from 5% - 15% is offered to drivers who stay with the insurance company after the one-year mark.

Pay in Full Discount

A pay in full discount of 5% - 10% is available to drivers who pay their insurance premium for the year upfront. As a bonus, there is no worry about a lapse in coverage for the entire year.

Education & Occupation Discounts

Education and occupation discounts range from 5% - 30%. These discounts are given to people who work in specific industries and to people who hold certain types of college degrees.

Federal Employee Discounts

Employees who work for the federal government are entitled to auto insurance discounts of up to 10%. This discount is offered to employees who hold positions in all sectors of the federal government.

Hybrid-Fuel Discount

People that have made the switch to electric cars or who use alternative fuels to fill the tank can treat themselves to discounts of about 10% on the costs of their auto insurance premium.

Military Discount

Our men and women serving in the Armed Forces get a discount of 15% or more as a token of appreciation for their dedicated service.