Best Car Insurance Discounts

1. Vehicle-Based Discounts

Some discounts depend on the vehicle you own and its features or equipment. Keep this in mind when you're shopping for a new car.

New Car Discount

Many new vehicles come with improved safety features, and you might get a discount if you're driving a car that's less than a few years old.

• How much you can save: Geico offers discounts up to 15% on certain coverages if your vehicle is fewer than four model years old.

Electric or Hybrid Discount

You might get a discount if you drive an electric or hybrid vehicle—some insurance companies even offer the discount if you're leasing the vehicle. You also might find an option that offers a discount for using alternative fuel, such as biodiesel, hydrogen or ethanol.

• How much you can save: The Zebra reports that the discount for an electric vehicle or hybrid policy averages around 5% for a six-month period. But it's currently not an option with the top five insurance companies.

Anti-Theft Discount

Purchasing a vehicle that has an anti-theft system or installing one later might help you save money. Of course, the larger benefit could be deterring a thief or quickly recovering your vehicle if it's stolen.

• How much you can save: Geico says you might receive a discount of up to 23% if your car has a built-in anti-theft system. However, the discount applies only to your comprehensive coverage, not your entire policy.

Safety Device Discount

Vehicles can have many types of safety devices, including airbags, anti-lock brakes, emergency braking and blind-spot monitoring.

• How much you can save: The savings depend on what safety features you have and your coverage. For example, State Farm says you can save up to 40% on medical-related coverage. Geico offers up to 23% off the medical payments or bodily injury liability portion of your policy, and additional discounts on unspecific types of coverage for anti-lock brakes (up to 5%) and daytime running lights (up to 3%).

Learn more: Factors That Affect Your Car Insurance Costs

2. Payment-Related Discounts

Payment-related discounts may apply depending on how you shop for insurance and when you choose certain communication and payment preferences.

Autopay Discount

You might get a discount if you set up automatic payments. At a minimum, you can avoid accidentally forgetting a payment and getting charged a late payment fee, or losing out if your company offers a discount for making recent payments on time.

• How much you can save: USAA offers up to 3% off with its autopay discounts. Allstate also offers a responsible payer discount if it's been at least a year since you received a cancellation notice for missing a premium payment.

Paperless Discount

Signing up for paperless bills and communications can often lead to savings.

• How much you can save: Many companies offer this discount, but they don't specify how much you might save.

Paid-in-Full Discount

Many insurance companies also offer a way to save money if you pay your premiums in full, often every six months or year. In some cases, you don't get a discount on your premiums, but you avoid extra charges that come with monthly payments.

• How much you can save: The full payment discount is another common option with unspecified savings amounts.

Online Quote or Purchase Discount

You might receive a lower rate if you shop for insurance online instead of going into an office or calling an insurance agent. Sometimes, you receive the discount even if you finish the quote with an agent. But there might be an extra discount for completing the whole process on your own online.

• How much you can save: Progressive says it offers an average savings of 7% for people who get an online quote, and an additional average 9% for people who sign their insurance documents online.

Early Purchase Discount

Although you can get same-day coverage with auto insurance, it's best not to wait until the last minute. Some companies may offer you a discount if you switch or renew coverage before your current policy expires, and the savings could increase the earlier you sign.

• How much you can save: Allstate doesn't specify a savings amount, but it says the discount could apply if you sign your policy at least seven days before you want it to become effective.

Learn more: How to Lower Your Car Insurance

3. Policy-Related Discounts

Having more than one insurance policy and maintaining coverage could lead to savings because of the policy-related discounts.

Bundling Discount

Purchasing more than one type of insurance policy from the same company usually leads to a bundling discount that lowers premiums for all the policies.

• How much you can save: Bundling can offer significant savings. Allstate says you might save up to 25% by bundling home and auto insurance. State Farm says its customers saved an average of $1,273 after switching to State Farm and bundling home and auto policies in 2023.

Learn more: Should You Bundle Your Home and Auto Insurance?

Multi-Car Discount

Similar to bundling, but rather than purchasing different types of insurance, you might receive a discount if you have auto insurance for more than one vehicle from the same company.

• How much you can save: Progressive says customers save an average of 12% if they have more than one vehicle on their policy that's primarily kept at the same home. You don't need to own all the vehicles—they could belong to various family members or roommates.

Ongoing Coverage Discount

Some insurance companies offer an ongoing coverage discount or rewards if you've had continuous auto insurance coverage for years. The discount or benefits may even apply if you previously had a policy at a different company and then switched.

• How much you can save: Discount amounts vary and may increase the longer you've had auto insurance.

4. Driving-Based Discounts

Your driving habits and history could also affect your insurance rates. You may want to look into some of the potential discount options and programs if you tend to be a cautious driver.

Safe Driver Discount

Safe driver, good driver or claims-free discounts may apply if it's been some time since your last moving violation or at-fault accident. Companies may offer discounts after different periods, which is why it's important to shop around if you previously filed a claim.

• How much you can save: At Geico, you might receive up to a 22% discount if you haven't had an accident for at least a year. Progressive says that drivers who haven't had tickets or accidents in the past three years save an average of 34%. Allstate takes a different approach and decreases your collision deductible by $100 each year, up to $500 total, if you don't have an accident.

Driving Course Discount

You might receive a discount if someone who is insured on your policy voluntarily takes a driving or safe driving course. In other words, they sign up and complete the course without being ordered to or because they got into an accident.

• How much you can save: The discount can depend on the type of course and the driver. Sometimes, it only applies when the person who completes the course is a young driver or a senior.

Low-Mileage Discount

Many companies also offer a discount if you don't drive many miles throughout the year. For example, you save money if you drive fewer than 10,000 to 12,000 miles.

• How much you can save: Companies don't share specific savings, and some offer pay-per-mile or usage-based insurance policies rather than a low-mileage discount.

Telematics Discount

Telematics devices track your vehicle and report your driving habits. You might have to install a new device in your car and/or use the company's app to sign up for the company's branded telematics program.

• How much you can save: The discount can depend on your driving habits. For example, you might save more if you rarely look at your phone or slam your brakes. USAA and State Farm say customers can receive up to 10% off when they first sign up, and up to 30% off (or even more in some states) based on their driving.

Learn more: Why Is My Car Insurance So High?

5. Demographic-Based Discounts

Some demographic-based discounts aren't tied to your vehicle, policy preferences or driving.

Affiliation Discount

Car insurance companies often offer discounts for members of certain organizations, such as fraternities, alumni associations, employees at specific companies or military service members.

• How much you can save: Geico offers up to 12% off to active and retired federal employees, up to 15% to active and retired military members and additional savings to members of over 500 other groups.

Homeowner Discount

You might get an auto insurance discount if you own a home, even if you don't bundle your home and auto insurance with the same company.

• How much you can save: Specific savings amounts aren't published.

Senior Discount

Some insurance companies offer a discount or lower-cost policy to older drivers who might drive less frequently.

• How much you can save: Geico offers a Prime Time contract to customers in certain states who are at least 50, don't share the vehicle with anyone who is under 25, haven't had a ticket or accident in the past three years and don't use the vehicle for business.

Good Student Discount

Many companies offer a discount if you have a full-time student on your policy who maintains good grades. The specifics can vary, but they may need to have at least a 3.0 (out of 4.0) or B average and be below a certain age, such as 19 or 25.

• How much you can save: Savings amounts can range from up to 10% at USAA to up to 25% with State Farm. Progressive reports an average savings of 10%.

Student Away From Home Discount

You may also be able to save money if the student on your policy lives at school and leaves their car at home. There may be maximum age and minimum distance requirements, and the discount is generally only available if the student doesn't frequently use the vehicle.

• How much you can save: Savings amounts aren't frequently advertised and some companies only offer one student-related discount per policy.

Summary of Car Insurance Discounts by Insurer

Here's a summary of which of the top five auto insurance companies—State Farm, Progressive, Geico, Allstate and USAA—offer these car insurance discounts.

Frequently Asked Questions

More Discounts Don't Always Mean Lower Costs

Car insurance companies often offer different discounts and savings opportunities. However, qualifying for multiple discounts doesn't necessarily mean you're getting the best deal. After all, the insurance company might have relatively high rates before it applies your discounts.

To help make sure you're not overpaying, you can regularly shop for new policies from different companies. Or, you can use Experian's car insurance comparison tool to share basic details about yourself and your vehicle and get quotes from multiple top insurance companies.