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Car Insurance Discounts

Surveys show that most Americans don’t ask about auto insurance discounts and so, don’t take advantage of them. 69% of car insurance clients don’t ask about insurance discounts offered for getting good grades, 70% don’t ask for discounts after completing a defensive driving course, and 76% of them don’t ask about discounts related to getting married.

There are certain typical car insurance discounts you must have heard of, but others more obscure discounts are available too. Even if you're eligible for some good discounts, your auto insurance provider won't take the time to provide you with the information you need. You don't have to wait until your auto insurance renewal date to know about them. Be your champion and review this post to learn about available car insurance discounts. After getting better knowledge on the topic, make sure to compare rates and discounts between different car insurance companies to scout for better deals. If you discover an auto insurance provider that will offer high rates and deductions you're eligible for, feel free to move your insurance policy to them as soon as possible.

Types of car insurance discounts

When it comes to auto car insurance discounts, everything from being a good student with good grades to adding safety features to your vehicle can help you save money.

  1. Driver based: these discounts are applied according to your history as a driver, different drivers training, and your affiliations.
    • Safe driver
    • Low mileage
    • Accident-free
    • Driver training
    • Defensive driver course
  2. Loyalty based: these discounts are applied according to your loyalty as a customer to your car insurance provider.
    • Multi-car
    • Loyalty
    • Bundled
    • Early renewal
  3. How you quote and buy: depends on the method of payment.
    • Paid in full
    • Autopay
    • Paperless
  4. Based on your car and accompanying equipment:
    • Anti-theft
    • Anti-lock brakes
    • Safety restraint
    • New car
  5. Demographic: depends on who you are and what category of the population you fall into.
    • Homeowner
    • Senior
    • Good student
    • Military

List of car insurance discounts and savings

To help you identify the auto car insurance discounts that may be available to you, we have made a list of them below. Auto insurance discounts differ by state, driving record, type of car, credit history, and other factors. Make sure you ask your insurance provider about them so you can start saving big on car insurance today.


Type Of Discount


Average Amount


Defensive driver

Register for a state-certified defensive driving course

Up to 10%


Driver training

Drivers under 21 register for approved courses

Up to 10%


Safe driver

No moving violations or at-fault accidents for the number of years determined by the insurance provider




Have no accidents, claims or violations for a number of years as determined by your insurance provider



Low mileage

Drive beneath the specified number of miles




Insure more than one car under the same insurance provider

Up to 25%



Insure more than one property with the same provider (e.g., house and car insurance)

Up to 20%



Have a policy running for more than one year. Rates might increase with successive running years.

Up to 25%


Early renewal

Renewing your policy before its expiration date



Paid in full

Pay complete premium at the beginning of the contract

Up to 10%



Set up automatic payments

Up to $50 a year



Pay online




Cars with a kill switch, alarms, and tracking systems

Up to 20%


Anti-lock brakes

Cars with anti-lock brake



New car

Register a car that is less than three years



Passive restraint and airbag

For older vehicles with factory-installed safety airbags




For drivers above age 65

Up to 35%


Good student

College and high school student with a good GPA as determined by the insurance provider

Up to 25%



Own at least one family home

Up to 15%



Active military personnel and their family

15% on base

90% deployed

How much can I save with discounts?

The big question is, " How much money can I save with car insurance discounts?" Some auto car discounts carry more weight than others. For example, passive restraint discount is only 5% while a multi-car discount can go up to 25%. Also, not all discounts apply to your entire bill; some of them may only affect a small part of your auto insurance like personal medical coverage. It is also possible that your insurance provider can eliminate other discounts after you select one.

Some insurance companies even have a cap on the total amount of discounts you can enjoy on your package. Many of them set this cap at 25%, which means you can only enjoy up to 25% discount on your premium per time.

Your location also dramatically affects the amount of discount you enjoy. Here are some examples of states with top discounts on typical car discount offers.

  1. Students away at school discount; national average $405
  • Florida; $701
  • Delaware; $714
  • California; $1,072
  1. Driver training discount; national average $81
  • Massachusetts; $534
  • California; $627
  • Georgia; $734
  1. Good student discount; national average $360
  • Illinois; $563
  • Colorado; $683
  • Louisiana; $776

The national averages are low because some states don’t offer these discounts at all. telekinesis


If you surf the web or watch regular TV, you have undoubtedly been bombarded with countless auto insurance advertisements from several companies. Ads are no longer the only way car insurance companies compete fiercely for clients. They offer competitive discounts too. Although many excellent discount packages have been created for clients, many people don't ever ask their insurance provider about them or if they qualify. Make sure you turn a new leaf and utilize the valuable information on car insurance discounts discussed in this post. Lessen your auto insurance premium through available discounts today.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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