Most insurers offer a range of discounts, and many drivers qualify for more than one. The names, rules and amounts differ from one insurer to another, and some discounts are shaped or required by state law. Use this guide as a list of what to ask about, not a promise of what any particular insurer offers.
Common discounts by category
| Category | Common discounts | Who may qualify |
|---|---|---|
| Driver | Safe driver or claims-free, good student, student away at school, defensive driving or mature driver course | Drivers with a clean record for a set period; full-time students with good grades; students living at school without a car; drivers who complete an approved course |
| Vehicle | Anti-theft devices, safety equipment such as airbags and anti-lock brakes, driver-assistance features, new vehicle, low mileage | Cars with qualifying security or safety equipment; newer models; cars driven fewer miles than average |
| Policy | Multi-policy (bundling), multi-car, loyalty, continuous coverage, early quote or advance purchase | Households insuring a home, renters or several cars together; long-time customers; drivers with no gap in coverage; drivers who shop before the current policy ends |
| Payment | Paid in full, automatic payments, paperless documents, online purchase | Drivers who pay the whole term up front, enroll in autopay or electronic documents, or buy online |
| Affiliation | Employer or occupation, professional and alumni associations, military service, other group memberships | Members of groups that have an arrangement with the insurer; active duty and former military at some insurers |
| Driving habits | Usage-based (telematics) programs, pay-per-mile pricing | Drivers willing to share driving data through an app or device; drivers who put few miles on the car |
Not every insurer offers every discount, and availability can differ by state even at the same company.
Discounts worth a closer look
Safe driver and claims-free
These reward drivers with no at-fault accidents or moving violations over a set number of years. Because they build over time, they are often among the most valuable. Driving carefully protects the discount, and it can also be worth thinking twice before filing a very small claim that would cost little more than your deductible.
Good student and student away at school
Many insurers discount young drivers who are full-time students with strong grades, often a B average or better, and usually ask for a report card or transcript. A student who lives at a school far from home and does not take a car may qualify for a separate discount. Our tips for parents of teen drivers cover more ways to manage the cost.
Driver improvement courses
Some insurers discount drivers who complete an approved defensive driving course, and some states require insurers to offer a discount to older drivers who complete an approved mature driver course. Ask which courses qualify before you enroll, and keep your certificate. See Auto Insurance for Senior Drivers for more on this.
Usage-based programs
Telematics programs measure how you drive through an app or a device. Careful drivers may earn a discount, but read the terms first: some programs can also raise the price for risky driving where state rules allow. Our guide on how to lower premiums covers the trade-offs.
How to ask for discounts
Check your policy
Your declarations page usually lists the discounts you already receive.
Ask directly
Call or message your insurer or agent and go through the questions below.
Send proof
Provide grades, course certificates or membership details they ask for.
Questions to ask:
- Which discounts are on my policy now?
- Which others could I qualify for, and what do you need from me?
- Do any discounts require me to keep doing something, such as using an app or sending grades each term?
- How would bundling, adding autopay or paying in full change my total price?
Keep discounts in perspective
- A discount often applies to only part of the premium, so the saving on your total bill can be smaller than the discount sounds.
- Some discounts cannot be combined, and some insurers limit the total discount on a policy.
- A long list of discounts does not guarantee the lowest price. Compare the final premium for the same coverage.
- Ask again at every renewal and after life changes, such as a move, a new car or a student leaving for school.
Remember: the goal is the lowest price for the protection you need. Never reduce liability limits or drop coverage just to qualify for a discount.
Your next step
Find the discounts listed on your declarations page, then contact your insurer or agent with the questions above. Use the Rate Checklist to gather documents before you shop, and line up the final prices with Compare Quotes. For more ways to save, read How to Save Money on Car Insurance.