The Top Car Insurance Discounts You Need To Know About

January 15, 2020

Many people are over-paying on their car insurance without even knowing it. Consumer advocates say insurers may raise your rate if they think you won’t shop around for a better deal.

Car insurance companies have plenty of discounts available to you, but don’t expect them to tell you about them. We bet you probably didn’t even know about some of these… but keep reading to discover where you can save on your auto insurance.

Senior discount

Who offers it? Farmers, Liberty Mutual, State Farm

Some insurance providers reward the mature drivers with many years of experience. If you’re a senior, you may want to take advantage of this deal. With Liberty Mutual, if you’re newly retired, you can receive a discount on your premium. State Farm has discounts for older drivers in a few states as well.

Daytime running lights discount

Who offers it? Farmers GEICO, State Farm, USAA

Daytime running lights are standard on most cars and switch on automatically when your car is in drive, ensuring you’re always visible on the road. Some older vehicles don’t have the automatic lights, and have to be turned on manually. When these installed, you may be able to save a little on your insurance.

Eco-friendly car discount

Who offers it? Farmers, Liberty Mutual, Travelers

Eco-Conscious drivers enjoy government incentives for choosing a “green vehicle” and insurance companies are jumping on board, too. If you drive a hybrid, electric car, or and alternative fuel vehicle, you may be eligible for a discount on your premium.

Military discount

Who offers it? Farmers, GEICO, State Farm, USAA

Many insurers give active service members, retired military personnel and military family members discounts on their auto policies. After all, members of the military and their families have done so much for our country.

USAA has the best military discounts, whose company was founded by 25 Army officers.Its deals include up to 15% off your premiums when you live on base, and up to 60% off when you put your car in storage.

Affinity discount

Who offers it? Farmers, GEICO, Liberty Mutual, Nationwide, Travelers

Some insurers reward you for your hard work in professions or memberships such as: doctors, nurses, dentists, teachers, police officers, and firefighters. Geico says it offers federal government employees savings of up to 8%, plus it has a list of more than 500 groups that qualify for rate cuts, including alumni associations, sororities and professional organizations.

New vehicle discount

Who offers it? Allstate, Farmers, Nationwide, Travelers, USAA

If you have a new or new-is car, you may be eligible for rate cuts up to 15% if you own this year’s model or a car less than 3 years old.

Early signing discount

Who offers it? Allstate, American Family, Farmers, Nationwide, Travelers

You could say this discount rewards the opposite of loyalty. You might now get a price cut if you sign up to switch over before your existing policy expires. You may have to make the change within a certain number of days before your policy is up — but some insurers offer savings if you just don’t let your insurance lapse before your new policy begins.

Homeowner discount

Who offers it? Farmers, Nationwide, Progressive, State Farm, Travelers

If you own a house or condo, you could save money on your car insurance. There might be strings attached. For example, Nationwide tells customers in Connecticut they can save 7% on car insurance if they own a home and promise to insure it through the company within one year.

Air bags discount

Who offers it? American Family, Farmers, GEICO, Nationwide, State Farm, USAA

This is a easy discount that applies to almost every vehicle with basic safety features. All you need is a newer car with air bags or other “passive restraints,” such as motorized seat belts.

You could save up to 40% on the medical payments or personal injury part of your premium with Geico just for having full front seat air bags. American Family says factory-installed air bags can cut the overall cost of your policy by up to 30%.

Anti-lock brakes discount

Who offers it? Allstate, Farmers, GEICO, Liberty Mutual, State Farm, USAA

If you brake suddenly, anti-skid or anti-lock braking systems (ABS) allow your car’s wheels to stay in contact with the road, instead of locking up. This keeps your car from skidding uncontrollably into an accident or off the road. You can save 5% on your insurance if you have this safety feature.

Anti-theft discount

Who offers it? Allstate, Farmers, GEICO, Liberty Mutual, Nationwide, Progressive, State Farm, USAA

Comprehensive car insurance covers all sorts of loss unrelated to accidents — including theft. If you have a alarm system installed in your car to reduce the risk of having your car stolen, insurance companies will give you up to 25% off the comprehensive part of your premium.

Low milage discount

Who offers it? Allstate,  American Family, Farmers, Liberty Mutual, Nationwide, Progressive, State Farm, USAA

The less you drive, the less likely you are to get in an accident. That’s why most insurers reward the drivers who keep their milage low. To determine your mileage, companies may require that your driving habits be tracked, either through an app on your smartphone or a gadget installed on your vehicle. Most of the major insurers have these “telematics” monitoring programs.

Full payment discount

Who offers it? Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, Travelers

Are you being charged a “billing fee” on every invoice? Annoyingly, many insurance companies charge some kind of administrative fee each time they issue you a statement. But many of them also offer a discount if you’re willing to pay the full six-month cost of your policy upfront, instead of in installments. You can save up to 10% for paying in advance.

Defensive driver discount

Who offers it? Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, State Farm, Travelers, USAA

If you take a defensive driving course, your insurer may reward you for it. The class can cost as little as $25, and you can find one online, or in-person at a driving school where you live.

Multiple policy discount

Who offers it? Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, USAA

As a general rule, the more policies you buy, the more you save. For example, State Farm says you can save up to 17% off your auto insurance premiums if you also have homeowners, renters, condo or life insurance through the company.

Good student discount

Who offers it?  Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, USAA

If you’re a student, or if you have a student who has a B average or high, you can save up to 25% on their portion of the policy. When a student has good grades, they are view as more responsible and less likely to get in accidents.

Good driver discount

Who offers it? Allstate, American Family, Farmers, Geico, Liberty Mutual, Nationwide, Progressive, State Farm, Travelers, USAA

This is one of the biggest insurance discount. Some insurers reward good driving after just three years, while others want to see five years without accidents. Geico gives up to 26% off most policies for safe drivers, while Liberty Mutual offers up to 30% off for the life of your policy if you demonstrate safe driving behaviors during 90 days of electronic monitoring.

Quick Money Savings Tip For Safe Drivers

There are dozens of auto insurers – Which one will give you the best rate?

Step 1) Choose your vehicle make below.
Step 2) On the next page, complete the 4 minute questionnaire, and you'll have the opportunity compare the best rates in your area.
Step 3) Keep more money and possibly save hundreds!


1 Choose a make for potential car insurance discounts:

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