- Car insurance discounts to start saving in 2025
- Types of car insurance discounts
- Car insurance discounts by company
- How much can I save with car insurance discounts?
- How to get discounts on car insurance
- How do discounts lower your car insurance rates?
- Car insurance discounts to ask for: Frequently asked questions
Car insurance discounts to start saving in 2025
Car insurance rates have been rising in recent years, and if you're feeling the pinch, looking for discounts you're not currently receiving is well worth your time. A few of the common car insurance discounts you can look for while reviewing your policies in 2025 are:
- Affiliation or affinity: Discounts offered for members of certain professional organizations or associations, alumni associations and even group discounts at work can save you up to 20%.
- Multi-car and multi-policy discounts: Having all of the vehicles you own, along with your home and even life and other insurance policies with one company can earn you a discount of up to 25%.
- Usage-based car insurance: A program that adjusts your rates based on your driving habits can save you big money.
- Driver education courses: Both teens and seniors can save by taking a defensive driving course, although the rules vary by state.
Types of car insurance discounts
Auto insurance discounts fall into a few categories, and there may be dozens of possible discounts within those categories. The categories range from auto insurance discounts for your driving habits to car features.
Here is a summary of different car insurance discount types by category.
Auto insurance discount types
| Policy | Driver profile | Vehicle |
|---|---|---|
| Multi-policy (bunding) | Safe driver/good driver | Anti-theft device |
| Multi-car | Low mileage | New car |
| Early signing | Student (Good, away from home) | Safety features |
| Paid-in-full | Usage-based | Green/hybrid |
| Electronic billing/paperless billing | Senior/mature driver | |
| Loyalty | Profession/occupation/group membership/education | |
| Driver education/defensive driving |
Common car insurance discounts and savings
A lot of common auto insurance discounts may be available to you. These are car insurance discounts to ask for when shopping around or from your current insurer. Car insurance discounts may vary by state, vehicle, driving record, credit history, and other factors.
| Discount | Eligibility | Typical amount | Category |
|---|---|---|---|
| Good/safe driver | Drivers with a clean record, no tickets or accidents in the past three to five years. | 10-30% | Driver profile |
| Affiliation or "affinity" | Discounts through employer, school, team, club or other membership. | up to 25% | Driver profile |
| Anti-lock brakes | Cars with anti-lock brakes. | 3% | Vehicle |
| Anti-theft | Alarms, tracking systems, and kill-switches. May have to be factory-installed. | 2% | Vehicle |
| Auto-pay | Set up automated payment from checking. | 5% | Policy |
| Bundled (multi-policy) | Discounts for having more than one type of insurance with the same insurance company. | 14% | Policy |
| Defensive driving course | May be limited to seniors, teens or inexperienced drivers. Approved course only. | 5% | Driver profile |
| Driver Training | Usually for drivers under 21. Approved course only. | 7% | Driver profile |
| Early signing/renewal | For signing/renewing before policy expiration. | 5% | Policy |
| Good student | High school or college students (under age 25) with at least a 3.0 (B) grade point average. | 15% | Driver profile |
| Green/hybrid car | Owning or leasing a hybrid or electric vehicle. | up to 10% | Vehicle |
| Homeowner | Insured owns a single-family home or condominium. | 7% | Driver profile |
| Occupation | Discounts for certain occupations, like teachers | Varies by occupation | Driver profile |
| Customer loyalty | For policies in-force more than one consecutive year. May increase with each successive year. | 11% | Policy |
| Military | Active military personnel and their households. | 15% on base, 90% for deployed | Driver profile |
| Multi-car | Insure more than one car on a single auto insurance policy. | 10% to 25% | Policy |
| New car | Own a car that is three or fewer years old. | 10% | Vehicle |
| Paid-in-full | Pay premium in its entirety, at the beginning of its contract. | 9% | Policy |
| Paperless | View and pay your bill online. | 4% | Policy |
| Safety; passive restraint and airbag | Usually applies to older vehicles (1990s or earlier) with factory-installed airbags. | 2% | Vehicle |
| Senior defensive driving course | Usually state-mandated and apply to drivers over age 65. | 15% to 35% | Driver profile |
| Students away from home | Students without regular access to a vehicle, and living > 100 miles from home. | 18% | Driver profile |
| Low-mileage | Driving 5k to 15k miles per year, depending on insurer. | 5% | Driver profile |
| Usage-based | Have your driving habits monitored using an app or device. | Varies based on results | Driver profile |
Car insurance discounts by company
Car insurance companies differ in terms of the discounts they offer and the amount of the discount. Compare car insurance discounts to find the company that as the best deal for you.
| Discount type | Company 1 | Company 2 | Company 3 |
|---|---|---|---|
| Air Bags | |||
| Air Bags | 2% | 1% | - |
| Anti Theft Device | |||
| Anti Theft Device | 1% | 0% | - |
| Daily Commute | |||
| Daily Commute | 6% | - | - |
| Days Advanced Purchase | |||
| Days Advanced Purchase | - | 4% | - |
| Days Per Week Driven | |||
| Days Per Week Driven | 5% | - | - |
| Electronic Funds Transfer | |||
| Electronic Funds Transfer | - | 3% | - |
| Homeowner | |||
| Homeowner | 12% | 4% | - |
| Lower Annual Mileage | |||
| Lower Annual Mileage | 5% | 5% | - |
| Loyalty Years Renewal With Company | |||
| Loyalty Years Renewal With Company | 3% | 3% | - |
| Marital Status | |||
| Marital Status | 7% | 12% | - |
| Multi Policy | |||
| Multi Policy | 7% | 9% | - |
| Paperless Electronic Documents | |||
| Paperless Electronic Documents | - | 1% | - |
| Payment Type | |||
| Payment Type | 16% | 11% | - |
| Primary Use | |||
| Primary Use | 9% | 3% | - |
| Safety Devices | |||
| Safety Devices | 2% | 3% | - |
| Years Insured | |||
| Years Insured | 14% | 15% | - |
| Years Licensed | |||
| Years Licensed | 30% | 27% | - |
PEOPLE ASK
Is it possible to obtain an insurance discount by taking a driver education course?
Yes. Many states have mandated discounts for seniors who take a defensive driving course, and in some states teens can also earn a discount this way.
How much can I save with car insurance discounts?
As the chart above shows, safe driver, accident-free driver, student, home and auto insurance bundle and multi-car discounts are big car insurance discounts, while others might save just 2%. Advertised discounts also don't necessarily apply to your entire insurance bill. A discount might only apply to your personal medical coverage, which is a relatively small part of your policy. It's also possible that when you claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. one discount, the insurer may reduce or eliminate others.
There is often a limit on the overall discount you can get on a policy; for instance, some insurers permit total discounts of no more than 25% or 30%.
Your savings may also depend on where you live; not all discounts are offered in all states. See below some examples of average savings for different types of common car insurance discounts in several states for comparison, as well as the national average.
New driver training discount
New drivers who take a driver training course can enjoy some savings. For experienced drivers, refresher courses or defensive driving training can give you a smaller discount, but every little bit can help. Travelers has the biggest savings for a driver training course at $225 a year.
Note that discount availability for teens taking a driver training course depends on the state and the insurance company.
| Company | Premium before discount | Premium after discount | $ Difference | % Difference |
|---|---|---|---|---|
| State Farm | $5,318 | $4,987 | $330 | 6% |
| Travelers | $5,522 | $5,297 | $225 | 4% |
| Geico | $6,226 | $5,548 | $677 | 11% |
| Nationwide | $6,577 | $6,022 | $555 | 8% |
| Farmers | $7,826 | $7,343 | $483 | 6% |
| Progressive | $8,181 | $7,418 | $763 | 9% |
| Allstate | $11,806 | $10,733 | $1,073 | 9% |
| USAA | $3,367 | $3,212 | $154 | 5% |
Good student car insurance discount
The good student discount for families with student drivers under 25 also varies considerably.
| Company | Premium before discount | Premium after discount | $ Difference | % Difference |
|---|---|---|---|---|
| State Farm | $5,113 | $4,171 | $943 | 18% |
| Geico | $5,394 | $4,894 | $500 | 9% |
| Travelers | $5,726 | $5,324 | $402 | 6% |
| Nationwide | $6,160 | $4,939 | $1,221 | 20% |
| Progressive | $7,570 | $6,945 | $625 | 8% |
| Farmers | $10,953 | $9,644 | $1,310 | 12% |
| Allstate | $11,060 | $9,420 | $1,640 | 15% |
| USAA | $3,367 | $3,132 | $235 | 7% |
Student away at school discounts
If your child is on your auto insurance but goes away to school, you could save hundreds.
| Company | Premium before discount | Premium after discount | $ Difference | % Difference |
|---|---|---|---|---|
| Nationwide | $3,032 | $2,861 | $172 | 5% |
| Geico | $3,705 | $2,749 | $956 | 24% |
| Travelers | $3,742 | $3,534 | $208 | 6% |
| State Farm | $4,308 | $2,843 | $1,465 | 33% |
| Progressive | $4,843 | $4,461 | $381 | 8% |
| Farmers | $5,299 | $4,952 | $348 | 7% |
| Allstate | $8,645 | $7,255 | $1,391 | 16% |
| USAA | $2,517 | $2,067 | $450 | 18% |
PEOPLE ASK
What is the government mandated auto insurance discount for seniors?
Most states have government-mandated auto insurance discounts for seniors who take a defensive driving course. Check with your insurance company to find out which programs qualify.
How to get discounts on car insurance
Getting discounts on car insurance is easy; you simply have to know what’s available and then find out if you qualify. And if so, you have only to ask. Here's how to get discounts on your car insurance.
- Check your current policy to see what discounts you're getting.
- Compare what you see to the list of available discounts on the company's website. You should also call your insurance company to find out what discounts might not be listed online, and request that any you qualify for be added to your policy.
- Check with other insurance companies to see if another company has additional discounts you can't get with your current insurer; an insurance agent can help you compare multiple companies carefully.
- Request quotes from multiple companies and compare the list of discounts and how much you'd save. Compare, bearing in mind that because base rates vary, even a company with fewer discounts might have the best rate.
How do discounts lower your car insurance rates?
Here's how insurers calculate premiums and how discount affects car insurance rates:
- Base rate. Your insurer determines your base rate based on your risk factors, the car you drive and where you live.
- Surcharges. Factors that could result in surcharges are considered, such as a ticket on your driving record, and may add a surcharge to your premium.
- Discounts. Discounts for which you qualify are then applied to the policy, reducing the rate by a certain percentage.
Base rate + surcharges - discounts = final premium.
Car insurance discounts to ask for: Frequently asked questions
How long do you have to be with an insurance company to get discounts?
Some discounts are applied automatically, while others can be earned only if you meet specific criteria. You can get a discount immediately, for instance, if you purchase a new car or complete a defensive driving course. Some insurers also offer loyalty discounts, which give customers a break on their rates.
Which features of your car are worth a discount on your car insurance?
It depends on the company. Most offer a small discount for things like anti-lock brakes, passive restraints (seatbelts) and airbags. Anti-theft systems usually also reduce your rates.
Helpful auto insurance tools and calculators
