The Complete Guide to Car Insurance Discounts in 2025

Car insurance premiums keep climbing, so it’s more important than ever to cash in on every discount available. Whether it’s for safe driving, bundling policies, low mileage, or even being a good student, insurers offer lots of ways to save.

Ask your insurance company what’s available, shop around for quotes, and don’t be afraid to switch companies if another one offers a better deal. Here’s a breakdown of policy discounts by type and other ways to get more savings.

Types of Car Insurance Discounts

Discount Category	Average Percentage Savings
Discounts based on driver types	5% to 25%
Driving history discounts	5% to 30%
Vehicle-related discounts	5% to 23%
Membership/occupational discounts	10% to 25%
Policy-related discounts	5% to 25%

Car insurance discounts fall into five different categories: driver type, driving history, vehicle-related, occupation, and policy-related.

That said, these discounts will vary slightly depending on your insurance company and state, so it’s important to shop around for lower rates.

Keep reading for more information on each type of discount and how to maximize your savings.

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Discounts Based on Driver Type

Insurance companies offer discounts based on the type of driver you are, and there’s often nothing you need to do to earn these discounts. Here are some discounts you may be able to take advantage of based on your driver type, as well as some of the most notable companies offering them:

Discount Name	Potential Savings	How to Get It
Good student	Up to 35%	Provide a copy of your most recent report card, honor roll, dean’s list certificate, or standardized test results, or have your school administrator sign a form proving you have a B or above GPA.
Homeowner	Up to 15%	Provide proof of homeownership to your insurer, like a copy of your home insurance policy, property appraisal or assessment, tax documents, or a mortgage payment coupon.
Student away at school	Varies by insurance company	Provide proof that the student is attending a college that’s at least 100 miles away from their home address, and confirm they’re not taking a household vehicle with them.
Customer loyalty	Up to 20%	This discount is automatic and based on how many years you’ve been with the same insurer, without a lapse in coverage.

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  Good student

  Unmarried, full-time students between the ages of 16 and 23 or 25 (depending on the insurance company) can get a good student discount if they maintain a B or above average GPA in school. Homeschooled students must rank in the top 20% of national standardized test scores, such as the ACT, PLAN, PSAT, or SAT 1.

• 

  Homeowner

  You can qualify for the homeownership discount with select insurers if you own a condo, a townhome, or a single- or multi-family home. You must provide proof of homeownership at the address that matches your vehicle garaging address, such as a mortgage payment coupon, a copy of your homeowners insurance declarations page, county or city tax documents, or a property assessment or appraisal.

• 

  Student away at school

  This discount is available for students younger than 25 who don’t take a car to school with them and drive only occasionally, like coming home during a school break. To qualify, the student must go to a school at least 100 miles from the vehicle’s garaging address.

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  Customer loyalty

  Some insurance companies offer a loyalty discount if you remain with the same insurer for two or more consecutive years. Discounts can range from a continuous coverage discount and accident forgiveness programs to multi-policy and multi-car discounts.

Driving History Discounts

Your driving record is one of the biggest factors influencing your insurance premiums. The better your driving history, the lower you can expect your car insurance to be.

Here are four ways you can earn discounts based on your driving history:

Discount Name	Potential Savings	How to Get It
Good driver	Up to 40%	Maintain a clean driving record with no tickets or accidents for at least three or five years, depending on the insurance company.
Defensive driver	Up to 15%	Complete an online or in-person, state-approved defensive driving course and provide the completion certificate to your insurer.
Low mileage	Varies	Let your insurer know your annual mileage and provide a current odometer reading. You’ll have to provide periodic readings to keep the discount.
Telematics-based safe-driving app	Up to 40%	Download your insurer’s telematics program app or install a plug-in device, depending on your vehicle, so your insurer can track your driving habits and mileage.
Accident forgiveness	Varies	Maintain a clean driving record for longer than five years, depending on the insurance company. You may have to pay for accident forgiveness with some insurers.

• 

  Safe driver

  Good drivers who practice safe driving habits can earn good driver discounts and rewards for avoiding tickets and accidents. Safe driving discount requirements can vary by insurance company — you may have to have a clean driving record for three to five years to be eligible.

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  Defensive driver

  Drivers who complete a state-approved defensive driving course online or in person can be eligible for a defensive driver discount. Although some insurance companies offer this discount only to seniors, others allow drivers of all ages to take advantage of the savings by completing a driver safety course.

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  Low mileage

  The low-mileage discount is for drivers who drive less than 13,500 miles per year (the national average), according to the Federal Highway Administration. Mileage requirements vary by insurance company — some may limit annual mileage to 7,500 or 10,000, for example, and you usually have to provide an annual odometer reading to remain eligible for the discount.

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  Telematics-based safe-driving app

  Some insurance companies offer usage-based telematics programs. In exchange for monitoring your mileage and driving habits like speed, hard braking, and fast accelerations, the insurer will reward you for safe driving habits. Although most insurers offer only discounts for participation, some may increase your insurance premiums if your driving habits prove you’re making more risky driving decisions than safe ones.

Vehicle-Related Discounts

The car you drive also plays a big role in determining how much you pay for car insurance. Certain vehicles have features that can make you safer on the road and decrease the likelihood of theft.

Here are four vehicle-related discounts your insurance company may offer:

Discount Name	Potential Savings	How to Get It
Alternative energy	Up to 5%	Insure an alternative-fuel, electric, or hybrid vehicle.
Anti-theft devices	Up to 23%	Install a qualifying anti-theft device, such as a car alarm, VIN etching, steering wheel lock, recovery system, or vehicle tracking system, in your vehicle.
New car	Up to 15%	Insure a vehicle that’s three years old or newer.
Safety equipment	Up to 23%	Choose a car with safety features, like airbags, an anti-lock braking system (ABS), daytime running lights, or collision-avoidance systems.

• 

  Alternative energy

  A few auto insurance companies offer a discount to drivers with hybrid, electric, or alternative-fuel vehicles.

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  Anti-theft devices

  Many of the top auto insurers offer an anti-theft discount for disabling devices that deter theft, such as a steering wheel lock, a car alarm, VIN etching, or a vehicle tracking or recovery system installed in the car. The types of devices and discount savings vary by insurance company.

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  New car

  If your vehicle is less than 3 years old, you may qualify for a new car discount. The discount varies by make, model, and insurance company.

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  Safety equipment

  Installing safety features in your vehicle can also make you eligible for a discount with many car insurance companies. For example, airbags, blind-spot detectors, locking seat belts, daytime running lights, and anti-lock brakes can make you eligible for a passive restraint discount. Newer cars with adaptive technology, like lane assist, automatic emergency braking, and electronic stability control, could also lower your auto insurance premium.

Membership and Occupational Discounts

Auto insurance companies also offer discounts based on your profession. You may be able to earn a discount if you work in one of the following careers:

Discount Name	Potential Savings	How to Get It
Military and veterans	Up to 25%	Provide your insurer with proof of military status, which may include your deployment assignment, current orders, or DD Form 214 separation paperwork for veterans.
Teacher	Up to 50%	Varies by insurer and state but usually requires proof of membership in a teaching association or a copy of your teaching certificate or license.
Federal employee	Up to 12%	Active and retired federal employees need to provide proof of a GS-7 or higher position in the pay system or be part of a qualifying affinity group to qualify for this discount.

• 

  Military and veterans

  Active-duty military members, reservists, and armed forces veterans are eligible for a military discount with some car insurance companies. Some insurers may also have additional discounts if you live on a military base or put your car in storage during deployment.

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  Teacher

  If you’re a teacher and can provide proof of employment with a school system, you can usually lower your auto policy costs with a teacher-specific discount. Some insurers even offer customized coverage options, like personal property coverage and vandalism loss protection.

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  Federal employee

  A federal employee discount is another example of an affinity discount many car insurance companies offer. The list can also include colleges, universities, and members of certain businesses, charities, professional organizations, occupation groups, credit unions, and retiree organizations. Young drivers can also take advantage of discounts if they’re members of a fraternity or sorority, as can adults who are alumni. Discount amounts, eligibility requirements, and insurance company participation vary.

Policy-Related Discounts

Some companies offer discounts based on your specific policy type, making them easier for most people to take advantage of. It’s a good idea to ask your insurance agent about how to take advantage of policy-related discounts.

Discount Name	Potential Savings	How to Get It
Bundling	Up to 25%	Insure your car and another qualifying policy, usually a home, renters, condo, or life policy, with the same company.
Automatic payment	Up to 5%	Set up auto pay from your bank account, debit, or credit card for your auto insurance policy.
Early shopper	Up to 5%	Get a quote from a different company at least seven days before your current policy expires.
Pay-in-full	Up to 15%	Pay your entire premium in full.
Paperless	Up to 5%	Sign up for paperless documents.
Multi-vehicle	Up to 25%	Insure more than one car with the same insurance company.

• 

  Bundling

  Insuring your car and home insurance with the same insurer is often the largest single discount available. You can also typically get a multi-policy discount if you insure your auto with other insurance policies, like boat, ATV, or life insurance.

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  Automatic payment

  If you make automatic credit card or EFT monthly payments instead of paying the bill yourself, you may get a lower rate. This is also a great way to set your payment and forget about it so you don’t risk losing your insurance coverage.

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  Early shopper

  The advance quote discount is available if you shop for insurance seven or more days before your current policy expiration date.

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  Pay-in-full

  Another way to save money on your car insurance premium is to pay the policy in full.

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  Paperless

  If you opt for paperless documents instead of getting them mailed to you, most insurance companies will pass along the savings with paperless auto insurance discounts.

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  Multi-vehicle

  When you own more than one car, insuring them all with the same insurance company is a good idea because it’s easier to keep track of your policy dates and bill payments. Most insurance companies also extend a multi-car discount, which you can stack with other discounts to get even more savings.

Usage-Based Discount Programs

Usage-based insurance (UBI) programs offer drivers a way to lower their car insurance rates based on driving behavior. You get an initial discount of 5% to 10% for participating and a final discount based on your driving score. The insurance company tracks driving habits through a smartphone app or plug-in vehicle device.

We highlight seven UBI programs in the table below and the pros and cons of each program.

Insurance Company	UBI Program Name	Maximum Discount
Progressive	Snapshot	Up to $322 per year
Liberty Mutual	RightTrack	30%
State Farm	Drive Safe & Save	30%
Allstate	Drivewise	40%
Travelers	IntelliDrive	30%
Nationwide	SmartRide	40%
The Hartford	TrueLane	25%

• Progressive Snapshot: You can earn up to $322 in savings annually, but around two in 10 drivers see their premiums increase due to poor driving behaviors. To maximize your savings potential, avoid driving late at night, braking hard, accelerating fast, and distracted driving.

• Liberty Mutual/Safeco RightTrack: This program only requires 90 days to earn up to 30% savings on your car insurance coverage with the Liberty Mutual mobile app. But only Android phones with a gyroscope, accelerometer, and proximity sensors are eligible.

• Drive Safe & Save: You can use your smartphone or connected car account to participate in State Farm’s program. You can earn up to 30% in savings, but your discount can fluctuate after each policy period, depending on your driving habits in the previous term.

• Allstate Drivewise: Although Allstate advertises that its program can save you up to 40%, many participants realistically expect to save around 20% to 25%. And while it doesn’t track your location, many reviewers complain that it drains their smartphone battery quickly.

• Travelers IntelliDrive: Like with Snapshot, participating in this telematics app program could cause your rates to increase if your prior term’s driving habits were too risky. But it only takes 90 days to get your first discount, which could help you get better rates on your renewal.

• Nationwide SmartRide: Nationwide’s safe driving program allows you to earn up to 40% in savings in as little as 80 days, to be applied at your next renewal. Your savings can only increase with each renewal if you stay with the program, and it won’t go down like with other companies. But it might not be the best choice if you drive a lot or late at night.

• The Hartford TrueLane: The Hartford’s app tracks driving habits, similar to other programs, plus your location. Although you can save 12% when signing up, the maximum final discount is 25%, the lowest of the insurance company usage-based programs.

More Ways to Save on Car Insurance

Although adding car insurance discounts to your policy is an easy way to save, it’s not the only option. Here are a few more tips to save on your auto insurance policy.

Compare car insurance quotes

Car insurance rates can vary dramatically by insurer, even with the same coverage types and limits, so shopping around is worth it. Check your rates with at least three different companies each time you receive your policy renewal to make sure you’re still getting the best deal.

Here are some examples of average full-coverage rates from different auto insurers, according to Compare.com data.

The below rates are estimated rates current as of: Monday, October 6 at 12:00 PM PDT. 

Company	Average Monthly Premium
COUNTRY Financial	$67
Auto-Owners	$76
NJM	$95
USAA	$97
Mile Auto	$106
State Farm	$109
Erie	$121
Allstate	$136
GEICO	$138
Safeco	$139
CSAA	$141
American Family	$145
Root	$151
Anchor	$158
Mercury	$161
Metromile	$162
Direct Auto	$163
Elephant	$172
Progressive	$173
The General	$176
National General	$176
Nationwide	$177
Travelers	$184
Clearcover	$192
Bristol West	$206
Commonwealth Casualty	$210
Farmers	$212
Chubb	$213
Liberty Mutual	$221
GAINSCO	$222
Shelter	$228
21st Century	$229
The Hartford	$244
State Auto	$244
AssuranceAmerica	$244
Dairyland	$261
Amica	$435

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

Adjust coverage levels on older vehicles

If you drive an older vehicle or one that isn’t worth much, it might not make sense to keep full coverage. Keeping comprehensive and collision coverage may not be worth it if your vehicle’s value is less than 10 times your insurance cost.

Compare the cost of coverage to how much you’d get if someone totals your car, which is the actual cash value minus your deductible. You can use sites like NADA, TrueCar, and Kelley Blue Book to get a free vehicle valuation.

Raise your deductibles

If you need comprehensive and collision coverage, choosing a higher deductible (like $1,000 instead of $500) can lower your premium. Just make sure you’re able to cover the higher deductible if you need to file a claim.

Shop for insurance before buying a car

Before you fall in love with a car, check how much it’ll cost to insure, because rates can vary widely by vehicle make and model. Some cars are more expensive to repair, have a high vehicle theft rate, or have lower safety ratings, all of which can raise your premium.

For example, luxury brands cost about 16% more to insure, electric vehicles around 8%, and SUVs are about 8% less than the average vehicle, according to our research.

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