What Organizations Offer the Best Discounts for Car Insurance?

Last Updated on February 5, 2026

We all want to pay less for car insurance. One of the easiest ways to cut your bill is to take advantage of “affinity” or organization-based discounts – deals tied to memberships, jobs, alumni groups, and more.

How much can you save on car insurance through USAA, Costco, AAA, BJ’s, or the AARP? Do firefighters or federal government employees pay less for car insurance? In many cases, yes.

Below, we explain how membership-based car insurance discounts work, which organizations tend to offer the best savings, and how to make sure you’re getting the cheapest car insurance rates you qualify for.

• Many insurers offer “affinity” or organization-based discounts tied to memberships, jobs, alumni groups, and government or military status.
• Programs through USAA, Costco, BJ’s, AAA, and AARP can lower premiums by 5% to 20% or more, sometimes saving drivers hundreds of dollars per year.
• Teachers, nurses, first responders, government workers, and members of alumni associations or professional groups often qualify for additional savings.
• To maximize discounts, list all your memberships and affiliations when you shop around and ask each insurer to apply every organization-based discount you’re eligible for.

How Organization-Based Car Insurance Discounts Work

If you’re a member of certain organizations, you may qualify for special “affinity” discounts on your auto insurance. Insurers partner with these groups because members tend to be lower-risk and easier to market to, so they’re willing to offer better rates or extra perks.

These discounts can apply whether you’re buying a new policy or switching from another insurer. You’ll usually need to prove your membership (for example, by entering a membership number, uploading an ID card, or selecting your group from a drop-down list during the quote process).

Organization-based discounts can work in several ways:

• A flat dollar amount off your premium
• A percentage discount (often 5% to 20%) off certain coverages
• Access to a special “group rate” that’s lower than the insurer’s standard pricing
• Extra benefits like roadside assistance, accident forgiveness, or better renewal guarantees

Common types of organizations that offer auto insurance discounts

• Paid membership programs (like Costco or AAA)
• Employee unions or workplace groups
• Alumni associations, fraternities, and sororities
• Professional and licensing organizations (teachers, nurses, engineers, etc.)
• Government and military groups
• Wholesale clubs or affinity programs through banks and credit unions

Depending on the insurer and organization, you can easily save 5% to 20% – sometimes even more – just for being a member. Over a few years, that can add up to hundreds or thousands of dollars in savings.

Now, let’s look at some of the best-known organization and membership discounts available today.

USAA – Discounts Available for Military Personnel and Their Families

USAA is consistently rated as one of the top auto insurers in the United States for customer satisfaction and claims handling. It’s also frequently among the most affordable choices for drivers who qualify.

The catch is eligibility. USAA auto insurance is generally only available to:

• Active-duty members of the U.S. military
• Retired or honorably separated veterans
• Members of the National Guard or Reserves
• Eligible spouses and children of USAA members

If you or an immediate family member qualify for USAA auto insurance, you can often save hundreds of dollars per year compared to similar coverage from non-military insurers, especially when you stack USAA’s own safe driver, multi-vehicle, and bundling discounts.

Even if you’re already insured elsewhere, it’s worth getting a USAA quote if you’re eligible. Many people never realize they can join through a parent’s or spouse’s military service.

Costco – Save Through Costco’s Partnership With American Family

Costco partners with American Family Connect (often branded simply as American Family or CONNECT in marketing materials) to offer discounted auto and home insurance to Costco members.

Costco members may qualify for:

• Exclusive member-only pricing on auto insurance
• Potential savings of several hundred dollars per year compared to their previous insurer (varies by driver)
• Access to additional multi-policy and safe-driver discounts through American Family

You’ll need a Costco membership to access these rates. As of late 2025, a standard Gold Star or Business membership is typically around $65 per year, while Executive membership is about $130 per year in most locations.

The key question: will the insurance savings outweigh the membership fee? For many households – especially those already shopping at Costco – the answer is yes. The best strategy is to:

• Get a quote through Costco’s American Family partnership
• Compare it against quotes from at least two or three other insurers
• Factor your membership fee into the math if you’re joining Costco primarily for the insurance discount

AAA – Car Insurance Discounts Plus Roadside and Travel Perks

AAA is best known for its roadside assistance, but most AAA clubs also sell auto insurance under the AAA brand or through partner insurers. AAA car insurance isn’t always the absolute cheapest in every state, but it often combines solid coverage, strong customer service, and valuable extras.

Some perks AAA members may receive include:

• Discounted auto insurance rates for members
• Roadside assistance included with membership, not as an insurance add-on
• Travel discounts, trip-planning services, and vacation packages
• Discounts on hotels, rental cars, attractions, and more

AAA membership pricing varies by region and service level, but basic plans are generally in the ballpark of $60 to $100 per year, with higher tiers costing more and offering longer towing distances and extra benefits.

If you already value roadside assistance, AAA can be attractive because you’re paying for a membership that helps you in multiple ways: cheaper towing, travel discounts, and potentially lower auto insurance premiums.

AARP – Special Car Insurance Rates for Drivers Over 50

The American Association of Retired Persons (AARP) offers discounted auto insurance to members through its long-standing partnership with The Hartford. The AARP Auto Insurance Program from The Hartford is designed specifically for drivers 50 and older.

Key benefits may include:

• Exclusive AARP member savings (often up to around 10% just for being a member, depending on state and underwriting)
• Additional discounts for safe driving, bundling home and auto, or driving fewer miles
• Access to features like accident forgiveness or disappearing deductibles in some states
• Lifetime renewability in many areas, as long as you meet basic requirements such as maintaining a valid license and paying your premiums

AARP membership is available to anyone 50 or older. As of 2025, a standard membership is typically around $20 per year, with discounts for multi-year and auto-renew plans. In addition to auto insurance savings, members get discounts on travel, dining, retailers, entertainment, and more.

If you’re over 50, it’s usually worth getting at least one quote from an AARP–The Hartford agent, then comparing it with other insurers that are competitive for senior drivers.

Profession-Based Discounts – For Police, Firefighters, Teachers, Nurses, First Responders, and More

Many insurers reward certain professions with special discounts because they tend to have more stable lifestyles or lower claims frequency. If you are a police officer, teacher, nurse, firefighter, first responder, or work in other public-service roles, you might qualify for extra savings.

Typical profession-based savings range from about 5% to 20% off your premium, depending on your insurer and state.

For example:

• Farmers has discounts for many occupations, including doctors, nurses, dentists, teachers, police officers, and firefighters.
• GEICO offers a notable discount program for federal government employees, as well as many professional and alumni groups.

When getting quotes, always list your profession accurately and ask the agent if there are any occupation-based or professional association discounts you might be missing.

School Groups – Alumni Organizations, Fraternities, and Sororities

School-based organizations can also unlock auto insurance savings. Alumni associations, fraternities, and sororities often negotiate special rates for their members.

For instance, GEICO has historically had a large list of partner groups – including alumni associations, sororities, fraternities, and professional organizations – that qualify for membership discounts. In many cases, you can save around 5% to 10% just by listing your group.

If you belong to a college alumni association or Greek organization, check its benefits page or ask the group directly whether it has a partnership with any major insurers.

BJ’s Wholesale Club – GEICO Discounts Through BJ’s

Although not as widely known as Costco, BJ’s Wholesale Club also offers access to discounted car insurance for its members, traditionally through partnerships with large insurers such as GEICO.

With a BJ’s membership, you may be able to:

• Qualify for a member-only discount on GEICO auto insurance
• Stack that savings with other GEICO discounts (such as multi-car and safe-driver discounts)
• Save a meaningful amount compared to your prior insurer if your risk profile fits GEICO’s sweet spot

As of early 2025, a BJ’s Club membership typically costs around $60 per year, while premium Club+ memberships are about $120 per year in most markets. Promotional deals sometimes lower that cost for new members, so it pays to watch for specials if you’re primarily joining for the insurance discount.

Government Employee Discounts – For Municipal, State, and Federal Workers

If you work for a city, county, state, or the federal government, you may qualify for government-employee auto insurance discounts. Federal employees, in particular, are often targeted by special programs.

If you are a member of any of the following types of organizations, you may qualify for additional savings:

• Federal Managers Association
• National Federation of Federal Employees
• Federal Law Enforcement Officers Association
• Federal Physicians Association

Many major insurers run special programs for government workers. For example, GEICO offers an “Eagle” discount for eligible federal employees, often up to about 8% off in states where the program is available. Liberty Mutual, Farmers, Travelers, and Nationwide also offer various discounts for government employees and public-sector professionals.

Be sure to mention your government role and any unions or professional associations you belong to when you shop for coverage.

How to Find Every Organization Discount You Qualify For

Most people leave money on the table simply because they don’t realize which organizations matter to insurers. Use this checklist when you shop for auto insurance:

• List all memberships you pay for: Costco, Sam’s Club, BJ’s, AAA, AARP, gym memberships, professional societies, etc.
• Write down your profession and employer: Teachers, healthcare workers, engineers, first responders, and government workers often get special rates.
• Include your education and school groups: Alumni associations, fraternities/sororities, and honor societies can all have partnerships.
• Ask about military connections: Even if you haven’t served, you might qualify for USAA or other military discounts through a spouse or parent.
• Tell the agent everything: When you get quotes, specifically ask the agent to check for occupation-, alumni-, government-, and membership-based discounts you might qualify for.

Most insurers will only apply one “affinity” discount per policy, but you can usually stack that with safe-driver, multi-policy, and vehicle-related discounts for even bigger savings.

FAQs on Organization and Membership Car Insurance Discounts

Final Word on Membership and Organization Discounts

Most of America’s largest auto insurance companies offer substantial discounts through organizations and membership groups. You may be able to save money as a member of a wholesale club like Costco or BJ’s, as a AAA or AARP member, or simply by working in certain professions – like soldier, teacher, doctor, firefighter, nurse, or police officer.

The bottom line: don’t assume your current rate is the best you can do. Gather your memberships and professional affiliations, then compare car insurance quotes from multiple companies. Make sure every insurer you talk to checks for organization-based discounts so you’re not leaving easy savings on the table.