Short answer: the most common car insurance discounts are for bundling with home or renters insurance, insuring more than one car, a clean driving record, good grades for young drivers, low annual mileage, a defensive driving course, safety and anti-theft features, and paying in full or going paperless. Insurers choose which discounts they offer, so ask each company you get a quote from, and judge them by the final price.
The list below follows the common discounts named by the Massachusetts Division of Insurance and the Insurance Information Institute. Not every discount is available in every state or from every insurer, and amounts vary by company.
Discounts for how you buy
- Bundling (multi-policy). Buying auto with homeowners, renters, condo or other policies from the same company. See whether bundling is worth it.
- Multi-car. Insuring more than one vehicle on the same policy or with the same company. See multi-car insurance.
- Paid in full. Paying the whole term up front instead of monthly.
- Paperless. Getting your policy documents and bills electronically.
- Early quote or advance shopper. Getting a quote and buying ahead of your policy’s start date; ask how far ahead counts.
- Online purchase. Buying the policy online.
- Long-time customer. Some insurers reduce rates for customers who have stayed several years.
- Group or affinity. Some insurers offer lower rates through an employer, professional or alumni association.
Discounts for your driving
- Good driver or accident-free. No at-fault accidents or moving violations for a set number of years, often three.
- Defensive driving course. Completing an approved course. Some states require a discount for older drivers who complete one: in Pennsylvania, drivers 55 and older who complete a PennDOT-approved mature driver course are entitled to at least a 5% discount, and in Florida insurers must include a premium reduction for principal operators 55 and older who complete an approved course, lasting three years. See car insurance for seniors.
- Low mileage. Driving fewer miles than average, for example after retiring or switching to remote work.
- Usage-based or telematics programs. An app or device that measures how much and how you drive. Programs differ, so ask what is measured, how your data is used, and whether the program can raise your price as well as lower it.
Discounts for who you are
- Good student. Young drivers who meet the insurer’s grade requirement.
- Student away at school. A student who lives at school without a car may cost less to keep on the policy.
- Driver’s education. Young drivers who completed a driver’s ed course.
- Senior or mature driver. Some insurers offer discounts tied to age or to completing a mature driver course.
- Good credit. Where state law allows insurers to use credit-based insurance scores, a better credit history can lower the price.
Discounts for your car
- Anti-theft devices such as alarms and tracking systems.
- Safety features such as airbags and other equipment that reduces injuries.
- The car itself. Not a discount, but a car’s price, repair costs, safety record and theft risk all affect the premium, so check insurance prices before you buy.
How to get the discounts you qualify for
- Ask each insurer for a list of the discounts it offers in your state, and which ones are already on your quote.
- Send proof where needed: a course certificate, a report card, or your current mileage.
- Recheck at renewal and after life changes (a teen starts driving, you retire, you buy a home), since new discounts may apply.
- Compare the final price. A company with fewer discounts can still be cheaper overall.
Discounts are only one way to save; see how to lower your car insurance for deductibles, coverage and other steps. You can compare car insurance quotes with one form.
Frequently asked questions
What is the biggest car insurance discount?
It depends on the insurer and the state. Bundling, multi-car and good driver discounts are on regulators’ lists of common discounts; ask each company what applies to you and compare the final prices.
Do all insurers offer the same discounts?
No. Insurers choose which discounts to offer, and availability varies by state, so one company may offer a discount another does not.
Can I get a discount for taking a defensive driving course?
It can earn a discount with some insurers, and some states require a discount for older drivers who complete an approved course, such as Pennsylvania (at least 5% for drivers 55 and older) and Florida (a reduction lasting three years for drivers 55 and older). Ask your insurer which courses qualify first.
Can I ask for discounts in the middle of my policy?
Yes. You can contact your insurer at any time to ask about discounts. You can also switch insurers before your renewal date; ask your current insurer about any cancellation fee and start the new policy before the old one ends.
Do discounts stack?
Rules vary by insurer. Ask how your quote was calculated and which discounts are included.
Sources
- Massachusetts Division of Insurance: Auto insurance, how asking about discounts might help save you money (April 2024)
- Insurance Information Institute (Triple-I): Nine ways to lower your auto insurance costs
- Pennsylvania DMV: Mature Driver Improvement Course
- Florida Statutes §627.0652: Safety course, discount
This guide is general information, not insurance or legal advice. Coverage and requirements vary by insurer and state.