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7 Biggest Car Insurance Discounts to Lower Your Premiums

Updated October 6, 2021
3 Min Read

There are numerous car insurance secrets no one tells you about unless you know to ask. For example, huge discounts can help you save 25% or more on your monthly insurance premiums, and it's possible you already qualify**. If you're eligible for multiple promotions, you stand to save a whole lot more.

Signs you're paying too much for auto insurance

Discounts you could be eligible for include the following:

  • Price reductions for low mileage drivers
  • Having a good driving record with no violations, DUIs or tickets
  • Insuring multiple vehicles with the same company
  • Being accident-free
  • Having airbags
  • Installation of an anti-theft system
  • Being a good student

If you're eligible for any of the discounts listed above, you could easily save 22%, 25% or more on your auto insurance premiums. But you won't know unless you check.

It's easy to see which discounts you may be eligible for with the tool above. Checking your new rate is free and easy, and it only takes a few minutes.

Discounts you could be eligible for:

The many discounts include price reductions for low mileage drivers, having a good driving record with no driving violations, DUIs or tickets. Being accident-free in the past three years, insuring multiple vehicles or have airbags. Even having an anti-theft system installed can net you a discount.

If you're eligible for any of the discounts listed above, you could easily save 22%, 25% or more on your auto insurance premiums. But you won't know unless you check.

It's easy to see which discounts you may be eligible for with the tool above. Checking your new rate is free and easy, and it only takes a few minutes.

The list below explains the best car insurance discounts out there, who can qualify and how much you might be able to save.

Passive Restraint Discount

This type of discount is available for drivers who have a car with factory-installed air bags, seat belts, or another passive restraint system. While the amount of any potential discount can vary, State Farm says having this equipment saves their customers up to 40% off their Medical Payments coverage. 

New Customer Discount

Being a new customer can also help you secure lower auto insurance rates - at least at first. This is part of the reason you can save so much just by being willing to change insurance companies every few years.

Low mileage discounts

If you're an infrequent driver or someone who doesn't put a lot of miles on their car, you should make sure you're not overpaying for coverage you barely use. Look for an auto insurance provider who offers discounts for low mileage, and you may be able to pay less when you drive less.

No DUI Insurance Discount

If you don't have a DUI, you will be in the best possible position to qualify for lower car insurance rates and other available discounts. 

Early Quote Discount

Getting an early quote for auto insurance can also lead to savings, although your discount can vary. If you sign your policy at least seven days before it becomes effective, you can also qualify for a discount known as an "early signing discount."

Anti-Theft System Discount

Having an anti-theft system can make it considerably more difficult for thieves to vandalize or steal your car. Auto insurance companies are willing to offer discounts for this type of equipment as a result. Your savings for an anti-theft device can be as much as 23%.

Good Driver Discount

Being a "good driver" in an insurance company's eyes typically means you have been accident-free for at least five years. This is excellent news for insurers since you pose much less of a risk and have a proven driving history, and you can save more than 20% off your auto insurance premiums as a result.

Defensive Driver Discount

If you have taken a defensive driving course, you're in a great position to save money on car insurance. Taking a driver education course can help you save up to 8% off the total cost of a policy.

Multi-Vehicle Discount

You can also score a "bulk discount" on your auto insurance by insuring more than one vehicle within a single policy. Your discount will vary depending on how many vehicles you insure, the types of coverage you need, your coverage limits and other details.

Good Student Discount

You can also save money by qualifying for a smart student or good student discount, although the terms and conditions for these discounts vary from company to company. With Allstate, smart student discounts go to unmarried students who are under the age of 25 and have grades that average a B- or better or a GPA of 2.7 or above. However, students can also qualify by completing a teenSMART driver education program or attending school at least 100 miles away from where their car is stored.

Important: You have the right to cancel your policy and change insurance providers at any point during your policy period. Refunds are possible if you cancel before your policy expiration date.


About Holly Johnson

Holly Johnson

Holly D. Johnson is a nationally recognized expert and award-winning insurance writer who covers life insurance, health insurance, and various other insurance-related topics for corporations and well-known magazines with millions of readers. Johnson also covers personal finance, credit, credit cards, and loyalty programs for a variety of publications including CNN Underscored, Bankrate, CreditCards.com and Forbes Advisor. 

The author is also the founder of Club Thrifty and the co-author of "Zero Down Your Debt: Reclaim Your Income and Build a Life You’ll Love." She and her husband Greg live in Central Indiana with their two daughters where they enjoy a debt-free lifestyle and travel up to 20 weeks of the year.

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