Car Insurance Discounts Guide 2023

Discount on car insurance is one way to save coverage.

There are more discounts on general car insurance that can help cover the costs of insurance, fuel and car repairs. You can ask your auto insurance agent to review the discount to make sure you’re getting all the savings.

Types of car insurance discounts

We looked at the discount percentages available from 11 of the largest auto insurance companies in the country to find a typical range. You may be able to find higher or lower rates from your own insurance company.

Multi-Policy Discount

Multi-policy discounts are often used when you buy car insurance and other policies from the same company. This is also called “multi-line discounting” and commonly called “smoothing”. Car insurance and home insurance are some of the biggest discounts, usually between 5% and 25%. But if you’re not a homeowner, don’t worry, you can usually bundle auto insurance with other insurance like condo, rental, motorcycle, boat, RV, and life insurance.

State Farm offers the best auto and home insurance discounts with an average discount of 23% on most policies. American households and farmers each have an average policy discount of 18%. The total value of the fund is 14%.

Multi-policy insurance discount by company

Company % savings for bundling home and auto $ savings for bundling home and auto
State Farm 23% $787
American Family 18% $486
Farmers 18% $732
Allstate 15% $497
Erie 15% $535
Nationwide 15% $516
Travelers 11% $484
Auto-Owners 10% $214
Progressive 7% $226
USAA* 6% $185
*USAA auto insurance is available to only veterans, military members and their families.

Remember that this discount is an automatic policy. Depending on the company, you may receive a premium discount on your other policies (home, condo or rental).

Some car discounts

If you insure more than one car with the same insurance company, you can often get these multi-car insurance discounts. Discounts are generally advertised ranging from 8% to 25%.

Discount car insurance

You can get a discount if your car has safety features like anti-lock brakes, airbags and daytime running lights. Daytime running lights are usually great discounts, but airbag discounts for full seat airbags can be used up to 40% towards your medical bills or personal injury protection.

New car discount

Cars less than three years old can often get a 10% to 15% new car discount.

Related: Buying New Car Insurance

Discounts on anti-theft devices

If your car has anti-theft features, you can usually get a discount of 5% to 25% off your comprehensive coverage. Depending on your insurance company, you may be able to get anti-theft discounts for factory-installed and aftermarket devices.

According to the National Highway Traffic Safety Administration, about 41% of stolen vehicles are never recovered. Here are some types of anti-theft devices that can help you recover your stolen car and get a discount:

  • GPS-based systems: Some cars are equipped with services like OnStar or Toyota’s Safety Connect that use GPS to help locate stolen vehicles. Some systems, such as the OnStar Remote Immobilizer, can prevent car thieves from rekeying your car.
  • Stolen Vehicle Recovery System: This type of system, like LoJack, helps law enforcement agencies track and recover stolen vehicles by sending a silent radio signal to a vehicle-mounted transmitter. Your car insurance company may offer a discount, but you must provide proof of installation.
  • VIN Stripe: This is a permanent pattern of the Vehicle Identification Number (VIN) on the glass and windows of the car. It is used as a deterrent to car theft and should be removed and replaced before selling your car. Some car insurance companies not only offer a discount for removing the VIN, but it can also be deducted from your entire premium if your car is stolen.

Good driver discount

Car insurance companies love good drivers and often reward them with savings. Car insurance companies usually require you to be accident-free for a period of time. For example, if you haven’t been in an accident in five years, Geico car insurance can save you up to 26%. You can get a discount if you have no accidents, car insurance or traffic violations. A good driver discount is usually between 10% and 40%.

Safety driver discount

Some insurance companies will give you a discount if you take an approved defensive driving course. But this discount only applies to drivers of a certain age, usually 50 or older. Discounts for protected drivers are usually between 5% and 10%. Some states require this discount for adult drivers.

Good student discount

If you or your student driver is enrolled full-time in high school or college and meets certain requirements, you may receive a discount. Car insurance companies usually require students to maintain at least a B average and be between the ages of 16 and 25. We have student discounts ranging from 8% to 25%.

Students at the school discount

You can get a discount if your student is in school and doesn’t have a car. Requirements vary between car insurance companies, but students must usually be under 25, live 100km from home and only have access to your home during school holidays and holidays.

Pay with full discount

Car insurance companies usually offer discounts if you pay the policy term in advance.

Top companies offer discounts from 6% to 14% if you pay your insurance premium in full instead of dividing it into monthly payments. In addition to this discount, if you spread the payment, you can avoid paying monthly finance or service fees of some companies.

Company Paid in full discount %
Auto-Owners 14%
Progressive 11%
Allstate 9%
Erie 9%
Travelers 9%
Farmers 6%

Electronic Funds Transfer (EFT) Discount.

If you pay in installments, you can automatically get a small discount for redemption. EFT discounts can range from 3% to 6%.

Paperless discount

If you prefer to go paperless, you will receive policy documents and payments electronically. Insurance companies may offer a small discount. This discount is not as popular as it used to be, now people prefer a paperless system. We found that the average discount was 3%, but it ranged from 6% to Farmers and Progressives to 1%.

Company Paperless discount %
Farmers 6%
Nationwide 3%
Allstate 2%
Progressive 1%

Online rate discount

Some auto insurance companies will offer discounts if you get an online quote and sign up for a policy. This can vary from 4% to 12%.

early bird discount

Shopping around and buying a policy before your current term can bring you a discount. Companies differ on how many days in advance you need to purchase to get the discount, but around seven to 14 days is best. Usually the discount is between 2% and 15%.

We found that buying 10 days in advance from top companies results in discounts of up to 10% with Allstate and up to 3% nationwide.

Company Advance quote discount %
Allstate  10%
Farmers 8%
Auto-Owners 6%
Travelers 6%
Erie 6%
Progressive 4%
Nationwide 3%

Professional benefits

You may get a discount depending on your job. For example, Liberty Mutual offers special policy features to teachers and Geico offers a 15% discount for military personnel. It is a good idea to ask your insurance agent if your loan requires a discount.

Professional associations and professional organizations
These may include college alumni associations, fraternities and sororities, and professional organizations (such as your state bar association or labor union).

Usage-based insurance program discounts

Your insurance company may offer usage-based insurance (UBI), which adjusts insurance rates based on how much and how much you drive. Data is usually collected from a smartphone app or installed using your car’s ODB-II port. Most UBI programs offer a discount for signing up (between 5% and 10%) and then a discount based on your actual driving skills. Discounts are usually applied at the time of policy renewal. If you are a good driver, a typical UBI discount can be between 5% and 40%.

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