Car Insurance Discounts (Best Savings by Company)

It’s simple: car insurance premiums can account for a fair portion of your monthly budget. And depending on where you live, the cost of car insurance can vary greatly.

The good news? Car insurance discounts are a great way to save money.

What’s even better, is that discounts are available to people of all ages and backgrounds. Whether you’re a teenager or a seasoned driver, taking advantage of discounts is easy, and can help you save big time on your monthly rates.

Not sure what discounts to seek out, and what savings you qualify for? No problem. Today, we’re breaking down some of the most common discounts offered by car insurance companies, and answering all of your need-to-know questions. All you need to do is keep scrolling.

And of course, you can begin saving today by shopping rates with multiple providers. Start now by entering your ZIP code in our free car insurance comparison tool.

How to Save on Car Insurance with Discounts

From a few dollars to fifty — when it comes to saving on your car insurance rates, we know every penny saved matters. But here’s the deal: if you don’t know what discounts to ask for, you may miss out altogether. In fact, the Insurance Information Institute (III) highly recommends taking the time to ask your insurer what you may be able to qualify for. And so do we.

It’s why we’re going to spend some time digging into some of the most common car insurance discounts. We’re also using our research to let you know which companies offer what discounts, and in what amount.

Safe Driver and Accident-Free Car Insurance Discounts

No tickets? No car accidents? No problem! If over the last three to five years, you’ve maintained a good driving record, you could be entitled to a discount.

We know that if you’re in an accident – and you are the one who is at fault in the car accident – your rates will likely go up. This is due to what your car insurance company will have to pay out in the claims process. As a result, insurers like to reward safe drivers, knowing that they are saving them money. If you have a clean record, Safe Driver Discounts (also known as good driver discounts) can result in significant savings.

Something to keep in mind: while some car insurance companies look at a five-year history, most consider only the last thirty-six months.

Below, we’ve broken down the good driver car insurance discounts offered by some of the nation’s largest insurers:

As you can see, a significant number of insurers offer discounts associated with safe driving. A quick review reveals some of the larger discounts can be found with Allstate (at 45 percent), Esurance, and Nationwide. But before jumping at these numbers, you need to remember a few things:

• Different insurers may have different parameters on how you can attain a safe-driving discount. For instance, larger discounts may be given to those who have remained accident-free longer
• The discount will be applied differently across insurers. For some, it may look like taking a few dollars off of your entire premium. For others, it may be taking a percentage off of what you pay in a specific form of coverage.

Regardless, a discount is a discount, and it’s obvious that being a safe driver behind the wheel can make a huge difference.

Usage-Based Car Insurance

Expert tip: another way to cash in on good driving is through participating in a usage-based insurance program, or UBI. In order to qualify for a discount, you must agree to allow your car insurer to track your driving – usually through an app or device – for a set period of time.

This video sheds more light on how it works:

When it comes to UBI, tracked behaviors range from speed, hard braking, and mileage. If you can prove that you do, in fact, have safe-driving behaviors, a discount will be applied to your policy.

But here’s a bonus: According to the National Association of Insurance Commissioners (NAIC), many car insurance companies will give you a discount just for participating. So, it may not hurt just to try.

Anti-Theft Discount

Auto theft is a big problem, and there are many high-risk areas where your exposure to auto theft can have a significant impact on car insurance rates.

Purchasing a vehicle with anti-theft devices like sterling wheel lock, ignition lock and other time-tested, factory installed, anti-theft devices can undoubtedly provide discounts on your car insurance premiums.

Here’s a breakdown of what insurers offer anti-theft discounts, and for how much:

We can see that several insurers offer incentives for anti-theft devices, and some offer car insurance discounts as high as 25 percent. They are Amica, Esurance, Geico, and Nationwide.

For insurers like Ameriprise and The Hartford, the proposed discount is much lower, at 3 percent. However, don’t let that deter you. Remember, car insurance discounts are simply one strategy in saving money. As you compare car insurance companies, you may find perks in many forms, in addition to conventional discounts.

Multi-Policy (or Bundling) Discount

Most insurance companies that sell car insurance also provide other financial products. The most common multi-policy discount is provided when a consumer has both homeowners and car insurance with the same company. However, many providers offer discounts should you also purchase life, health, or other products.

To have multiple policies with one insurance company is also called bundling. Here’s a quick video on some of the pros and cons of bundling:

Now that you have a better idea of the pros and cons of bundling, here’s a breakdown of some car insurance companies offering discounts through multiple policies:

As you can see, discounts offered for having multiple policies with one company range from 10 percent, all the way up to 25 percent with Country Financial. We can’t reiterate enough: check in with your car insurance company to find out what the exact terms of these discounts are. In some cases, it may only apply to certain forms of insurance, like home and car.

Another note: car insurance companies always want you to buy more insurance, so the more vehicles you insure, the better your rates will be. Bottom line? Always ask about multi-policy discounts since the money saved by combining a couple of your insurance needs with the same company can be cost-efficient and easier to manage.

Smart, “Green,” and Hybrid Car Insurance Discounts

There’s no doubt about it: more and more manufacturers are producing cars with more bells, whistles, and unique features. Whether that means you drive a hybrid, or your car is equipped with the latest technology – insurers are paying attention.

For some, having an environmentally-friendly vehicle will result in car insurance discounts.

Some of the larger insurers we know of offering Green Vehicle Discounts include Allstate, Liberty Mutual, and Travelers at 10 percent, Farmers at five percent, and The Hartford at three percent.

The reasoning behind these discounts? These cars have a great fuel economy, and in the end, benefit the environment. So, if you drive a “green” car or even a smart car, you’ll want to make sure your car insurance company is aware.

Defensive Driving and Driver’s Ed Discounts

Here’s what you need to know: a defensive driving or a driver’s ed course can often save you money on your car insurance premiums. This is especially ideal for teenage drivers. After all, young and inexperienced drivers are notorious for racking up higher-than-normal insurance rates.

But in simply taking a driver’s ed class, you can also save some money on your policy.

Let’s take a look at some of the defensive driver and driver’s ed discounts available:

Our research reveals that in most cases, car insurance companies that offer discounts for defensive driving or driver’s ed tend to offer something in both categories. The lowest discounts are with USAA and The Hartford, and the highest with State Farm, at 15 percent for Driver’s Ed.

Buyer beware: the downfall is that most drivers believe any course will do. However most car insurance companies have an approved list of defensive driving schools, and any direction competed outside of these institutions may not be eligible for a discount.

Therefore, before enrolling in a driving school always ask your car insurance company who they recommend.

Good Student Car Insurance Discounts

As we just mentioned, young drivers have a very high-risk profile, resulting in very expensive car insurance premiums. However, those teen drivers who stay in school and maintain a B average or higher can often take advantage of lower car insurance costs.

This is often known as a Good Student Discount, and it’s one of the most popular car insurance discounts around.

Here’s a deep dive into which companies offer this car insurance discount:

While the car insurance discounts offered by companies vary, we can see a few offer savings 20 percent and up: Allstate, Country Financial, Liberty Mutual, and State Farm.

Here’ something to remember: you’ll need to provide proof of your academic achievement. When applying for this discount, be sure to provide your agent with a transcript, report card, or another acceptable document.

Other Car Insurance Discounts by Company

From car insurance discounts for students to those for federal employees: we want you to gain a better understanding of which companies offer what breaks for you and your premium.

Below, we’ve assembled a one-stop-shop table that lists out available discounts by company. Keep in mind — while this table should serve as a guide, you should always consult with your insurer to learn more.

According to our research, three-car insurance leads the pack in terms of how many potential discounts they offer. They’re The Hartford, MetLife, and Liberty Mutual, at a three-way tie for 38 discounts. Not too far behind are Progressive (36) and Nationwide (35).

As you’re seeking out which car insurance discounts you may be eligible for, here are a few key points to keep in mind:

Some insurers offer discounts based on occupation. Have you ever wondered if federal employees can get car insurance discounts? The answer is yes, depending on your provider. This is just one example of an insurance company offering you a discount because of what you do for a living.

Another great example can be found with Country Financial, which offers discounts for teachers, firefighters, police officers, and EMTs.

Other potential discounts may be available for nurses and healthcare workers, and federal government employees.

If you’re not sure whether your car insurance company offers a discount based on what you do for a living, be sure to ask.

Students can earn discounts beyond good grades. A popular discount for college students is the distant student discount. This applies to students who are away at school, typically more than 100 miles from home, and may not have a car with them. Speak to your provider to learn more.

How you pay can save you money. Some insurance companies offer breaks for going paperless. Others will offer a lower rate if you pay your full-term at once, versus on a monthly basis. And then there are others who will give you a break if you opt to do automated payments.

Other prominent discounts to look out for will include those for the military, as well as discounts for remaining with a provider for an extended period of time. When it’s all said and done, it certainly seems like it’s harder not to find a discount, than to go without.

Frequently Asked Questions: Discounts for Car Insurance

We know you may have additional questions. Thankfully, we’ve got answers. Now, we’re addressing some frequently asked questions with car insurance discounts.

#1 – Who has the cheapest car insurance?

If you’re already looking for car insurance discounts, you probably can’t help but ask this question. In terms of who has cheap car insurance, we have found that USAA tends to have some of the lowest average rates around.

However, USAA is only available for those with ties to the military. Other options to consider will include Geico and State Farm.

But here’s the kicker: everyone’s situation is different. Two people insured with the same insurance company can end up paying very different rates depending on a variety of factors, ranging from credit score to driving record. To learn what’s the cheapest car insurance company for you, you’ll want to begin by comparing quotes.

#2 – Can you negotiate with car insurance companies?

The short answer? It’s possible. If you feel your rates are too high, it never hurts to pick up the phone and speak to an agent. If the insurer values your business, they may be willing to match the prices of your competitors or seek out discounts on your behalf. Bottom line? It never hurts to ask.

#3 – What car insurance discounts does State Farm offer?

Some discounts offered include Driver’s Ed, Defensive Driver, Distant Student, Good Credit, Low Mileage, Military, Multiple Policies, and Paperless Billing. To learn more, consult with an agent or customer service representative.

#4 – Are there coronavirus car insurance discounts?

Quite a few insurers have offered drivers reduced rates during coronavirus, such as Geico. Why? Drivers are driving less as many people are working from home. So if you are driving less, talk to your insurer about car insurance discounts for covid-19. Generally, this discount will be labeled as a low-mileage discount.

In this day and age, every dollar counts. If you’re looking for ways to save on your car insurance rates, seeking out discounts needs to be part of your strategy.

When it’s all said and done, you will never know what discounts your provider offers until you ask. It’s even worth it to pick up the phone and speak to your agent to make sure you’re taking advantage of every opportunity available.

But don’t simply stop with discounts. Shop rates to ensure you’re getting the best price for the best coverage. Begin comparing companies now by plugging your ZIP code into our free car insurance tool.