20 Car Insurance Discounts You Need to Know About Now

Sheet of Auto Insurance and Happy Man Driving and Celebrating With Arm Open

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Sheet of Auto Insurance and Happy Man Driving and Celebrating With Arm Open
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Count on the Discounts

If you have a car, then you’re legally obligated to buy car insurance in almost every state. And as the cost of everyday expenses continues to increase, more consumers are trying to find easy ways to save. One way to do that? Maximize your savings on car insurance.


You may be eligible for several discounts that you don’t know about. Read on for the most popular car insurance discounts that you might qualify for.

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FOTOGRAFIA INC./istockphoto

1. Multi-Car Discount

Most car insurance companies will charge a lower rate if you insure two or more cars with them.

Suburban Homes, Little Egg Harbor, New Jersey
Suburban Homes, Little Egg Harbor, New Jersey by LancerE (CC BY)

2. Multi-Policy Discount

If you have multiple types of policies with one insurer, they will often give you a multi-policy discount. For example, bundling your auto and home insurance can potentially save you a lot of money.

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IcemanJ/istockphoto

3. Good Grades

If you have a child who is listed on your car insurance, you may be able to get a discount if they maintain a certain GPA. The minimum GPA required usually depends on the car insurance provider, but is often a 3.0 average or higher. You may have to send in a report card every year to maintain this discount.

Couple Leaning on Car While Looking at a Smartphone, Parked Outside Along the Coast
DMP/istockphoto

4. Increase Your Deductible

There is a basic rule that applies to most types of insurance: the lower your deductible, the higher your premium. If you have high premiums, then you may have a low deductible. Increasing your deductible will result in lower premiums.

Tire & Battery Center at Costco, Honolulu, Hawaii
Allen N./Yelp

5. Shop Through Your Warehouse Club

Many warehouse clubs, like Costco, provide better deals on car insurance if you’re a member. Go to the warehouse club’s website and log on to see if there are available car insurance deals.

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Milko/istockphoto

6. Safe Driver

If you have not had a car accident in several years, you may qualify for a special discount. Some insurance companies will also give you a freebie, so even if you do get into an accident you can still keep your accident-free rating.

Closeup of 111,111 Miles on a Car Odometer
Closeup of 111,111 Miles on a Car Odometer by benmillett (CC BY-NC-ND)

7. Low-Mileage Discounts

If you don't use your car often, you may qualify for a low mileage discount, which kicks in if you drive less than 7,500 miles per year. You may have to submit mileage records to keep this discount. You can save up to 30% if you qualify.

Car Keys and Calculator on Paper Car Insurance Bill
Bill Oxford/istockphoto

8. Pay in Bulk

If you currently pay your car insurance every month, you may be able to save money by paying your premium once or twice a year. Some companies charge a significant fee if you pay your insurance once a month. You can transfer the amount you need to a high-yield savings account, so you can earn interest on that amount.

Servco Toyota Honolulu
Tami C./Yelp

9. Check Rates Before Buying a Car

If you’re currently in the market for a new car, make sure to get quotes for car insurance before picking a vehicle. Not all cars will cost the same in insurance premiums, and the difference can be worth hundreds or even more in savings per year. Some cars that are popular targets for car thieves may be much more expensive to insure.

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Liubomyr Vorona/istockphoto

10. Loyalty

Using the same company for multiple years can result in a loyalty discount, which can be worth up to 20%. However, don’t be afraid to shop around car insurance providers every six months or so just to make sure you’re still getting the best available deal.

Senior Couple Hugging in the Kitchen While Looking at a Laptop
LaylaBird/istockphoto

11. Change Coverage When Car Is Paid Off

If you have an auto loan, you may be required to purchase a certain amount of car insurance. Once your car loan is paid off, you may be able to drop your coverage and save on your premiums. Just make sure you can still afford your deductible.

State Farm Drive Safe & Save App, 2024
Google Play

12. Use a Driving Tracker

Many insurance companies will offer a discount if you install one of their trackers in your car. Just be aware of what it will monitor, such as driving too fast, suddenly braking or not wearing your seatbelt. Observing road rules will also help you avoid accidents and may even save you money in fuel costs.



Closeup of the ROTC Shoulder Patch
Closeup of the ROTC Shoulder Patch by Eastern Washington University (CC BY)

13. Military

Members of the military, either current service members or veterans, may qualify for a special discount. Ask your provider if you qualify. Some military-only credit unions may also have special car insurance rates.

EMT Paramedic Working Out of an Rapid Response Unit in Western Prince Edward Island, Canada
EMT Paramedic Working Out of an Rapid Response Unit in Western Prince Edward Island, Canada by Government of Prince Edward Island (CC BY-NC-ND)

14. First Responder

If you're a first responder, like a firefighter, police officer, or paramedic, you may qualify for a special car insurance discount. This is often worth between 5% and 10% off your monthly premium. You may have to provide a current form of identification to prove your status.


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AAA Logo, 2024
AAA

15. AAA Membership

AAA can offer lots of benefits to drivers, like roadside assistance and special deals with other companies. It may also provide you with discounts on car insurance. This discount can be worth between 5% and 30% of your premium, depending on the specific deal.

Young Woman Driver Learning Parallel Parking with Driving Instructor and Cone
YinYang/istockphoto

16. Defensive-Driver Discount

Completing a defensive-driver course can easily result in huge cost savings on your car insurance. These types of courses are not available to everyone. Call your insurance company and see if you qualify.

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MattGush/istockphoto

17. Federal Employees

If you're a federal employee you may qualify for a special car insurance rate. If you already have car insurance, ask your provider if you’re eligible for a special deal.

Audi Seattle
Cameron C./Yelp

18. New Car Discount

New cars are built with the latest safety features that can help prevent car accidents or minimize injuries and damage. If you buy a car that was made within the last year or two, you may qualify for a new car discount on your insurance. Sometimes this discount can be as high as 20%.

Herbert Diess Presents the Volkswagen ID Lineup, Geneva International Motor Show 2018
Herbert Diess Presents the Volkswagen ID Lineup, Geneva International Motor Show 2018 by Matti Blume (CC BY-SA)

19. Alternative Energy Discount

Driving a hybrid or electric car can come with a lot of savings in terms of gas, but it may also save you on insurance premiums. If you drive a car that uses alternative energy, you may be able to save on your premiums.

The Club, Car Anti-Theft Device
Winner International Inc.

20. Anti-Theft Discount

Car insurance doesn’t just pay out when you have an accident — it also pays out if your car is stolen. You can install anti-theft devices to discourage or prevent thieves from stealing your vehicle. Not only will this save you time and hassle, it can also help you save money on car insurance.