What Are the Best Auto Insurance Discounts?

Last Updated on December 11, 2025

Most auto insurance companies offer a long list of discounts, but they don’t always apply them automatically. When you shop for car insurance, you should ask every insurer for a full list of discounts and have the agent walk through which ones you qualify for. Even if your base rate is high, stacking multiple discounts can lower your premium by hundreds of dollars per year.

Below are some of the best auto insurance discounts to look for, how they work, and tips for qualifying.

Key Takeaways

• Most insurers offer dozens of discounts, but many only apply if you ask and prove you qualify.
• The biggest savings often come from bundling policies, good driver status, multi-car coverage, and telematics or low-mileage programs.
• Students, homeowners, military members, certain professions, and members of clubs or associations may qualify for additional affinity discounts.
• Review your policy at least once a year, verify every discount you receive, and compare quotes regularly to make sure you’re not leaving easy savings on the table.

1. Bundling discount

One of the most common and valuable discounts available is a bundling discount. Most car insurance companies also offer other types of insurance, like home, renters, and life insurance. When you purchase multiple policies through the same company, they’ll usually give you a discount on each policy.

Bundling can make your coverage simpler to manage and can lead to generous savings, especially when you combine auto and homeowners insurance. Just remember to compare the “bundled” price against stand-alone policies every few years to make sure your bundle is still a good deal.

2. Good driver discount

Another discount that virtually every company offers is a good driver discount. It can be challenging to qualify, but if you do, you can save a significant amount of money on your policy.

To qualify, you’ll typically need three to five years of a spotless driving record. That usually means no at-fault accidents, DUIs, or major traffic violations and, with many insurers, no recent minor tickets either. If there are multiple drivers on your policy who qualify, your discount can grow even larger.

When you practice safe driving habits, you’re less likely to get into an accident, which is why insurance companies reward good drivers with lower premiums.

3. Multi-car discount

It’s also common for insurance companies to offer a multi-car discount when you insure more than one vehicle on the same policy. Your overall bill will still be higher when you insure two or more vehicles, but the cost to insure each vehicle is usually lower than if you put them on separate policies.

To qualify, the cars usually need to be kept at the same address, and the policyholders are often required to be related or part of the same household. If you live with a spouse, partner, or family members, ask your agent if combining vehicles onto one policy could save everyone money.

4. Good student discount

Most insurance companies offer good student discounts to young drivers who get good grades. You’ll typically need at least a 3.0 GPA (or a “B” average) to qualify for this discount, although some insurers have slightly different rules. If you’re a college student, you’ll usually need to be enrolled full-time to keep the discount.

Younger drivers are statistically riskier to insure, so car insurance companies charge them higher rates. The good student discount helps offset some of those extra costs for responsible young people. Plan on providing report cards or transcripts once or twice a year so your insurer can verify your grades.

5. Tracking app (telematics) discount

An increasing number of insurance companies are releasing apps that track their customers’ driving habits, and they offer discounts to drivers who use them. While each tracking app is different, most will monitor your speed, braking habits, time of day you drive, and any phone use while driving. After each trip, the app calculates a driving safety score—the better you drive, the better your potential discount.

You’ll usually get a small discount just for signing up, and then a larger discount if your driving data looks good. These apps encourage safer driving, which can reduce accidents and claims, and they give insurance companies detailed insight into their customers’ habits.

Some notable telematics programs include GEICO’s DriveEasy, USAA’s SafePilot, Allstate’s Drivewise, Allstate’s Milewise, Farmers’ Signal, MetLife’s My Journey, Travelers’ Intellidrive, Liberty Mutual’s RightTrack, Nationwide’s SmartRide, American Family’s KnowYourDrive, and Esurance’s DriveSense.

Before enrolling, be sure you’re comfortable sharing driving data and understand whether the program can ever raise your rate, or if it only offers discounts.

6. Defensive driving discount

In many states, you can earn a discount on your car insurance by taking a defensive driving course. These classes are typically just a few hours long, and many can be taken online.

Talk to your insurance company before you sign up so they can point you to approved course providers. In some states, you may need to retake the course every few years to keep the discount. A defensive driving class may also help remove points from your license or reduce a ticket, depending on state law.

7. Safety features discount

Car insurance companies offer discounts for having various safety features in your car. When you sign up for car insurance, make sure your agent knows about all the safety tech your vehicle has—you might be surprised by what qualifies for a discount.

If you have high-quality airbags, anti-lock brakes, or anti-theft devices of any kind, you’ll usually qualify for at least a small discount. Newer vehicles with advanced driver assistance systems (ADAS)—such as automatic emergency braking, lane-keeping assist, or blind-spot monitoring—may qualify for additional savings because they help prevent crashes.

8. Homeowner discount

It may seem counterintuitive, but you can actually get a discount on your car insurance for owning a home. Even if your home insurance isn’t with the same company, many auto insurers will give you a price break if you can prove you own a home or condo.

The logic is that homeowners are statistically considered more financially stable and more likely to pay their bills on time. If you can combine a homeowner discount with a bundling discount (by placing your home and auto with the same insurer), your savings can add up quickly.

9. Pay in full & billing discounts

Most people opt to pay their car insurance in monthly installments. However, if you can pay your six-month or annual premium in full, you can usually save money. You’ll avoid billing and installment fees, and many insurers give an additional “paid in full” discount on top of that.

If paying in full doesn’t fit your budget, ask about smaller billing discounts instead. Many companies offer savings for automatic payments (auto-pay) or paperless statements. These are easy discounts to keep as long as you maintain an active bank account or email address and avoid late payments.

10. Low mileage & usage-based discounts

If you don’t drive often, your insurance company may offer you a low mileage discount. In some programs, you’ll receive a small device or use an app that tracks your odometer or mileage and reports it to your insurer. The fewer miles you drive, the less you pay.

Many companies now offer full mileage-based insurance programs, which charge a base rate plus a per-mile fee instead of a traditional flat monthly premium. These plans can be great for people who live in big cities with public transportation, those who work from home, or households with extra vehicles that don’t see much road time.

11. Loyalty & legacy discounts

Auto insurers want to keep their customers, so they’ll offer loyalty discounts to policyholders who stay with them for a certain period of time. This discount varies by provider, but you’ll typically qualify once you’ve been with a company for at least two or three years.

If you’re a young driver, you might also be able to get a legacy discount by using the same car insurance company as your parents. However, don’t assume loyalty always gives you the lowest price—compare quotes every few years to be sure your long-term insurer is still competitive.

12. Military & veteran discounts

If you’ve served our country, many insurance companies want to reward you with a discount on your policy. These discounts can be significant, so it’s worth asking whether you’re active duty, retired, in the reserves or National Guard, or even a surviving family member.

USAA is an insurance company that’s available only for members of the military and their families, and they’re known for competitive rates and strong customer service. Even if you haven’t served personally, you may be able to qualify for a military-related discount through a spouse, parent, or other eligible family member.

13. Good credit discount

An increasing number of car insurance companies offer discounts to customers who have good credit. Studies have shown that people with higher credit-based insurance scores are more likely to pay their bills on time and are less likely to file certain types of claims, so insurers often reward them with lower rates.

If you have good credit, be sure to mention it when getting quotes. A history of on-time payments with previous insurers can also help. Keep in mind that this type of discount isn’t available in every state—some states restrict or prohibit the use of credit in personal auto insurance pricing—so ask your agent how it works where you live.

14. Occupational discounts

Some insurance companies offer occupational discounts to people who work in certain professions. The most common include federal government employees, teachers, doctors, firefighters, and police officers, among others.

Insurers like these discounts because they encourage loyalty among certain groups and may reflect stable or lower-risk lifestyles. When you request quotes, list your exact job title, employer, and any professional associations you belong to so the agent can check for hidden occupational savings.

15. Membership & affinity discounts

Being a member of a certain club or organization can unlock excellent auto insurance savings. Costco, for example, has partnered with insurers that offer special pricing to members. AAA, AARP, and BJ’s Wholesale Club also offer discounts on auto insurance to their members.

In addition to big-name organizations, check for discounts tied to alumni groups, professional associations, unions, or local clubs. These deals are often easy to qualify for and can be stacked with other discounts.

Car Insurance Discounts by Company

The discounts above are only some of the many ways insurers reduce rates for their customers. Many of these breaks apply automatically once you share the right information, but others require you to sign up, provide documents, or ask directly.

When shopping for a new policy—or reviewing your current one—ask your agent to review every discount you might qualify for. You can also click on a company below to see which specific discounts it commonly offers:

• 21st Century Discounts
• AAA Discounts
• Allstate Discounts
• American Family Discounts
• Amica Discounts
• Auto-Owners Discounts
• COUNTRY Financial Discounts
• Erie Discounts
• Esurance Discounts
• Farmers Discounts
• GEICO Discounts
• Kemper Discounts
• Liberty Mutual Discounts
• MAPFRE Discounts
• Mercury Insurance Discounts
• MetLife Discounts
• National General Discounts
• Nationwide Discounts
• NJM Discounts
• PEMCO Discounts
• Progressive Discounts
• Safe Auto Discounts
• Safeco Discounts
• State Farm Discounts
• The General Discounts
• The Hanover Discounts
• The Hartford Discounts
• Travelers Discounts
• USAA Discounts

To get the best deal, combine company-specific discounts with smart shopping: compare quotes from several insurers, review your discounts at every renewal, and update your agent whenever your life changes (a move, a new job, fewer miles driven, or a new car) so they can check for new savings.

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