15 Car Insurance Discounts—and How to Get Them

Shopping for car insurance might seem daunting: You want the best coverage for your vehicle at the best price. One of the best ways to get a deal on car insurance? Speak to an insurance agent. They will know the right questions to ask—does your car have an anti-theft device? Is your teen driver an "A" student?—to help maximize the money you save. 

As you shop around for auto insurance discounts, keep a few things in mind: You’ll find that you aren’t getting cumulative discounts on everything you qualify for, the amount you can save may be capped, and the fine print usually says “up to” a certain percent. And discounts may not be the same from state to state. For instance, insurance companies can’t offer a loyalty discount to customers in California, but drivers with auto insurance policies in states like Arizona, Montana, Nevada, Wyoming, and Utah may be eligible. 

What are common discounts on car insurance?

Policy Discounts

• Multi-policy discount: Save when you bundle your auto insurance with your home insurance policy. 
• Multi-car discount: May apply whenever more than one vehicle is rated on the policy.
• AAA Member savings: You can save 5 percent if any driver named on the AAA Auto Insurance policy is a AAA Member. 
• Loyalty discount: Also known as “Insurance Persistency,” this discount shaves off a percentage equal to the number of full years the insured driver (or spouse) has had a continuous insurance policy. 
• Advanced shopping discount: Switch to AAA Auto Insurance ahead of your policy effective date and you may receive a discount. Eligibility varies by state; you must have at least six months of continuous insurance coverage prior to the change. 
• Paperless discount: Enroll in eBilling and you could be eligible for a 5 percent discount.
• Pay in full discount: Pay for the full term of your policy up front and you may qualify for a discount.

Driver Discounts

• Defensive driver discount: Drivers age 55 or older who complete a Mature Driver Improvement course may be eligible for a discount.
• Good student discount: High school or full-time college students with a verifiable GPA of 3.0 or more may be eligible.
• Distant student discount: Have a student aged 15-25 studying at least 100 miles away from home? If their permanent residence is the same as yours and they don’t have a car at school, ask your agent about the distant student discount.
• teenSMART discount: Available when a teen driver completes a qualified driving program before they turn 19.
• Good driver: Ask your insurance agent for details. 

Vehicle Discounts

Available with some insurance providers in some states; speak to an agent to see if you're eligible. 

• Usage-based discount: If you enroll in a program such as AAA’s SMART trek and agree to have an electronic monitoring device installed in your vehicle, you may receive discounts for participation and, upon policy renewal, your safe driving habits.
• Vehicle safety discount: If your car has safety features like airbags, anti-lock brakes, or stability control, you may qualify for a discount on some coverages. 
• Anti-theft discount: You may be eligible for a discount on comprehensive insurance if your car has anti-theft devices like a car alarm, LoJack, or steering wheel lock.

As you shop for auto insurance, it's important to factor in your needs as a car owner. Knowing you have the right policy for you—and the best rates—is what gives you complete coverage confidence.