UPDATED: APRIL 27, 2023 | 2 MIN READ
Auto insurance can sometimes be expensive – especially if you have multiple cars, drivers, or accidents. However, it’s a legal requirement to have auto insurance. We must pay that price if we wish to continue driving our cars. But just because we must pay the price of auto insurance does not mean we can’t lower the prices using common discounts on auto insurance.
Common Discounts on Auto Insurance: Quick Summary
- What discounts are available
- What does each discount entail
- How to be the best candidate for discounts
- How to get the best price for your coverage
Loyalty Discounts
Of course, if you are just starting with an auto insurance company, chances are you won’t be able to obtain this discount just yet. However, it will be handy to ask your auto insurer if they offer a loyalty discount and how long you must be a member to obtain this benefit.
Student Discounts
High school and college students in good standing are highly likely to be eligible for a discount. Many insurance companies offer this discount to full-time students rather than part-time ones, but it’s important to ask your insurer specific questions about their terms and conditions.
Safe Driving Discounts
This discount is sometimes combined with Accident-Free and Good Driver discounts. Some insurance companies, such as Geico and Allstate, distinguish safe drivers from accident-free drivers, and if you fit both criteria, you may be eligible for both discounts. Safe driving discounts require drivers to drive at slower speeds, wear seatbelts, and a few more options.
Accident-Free Discounts
Accident-Free or Good Driver discounts differ from safe driving discounts because it requires the driver not to have been in an accident for three to five years. Typically, this discount is automatically applied, but if you believe you are eligible and not receiving the discount, you should contact your insurance company since most auto insurers offer this policy.
Defensive Driving Discounts
These car insurance discounts are provided to those who have taken a defensive driving course to learn how to be a safer driver. Upon completion of the course, you give the certificate to your auto insurer, who will apply the discount – if they offer it. These courses are typically offered at in-person schools and in some DMVs.
Teacher Discounts
Many auto insurance companies offer amazing benefits for teachers and educators. This can include lower rates, waived deductibles, and special compensation for stolen items. If you are an educator, ask your auto insurance company for special discounts.
Military and Veteran Discounts
Most major auto insurance companies offer special benefits to the military, veterans, and their families. These benefits include special rates, vehicle discounts, and special programs for your vehicle during active deployment. Make sure to speak to your insurance company to see your eligibility for specific perks.
Low Mileage Discounts
If you don’t drive your car often, a low mileage program can be a great option for your auto insurance requirement. Additionally, many insurance companies offer discounts for drivers using less than 15,000 miles a year. These car insurance discounts may be small, but any discount will help your budget!
Safety Equipment Discounts
One of the most uncommon discounts is the safety equipment discount. However, a few insurance companies offer discounts for vehicles with safety features. This can include anti-lock brakes, safety sensors on the car, or backup cameras. If your car has any additional safety features, it’s worth a shot asking your auto insurer if there are any available discounts.
Bundling or Multi-Policy Discounts
Most insurance companies will offer you a special rate if you buy two or more policies together. This can be done by bundling multiple vehicles or policies, such as auto insurance with a homeowners policy, renters insurance, boat insurance, etc.
How Do Auto-Insurance Discounts Vary Per Company?
Every company has its discounts (along with its terms and conditions under each discount umbrella). For example, one company may decide that being an accident-free driver means that there has been no accident in the past three years, while another may decide that an accident-free driver must have had no accidents in the past five years.
It’s crucial to discuss with your insurance company to determine what their exact conditions are. Below are a few insurance companies and what discounts they offer. However, many more auto insurance companies can choose from if these do not fit your budget.
USAA
- Good Student Discounts
- Multi-Vehicle Discounts
- Accident-Free/Good Driver Discounts
- Driver Training Discounts
- New Driver Training Discounts
- Military Discounts
- Low Mileage Discounts
GEICO
- Good Student Discounts
- Bundling Discounts
- Multi-Vehicle Discounts
- Safe Driver Discounts
- Accident-Free/Good Driver Discounts (3 years free of accidents)
- Defensive Driver Training Discounts
- New Driver Training Discounts
- Employer Discounts
- Teacher Discounts
- Military Discounts
- Safety Equipment Discounts
- Low Mileage Discounts
Allstate
- Good Student Discounts
- Students Who Are Away From Home Discount
- Bundling Discounts
- Accident-Free/Good Driver Discounts (3 years free of accidents)
- New Driver Training Discounts
- Safety Equipment Discounts
State Farm
- Good Student Discounts
- Students Who Are Away From Home Discount
- Bundling Discounts
- Multi-Vehicle Discounts
- Safe Driver Discounts
- Accident-Free/Good Driver Discounts (3 years free of accidents)
- Defensive Driver Training Discounts
- New Driver Training Discounts
- Safety Equipment Discounts
Progressive
- Loyalty Discounts
- Good Student Discounts
- Students Who Are Away From Home Discount
- Bundling Discounts
- Multi-Vehicle Discounts
- Accident-Free/Good Driver Discounts (3 years free of accidents)
- Defensive Driver Training Discounts
How Can You Obtain The Best Auto-Insurance Discounts
Although each insurance company is unique in the discounts they offer, a few factors will make you an ideal, well-rounded candidate to be eligible for many discounts.
Maintain Good Credit
Overall, maintaining good credit is essential to getting discounts – whether it’s auto, health, or home insurance. Good credit shows you are trustworthy and will pay your bills on time, which insurance companies will reward with discounts.
Check Rates Before Buying a New Car
Depending on your car, the car you purchase may come with a higher price tag for your insurance. Cars with high theft rates or powerful engines are a few of the cars that make your insurance costs more expensive.
Avoid Speeding Tickets
Accidents are unavoidable and typically are never expected or looked for. However, speeding tickets can increase your insurance premiums and are an avoidable scenario if you drive at the speed limit.
Look at All Your Options
Every insurance company offers different coverages at different premiums. Search for the best option that fits your budget and lifestyle to get the most bang for your buck.
Speak to an Agent
One of the best ways to get the best discounts for your auto insurance is to speak with an agent. They will know the industry’s ins and outs and ensure you get the best options possible.
