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Learn How You Can Get Great Auto Insurance Discounts

Auto insurance can cost a lot of money. There are many ways you can save money too. Let's take a few moments to explore standard discounts you might be able to use.

Discounts on Auto Insurance

Auto insurance is usually the most expensive thing about owning a car. The U.S. News Rankings and Reviews puts the median United States Auto insurance rate at $1,248 each year.

If you don't look into discounts that you might be eligible for then you're leaving money wasted on the table. We've put together a list of frequent Auto insurance discounts commonly offered by many of the top 16 carriers. Hopefully, this list will help you find savings that you genuinely need.

Frequent Car Insurance Discounts Listed A to Z

Advance Purchase Discount

When you are considering making a switch to a new Auto insurance provider timing is crucial. A lapse in coverage of only one day can mean you can get a high rate. On the other hand some insurance companies reward studious planners with generous discounts if you start your policy a week before you have your next premium due for your current insurance provider.

If you want to shop around and hopefully find an auto insurance option that provides this discount you should start looking around at least two weeks before your active policy is due to expire.

Advance Purchase (Days) Avg. Annual Premium % Savings
0 $1,427
7 $1,388 2.76%
10 $1,372 3.87%

Top car insurance providers that offer advance purchase discounts include AAA, Mercury, Travelers, American Family, and Allstate, 21st Century offers this in select states.

The Affinity Discount

You might be able to save money on your auto insurance based on where you go to school, your membership dues or fees, or even where you work. Several insurance providers offer affinity discounts to professionals on occupations that might require less-than-average driving. They might also offer this discount to select occupations including law enforcement, first responders, teachers, scientists, engineers, dentists, doctors, and registered nurses.

Top auto insurance providers that offer affinity discounts include Nationwide, Mercury, Liberty Mutual, State Farm, Geico, and USAA. Again, 21st Century applies this to select states.

The Annual Mileage Discount

Auto insurance companies are actually in the business of trying to predict and anticipate risk. If you drive less then you're less likely to end up in an accident or file a claim. This means that you are low risk as a client. Which makes you more appealing to any insurance company.

If you are a low-mileage driver then think about inquiring with your insurance company about any low-mileage discounts that they might have. It should be noted that some insurance carriers require electronic or technological monitoring of your total mileage to confirm your reduced rate.

If you'd like to learn more about this particular discount, read our article about Auto insurance specifically for low-mileage users.

Travelers, AAA, and USAA, are popular insurance carriers that offer annual mileage discounts.

The Anti-Theft Discount

Any vehicle that is equipped with anti-theft technology can prevent you from having to deal with having your vehicle stolen and all the insurance stress that comes with that. Your insurance company might not want to deal with it either, so many of them offer discounts for features like tracking devices and fuel/ignition cut-off switches. The discounts listed down below are rather small but if you use more advanced devices, your discount can range from 10% up to 25% off of your insurance premiums.

Anti-Theft Device Avg. Annual Premium % Difference
None $1,427.29
Passive Disabling Device $1,417.69 0.67%
Tracking Device $1,419.76 0.53%
Active Disabling Device $1,421.91 0.38%
Audible Alarm $1,422.26 0.35%

Some of the most popular insurance providers that offer anti-theft discounts include USAA, Progressive, AAA, Liberty Mutual, Esurance, 21st Century, Nationwide, Farmers, Allstate, State Farm, and GEICO.

Driving Class Discount

Discounts are frequently available to those drivers who complete a course in defensive driving or accident prevention. Such courses usually cover things like proper driving techniques, traffic laws, and drug/alcohol education.

Many states offer these kinds of classes through their Department of Motor Vehicles or Department of Public Safety Consult your current carrier to see if any of these courses are approved. Also, find out whether or not you qualify. For instance, certain carriers only provide defensive driving discounts to senior citizens.

Another age group that can benefit from such courses are those drivers under the age of 21 since these courses might include supervised driving hours.

Top insurance carriers that provide driving class discounts to all or some of their drivers include 21st Century, Travelers, American Family, MetLife, Nationwide, Esurance, Liberty Mutual, Allstate, AAA, State Farm, Progressive, Geico, and USAA.

E-Sign/E-Pay Discounts

The E in e-pay is kind of debatable in whether it stands for electronic or easy, but in either case cutting down on unnecessary paper use isn't just right for the planet. It's also useful for saving business operations and expenses. That's why some insurance companies reward consumers who do it with discounts for using e-Pay options where you get paperless billing through emails and e-Sign services where you access, read, and sign policy documents online.

Carriers that offer paperless auto insurance discounts include Travelers, Nationwide, Mercury, and Progressive.

e-Sign / e-Pay Avg. Annual Premium % Savings
No $1,427
Yes $1,419 0.60%

Discounts for Good Driving

Drivers who have clean records can score a great discount here. Eligibility for good driver discounts usually means going a particular minimum of years without moving violations or any at-fault accidents.

It varies with each carrier but the industry norms are between 3 and 5 years. Discounts usually go up the more years you have a claim-free record. Savings are between 10% and 26%, so the savings do add up.

Top carriers offering this particular discount include Mercury, Allstate, Nationwide, American Family, 21st Century, Travelers, Metlife, Esurance, State Farm, and USAA.

Good Student Discounts

Auto insurance providers assume that good students are less likely to operate vehicles in a risky fashion. Many of them give students with GPAs of 3.0 or higher a discount. This particular discount is frequently restricted to drivers younger than 25 and proof of a good grade point average is required for every policy term through report cards or transcripts. The following are average savings for drivers with both good driving and good student discounts.

Age Average Discount
16 $344
17 $303
18 $267
19 $219

Some of the insurance companies that provide good student car insurance discounts include 21st Century, MetLife, Esurance, Liberty Mutual, AAA, Geico, USAA, State Farm, Allstate, Farmers, Nationwide, American Family, and Travelers. Progressive also offers this in select states.

Green Vehicle Discounts

A car that is friendly to the environment is beneficial because fuel conservation means you spend less on gas. If you drive an alternative-fuel or hybrid vehicle then you might get instant discounts as high as 10%.

EVs and hybrids are usually built with the latest and greatest features and the Highway Loss Data Institute has research indicating drivers and passengers of hybrids are 25% less likely to get injured in accidents as compared to those in more conventional vehicles. You might also qualify for extra discounts for things like electronic stability control and curtain airbags.

Current insurance companies offering these green vehicle discounts include Travelers, Farmers, Liberty Mutual, and Allstate. 21st Century also offers it in select states.

Homeowner's Discount

Premiums for auto insurance are calculated based on the overall amount of risk that an auto insurance company takes when they cover a policy. Homeowners which includes owners of apartments and condos on top of those who own standalone houses are assumed to be lower in risk. Since they're less likely to end up filing a claim. They do give a discount.

Homeowner Status Avg. Premium
Renter $1,427
Condo Owner $1,393
Homeowner $1,393
Renter w/ Multi-Policy $1,350
Condo Owner W/ Multi-Policy $1,280
Homeowner w/ Multipolicy $1,261

Carriers that offer homeowners discounts for auto insurance policies include Progressive, Esurance, The General, and Farmers. 21st Century also makes this discount available in certain states.

Multi-Policy Discounts

If you bundle multiple kinds of insurance with the same carrier, you might get the multi-policy discount. Combining your vehicle insurance with your renters or homeowner's insurance can mean extra discounts with every policy added. Another benefit of bundling is tracking all of your policies in one place.

Many carriers provide multi-policy auto insurance discounts, including USAA, Progressive, AAA, Liberty Mutual, Mercury, MetLife, Travelers, American Family, Nationwide, Farmers, Allstate, and State Farm. 21st Century also offers this in select states.

Multi-Vehicle Discounts

Insurance carriers provide discounts for having more than one vehicle covered under just one insurance policy. To qualify for this discount the covered vehicles have to be under the single name of just one policyholder.

They also have to be driven either by only the policyholder or additional drivers. They also have to be in use and not in storage. This is a beneficial discount if you need to insure a teenager in your family. There are various restrictions like four-vehicle maximums on a policy.

Carriers providing this discount include 21st Century, Travelers, American Family, Mercury, Farmers, Liberty Mutual, AAA, State Farm, Progressive, GEICO, and USAA.

New Vehicle Discount

If you have a new car possibly up to three years old you can perhaps get savings between 10% and 30%.

Carriers that offer new vehicle discounts include AAA, Travelers, Allstate, USAA, and 21st Century in select states.

Passive Restraint Discount

Factory-installed safety features such as airbags and motorized seat belts don't just keep you safe but also save you money. Safety features like daytime running lights and anti-lock brakes might be other safety features that create additional discounts. Contact your insurance carrier for discounts that are offered when you are shopping for any new vehicle.

Carriers that offer passive restraint discounts include 21st Century, American Family, Esurance, Farmers, Allstate, AAA, State Farm, GEICO, and USAA.

Pay-In-Full Discounts

If you pay your total annual premium at once then you don't have to worry about payments for the rest of the year. You might even get a discount. Nearly half of all carriers we looked at offered discounts for paying premiums in full instead of going installments.

Car insurance companies that offer paid-in-full discounts include The General, Travelers, Esurance, Liberty Mutual, Allstate, AAA, and 21st Century in select states.

Payment Type Avg. Annual Premium % Savings
Installments $1,427
Paid-in-Full $1,360 4.70%

Car insurance companies that offer paid-in-full discounts include The General, Travelers, Esurance, Liberty Mutual, Allstate, AAA, and 21st Century in select states.

Distant Student Discounts

If you're a college student attending university out of town or out of state, then you might save as much as a third of your premiums with this discount. Each carrier has its terms and mileage, but usual conditions are rather straightforward; eligible students need to be attending school at least several hundred miles away from home and have no access to a vehicle on-campus.

Carriers that offer distant student discounts include 21st Century, Travelers, American Family, Farmers, Allstate, AAA, and State Farm.

Telematics

This is a new way for a car insurance company to base policy prices and premiums on actual usage. Telematics-based insurance means an insurance company monitors a driver through a plugged-in device so they can calculate the driver's monthly bonuses based on real data of the driver's driving habits.

Telematics-generated premiums can get calculated once you're six months into your policy. If you are a very cautious driver then you can save a lot of money on car insurance due to your good driving habits and average speeds.

Insurance companies that use telematics for discounts include Nationwide, Esurance, State Farm, Allstate, and Progressive. Liberty Mutual offers this discount in select states.

Company Avg. Savings
Progressive Average of $130
Allstate Average of 10-25%
State Farm Up to 15%
Esurance Varies
Nationwide Up to 40%
Liberty Mutual Average of 5-30%

Promotions And Sales

As with any other product or service. Prices and premiums for auto insurance have their fluctuations. There aren't usually seasonal promotions in this industry but auto insurance carriers are continually modifying their pricing based on adjustments, rating factors, and industry data. You can take advantage of this by shopping around thoroughly every six months.

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