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What are the most common auto insurance discounts?

What are the most common car insurance discounts?

Saving money is at the forefront of our minds these days. We look for places to trim and cut back wherever possible, and that often means making hard decisions. Of course, there are certain things that many of us can't go without - like a vehicle and auto insurance to protect it. But just because these things are a necessity doesn't mean we can't find ways to reduce the cash we spend on them. That's why it's important to consider every possible discount when shopping for auto insurance - but which ones should you remember to look for? Today, we'll take a look at the most common auto insurance discounts to help you save the most on your policy.

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Common Auto Insurance Discounts

When it comes to saving money on your auto insurance premium, there are a number of different discounts that auto insurance providers may offer. While the availability, amount, and specific details of each discount will vary from company to company, the following are some of the most common auto insurance discounts to ask your agent about!

Multi-Car Discount

Whether you personally own a number of vehicles or have several in your family's household, many auto insurance companies will offer discounts when you insure multiple vehicles with the same provider.

You may hear this referred to as "multi-car discount" or "multi-policy discount". In any case, these are considered a type of "bundle" discount as you are receiving a discount for having multiple policies with the same insurance provider.

Apart from the savings, having all of your vehicles insured by the same company can often make it easier to keep track of payments as you won't have to deal with multiple websites, managing passwords for multiple logins, and multiple bills.

Companion Policy Discount

A "companion policy discount" is another type of multi-policy discount or bundle discount. Most insurance companies that sell auto insurance also sell other types of insurance, such as home or property insurance. For this reason, they may offer you a discounted rate on your auto policy premium if you bundle it with one of their other products like the ones mentioned above.

Good Student Discount

As any parent knows, purchasing insurance for your young driver can be a little pricey. Even after a teenager gets their learner's permit or official driver's license, they are still new to the process of driving, which makes the likelihood of accidents greater. Fortunately, most auto insurance companies offer a way for parents to save on their insurance.

For those of us who are no longer students, we may remember a time when we could show a good report card to the local pizza shop for a free personal pan pizza. Some may have even had an allowance bonus when they brought home a stellar report card. In any case, rewarding a student for their

academic performance is fairly common and is the basis for the "academic achievement discounts," or "good student discounts," that auto insurers often offer.

The idea is fairly simple, but of course, the specifics vary based on the insurance provider. In general, though, you may be able to get a discount for providing proof that a covered student is doing well in school.

Claims Free Discount

A "claims-free discount," also sometimes referred to as an "accident-free discount" is exactly what it sounds like. Similar to claims-free discounts you may find with other insurance products, an insurance company look back into your history (usually three years) to see if you have filed a claim in that period. If you have no claims filed within that three-year period, you'll typically qualify. Usually, this discount will continue to apply after each renewal as long as no new claims are filed.

When inquiring about this discount, it's important to know what an insurance company considers an "auto claim" in your history. While there are claims that obviously count towards this, some smaller claims may not (like a claim payment under $500 for example). For this reason, it's important to speak to your agent about this discount to understand the specifics.

Paid-In-Full Discount

Some insurance companies provide a discount if you choose to pay all of your policy premiums in advance. This can be a great discount for those that have the opportunity to take advantage of it. Not only will you save a percentage of your premium, but you also won't have to worry about remembering to make payments or deal with monthly statements.

Other Possible Auto Insurance Discounts

Apart from the discounts listed above, you may find a number of other discount options available with your auto insurance provider.

Loyalty/Renewal Discount

Depending on how many years you have been with a particular provider, you may qualify for a discount upon the renewal of your policy. This usually starts off at a smaller percentage and grows each year until it reaches a maximum.

Auto Safety Discount.

Most insurance providers will offer discounts for certain safety features in a vehicle, such as anti-lock brakes and passive restraints (seatbelts).

Anti-Theft Discount.

Auto insurance companies want to prevent auto theft just as much as you do, and they'll often incentivize you to do so with this discount. If you have an approved anti-theft system installed on your vehicle, you may qualify for a discount.

Driver Education Discount.

While many people opt to take defensive driving to avoid a traffic ticket, you may be able to take such a class in order to get a discount on your auto insurance premium. Additionally, some providers will do the same for approved driver training courses and drug and alcohol driver awareness training classes.


Again, it's important to remember that the specific discounts, percentage amounts, and qualifications will vary from provider to provider. Furthermore, while a specific insurance provider may have multiple discounts you could qualify for, the way that they are (or are not) combined may be more complicated than simply adding together the percentages. In order to get a complete understanding of the specific details for any discount or series of discounts that a carrier provides, make sure to speak to your insurance agent.

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By Whitney Guiltner


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