Ultimate Guide to Auto Insurance Discounts

Discount auto insurance is available through nearly every company offering automobile insurance coverage. These discounts provide substantial savings to policyholders who qualify and significantly lower the cost of the insurance policy premium. Depending on the circumstances, many drivers can take advantage of numerous discounts. This is a great way to save money on your auto insurance coverage!

The types of discounts vary from company to company so be sure to speak with your personal insurance agent when formulating your own discount auto insurance policy. The following are some of the most commonly offered discounts.

  • Safe Driver Discount – This applies to a driver who has a clean driving record. This normally means no accidents, no speeding/reckless driving citations, and no DUI or DWI arrests. The requirements differ among all the major insurance carriers.
  • Good Student Discount – This is usually available to full-time high school and college students who maintain a GPA of 3.0 and/or are on the Honor Roll or Dean’s List.
  • Driver Education/Defensive Driving Course Discount – Many young drivers can qualify for this discount by completing an approved driver’s education/defensive driving course.
  • Anti-theft/Safety Equipment Discount – This discount is offered when the insured car has one or more safety features. These can be an alarm system, window (VIN) etchings, remote vehicle disablement, LoJack, front and side airbags, and daytime running lights.
  • Motorcycle Safety Discount – Depending on where you live, if you complete an approved motorcycle safety training course you may qualify for a discount on your premium.
  • Senior Driver Discount – Insurance carriers offer various senior discounts, as well as special deals for active and retired military personnel.
  • Low Mileage Discount – If you drive less than a certain number of miles per year (8000, for example) your insurance company may offer a discount. The actual number of miles may vary so check with your agent for more detailed information.
  • Multiple Insurance Policies Discount – Most insurance companies offer this discount when you purchase multiple types of insurance policies with one carrier- such as car, home, life, etc.
  • Military Discount – be sure to ask your carrier if you qualify.

Discount auto insurance is available from almost all of the major insurance companies. Be sure to have all the facts when putting together your personal insurance policy. A good agent can help you find the various discount options for which you qualify. This can translate to big savings on the total cost of your insurance premiums.

Safe Driving Discount

Being a good driver is a great way to give your wallet a much-needed break. In fact, it is one of the best ways to save money on your auto insurance premiums.

Most insurance companies offer good driver incentives for people who stay accident free but it will also depend upon your driving record. It is important to avoid accidents, but you should also steer clear of speeding and reckless driving offenses, DUI or DWI convictions, and other infractions that can tarnish your record.

The amount you will save and how you can qualify will vary from carrier to carrier. For instance, some drivers will qualify for such incentives after three years and will max out after five consecutive years of safe driving. Other companies might offer a discount for each year of safe driving. In either case, total discounts typically max out around 20%.

Good Student Discount

Full-time high school or college students can prove they’re responsible drivers by maintaining a GPA of 3.0 and/or being on the Dean’s List/Honor Roll.

These qualifications will vary slightly from state to state but most policies allow these discounts for drivers aged 16 to 24. It’s also important to remember that if you have two or more children on the honor roll, everyone may not get a discount.

To qualify, most insurance companies will require a report card or confirmation letter from the school to prove a driver’s good student status. The discount doesn’t carry over so each time the insurance renews, you will have to resubmit proof.

Insurance Bundling Discount

You’re likely already very familiar with the concept of bundling. For example, many telecommunications companies now bundle services such as voice, data, and television for a set price as an incentive for purchasing more than one of their products.

Many insurance companies will offer discounts if you purchase several of their products together in a bundle. For example, you can purchase two or more products such as automobile, homeowners, life, renters, and health insurance coverage from the same company and possibly qualify for a bundled discount while consolidating your bills into one easy monthly payment.

If you are presented with a bundling option, you should first check to see if you are actually going to save money or if it would be cheaper to consider buying separate insurance products from different companies.

If you are unsure of a company’s product offerings but think bundling might save you time and money, you should do some research to best gauge other people’s impressions and opinions of what the company sells and whether it is worth your consideration.

Customer Loyalty Discount

Customer loyalty discounts are very similar to insurance bundling discounts. They are offered to those policyholders who remain with their specific auto insurance company over an extended period of time.

Some companies also offer a loyalty discount to customers who refer a friend or relative who ultimately purchases an insurance policy from them. The most frequently used incentives are Multi-Car and Renewal discounts. Depending on which company you choose, you can save between 25%- 30% when you insure more than one vehicle with the same company. The same discount rate can also apply when you renew your policy before it expires.

Most insurance companies also offer a customer loyalty discount when you purchase different types of insurance coverage with them, not just auto insurance. These can be home, rental, or life insurance, depending on the company you select.

While a customer loyalty discount is a good way to save money on your overall premium cost, it’s always a smart idea to look at other insurance companies and see what price they can offer you for the same coverage you are now carrying. Check to see when your policy comes up for renewal and do some investigating before signing up for another term. It may save you even more money!

Driver Education and Defensive Driving Discount

Driver education is an excellent way for young or inexperienced drivers to earn discounts on most types of coverage. Many states require enrollment by teens in a driver education course before they can even begin the licensing process and many often have to submit proof of completion before they can obtain a learner’s permit or restricted license.

Defensive driving courses are offered to older drivers as a way of lowering premiums by demonstrating a willingness to educate themselves on how best to avoid accidents and moving violations. Defensive driving is training for drivers that exceed basic driving skills and rudimentary rules of the road. This type of training aims to reduce the risk associated with driving by training people to anticipate dangerous situations and other drivers’ mistakes.

These options will vary from state to state and your insurance company so it’s best to consult your carrier and local DMV for more information.

Motorcycle Safety Discount

While riding a motorcycle is no doubt fun and exhilarating, it is also inherently dangerous, so taking a motorcycle training course is obviously good for a number of reasons.

Depending upon your state, if you take a motorcycle training course, you could qualify for a flat reduction or percentage discount on your insurance premium.

It’s easy to think motorcyclists are safer drivers but a great many statistics say otherwise. The potential benefits of motorcycle training also include some nice perks such as exam fee waivers, free or heavily discounted courses, as well as improved safety and confidence while operating a motorcycle.

If you’re in the military, a motorcycle safety course can also help you meet requirements for driving on base.

Anti-Theft and Safety Equipment Discount

Anti-theft devices, including alarms, window (VIN) etchings, remote vehicle disablement, LoJack, as well as steering wheel bar-locks are a good way of shoring up your vehicle against car thieves as well as bringing yourself peace-of-mind.

They can also help save money on car insurance premiums. Discounts might be up to 30% but will depend on the insurance carrier, place of residence, coverage you carry, as well the type of anti-theft device(s).

You can also find significant discounts if your vehicle has any number of safety features such as side-curtain airbags and anti-lock brakes. There are also a whole host newer high-tech safety feature such as blind-spot detection, collision warning systems, rear-view cameras, tire-pressure monitoring, and many more!

Senior Driver Discount

Older or mature drivers often qualify for all sorts of discounts:

  • Senior Driver Discounts: If you are aged 50 years and older, most insurance companies will offer a 5% discount. Other companies such as AARP Hartford do this automatically.
  • Senior Driver Safety Course: Some companies, instead of offering an automatic discount, will instead require mature drivers take a safety course. You usually must be at least 55 and can expect a 5% discount for three years. Sometimes you can also combine a mature driver discount with a mature driver safety course discount.
  • Personal Injury Protection Discounts: Usually, at 65 years old, most states offer a standard 5% Personal Injury Protection discount.
  • Retired Driver Discounts: Retirees can seek discounts up to 5% because they likely drive a lot less now that they aren’t commuting to and from a job every day.

Military Auto Insurance Discount

Members of the armed forces have made the ultimate sacrifice by electing to serve and possibly defend their country without a moment’s hesitation.

It only stands to reason that those who make this kind of sacrifice should find deals and discounts on a wide array of products and services. Indeed, wherever you go be it hotels, amusement parks, car rentals, and more, there is an outstanding chance military discounts are offered. Normally all one needs to do is inquire and show their military ID. These benefits are often extended to a service member’s dependents as well.

If you are a member of the armed forces, National Guard or Reserves – active duty or retired – you can possibly get a discount up to 15% of your total auto insurance premium. Be sure to ask your carrier about whether you qualify for a military auto insurance discount.

Low Mileage Discount

When it comes to discounts on auto insurance, you can never have enough of a good thing. One of the newest ones offered by most major insurance companies is the Low Mileage Discount. This discount rewards policyholders who drive less and is usually calculated on a mileage/per year basis.

Considering the rising cost of gasoline and the overall economic outlook of most American consumers, the low mileage discount may be yet another smart way to save money- not only at the pump but also on the overall cost of car insurance.

Many Americans have already changed their driving habits in order to cut back on fuel costs. Either by carpooling, using mass transit or other available public transportation, or combining a lot of little errands into one or two trips, people are learning the value of thoughtfully planned out driving. Another bonus is that getting behind the wheel less often also helps the environment since fewer cars on the road equals less harmful car emissions being poured into the atmosphere.

The number of miles allowed per year to qualify for a low mileage discount varies among the leading auto insurance companies. If you are looking for ways to save on your premium costs, consider asking about the low mileage discount. Perhaps you have already changed your driving habits in response to the high cost of gasoline or maybe you want to learn how to modify your current driving patterns so that you can drive less often and cut your fuel and insurance costs significantly.

Whatever the reason, cutting back on unnecessary trips and learning to drive in a manner that is both responsible and environmentally friendly are positive additions to anyone’s driving habits. Saving money while doing this is just icing on the cake!


Although we have listed a few ways to save, this is the tip of the iceberg, especially since each company is going to have discounts unique to them, and/or offer different discount rates to the same types of discounts.