What Discounts Does American Family Offer for Car Insurance?

Last Updated on January 4, 2026

If you want to save hundreds per year on car insurance, start with discounts. American Family Insurance, like most insurers, offers a mix of savings based on your driving habits, how much you drive, your vehicle, and how you pay.

The catch: discounts vary by state, and many drivers qualify without realizing it—then continue to pay high rates for car insurance. Below are the most common American Family auto discounts to ask about and how to make sure you’re getting everything you qualify for.

KEY TAKEAWAYS

1. Telematics Can Be the Biggest Saver: American Family’s DriveMyWay/KnowYourDrive-style programs can offer meaningful discounts if you drive safely.
2. Low-Mileage Drivers Should Ask About MilesMyWay: If you drive well below average, mileage-based pricing can reduce your premium without reducing coverage.
3. Families Often Save the Most: Multi-vehicle, student, away-at-school, and bundling discounts can stack for big household savings.
4. Easy Wins: Payment Discounts: Autopay, paperless billing, and pay-in-full options can lower costs with minimal effort.

American Family Car Insurance Discounts at a Glance

Usage-Based Discounts: DriveMyWay and KnowYourDrive

American Family’s biggest savings opportunity for many drivers is telematics (usage-based insurance). Depending on your state, you may see the program marketed as DriveMyWay or KnowYourDrive. The idea is the same: you enroll, the insurer measures driving behaviors (like braking, acceleration, mileage, and phone distraction), and you earn a discount if you drive safely.

If you want a deeper breakdown of how this works and what it tracks, see our review of KnowYourDrive.

Low-Mileage Discount: MilesMyWay

If you don’t drive much, ask about American Family’s low-mileage option. American Family markets MilesMyWay for drivers who drive under a low annual mileage threshold. This can be a great fit for retirees, remote workers, second-car households, and anyone with a short commute.

Learn how mileage-based savings work (and how insurers verify it) in our guide to low mileage discounts.

Student and Teen Driver Discounts

Young drivers are expensive to insure, so American Family offers multiple discounts designed for teens and students. These are usually the most valuable discounts for families.

Good Student Discount

If your teen or college student maintains strong grades, a good-student discount can lead to big savings. American Family may require proof such as transcripts, a report card, or a school form depending on state rules.

Away at School Discount

If your child is a full-time student and goes to school more than 100 miles away, you may qualify for savings—especially if the student won’t be driving regularly while away.

Teen Safe Driver Programs

American Family also promotes teen safe driving tools and programs in certain states. If you have a teen driver, it’s worth asking your agent whether there’s an enrollment discount or monitoring-based savings available. If you’re adding a teen for the first time, here’s what to know about adding teens or children to your car insurance policy.

Household Discounts: Multi-Vehicle and Bundling

Multi-Vehicle Discount

Insuring multiple vehicles on one policy can lower the per-vehicle cost. If your household has two or more cars, ask about American Family’s multi-vehicle savings (details vary by state). Here’s a full explainer on multi-car discounts.

Multi-Product Discount and Bundling

American Family sells multiple insurance products, and bundling can lower costs if you carry more than one policy. Common pairings include auto + home or renters, plus options like motorcycles, RVs, and umbrellas. If you’re shopping bundles, start with this guide to bundling auto and homeowners insurance.

Safe Driver Discounts

American Family, like most insurers, rewards lower-risk drivers. These discounts typically apply when you have a clean recent record and/or complete qualifying safety training.

Good Driving Discount

If you’ve avoided accidents, claims, and violations for several years, you may qualify for a good driver discount. Here’s how good driver discounts usually work and what can disqualify you.

Defensive Driver Discount

Many insurers offer defensive driving discounts—often for drivers 55+. If you complete an approved defensive driving course, you may see a premium reduction depending on your state and policy.

Vehicle-Based Discounts

Your car can help you save. Vehicles with modern safety tech may qualify for discounts. If your car has features like certain airbags, anti-lock brakes, or other safety systems, ask about an auto safety equipment discount. Here’s a breakdown of safety features that can lower auto insurance.

Payment and Billing Discounts

Some of the easiest discounts to get have nothing to do with driving—they’re about how you pay.

AutoPay Discount

If you set up automatic payments, you may qualify for a discount (availability and size vary by state).

Paperless Discount

Going paperless can reduce costs for the insurer, and some of that can come back to you. If you get digital documents and electronic bills, you may qualify for a paperless billing discount. Here’s what to know about paperless billing discounts.

Paid-in-Full Discount

Many insurers offer a discount if you pay your premium in full instead of monthly. If you’re considering it, read whether it’s better to pay in full or monthly and how 6-month vs. 12-month policies can affect your budgeting.

What About the COVID-19 Discount?

During 2020, many insurers (including American Family) issued temporary premium relief credits related to pandemic-era driving reductions. Those credits were time-limited and are not an ongoing “standard” discount today. If you’re trying to lower costs now, focus on discounts you can actively qualify for—especially telematics, low-mileage programs, and household bundling.

How to Make Sure You’re Getting Every Discount

1. Ask for a discount review: Request that your agent (or customer service) re-check every discount you qualify for.
2. Confirm your mileage: If you drive less, make sure your annual miles are correct and ask whether a mileage-based program is available.
3. Update student documents: If you have a student discount, ask how often you must re-verify grades.
4. Compare before switching: If a competitor is cheaper, you may still be able to save by switching mid-policy—but compare equal coverages first.

Final Word on American Family Discounts

American Family offers a wide mix of car insurance discounts—some standard (multi-vehicle, bundling, autopay, pay-in-full) and some tied to how and how much you drive (telematics and low mileage). The best move is to ask for a discount review and then compare quotes using the same coverage limits and deductibles.

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