Top Auto Insurance Discounts: What You Need to Know

If you are wondering why is my auto insurance so high, make sure that you are taking advantage of the top auto insurance discounts available at your provider. Most of these will automatically apply to your policy when you sign up for coverage, but other discounts aren’t so obvious, and you may have to ask an agent if you qualify. 

Insurance providers add auto insurance discounts for things like vehicle safety features, paperless billing, and buying multiple policies when you apply online, enter your personal and vehicle information, and pay your first monthly bill. 

Our auto insurance discount will guide you on how to lower your auto insurance premiums through discounts. Scroll through the complete list of auto insurance discounts below to see how much you can save on car insurance.

Top Auto Insurance Discounts by Company

Discounts and how much you can save vary wildly from company to company. You might have the potential for a 40% discount with one provider but only 10% with another, which makes it important to shop around and compare car insurance discounts by company. 

The table below shows discount availability with different auto insurance providers. The discount amount is listed if it’s known:

Read more:

• Allstate Auto Insurance Review
• Why You Should Get an Anti-Theft Device for Your Car

While the most common auto insurance discounts, like paid-in-full and multi-car, are generally available everywhere, you aren’t going to find all discounts with every provider. So, consider your unique situation and what discounts you might qualify for.  (For more information, read our “Top Auto Insurance Provider for Owners of Multiple Cars“).

For example, Liberty Mutual is one of the only companies to offer a green vehicle discount. This might be an important savings opportunity if you drive a hybrid car or EV. However, you may have a short commute or work from home and be more interested in usage-based discounts. 

Unfortunately, UBI is limited by state and provider. We discuss the top UBI companies below and compare discounts so you can find the best savings.

Top Usage-Based Auto Insurance Discounts by Company

Usage-based insurance (UBI) is commonly sold by auto insurance companies for people who don’t drive often. Still, it’s a relatively new concept in the industry. It may not be available in every state, and discount amounts can vary. 

Currently, Nationwide SmartRide and Liberty Mutual RightTrack offer UBI discounts in more places than any other insurance companies, with active policies in 40 states and Washington, D.C. USAA SafePilot and Geico DriveEasy have the next-largest availability in 37 and 34 states, respectively.

Below we compare usage-based auto insurance discounts by company:

• Nationwide SmartRide, up to 40%. SmartRide only tracks your driving for 4-6 months, and you get to keep your annual discount for as long as you’re insured with Nationwide. Learn more about the program in our Nationwide SmartRide insurance review.
• Liberty Mutual RightTrack, up to 30%. Drivers use the Liberty Mutual mobile app to track driving habits, but the law requires New York drivers to use a telematics device in the car’s ODB-II port. (For more information, read our “Liberty Mutual RightTrack Review“).
  
• USAA SafePilot, up to 30%. Participants automatically earn a 10% discount just for signing up, but SafePilot is only available to the U.S. military and their families. Read our USAA SafePilot service review to learn more.
• Geico DriveEasy, up to 25%. DriveEasy continuously tracks your driving to calculate discounts. Rates will increase if you exhibit risky driving behavior. (For more information, read our “Geico DriveEasy Review“).
  
• Progressive Snapshot, up to 20%. You can save around $47 just for signing up for Snapshot, but Progressive will raise your rates for poor driving. Read our Progressive Snapshot Review to learn more.
• State Farm Drive Safe & Save, up to 30%. Rates will not increase with bad driving, but State Farm UBI isn’t available in California, Massachusetts, or Rhode Island. Read our State Farm Drive Safe and Save Review to find out how much you can save in your state.
• Travelers Intellidrive, up to 30%. Travelers also raises rates for risky driving habits, but its discount earning potential is higher than most companies. Learn more about the company in our Travelers auto insurance review.
• Allstate Drivewise, up to 40%. Drivers have the potential to earn more savings with Allstate Rewards points for successfully completing safe-driving challenges.

Usage-based insurance is best for those with clean driving records and those who don’t drive often. It’s also a good insurance strategy if you are a high-risk driver who wants to learn better driving habits and get cheaper rates while you wait for your record to clear.

Fortunately, even statistically bad drivers who can’t benefit from UBI can still shop for pay-as-you-go auto insurance from most of these companies.

For example, Allstate also offers Milewise, a mileage-based insurance program that only tracks your odometer, not your driving habits. Our Allstate Milewise review explains how the discount works and how much you can save. 

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The Different Types of Auto Insurance Discounts

Yes, most of the top auto insurance providers offer a variety of discounts to attract new customers and help policyholders save money. The discounts you qualify for will depend on where you live, the company you shop with, and the kind of driver you are. 

The easiest car insurance discounts to get are vehicle safety and policy-based discounts. Insurance providers usually add these automatically when you apply for coverage. However, you can earn more discounts based on your lifestyle and habits as a driver. 

Use this list of the most common auto insurance discounts to see where you can save.

Vehicle Auto Insurance Discounts

Vehicle discounts on auto insurance are among the easiest ways to reduce your rates. You save money based on the kind of car you drive, and new cars with advanced safety features often earn the highest discounts. 

Do you qualify for any of these vehicle discounts on car insurance?

• Safety features. Most new vehicles have anti-lock brakes, airbags, seat belts, adaptive headlights, and daytime running lights, all of which can save you money.
• New car. Buying and insuring a car that is less than three years old can save you between 10%-15%.
• Anti-theft devices. Installing GPS tracking systems, etching the vehicle identification number (VIN) into the window, or using vehicle recovery systems like LoJack will earn you discounts with various auto insurers. Learn about does LoJack affect auto insurance rates.
• Garaging. If you plan to store your vehicle and not drive it for a while, ask about a garaging/storing discount to save on rates.
• Farm vehicle. Buying additional policies for farm equipment, including tractors and combines, can earn you a discount on your auto insurance policy.
• Utility vehicle. If you insure a utility terrain or all-terrain vehicle (UTV/ATV) with your current company, you will likely earn an auto insurance discount.
• Green vehicle. If you own a hybrid or electric vehicle (EV), ask your insurance company if there are discounts for alternative energy or low emissions.

Specific vehicle discounts for green, farm, or utility vehicles are not very common, so it’s important to ask your insurance company for a list of all the discounts it offers. You can also find most auto insurance discounts listed on the company’s website.

Read more: Is auto insurance considered a utility bill?

Policy Auto Insurance Discounts

The type of auto policy you have, including how you decide to pay for that policy, can earn you discounts on coverage. You’ll save even more money if you have multiple vehicles or multiple lines of insurance with one company.

Find out which auto policy discounts you qualify for in the list below:

• Multi-policy. Bundling insurance policies with one company can reduce your rates by 5%-25%. The most common is a homeowners and auto insurance bundle.
• Multi-car. Insuring more than one vehicle on the same policy can save you between 8% and 25%.
• Multi-driver. Listing more than one driver on an auto policy will save you money, and some companies offer additional discounts for adding a teen driver.
• Paid-in-full. You can save between 6% and 14% if you pay for your policy in full after signing up, instead of making monthly or bi-annual payments.
• Automatic payments. You can still save money with monthly auto insurance payments by signing up for automatic withdrawal or electronic funds transfer (EFT).
• Paperless. Drivers earn a small discount for opting to get policy documents and statements digitally, usually through email or the insurance company’s mobile app.
• Buying online. With most companies, getting auto insurance quotes and buying a policy online will earn you a discount.
• Early bird. Many top insurers give a discount to drivers who sign up for new insurance before their current policy ends.

Ask about policy discounts if you want a quick and easy way to save money on auto insurance. Many insurance providers automatically apply discounts like automatic payments and paperless billing when you sign up for them, reducing your rates right away regardless of your driving record.

Driver Status Auto Insurance Discounts

Even if you aren’t the safest driver on the road, your lifestyle can still qualify you for auto insurance discounts. 

Being a good student, owning a home, or simply sticking with the same insurance company at renewal are just a few examples of driver status discounts. Explore the full list below:

• Good student. Full-time high school and college students can save between 8% and 25% if they can maintain a 3.0 GPA or B average.
• Student away at school. College students who stay on campus without a vehicle can earn a discount, but drivers must be under 25 and go to school at least 100 miles away from home. Find the top auto insurance provider for international students here.
• Further education. Pursuing a Master’s degree or Ph.D. program can save you between 10%-15% with some companies.
• Occupational. Some companies offer discounts to certain occupations, typically first responders and federal employees.
• Affinity. Membership in fraternities, sororities, university alumni groups, and professional associations can help you save money on car insurance.
• Military. Like occupational discounts, military members and veterans can earn a discount on car insurance. 
• Homeowner. Owning a home or condo can save you around 3% on auto insurance, even if you don’t bundle it with home insurance from the same company.
• Married. Some insurers consider married couples less likely to file an auto insurance claim and reward them with discounts.
• Retired. Recently retired drivers can earn auto insurance discounts with some companies if they no longer have work commutes.
• Senior. Drivers over 55 earn a discount on auto insurance, but some auto insurance providers for seniors require drivers to complete a defensive driving course to qualify.
• Loyalty. Insurance providers reward drivers for renewing their policies with them but sometimes lump savings together with a continuous coverage discount.

While good student discounts are very common, many insurance companies offer driver status discounts sparingly. For example, many do not offer occupational discounts. 

As you shop around, you’ll find that first responder and military auto insurance discounts are more common than other occupation-based discounts. Some companies cater to military members and their families specifically, so it’s necessary to compare auto insurance quotes from more than three insurers to see how much you can truly save.

If you’re an active or retired member of the military, read our USAA auto insurance review. USAA offers very competitive quotes and a long list of exclusive auto insurance discounts, but coverage is only available to military members and their immediate families.

Read more:

• Auto Insurance for Couples: Does having multiple drivers save you money?
• Best Auto Insurance for Seniors

Driver Safety Auto Insurance Discounts

Safe drivers get the cheapest auto insurance quotes, but they also enjoy exclusive discounts because they present less of a risk to providers. 

If you’re responsible behind the wheel, you can reduce your rates with the following driver safety discounts:

• Good driver. You can save 10%-30% off your rates if you can maintain a clean driving record by avoiding speeding tickets and other moving violations. 
• Defensive driver. Passing a defensive driving course will earn you a discount, but you may have to be a certain age (usually teens and senior drivers) to qualify (read our “How much does motorcycle insurance increase with a speeding ticket?” for more information).
• Continuous coverage. Maintaining annual auto insurance coverage shows providers that you’re a responsible driver and could save you up to 20% off your rates.
• Low-mileage. The less you drive, the less risky you are to insure, and insurance providers reward people who drive less than 14,000 miles per year with hefty discounts.
• Claim-free. Drivers who avoid filing insurance claims for a certain number of years can earn discounts, disappearing deductibles, and accident forgiveness.

Driver safety discounts can vary by company. Some high-risk providers may not offer safety discounts based on the nature of the policy, so be sure to shop around with multiple companies to get the discounts you’re looking for.

Usage-Based Auto Insurance Discounts

Drivers with good records or low mileage should consider usage-based insurance (UBI) or the top pay-per-mile auto insurance coverage as an alternative. These kinds of insurance programs track driving habits and miles driven to generate a driving score.

Providers track your driving through a mobile app or telematics device connecting to your car’s on-board diagnostic (ODB) port. 

What kind of driving habits does UBI track for discounts?

• Speed and turning speed. Maintain local speed limits for a better score.
• Hard braking. Maintain a safe distance from the cars in front of you for a better score.
• Phone use and distracted driving. Avoid looking at your phone or answering calls or texts while driving for a better score.
• Time of day. Driving at night, especially between midnight and five a.m., will negatively impact your driving score.
• Weather. Driving in bad weather can negatively impact your driving score with some companies.

If you score well, you could earn up to 40% in discounts, although the average savings for most drivers are around 10%-15%. Many providers also give a 5%-10% discount just for signing up. However, some drivers might see their auto insurance rates increase if they speed or have a nighttime commute.

Read more: Mile Auto Insurance Review

How To Find Hidden Auto Insurance Discounts

Auto insurance discounts aren’t hidden so much as they aren’t openly advertised. The easiest way to uncover hidden car insurance discounts is to look up your current insurer online. Most companies list discounts on their websites, but you should look closely for limitations.

Discount limitations are usually denoted with an asterisk or in the tiny footnotes at the bottom of a webpage. Also take a closer look at your policy, as discounts may not apply to your entire bill — vehicle safety feature discounts often only apply to medical payments coverage or the top personal injury protection (PIP) insurance coverage.

Some discounts aren’t as obvious because drivers must provide proof. For example, you likely have to submit a report card or driver completion form before receiving a good student or defensive driver discount.

Other discounts aren’t available in every state, so an insurance company won’t advertise them everywhere. You’ll likely find that most auto insurance discount amounts and their availability are subject to state insurance laws. 

For example, the Boston Globe reports that only a handful of providers are licensed to sell UBI auto insurance in Massachusetts. Another instance is Travelers Insurance, which states on its website that drivers in Nevada can earn up to 40% off with Intellidrive, while Florida drivers can only earn up to 22%.

Insurance providers aren’t hiding these discounts from you, but it’s important to ask upfront which savings opportunities are available. You may not qualify for certain discounts based on your age, driving habits, or ZIP code, so shop around and speak with an agent of a particular company if you’re interested in the discounts you find on its website.

Other Ways to Save Money on Auto Insurance 

Car insurance discounts are the easiest way to save money, but it’s important to consider your overall policy and coverage when looking at rates. Remember that most discounts cap at a certain amount, so be aware of how much you have the potential to save.

For example, while Liberty Mutual RightTrack could save you up to 30% with a usage-based discount, the company’s monthly rates are still more expensive than nearly every other provider.

To save money on auto insurance, you want to look beyond just discounts and monthly rates. Don’t start shopping for auto insurance before you’ve considered the following tips:

• Raise your deductible. Higher deductibles will lower your monthly insurance rates, but don’t raise it to an amount you can’t afford to pay out of pocket.
• Maintain a good credit score. Insurance providers reward drivers with good credit scores with lower monthly rates.
• Drop coverage you don’t need. Liability insurance coverage has the cheapest rates, and you can consider dropping full coverage if you drive an older vehicle that has depreciated in value.
• Drive less than 10,000 miles annually. Drivers who clock less than 10,000 miles per year will save more money switching to pay-per-mile auto insurance than with a low-mileage discount.
• Speak with your agent. If you’re a loyal customer who has been with a provider for years, you can speak with an agent to get more personalized coverage.
• Shop around before your next renewal. Compare auto insurance quotes from at least three other companies before you renew your current policy. 

If nothing else, shopping around with multiple companies and comparing auto insurance discounts and quotes will guarantee that you find the best deal on coverage.

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The Bottom Line on the Top Auto Insurance Discounts

Finding out who actually has the cheapest auto insurance involves comparison shopping rates, discounts, and policy options. Farmers and Travelers historically offer the longest list of auto insurance discounts, but providers like Nationwide and Geico have higher discount amounts.

Maintaining a safe driving record and installing additional safety features and anti-theft devices in your car are great ways to get the best auto insurance discounts. Safe drivers tend to earn the most discounts and receive the cheapest quotes.

Most providers also offer discounts to teens and young drivers who maintain good grades, join fraternities or sororities, or join the military. In fact, military members are more likely to earn occupational discounts on auto insurance than any other demographic.

If you don’t qualify for many auto insurance discounts, don’t worry. You can still lower your auto insurance rates by comparing quotes online. Take advantage of our free comparison tool below and compare quotes and discounts from local providers today.

 

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