Marissa Hayes is a technical editor and contributing writer. She holds a Bachelor’s Degree in history, and she was the editor of the literary magazine, The Bluestone Review.

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Written by Marissa Hayes
Insurance Writer & Expert Marissa Hayes

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Jun 28, 2022

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Car Insurance Discounts

You are already taking the first and biggest step to getting a cheaper but a good fit policy by comparing auto insurance rates. To achieve even lower pricing, there are many different discounts available. By getting as many discounts as possible, you are ensured the cheapest possible monthly payment. Insurance companies don’t always come out and reveal all of the discounts available, therefore you may have an opportunity to find lower rates. Insurantly is dedicated in giving the information you need in order for you to truly get the cheapest rates around, so here we offer an extensive look at all types of discounts for car insurance.

Getting Discounts From Your Policy

The best way to find out about the discounts from your policy you may be eligible for is to talk to your insurance provider and ask them what factors they base their discounting on, as each company discounts differently. A good example of this is State Farm’s “Discount Double-check” program, which allows you to have a representative from the company check to make sure that you are getting all of the benefits that you qualify for.

Why Insurance Companies Offer Discounts

When big insurance companies were recently studied, 8 out of 10 were shown to provide discounts for paperless billing. It is also fairly standard practice for insurance providers to offer discounts to their customers that have more than one type of policy with them. These discounts help large insurance companies secure business and maximize the profits that their individual customers bring to them. Since insurance companies are essentially taking a risk on the safety of a particular driver, almost all insurance companies offer discounts for drivers that have a good driving record. The longer you drive without any incidents, the better chance you have of being able to get a discount on your car insurance policy.

Multi-Vehicle and Other Bundling Discounts

You can typically get multi-vehicle discounts when you insure more than one car with the same insurance company. There are a few restrictions to consider. For example, if the second vehicle is currently in storage, the multi-vehicle discount will most likely not be applicable. . You can save with a multi-vehicle discount if you have a teen driver in your household that has an individual policy with the same company. Because insurance costs for young drivers are greater than those of the parents, these are opportunities to lower the cost of covering the entire family.

Other Vehicles

Bundling all of your coverage with one insurance carrier is a great way to save money, especially when you stick with a leading provider that has excellent rates. If you have another type of vehicle, like a boat, motorcycle, or RV, you may be able to get a multi-policy discount. Note: You may not have to be married to receive multi-vehicle discounts. Some providers only require that you live together. By moving all of your vehicles under one insurance provider, you are sure to get discounts. This is why it pays to shop around and choose one provider. Insurantly sorts through multiple insurance companies to narrow down the best provider for you so that you are able to find the best rates.
Whether you’re an older or younger driver, good or bad, there are a number of different driver discounts available.

Student Driver

Younger drivers often face paying higher car insurance premiums than more experienced drivers because they are more prone to accidents and, as such, statistically present a higher risk to their insurance companies. If you are a student, or parent of a student, then you may take advantage of this discount.

Good Student Discount

For a student that does well in school, a good student discount can be a reward that lowers your car insurance premium. The amount of the discount applied will vary depending on the insurance provider, but the requirements are usually as follows:

  • The student is younger than 25 years old
  • The student is enrolled full-time at a high school or college
  • The student has a GPA of at least 3.0
  • The student shows acceptable documentation, such as a report card or signed letter by a school administrator

Driver’s Education Discounts

Depending on your state, teen drivers are often given discounts for completing and passing an approved driver’s education course. Visit our Driver’s Ed section to learn all about the driver’s education requirements in your state.

Senior Driver

For a senior discount, you may get a percentage off your premium for reaching a certain age, which – for many insurance providers – is typically the age of 50. Besides the basic senior driver discount, you be able to take advantage of several other different car insurance discounts.
Depending on the car insurance company you choose, you could save money with one or more of the following programs:

Low-Mileage Discount

When you retire and stop driving to and from a job, you may end up driving under a certain number of miles and easily qualify for this discount.

Mature Driver Training Course Discount

Many companies offer reduced rates to senior drivers who take defensive driving courses tailored to senior drivers.

Retired Military Member Discount

This is a discount for retired military members who have served in the Army, Navy, Marines, or Air Force.

Senior Organization Membership Discounts

Seniors may get discounts by being members of organizations like AARP. Good Driving Record

Maintaining a clean driving record can lead to great savings on your car insurance. Not only does it keep your insurance premiums low but, depending on your carrier, it can also earn you a good driver and/or a claim-free discount.

Good Driver Discounts

Each car insurance provider adheres to a different incentive policy. Some companies, for example, offer a discount for every year you avoid an at-fault accident or moving violation, such as reckless driving or DUI. Others offer rewards based on driving safely for a certain number of years.

Claim-Free Discounts

Claim-free (accident-free) discounts are very similar to good driver discounts. In fact, you may find your car insurance company only offers one or the other. This discount type rewards drivers for avoiding car accidents and not filing a claim for a specific period of time.

Low Mileage and Usage-Based Programs

The fewer miles you drive, the lower the chances of you getting into an accident. The better driving habits you instill, again, the lower your risk. Insurance providers base premiums off risk; therefore, discounts for low mileage or usage may be offered:

  • Low-Mileage Discounts – If you fall under a certain annual mileage cap, you may get a reduced premium
  • Usage-Based Discounts – By attaching a device that monitors your driving patters, you may get a reduced premium

Note: Your eligibility for a low-mileage discount may depend on your participation in a usage-based insurance program that tracks both your driving behavior and your mileage.

Low-Mileage Discounts

What constitutes as low mileage will vary depending on the provider, but overall the mileage cap will be somewhere between 7,500 and 15,000 miles per year. You do not always have to know your exact mileage driven. You should still consider asking about a low-mileage discount if:

  • You start working from home or move closer to your job
  • You carpool
  • You’re a retired or senior driver

Note: You may have to sign up for a usage-based program that tracks your miles and driving behavior in order to be eligible for this discount.

Usage-Based Program Discounts

A usage-based (aka “pay-as-you-go”) program allows you to get a premium that is customized to your driving habits. The insurance provider reviews your driving patterns and may offer you a discount of up to 50 percent. When you sign up for a usage-based insurance program, you will be asked to attach a small device to your vehicle that monitors:

  • Your average speed
  • How many miles you drive
  • How hard you brake
  • The time of day you drive

The better your drive, the bigger you save. Note: If you are interested in a usage-based program, make sure you speak with the insurance provider about the details, requirements, and potential savings since they can vary depending on the state you live in.

Occupations and Memberships

Your career/occupation or membership affiliation may lower your insurance rates.

Occupation-Related Discounts

Your car insurance company will make the decision on which occupations they will provide discounts for; however, the following customers will commonly be eligible for discounts:

  • Scientists
  • Teachers and Professors
  • Nurses
  • Pilots
  • First Responders (e.g., Police Officers and Firefighters)

Some insurance companies even give you a discount for holding a degree in an approved occupation, even if you do not currently work in that field. The state you live in can play a role in the occupational discounts available. The best thing you can do when shopping for car insurance is to inform your car insurance provider of your education and career and ask which discounts might apply to you.

Membership Discounts

You may get a discount on your auto insurance if you’re a member of certain professional or other approved organizations, such as:

  • Alumni Associations – Organizations at schools
  • Professional Organizations – Vocational groups that help you develop your career
  • Auto Clubs – AAA is an example of an auto club
  • Credit Unions – You may qualify if you have an account at this type of bank

The types of organizations that will earn drivers reductions on their premiums will vary among insurance companies. Ask your car insurance agent for a list of approved groups, or contact the membership coordinator of your organization.

Military Discounts

Some auto insurance companies offer military discounts on insurance premiums, and may even offer additional discounts for soldiers who are deployed. Whether you’re active duty or retired, or the spouse or child of someone in the military, be sure to ask about these discounts.

Driver Training and Defensive Driving Programs

Because safer driving means fewer claims, drivers who go out of their way to improve their safe driving skills and behaviors may be given discounts by car insurance providers.
Young drivers may be able to save money by completing an approved driver training (Driver’s Ed) course, while older drivers may be able to get a discount for defensive driving training.

Driver Training

Young drivers who complete a driver’s education program may be offered a discount by insurance providers, since those drivers have been statistically proven to be less likely to engage in risky driving behaviors and get into car accidents. Driver training discount requirements vary by car insurance company and state. In order to qualify you will typically need to:

  • Be under 21 years old
  • Complete a qualifying driver’s education course, and
  • Show proof of completion

Defensive Driving

If you are 21 years of age or older, you may be eligible for a discount by taking a defensive driving course. The course will go over topics like traffic laws, alcohol and drug awareness, and defensive driving techniques. Depending on your state, defensive driving courses may be done online or at designated locations. While restrictions and requirements vary by car insurance company and state, the following standards generally apply:

  • You must complete an approved defensive driving course with a passing grade
  • You can only take a defensive driving class for a discount once every several years

Uncommon Discounts

Here are some discounts that are more uncommon but may be offered by an insurance provider:

Having a Green Vehicle

If you have a hybrid car or one that takes an alternative fuel, you may be entitled to get additional discounts on your insurance policy.

Being Engaged

Married couples usually get better discounting on insurance, but even if you are not actually married, you can still reap the benefits of family insurance discounts. Some offer discounts if you are engaged to be married within the next 12 months.

Switching Early

Some big insurance companies will discount your policy if you get a quote and decide to switch within a certain amount of time of your existing policy expiring. How Safety Equipment Works with Car Insurance Discounts Discover some not so common discounts you may be able to get on auto insurance if you understand your vehicle’s safety features and how insurance companies grade its safety.

7 Tips For Reviewing Your Car Insurance Policy For Maximum Discounts

Reviewing your car insurance policy could save you money and help you discover discounts. Learn these 7 tips on reviewing your current or new policy for maximum savings.