Car Insurance Discounts Explained

Shopping for car insurance might seem daunting. You want the best coverage and the best deal.

One of the best ways to get a deal on a new policy is to speak to an insurance agent. They will ask the right questions to get you certain discounts and savings.

As you shop around for auto insurance discounts, you’ll find that you won’t get cumulative discounts on everything you qualify for; your potential savings may be capped, and the fine print usually says “up to” a certain percent; and, car insurance discounts may vary by state. For instance, insurance companies may offer a loyalty discount to customers in some states but not others.

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What are common discounts on car insurance?

Policy Discounts

Multipolicy discounts: Save when you bundle your home and auto policies with the same company.
Multicar discount: If you insure more than one vehicle with the same insurance company, you might be eligible for a discount.
Loyalty discount: When you stick with the same auto insurance company year after year, they may reward that loyalty by shaving down your monthly premium.
Early renewal discount: When you renew your car insurance before your current policy expires, some companies will give you a discount.
Paperless discount: Enroll in paperless billing and you could be eligible for a discount.
Pay-in-full discount: If you pay for the full term of your policy up-front (rather than making monthly payments) you may qualify for a discount.

Driver Discounts

Defensive driver discount: Drivers who complete a defensive driving course may be eligible for a discount. Some insurance companies also offer special car insurance discounts for teen drivers or older drivers who complete a driver course.
Good student discount: High school or full-time college students who have good grades may be eligible. Good students usually need to have a specific GPA, such as a verifiable GPA of 3.0 or higher.
Distant student discount: A student who is studying away from home may qualify for a student discount on auto insurance for a car they use while at home.
Good driver discount: Drivers who have an accident-free driving record may save money on auto insurance.

Vehicle Discounts

Safe driver discount: Policyholders who practice safe driving habits may be eligible. You may need to have a monitoring device installed in your vehicle to track 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 auto insurance 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, a stolen vehicle recovery system, or a steering wheel lock.

As you shop for car insurance, it's important to consider your unique needs. Knowing you have the right policy for you—and the best car insurance rates—will give you complete coverage confidence.

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