Car insurance discounts: 17 ways to save

Car insurance discounts can trim a little — or a lot — off your auto insurance premium, but it can be difficult to tell if you’re leveraging everything your insurance company offers, and not all auto insurance companies have the same discounts.

But the good news is most car insurance companies give separate discounts for good driving habits, vehicle safety features, a clean driving record, and even certain billing options that reduce your insurance rates. You might even be able to get all of the above.

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Discounts can range from a few percentage points off a certain type of coverage to more than 25% off the total cost of an auto insurance policy. The savings depend on the type of discount, the carrier, the insurance plan, and the state where you live.

Generally, the largest discounts are for safe driving, bundling your home and auto insurance, and insuring more than one car with a carrier.

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The best car insurance discounts are detailed below, but keep in mind that every insurer offers a different discount percentage, and not all discounts are available in every state or with every carrier.

The definition of a safe driver depends on the car insurance company, but generally you’ll need to be accident-free for at least a year to qualify.

A defensive driving course can cost less than $25, but earn a car insurance discount for multiple years in some states. Eligibility varies, but the discounts are typically for younger and older drivers.

No. 3: Low-mileage and usage-based discounts

While isn’t really a discount, it rewards drivers with premiums that can be 20%-30% lower if they drive safely and put fewer than average miles on a vehicle.

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From equipment like anti-lock brakes to daytime running lights, discounts for vehicle safety features can really add up. For instance, front seat airbags can earn you a discount on your (PIP) or .

Newer vehicles with advanced safety features qualify for a discount with some insurers, sometimes for as much as 15%, according to GEICO.

Anti-theft devices will typically earn you a discount on . GEICO advertises discounts of up to 23% on cars with anti-theft systems.

You’ll score some of the largest discounts for insuring more than one car with an auto insurance company. Progressive says a multi-car policy saves their customers an average of 12% on insurance coverage.

Car insurance quotes have a little extra enticement built into the bottom line thanks to the new customer discount (sometimes called an early quote discount), which incentivizes drivers to switch insurance companies.

Loyalty rewards are everywhere and insurance companies are no exception. However, be aware that loyalty discounts alone rarely add up to justify remaining with a company. It’s still a good idea to compare quotes annually.

No. 10: Military, veteran, and federal employee discounts

Insurance discounts to thank military members and their families for service are commonplace. GEICO offers an “eagle rate” of 12% savings for federal employees and a 15% discount for active duty and retired military.

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Teen drivers are expensive to insure, but you can get a break from many companies if your high school or college student maintains a B average or better. There are also student away-at-school discounts for college drivers who stay on the policy but leave their cars parked at home.

Even if you don’t bundle your homeowners or renters insurance with your auto insurance, you may still be eligible for a homeowners discount on your car insurance premium.

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No. 13: Alumni and professional organization discounts

For some professional organizations like alumni associations, membership has its benefits. These membership discounts are typically smaller, but it’s still worthwhile to check if an organization you support or work for has any available discounts with an auto insurer.

Multi-policy discounts, also known as bundling discounts, are some of the most significant rate cuts reserved for customers who get a policy for auto insurance and another type of insurance (usually homeowners insurance or motorcycle insurance) with the same company.

If you’ve been diligent about never letting coverage lapse, some will provide a discount even if you’re a new customer who stayed with a previous insurer for a long time.

Have the extra cash on hand to pay for your car insurance premium up front? If so you can probably qualify for a six-month or one-year payment discount.

No. 17: Paperless billing and electronic funds transfer (EFT) discount

Another way to shave a little extra off is to authorize automatic payments from your bank account and save some trees (and serious hassle) by signing up for paperless billing.

Maybe you weren’t eligible for a discount when you first got your auto insurance policy, but things change. Some auto insurance discounts are state-specific or even age-restricted.

Contact an insurance agent or your insurance company at least once a year to verify you’re getting all the discounts you can.

The goal is to save money on your car insurance premiums, regardless of discounts. So it pays to shop around and grab quotes from other companies to see if you can lower your rates by switching insurers. Just be sure to shop for similar coverage and deductible amount so you’re making equivalent comparisons.

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Buying more than one type of policy from a carrier, such as auto and home insurance, can save 10% or more with many companies. But make sure you compare the total cost of coverage at one company with buying coverage separately at different companies.

No one plans to have an accident or get caught speeding. But remember that safe driving isn’t just an investment in your well-being or that shiny, new car. Your driving history can ultimately reward you with lower car insurance rates.

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Pay-per-mile insurance usually depends on auto insurance companies installing a telematic device that tracks mileage and other driving behaviors. The Insurance Information Institute warns that while , some drivers may see increases due to risky driving behavior or underestimating their mileage.

Older cars are usually cheaper to insure, but you may face higher costs due to a lack of vehicle safety devices. Installing a few modern conveniences like collision warnings or anti-theft devices can pay off in terms of both safety and insurance premiums.

Insuring teen drivers is painfully expensive, but high schoolers can chip in even if they don’t have a job by getting grades good enough to earn lower insurance premiums. A good student discount can also apply to college kids as long as they’re full-time students.

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Setting up automatic payments and squirreling away enough to pay your premiums up front can keep your car insurance rates low and your coverage from lapsing. Maintaining good credit can also lower car insurance rates in some states.

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Barbara Marquand contributed to this article

This article was edited by Tim Manni