Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: May 7, 2021

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Auto insurance premiums are based on risk, and sometimes how car insurance companies calculate your risk can lead to unexpected premiums; however, like any product, there are many types of discounts around.

Almost anyone can take advantage of auto insurance discounts, but before shopping for auto insurance, it’s a good idea to know a little about what some of the popular discounts are.

Below is a list of some of the common auto insurance discounts, and while not every insurer offers every one, you should always ask about your eligibility before accepting a policy.

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For Good Drivers

Good Driver Discount

Drivers who are accident free and clear of moving violations certainly enjoy the largest discounts. Almost all car insurance companies offer a good driver discount for preferred risk drivers, and this discount can lead to substantial savings. Some car insurance companies require at least a three-year clean driving record while others require five years.

Accident Waiver Discounts

For drivers who have had a single accident over the past few years, some auto insurance companies will overlook the single accident and still offer you preferred rates. This type of discount is not as common as the good-driver discount, and sometimes you have to be a current policyholder to take advantage of it, but it’s certainly a key discount to be aware of.

A single accident doesn’t have to mean automatic higher premiums with the right insurance provider.

Vanishing Deductible Discount

This is a type of car insurance discount for policyholders where for each year of accident-free driving while insured, the car insurance company will reduce a portion of your deductible. Generally, it’s only offered by a few insurers, and the amount of discount is capped around $100 a year with a $500 maximum.

If you stay accident-free for five years, then your first accident will generally have no deductible assuming your initial policy had a $500 deductible.

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Discounts based on the Type of Vehicle

Vehicle Safety Discounts

Car insurance companies love safety features, and if your car comes factory installed with such features as anti-lock brakes, airbags, passive restraint systems, daytime running lights, and other safety features, the vehicle could qualify for reduced premiums, regardless of your driving record.

Car insurance is made up of several factors, and the type of vehicle insured plays a large role. Consumers can often save up to 10 percent or more with the right safety features.

Anti-theft Device Discount

Is your vehicle equipped with an anti-theft device like a steering lock or LoJack? Car insurance companies highly value factory installed anti-theft devices that can often lead to up to 30 percent or more savings on comprehensive car insurance.

Hybrid Cars

Hybrid cars often get a discount of up to 10 percent or more simply based on the vehicle being a hybrid car. Studies show that owners of hybrid cars are involved in fewer accidents and have safer driving histories. Many auto insurance companies even have dedicated hybrid car insurance divisions such as Travelers Insurance Company.

For Young Drivers

Good Grades Discount

Young drivers under the age of 25 and enrolled in school full time can qualify for cheaper car insurance rates by usually maintaining a B average of higher.

Defensive Driving Discount

Young drivers who graduate from a defensive driving course can sometimes also receive a discount on car insurance; however, you should always check with potential insurers before enrolling in a driving school. Many car insurance companies only offer this discount to programs offered by schools on an approved list.

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Customer Loyalty Discounts

Multi-vehicle Discount

Car insurance companies love to write policies, and you could see lower premiums by having more than one vehicle on the same policy. Try to focus on using the same provider for all vehicles in the household, and take advantage of the multi-vehicle discount. It will save you time and money by dealing with just one provider.

Multi-policy Discount

Most insurance companies offer an incentive to have two or more policies with them. While the combination of auto insurance and homeowners insurance usually qualifies for the biggest discount, it’s certainly worth researching the discounts available by moving all your coverage to the same provider.

Renewal Discount

Some car insurance companies offer incentives for eligible policyholders to renew early. Geico, for example, offers an early-renew discount to some policyholders that could be up to 30 percent.

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Older Drivers

Seniors Discount

Drivers aged 55 or over may get discounts as studies show older drivers generally tend to drive less, and with less mileage, the lower the risk is of having a car accident.

Discounts on How Much You Drive

Low-mileage Discounts

Vehicles driven less than 7,500 miles a year can save big by opting for a low-mileage auto insurance policy. While this type of policy is not offered by everyone, some companies advertise up to 50 percent or more savings on low-mileage policies.

Group Discounts

Affinity Discounts

One of the most unused discounts in the car insurance industry is the affinity discount offered to members of various organizations. Well over 1,000 organizations have some kind of relationship with certain car insurance companies where members can receive a direct discount simply by noting they belong to the group.

Military service, bar associations, credit unions, teacher unions, educational staff, federal employees and more — many discounts are around and can often save up to 10 percent or more on auto insurance premiums.

Car insurance is mandatory buy paying high premiums certainly is not. Always ask about these discounts, and inquire about others when comparing quotes. A 10 percent here and 5 percent there can add up to a lot lower premiums!

Compare car insurance quotes today by entering your ZIP code now!