Saving on car insurance doesn’t have to be complicated, and there are plenty of opportunities to lower your premium by taking advantage of available discounts. Keep in mind that not every auto insurance policy offers every discount listed here, so it’s always worth discussing your options with your broker.
Also, this isn’t an exhaustive list. Depending on where you live and your unique situation, including how you drive and how you’ll pay your car insurance premium, you may have access to additional savings. It never hurts to ask.
To make it easier to follow, we’ve organized 25 tips into six categories that cover everything from driving habits and payment methods to technology features, lifestyle factors, young driver options, and loyalty rewards.
Driving behavior discounts
Insurers pay close attention to your driving record. If you’re a safe and responsible driver, you could unlock significant savings. Let’s take a closer look at some discounts tied to how you drive.
1 – Safe driver discounts: Keeping a clean driving record — without accidents or claims — shows insurers you’re a responsible driver. Staying accident-free could earn you a discount, with bigger savings the longer you maintain a clean record.
2 – Violation-free discount: If you can go a certain amount of time (like three years) without traffic violations, such as speeding or running red lights, you may qualify for extra savings.
3 – Defensive driving discount: Taking an approved defensive driving course can show insurers you’re a responsible driver and, therefore, a lower risk. Some states require insurers to offer a discount for taking a defensive driving course, so it’s worth checking if this applies to you.
4 – Low-mileage discount: If you don’t drive as much, you could qualify for a discount. The less time you’re on the road, the lower the risk and insurers often reward that.
Policy and payment discounts
How you choose to structure and pay for your insurance policy can directly impact your premium. Simple things like bundling your policies or paying upfront can help lower your monthly bill. Here’s what to consider.
5 – Multi-policy discount: Bundling your auto insurance with other policies, like homeowners’, renters’, or life insurance, can sometimes result in a savings of 10 percent or more on each policy. Insurance bundling is a simple way to combine all your policies and potentially get better coverage for a better price.
6 – Multi-vehicle discount: If you insure more than one car under the same policy, you’ll often pay less per vehicle. This is a great option for families or households with multiple drivers.
7 – Paid-in-full discount: Paying your premium upfront saves your insurer on administrative costs, and those savings might be passed directly to you as a discount.
8 – Electronic payment discount: Setting up automatic payments from your bank account could help you qualify for this discount. Plus, it’s a great way to make sure you never miss a payment.
9 – Advance quote discount: If you get a quote and buy your policy before your current one expires, insurers may reward your proactive planning with a lower rate.
Technology and security discounts
Your car’s technology and the steps you take to keep it secure can have a big impact on your insurance costs. Many insurers reward drivers who invest in safety features or use technology to monitor driving habits. Check out these safe driver discounts.
10 – Usage-based insurance discounts: If you’re willing to let your insurer monitor your driving habits — like speed, braking, and overall behavior — through a telematics device or app, you could qualify for a usage-based insurance (UBI) discount based on how safely you drive.
11 – Anti-theft discount: Adding vehicle safety and security features to your car, like alarms, tracking devices, or immobilizers, can often lower your premium. Insurers see these as ways to reduce the risk of theft, so they’re happy to offer a discount.
12 – Eco-friendly vehicle discount: If you drive a hybrid or electric car, you might qualify for a lower premium. Insurers often offer discounts because these vehicles are seen as safer and more environmentally friendly.
13 – Paperless billing discount: Switching to digital billing might save you money since it cuts down on administrative costs for the insurer. It’s a simple change that could make a difference.
14 – Garaging location discount: If you park your car in a secure garage or manned parking lot — anywhere that’s not street parking — insurers may offer a discount because it reduces the risk of theft or damage. It’s an easy way to save just by where you park.
Demographic and lifestyle discounts
Your lifestyle and personal details — like owning a home, furthering your education, or reaching a certain age — may make you eligible for extra savings. These discounts take your unique situation into account.
15 – Homeowner discount: If you own a home, insurers might offer a discount on your car insurance, as it shows financial stability. And you don’t even have to insure your home with the same insurer to qualify.
16 – Education discount: Some insurers offer lower rates to drivers with higher education, as they’re considered less likely to file claims. If you have a degree, it could pay off in savings.
17 – Senior car insurance discounts: If you’re 55 or older, you might qualify for discounts thanks to years of driving experience and typically lower mileage driven every year. Plus, car insurance discounts for seniors are part of the membership offerings with AARP or Triple-A — so ask if the insurer you’re considering has those special rates.
18 – Milestone discounts: Big life changes, like getting married or buying your first home, can signal stability to insurers and may lead to a lower premium. Be sure to inform your insurer or insurance broker about any major life updates and ask if there are discounts available.
Student and young driver discounts
Young drivers and student drivers often face higher premiums due to their limited experience, but there are ways to lower those costs. Whether it’s good grades or being away at school, here are some car insurance discounts for students to explore.
19 – Away student discounts: If a student on your policy is living away at college (usually more than 100 miles from home) and doesn’t drive your car often, you might qualify for lower premiums.
20 – Good student discount: If you’re a student driver with good grades (usually a B average or higher), many insurers offer discounts as a reward for above-average academic performance — often 5 percent or 10 percent.
21 – Young operator renewal discount: As a thank you for being loyal, some young drivers are offered extra savings if they stick with the same insurer when it’s time to renew.
Loyalty and affiliation discounts
Being part of a professional organization, staying loyal to the same insurer, or even your job could help you save on your premium. Here’s how insurers reward loyalty and affiliations.
22 – Legacy or loyalty discounts: If you stick with the same insurer for a few years, they might reward your loyalty with discounts. Plus, if your family has been with the insurer for a long time, you could qualify for a legacy discount too.
23 – Group discounts: Some insurers offer discounts through employer-sponsored programs, unions, or professional organizations. It’s always worth asking if your workplace or any memberships you have can help lower your rates.
24 – Military car insurance discounts: Active-duty military personnel and their families often qualify for discounts as a way to thank them for their service. This is also available to veterans with similar veterans’ car insurance discounts. Ask your insurer if you’re eligible for this.
25 – Discounts for specific professions: Are there car insurance discounts for nurses in your area? The answer is yes. Nurses, teachers, firefighters, police officers, first responders, and others in similar roles are eligible for special discounts. These discounts are a way for insurers to recognize the important work these professions do for the community.
Additional tips to save on auto insurance
Saving on car insurance isn’t just about discounts. Here are a few extra tips to help you lower your premiums even more.
Shop around before buying: Compare quotes from different insurers. Rates may vary a lot, even for the same coverage, so taking the time to explore your options can help you find the best deal.
Review coverage regularly: Life changes, like driving less, moving to a safer area, or improving your credit score, may make you eligible for lower rates or new discounts. It’s worth it to check in with your insurer to see if you’re missing out on potential savings.
Increase your deductible: If you’re looking to lower your car insurance premium, increasing your deductible might help. While you’ll pay more out-of-pocket if you have a claim, the trade-off is often a significant drop in your monthly or annual premium costs. Just make sure the higher deductible is something you can comfortably manage if an accident actually happens.
Let’s make the most of these potential auto insurance discounts
Looking for ways to save on car insurance without giving up coverage? If you’re not sure which discounts apply to you, an automobile insurance expert at The Baldwin Group can help you find the best options.
It’s also a good idea to compare rates and coverage from different insurers. We can handle that for you — quickly and easily. Just share a few details, and we’ll provide personalized quotes that fit your needs and budget.
Whether you’re up for renewal or just want to make sure you’re getting the best deal, we’ve got you covered. Get in touch today — you might be surprised at how much you can save.
