Best Car Insurance Discounts: How & Where To Get Them (2025)

Although there are many ways to save on coverage, finding the best car insurance discounts is one of the easiest and most effective. From common ways to save, like bundling multiple insurance policies from the same company, to hidden auto insurance discounts you may not know about, finding cheap car insurance doesn’t have to be a struggle.

Read on to learn about finding discounts for car insurance, including both uncommon and common car insurance discounts. Then, compare quotes and research your options to find the best car insurance discounts for you.

Types of Car Insurance Discounts

There are so many possible auto insurance discounts that it can be a little overwhelming.

In this section, we’ll break down the most common categories of car insurance discounts: customer loyalty, demographics, affiliation, driving history/training, vehicle equipment, and payment method.

Keep reading to find out more.

Best Car Insurance Discounts by Customer Loyalty

This type of discount would apply mainly to those of you who have a pretty good relationship already established with your insurance provider.

You could qualify for several types of customer loyalty discounts: bundling, early renewal, multi-car, and overall customer loyalty.

Types of Customer Loyalty Discounts

The “Bundling” discount is applied when a driver has other policies (home, life, or health) with the same insurance provider.

The “Early Renewal” discount is when a driver signs (“renews”) before their policy expires.

The “Multi-Car” discount is when a driver insures more than one vehicle under the same insurance provider.

The “Customer Loyalty” discount is when a driver has their policy in effect for more than one consecutive year.

How Much You’ll Save with Customer Loyalty Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Customer Loyalty Discounts

To qualify for the “Bundling” discount, you’ll need an additional insurance policy (home, health, etc.) with the insurance provider.

To qualify for the “Early Renewal” discount, you must ensure that you are on top of your insurance policy and the date on which your policy expires.

Signing before your insurance policy expires ensures this discount, but if you fail to sign before the end period, you will have to wait until you get your new insurance policy and start again.

If you want to qualify for the “Multi-Car” discount, you will need to insure at least one other vehicle with your insurance company.

To qualify for the overall “Customer Loyalty” discount, you will want to remain with your insurance provider for at least a year. If you decide to change insurance providers during this period, you will start over again with your needed provider.

Best Car Insurance Discounts by Demographic

Simply just being in a particular demographic can actually also help to save you a few extra bucks on your insurance policy.

A few of the most common types of demographic discounts include good student, homeowner, low-income, and senior discounts.

Types of Demographic Discounts

The “Good Student” discount applies to high school/college students (under the age of 25) with at least a 3.0 (B) grade point average and will help you get the best auto insurance for students.

The “Homeowner” discount is when a driver also owns a single-family home or condominium (in addition to their vehicle).

The “Low-Income” discount is when a driver meets the state-mandated income requirements (state-dependent on what each state considers a “low-income.”

The “Seniors ” discount is typically a state-mandated discount that is only offered to drivers over a particular age limit (depends on your state what that age limit is). The best auto insurance for seniors includes other discounts that are offered by the company.

How Much You’ll Save with Demographic Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Demographic Discounts

In order to qualify for the “Good Student” discount, you will need to be a student (less than 25 years old) currently enrolled in high school or college. With this, you will also need to have and maintain at least a 3.0 (B) grade point average.

If your grade point average dips below this, if you un-enroll from high school or college, or are over 25 years old, you will no longer qualify.

For those students who are obtaining their GED, unfortunately, this discount will also not apply to you.

As long as you own your own home, you will qualify for the “Homeowner” discount. This discount doesn’t apply to renters living in a house — only homeowners are eligible.

The “Low-Income” discount varies from state to state, as to qualify for this discount means that you will need to meet your state’s mandated requirement for income-eligible drivers.

To qualify for the “Senior” discount, you will need to be over the particular age limit that your state mandates. Make sure to check your state’s DMV website for information on what is considered “Senior” for your state.

Best Car Insurance Discounts by Affiliation or Employment

Belonging to a particular organization can actually help save you some extra cash!

The most common affiliation discounts are affinity, military, and emergency roadside assistance.

Types of Affiliation Discounts

The “Affinity” (also known as “Affiliation”) discount is obtained through a driver’s employer, school, team, club, or other membership.

The best auto insurance for military members comes with a discount for drivers who are active military personnel or are in a household with active military personnel.

The “Emergency Roadside Assistance” discount is for those drivers who have purchased roadside assistance or if the driver is driving a car that comes with it.

Discounts based on employment – or what you do for a living, are also common. These include car insurance discounts for teachers, car insurance discounts for nurses, and first responders.

How Much You’ll Save with Affiliation Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Affiliation Discounts

In order to qualify for the “Affinity” discount, you will need to find out what kinds of discounts are available to you through your employer, your school, your team, any clubs you belong to, and any memberships you have.

The “Military” discount will only qualify for those individuals who serve in some branch of the military and is considered “active personnel”. If you are not active, retired, or discharged, you may not qualify for this discount.

To obtain the “Emergency Roadside Assistance” discount, you will need to purchase this from your insurance provider. In addition, you can also qualify for this if you have purchased Emergency Roadside Assistance from an organization such as AAA.

Best Car Insurance Discounts by Driving History and Training

Do you have a good driving record? Maybe you’ve gone above and beyond and decided to take a driving course to help improve your driving skills.

Well, if you have, you’ll be rewarded for your efforts through the various driving history and driving training discounts available.

We’ll cover the most common discounts in this category; accident-free, defensive driver education, driving training, good/safe driver, and usage/low mileage.

Types of Driving History and Training Discounts

The “Accident-Free” discount is for drivers who have had no “chargeable” accidents (those that cost the insurer money) during the past three to five years.

The “Defensive Driver Education” discount is for drivers who have taken a specific defensive driver education course. This discount may be limited to seniors, teens, or inexperienced drivers; and can only be through an approved course.

The “Driving Training” discount is for drivers under the age of 21 years old who have taken a specific (and approved) driving training course.

The “Good/Safe Driver” discount is for drivers with no at-fault accidents or moving violations within the last three to five years.

The “Usage/Low-Mileage” discount is for drivers who typically drive only between 5,000 to 15,000 miles per year (depending on insurer requirements).

How Much You’ll Save with Driving History and Training Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Driving History and Training Discounts

In order to qualify for the “Accident-Free” discount, you will need to have not been involved in a “chargeable” accident for a period of three to five years. But what exactly is a chargeable accident?

A “chargeable” accident is an accident in which you filed a claim with your insurance provider, and they provided you with funding for this claim.

The “Defensive Driver Education” discount can only be applied if you have gone through an approved course designed for inexperienced drivers (such as teen drivers, seniors, etc.). If you do qualify, you can check out a Defensive Driving School to see if there are any approved courses available near you.

In order to qualify for the “Driving Training” discount, you need to be under the age of 21 years old and take some sort of driver training course.

But what is the difference between a defensive driving course and a driver training course?

Typically, those individuals taking a defensive driving course have already received a ticket from law enforcement due to poor driving. Driver training is typically for those individuals learning to drive for the first time.

You can qualify for the “Good/Safe Driver” discount as long as you’ve had no accidents in which you were the one who caused the accident or if you haven’t had any moving violations during the last three to five years.

The “Usage/Low-Mileage” discount will be available if you, on average, have a shorter commute. This is highly dependent upon your insurance provider, as a lot of providers will already give you a discounted rate for having a shorter commute time.

If they do not already provide this discounted rate, you can qualify for this discount if you drive anywhere between 5,000 to 15,000 miles per year.

Best Car Insurance Discounts by Vehicle Equipment

Just having particular equipment in your vehicle or a specific type of vehicle can help earn you extra discounts.

Some of the most common discounts in this category are anti-lock brakes, anti-theft, green/hybrid vehicles, new cars, and safety restraints. Each may come with eligibility criteria based on your vehicle type.

Types of Vehicle Equipment Discounts

The “Anti-lock Brakes” discount is for drivers who have anti-lock brakes equipped in their vehicles.

The “Anti-Theft” discount is for drivers who have installed anti-theft equipment such as alarms, tracking systems, and kill switches.

The “Green/Hybrid Car” discount is for drivers who own (or lease) a hybrid/electric vehicle.

The “New Car” discount is for drivers who own a vehicle that is three years old or newer.

The “Safety Restraints” discount is for those who have an older vehicle with factory-installed airbags.

How Much You’ll Save with Vehicle Equipment Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Vehicle Equipment Discounts

To qualify for the “Anti-lock Brakes” discount, you will simply need to be able to prove that your vehicle has anti-lock brakes to your insurance provider.

The “Anti-Theft” discount is similar to the “Anti-Lock Brakes” discount, as you will need to provide proof to your insurance provider that you have at least one type of anti-theft equipment installed in your car, which may have to be factory-installed.

In order to qualify for the “Green/Hybrid Car” discount, you will need to find out which green/hybrid vehicles are approved for this discount per your insurance provider.

The “New Car” discount will apply to any driver who has a new vehicle, classified as any car no older than three years old.

The “Safety Restraints” discount will only apply to drivers who have a vehicle with factory-installed airbags. This would be typically seen in vehicles from the 1990s or earlier. Be sure to check with your insurance provider to find more details on which specific vehicles would qualify.

Best Car Insurance Discounts by Payment Method

How you pay for your insurance coverage can also actually provide you with additional discounts. By far, this is probably one of the easiest categories to get insurance discounts. Luckily, there are plenty of car insurance companies that sell online, so it’s easy to find a payment option that works for you.

The most common types of discounts in this category are auto-pay, paid in full, and paperless.

Types of Payment Discounts

The “Auto-Pay” discount is for drivers who have chosen to pay for their insurance coverage by setting up an automated payment from their checking account.

The “Paid in Full” discount is for drivers who have paid their insurance premiums in their entirety at the start of their policy.

The “Paperless” discount is for drivers who’ve opted not to have paper statements and view and pay their bills online.

How Much You’ll Save with Payment Discounts

The following are the typical amounts that you can see for these discounts:

How to Qualify for Payment Discounts

To qualify for the “Auto-Pay” discount, you will need to set up an automated payment system with your insurance provider. Link it to your checking account, and you won’t even need to worry about making your payments on time anymore! It’ll automatically withdraw the payment for you.

If you would like to qualify for the “Paid in Full” discount, you will need to ensure that you have paid your premium in full each month. If you are on top of your finances, this will be an easy discount to obtain.

The “Paperless” discount will be applied to any driver who opts to have their car insurance information online as opposed to having printed statements/information sent to them each month.

Finding the Best Car Insurance Discounts for You

Now that you know what kinds of car insurance discounts are available to you, which ones are most worth it for you?

This can be high up to your own opinion, but based on a few different factors, we can narrow out some of the discounts that would be most worth it for you!

In the table below, we’ll display the car insurance discounts from the highest average savings to the lowest. Review our data to find which discounts might lead to cheap car insurance rates for your policy.

Discounts with the Highest Percentage of Savings

Read more: Best Car Insurance for Low Income Drivers

So on average, the discounts that will save you the most are the “Affinity” and the “Good/Safe Driver” discounts. Remember being a smart driver with good driving habits is always a best practice both for obtaining affordable rates and staying safe on the road.

Lastly, we’ll quickly talk about which of these categories will require the least amount of work from you to obtain the discounts and which will require the most work.

Based on effort, the categories you will have to do the least amount of work for are the Payment and Affiliation categories. Why?

You can obtain pretty much all of the payment discounts online, and with just a few clicks of a button, you could potentially acquire all three of them.

The affiliation category is also easiest as most simply require you simply check with any organizations you already belong to (your employer, your team, your school, etc).

With the exception of the “Emergency Roadside Assistance” discount, which you would need to acquire, all others simply are just through things you are already associated with.

Discount categories that will require the most work would be the Vehicle Equipment and Driving History/Training categories.

To qualify for most of the discounts in this category, if your vehicle does not already have the equipment listed, you will need to take your vehicle to the dealership/car shop in order to have these parts installed. If you already do have these pieces of equipment installed, then this discount category would be easy to obtain.

Driving History and Training is by far the hardest discount category to receive, and to maintain, as it has mostly to do with your own driving abilities.

If you are able to obtain one of the discounts in this category, with the exception of the training courses, you will have to maintain very safe driving practices in order to keep your discount.

If you were to, for example, have the “Accident-Free” discount but end up getting into an accident a few months later, this discount is taken away. Not only that, but then the clock starts all over again for you to be able to apply for the discount again.

Car Insurance Discounts by Company

We’ll now briefly touch on who offers what discounts. The best car insurance companies offer a variety of discounts for drivers to take advantage of.

The extensive table below displays the type of discount compared to which providers currently offer this discount to drivers.

Car Insurance Discounts by Provider

Tips on Getting Car Insurance Discounts

Now that you know all of this information, we’ll give you a few tips to help get you the car insurance discounts you want and need.

• Research your options.  Always shop around and do your research on the discounts you think you qualify for, and compare that to your current insurance provider’s offerings (or another insurance provider if you’re looking to switch).
• Bundle up. If you’re also in the market for other types of insurance coverage, see if you can get all of your insurance coverage through one provider. Just remember to only buy how much car insurance you need.
• Come prepared. When you are looking into the different car insurance discounts out there for you, come prepared to your insurance provider with the proof and information they need to apply these discounts to you. Receipts, print-out copies, whatever you have, make sure you have it on hand.
• Make it a yearly adventure. If you didn’t qualify for one discount one year, make sure you check in next year to see if you qualify then. Time is your friend, so make sure to use it to your advantage.
• Be logical with spending. Instead of doling out a bunch of money for some of the fancier car insurance discounts, try going for some of the discounts you can qualify for that won’t cost you as much (or at all).

That’s it, you’ve made it to the end of this guide! We hope this was helpful for you and can be useful when it comes time for you to start looking for car insurance discounts.

If you want to start comparing rates today to get car insurance, make sure to use our FREE online tool.

Auto Insurance Discounts Explained

To kick off this guide, we’ll talk briefly about what exactly a car insurance discount is and how they can help to save you money.

A car insurance discount is a deduction from the usual cost of your car insurance policy, typically given for various factors. When you’re wondering how to lower your car insurance rates, looking at discounts is a great place to start.

So depending on what kinds of insurance discounts your insurance company has available, you can qualify for those discounts and add them to your auto policy to help reduce your rates.

The wonderful thing about discounts is that you can qualify for more than just one. That means that if you meet the requirements of multiple car insurance discounts, they all can be credited toward your insurance rates. In fact, taking advantage of multiple discounts at once is the simplest way to find the best car insurance deals.

Something important to note, however, is that not all discounts may not be available in all states or from all insurance providers. When making your buying decision, you must check with your state and provider to see what discounts are available for you.