Car Insurance Discounts Guide 2024

Car Insurance Discounts Guide 2024

Insurance companies offer a variety of discounts to help drivers save money on their car insurance. These discounts are based on things like safe driving habits, installation of anti-theft devices and even academic achievements.

Drivers can also get a discount if they are loyal to their insurer or choose paperless billing. Other discounts are more specific, such as the good student discount for full-time students.

1. Safe Driver Discount

Insurers want to reward responsible drivers, and most insurers will offer discounts to those who have a clean driving record. Whether it’s by participating in a driver training course, taking a defensive driving class, or simply going ticket-free for three to five years, you can save on your car insurance with a safe driver discount.

Good-student discounts are another common way to slash your premium. For high school students maintaining a B average, or college kids enrolled full-time, the savings are significant.

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Other ways to save on your policy include loyalty discounts and paperless billing. Loyalty discounts reward customer loyalty, while paperless discounts make it easier to keep track of your policy. Some insurers also offer features-based discounts that can lower your rates, such as lane departure warnings and collision warning systems.

2. Good Student Discount

Many national car insurance companies offer a good student discount for high school and college students who maintain a minimum 3.0 grade point average or meet other academic criteria. The discount typically applies to the premium for bodily injury liability, property damage liability and medical payments coverages. Homeschooled teen drivers may also qualify, provided they achieve a certain score on standardized tests. Insurers usually request proof of grades when policyholders renew their policies.

Certain larger organizations, like universities, fraternities and sororities, may have their own negotiated affiliation discounts with car insurance companies. In addition, some insurers allow students to earn a good-student discount while they’re at college if they live on campus and stay dorming instead of driving their parents’ vehicle. The requirements vary by company but may include a specific distance from home, age restrictions and other factors.

3. Anti-Theft Device Discount

Insurers offer this discount to reward drivers for installing anti-theft devices in their vehicles. The requirements for the discount may vary among insurance providers, but generally include tracking devices that can help law enforcement find a stolen vehicle and kill switches (either manual or electronic) that disrupt the flow of electricity to the engine.

Steering wheel locks can also make it more difficult for thieves to drive away with your car. These devices are typically affordable. Insurance companies also consider them worth the investment because they reduce your risk of having to file a theft-related claim. Insurers often factor the cost of replacing your car into your premiums, so less theft-related claims will save you money. The discounts are usually offered on comprehensive coverage plans.

4. Telematics Discount

Many insurance companies encourage drivers to enroll in their telematics programs, also known as usage-based insurance. By using a phone app to track driving habits, insurers reward safe drivers with savings. Some even offer an instant discount of up to 40% for signing up.

For example, Nationwide’s SmartRide program provides a safe driver discount of up to 50%. The company’s mobile app for collecting data has high ratings on both iOS and Android platforms.

In addition to telematics discounts, some insurers also offer low mileage discounts for people who drive less than 12,000 miles per year. Other ways to save on car insurance include taking a defensive driving course and being a loyal customer. Each of these discounts could save you a significant amount on your premium.

5. Discount for Multiple Policies

Most insurers offer a discount when you buy multiple types of policies through the same company. Bundling auto insurance with home or renters insurance, for instance, can save you up to 25%. Most big insurers including Allstate, Farmers and Geico provide this option.

You may also qualify for a discount if you belong to an affiliation or organization, such as your employer, professional association or alma mater. Some insurers also offer discounts if you sign up for electronic policy documents and billing, which reduces paper waste and administrative costs.

Many discounts have caps that limit the amount of savings you can receive, so pay attention to advertised “up to” percentages. And remember, the key to savings is not just getting discounts, but paying less overall for your car insurance.

7. Discount for Having a Good Credit Score

Unless you live in one of the few states where credit scores don’t factor into insurance pricing, a good credit score usually leads to cheaper auto insurance. If yours could use a boost, paying off debts and setting up a monthly budget to help track expenses can go a long way toward improving your score.

Many insurers offer policy-based discounts that are easy to qualify for. For instance, opting to pay your bill electronically or putting the cost on autopay makes life easier for your insurer and might earn you an automatic discount.

Bundling policies — such as home and car insurance with the same company — can also lead to savings. Insurers like Allstate, Geico, Farmers and Progressive often offer these types of discounts.


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