Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products, including home, life, auto, and commercial, and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, mainly in the insuranc...

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UPDATED: Oct 19, 2021

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Important facts to know...

  • Discounts and bonuses help reduce the costs associated with auto insurance
  • Five insurance companies offer a significant number of discounts
  • Five particular discounts are extremely popular
  • Customers should look for the best deals and discounts on a policy

Saving money on car insurance involves following a few simple strategies, and they can make all the difference in the world. The astronomical cost of insurance can feel like it is pointless if you never get in an accident, but discounts can make reaching into your pockets each month a lot easier.

The most obvious thing to do entails avoiding accidents. By not being liable for any damages to a personal vehicle or someone else’s or causing harm to person or property, an insurance history remains clean.

Buying the right insurance policy reflects a second very clear means of cutting down on insurance premium rates. Being in too much of a rush to purchase a policy rarely leads to a good deal or a discount.

Comparing three, four, or more policies may uncover the best available rates. Perks and benefits might be revealed as well including discounts.

Discounts should never be overlooked when trying to find a solid deal on affordable auto insurance. Enter your zip code into our free rate comparison tool above to find the best deal on the coverage you need.

What are discounts?

Discounts on auto insurance policies are price reductions based on a certain positive trait. A driver who has not filed a claim in several years, for example, may be granted a slight percentage discount on his or her auto insurance policy.

Discounts can be cumulative. In other words, drivers may request as many discounts in which they are eligible. Hopefully, the insurance company grants all viable discount requests with no added hurdles.

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Why are discounts available?

If an insurance company requires premiums to be paid in order to cover payouts on losses, why would the company passively cut the rates charged to a customer?

Just as customers want to purchase from the best insurance providers, insurance companies want to sell policies to the best customers.

The best customers are those who pose the least risk and are the least likely to file claims. Such customers can be described as the envy of the industry.

That means other insurance companies would benefit greatly if such customers jumped to them. By providing solid discounts, the insurance company can keep its top customers satisfied which, in turn, helps keep them as repeat customers year after year.

The Top Discount Providers

Not all insurance companies provide the same amount of discounts as some are more generous than others. The following five insurance companies offer the greatest number of available discounts to customers:

  • The Hartford: 38 Discounts
  • Liberty Mutual: 38 Discounts
  • MetLife: 38 Discounts
  • Progressive: 36 Discounts
  • Nationwide: 35 Discounts

Other factors do need to come into consideration when looking for a top insurance provider. Discounts comprise only a portion of what must be examined. Regardless, access to numerous discounts would be a positive. To view a comprehensive list of discounts by providers, click here.

Five of the Most Common Discounts

Certain discounts seem to be popular across the board with customers and insurance companies alike. These five might be the most well-known ones and, possible, easier to access:

Multiple Policies & Multiple Vehicles

Actually, these are two separate and distinct discounts. Both are similar in design and concept. Multiple policies refer to an insurance company selling different types of coverage to the same customer.

Buying different types of insurance from the same company can cut down on overall premium prices. Types of insurance include:

  • auto
  • homeowner’s
  • watercraft
  • umbrella coverage

Multiple vehicles mean what the name implies. Putting more than one car through the same company may come with a reduction in premium price.

Good Student

Good students must display responsibility and diligence. Getting good grades reflects positives about someone’s character. All these good traits may very well transfer over into driving habits.

Insurance companies take notice of such things as evidenced by the prominence of a good student discount on the rolls of so many providers.


In order to recover the loss of a vehicle due to theft, comprehensive insurance must be in place. Many assume this is the only loss associated with the theft. Not so — liability coverage may be necessary to cover any damage the thief causes as unfair as such a scenario sounds.

Keeping a car from being stolen works in the best interests of both the insurance company and the insured customer. Installing and maintaining top anti-theft devices and alarm systems serve those interests and cut down on premium prices via an anti-theft discount.

Defensive Driver

Smashing a car into something opens up a host of potential losses. Collision, personal injury protection, and auto liability claims may cover losses, but who wants to go the aggravation and stress of an accident in the first place?

Defensive driving helps the cause of dramatically cutting down on the chances of causing an accident.

Perhaps more importantly, becoming a better driver may support the cause of avoiding collisions with reckless and inconsiderate drivers on the road. A formal course in defensive driving brings forth a lot of benefits.

Completion of the course could cut down on insurance policy fees as well.

Full Payment

An insurance company like to see policies paid up completely in full, which is why the companies may reduce the cost of the policy with an upfront, in-total payment. Customers do benefit from paying in full with or without a discount.

Once the policy is completely paid and active, no one has to worry about missing a payment and suffering the consequences of doing so.

Other discounts exist such as for the following:

  • engaged couples
  • garage storing
  • green vehicle

With so many different discounts available, curtailing expensive insurance premiums might not be too elusive. View our comprehensive list of discounts with possible savings here.

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Discounts with the Greatest Savings Percentage

Not all discounts contribute the exact same amount of savings percentage-wise. A few discounts may only cut a minute amount of dollars off a policy. Others may contribute to incredible savings. Five discounts capable of tremendously cutting premium prices are:

  • Driving Devices and Apps – The integration of technology and applications capable of reducing crashes could save anywhere from 25 to 50 percent off the cost of a premium.
  • Passive Restraint – Between 33 and 40 percent can be saved with this discount with a limited number of providers.
  • Military Discounts – On the more generous end of the spectrum, a military discount may yield a 25 percent savings.
  • Family Plans – Family plans may also deliver upwards of 25 percent savings through a participating insurance company.
  • Low Mileage – Driving a car below a set number of annual miles may reap a 20 to 30 percent discount.

Unfortunately, the availability of these discounts may be limited to a few providers in certain states, which is why comparison shopping is so important.

Look for Discounts on Great Policies

A careful and engaged approach to choosing the right insurance policy could be of great benefit to any driver. Comparison shopping and weighing several quotes are part of the right approach. Smart customers will agree.

Insurance companies won’t be secretive about the discounts they offer, but a little investigative work is required to find out the specifics.

Finding out what discounts are available becomes the first step. The next thing to do focuses on learning how to become eligible for a discount.

Overall, the process of taking advantage of available discounts isn’t tricky. Insurance companies want to remain in the good graces of solid drivers and customers.

Enter your zip code into our free rate comparison tool below to find out which company offers you the best price for car insurance.