Auto Insurance Discounts: How Much You Can Save in 2025

If you want to lower your auto insurance rates and maintain solid coverage, you can reduce rates by seeing if you qualify for auto insurance discounts. You may have to ask for certain discounts, whereas others automatically apply to your bill. Ask your insurer for a complete discount list to ensure you’re receiving all possible discounts.

Continue reading to learn about cheap mercury auto insurance, the best companies for discounts, tips on saving, and more.

Complete Auto Insurance Discounts List 

We’ve outlined all the major car insurance discounts you should ask your insurance company about. Discounts can save you money on your car insurance policy, although the savings amount varies by insurer.

Affiliation Discounts

Most insurance companies offer a small discount based on applicants’ affiliations with certain employers, military service, organizations, and professions. We’ve explained each in more detail below.

Military and Veteran Discount

Most insurance companies offer military and veteran auto insurance discounts to active military members and veterans. Discount amount varies by company, and you must provide proof of military service to get the discount. 

If you’re interested in a cheaper auto insurance company catering specifically to military members, veterans, and their families, USAA is worth checking out. USAA is often one of the cheapest companies for auto insurance and touts great customer ratings. Check out our USAA auto insurance review to learn more.

Organization Discount 

Organizations that qualify for discounts vary by insurance company. However, common examples of organization types that could qualify you for a discount include AAA members, various alum associations, medical organizations, and so on.

If you’re a member of an organization you think would qualify, ask your insurance company if it offers a discount. You’ll often have to prove you’re a member of the organization to get the discount.

Profession and Employer Discount 

Car insurance companies may offer the following:

• Auto insurance discounts for federal employees
• Auto insurance discounts for nurses
• Auto insurance discounts for teachers (more info on auto insurance for teachers)
• Auto insurance discounts for first responders (e.g., discounts for firefighters)
• Auto insurance discounts for healthcare workers (more info on auto insurance for healthcare workers)

 Occupational discount varies by insurer, and not every company offers a discount based on a driver’s type of employment. Another type of employer discount is when companies buy auto insurance in bulk, meaning employees may have cheaper rates. If you have to drive for work and your employer offers auto insurance, the rate may be more affordable than buying car insurance on your own.

Driver Discounts

Some discounts are available to drivers who keep clean records, take driving courses, or don’t drive very often. Almost every insurer offers these discounts, as good driving means you’re less likely to file a claim and cost your insurance provider money.

Good Driver Discount 

You usually can’t have any marks on your driving record for a few years to qualify for a good driver discount. A clean driving record means no at-fault claims or traffic tickets. Since clean records show you’re low-risk to insure, good driver discounts can often save you 10% on your rates.

Some insurance companies may also offer app-based programs that track your driving for a few months and offer a safe driver insurance discount based on your performance. The better you drive, the higher your discount. 

Defensive Driver Discount

Some auto insurers may discount drivers who take a pre-approved defensive driving course. A third party or the insurance company itself may offer the course.

You must complete the defensive driving course to qualify. If the course is through an outside party, you must also show your insurance company the certificate of completion to earn the defensive driving discount.

Low Mileage Discount 

If you drive less than the average driver, your insurance company may offer you a low mileage auto insurance discount. Generally, most companies offer auto insurance discounts for low-mileage drivers who drive less than 10,000 miles per year, although the specific mileage varies.

Your insurance company may also offer a special type of insurance called low mileage insurance, which is for drivers who drive well below the average amount. Low mileage insurance is much cheaper than regular insurance and is worth looking into if you don’t drive frequently.

Usage-Based Insurance Discounts

Some insurance companies offer usage-based insurance discounts, where the company tracks how well you drive and your mileage. Then, you earn a discount based on your final score. Most insurers track your driving data through a mobile app or a device you install in your car.

While it depends on your company, some may offer a small discount for just enrolling in the usage-based program, like 5%. Once you’ve completed the program, you earn another discount based on your driving data.

With most insurance companies, trying out the program to see how much you can save is worth it, as they won’t use the data collected against you. However, always read the fine print, as companies like Progressive may increase your auto insurance rates if your tracked data shows poor driving habits.

Read more: Is there an insurance mileage limit?

Policy Discounts 

Often, insurers offer policy discounts for paperless billing, paying in full, insuring multiple cars, and other policy-specific factors. We’ve outlined the different discounts on auto insurance below.

Early Bird Discount 

Some companies offer an early bird discount if you switch car insurance from your current insurer and buy a policy from the new company at least a week before your old insurance policy ends.

Not all insurance companies offer early bird discounts, but if you’re switching companies, it’s worth asking if the new company offers a discount for switching early.

Electronic Funds Transfer (EFT) Discount 

Some insurance companies may offer a small discount for setting up an EFT as a payment method for automatic withdrawals from your bank account. Car insurance companies prefer this method because your payments are always on time with EFT. 

Multi-Car Discount

Insurance companies want your business, so you can earn a multi-car discount if you insure more than one car with a single company. Savings vary by provider, but usually, a multi-car discount offers one of the higher discount percentages because you’re paying the insurance company a greater sum of money to insure two cars or more.

Multi-Policy Discount 

A multi-policy discount — also known as a bundling discount — is similar to a multi-car discount. If you bundle insurance policies from a company, you can usually earn a significant discount on one of your policies.

Some of the most common bundled policies are home and auto insurance bundles or renters and auto insurance bundles. You could also combine auto insurance with boaters, motorcycles, condos, or mobile home insurance.

Not all combinations earn drivers a discount, so if you’re considering a different policy type from your insurer, check if you’ll receive a bundling discount.

Online Quote Discount 

Some insurance companies offer a discount if you get an online quote from the company and purchase a policy afterward. The discount amount ranges from company to company, and not all insurers sell policies online. 

Pay-in-Full Discount 

Most insurance companies sell policies in increments of six to 12 months. You can often earn a discount if you pay your bill in full rather than monthly.

Paying in full ensures you won’t miss payments, as your insurance company immediately receives the lump sum. You may also avoid small service fees by paying in full, saving you money over time alongside the pay-in-full discount. 

Paperless Discount 

Many insurers offer discounts if you sign up for paperless communication rather than receiving paper mail.

The average discount for going paperless is usually small, but even a 3% discount can be helpful when working to reduce your insurance costs. If you prefer electronic communication, going paperless can also be more convenient.

Young Driver Discounts 

Auto insurance for teenage drivers often has some of the highest rates due to their lack of driving experience, so we recommend utilizing as many discounts as possible. Read on to learn about insurance discounts that cater specifically to young drivers.

Good Student Discount 

If your insurance company offers a good student discount, you’ll usually need at least a B average to qualify. Good student discounts are only for high school and college students, not graduate students older than 25. You must show proof of your GPA to your insurance company.

Student Away Discount 

To qualify for a student away discount, students must be away at school without a car. Generally, students must be at least 100 miles away from their home address, only use the insured car on holidays and school vacations, and be under the age of 25. However, the exact requirements may vary slightly by company.

Vehicle Discounts 

Vehicle type can significantly impact auto insurance rates and qualification for discounts. 

While the cost difference between a sports car and a minivan may seem obvious, you can earn discounts between similar cars based on safety features and other factors. Buying a newer version of a car with upgraded safety features can be less expensive than buying a version two or three years older without these features. If you buy one of the cheapest cars to insure, you could save money on auto insurance. 

Anti-Theft Discount  

Anti-theft devices that deter theft can earn you a discount on your car insurance. Some may already be in the car, or you can install your own.

Some common anti-theft devices that can earn you a car insurance discount are:

• GPS tracking systems. Some cars have GPS tracking systems already installed, which can help authorities recover your vehicle through GPS. 
• Stolen vehicle recovery systems. Generally, you’ll have to install these systems and then show proof of installation to your insurance company to get the discount.
• Vehicle identification number (VIN) etching. You can get a discount if you have the VIN etched on your car’s windshield or window. It deters thieves, as they would have to remove the glass to sell the car.

Read more: How To Use a VIN To Save on Auto Insurance

Insurers don’t want your car to get stolen, as they would have to pay out a huge amount of money in a claim. Therefore, choosing a car with anti-theft devices or installing them can reduce your rates. If you install a device, let your insurance company know to see if you can earn a discount. 

New Vehicle Discount  

If your vehicle is less than three years old, you may be able to qualify for a new vehicle discount. Discount amount varies by insurer, and not all companies offer this discount.

Safety Features Discount 

Often, insurance companies offer discounts for certain car safety features. Common safety equipment that would qualify for discounts includes anti-lock brakes, air bags, daytime running lights, and more. So if the safety feature protects you from getting into a crash or protects you in a crash, you may be able to qualify for a discount.

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Companies With the Best Car Insurance Discounts 

Some companies have more discounts than others, so we’ll take an in-depth look into the best auto insurance companies offering the most discounts. 

Nationwide, Allstate and Progressive offer some of the fewest auto insurance discounts. On the other hand, companies like Farmers, Liberty Mutual, and American Family offer various discounts.

However, just because a company offers more discounts doesn’t mean it’s cheaper than a company with fewer discounts. The company with more discounts may have higher rates initially, or its discounts may be smaller than other companies.

Good driver discounts, usage-based discounts, and multi-policy discounts are some of the top discounts. The amount saved varies by company, but these discounts generally take the largest percentage off your insurance policy. 

Consider the average cost of the insurance company’s policies relative to the percentage saved. For example, an expensive company may offer 20% off for being a good driver, but the final rate may still be higher in cost than a cheaper company offering a 10% discount.

Tips for Finding the Best Car Insurance Savings and Discounts 

Now that we’ve looked at different discounts, we want to share a few tips on finding the best car insurance discounts and savings. Discounts are a great way to find savings, but there are other tips to reduce your auto insurance costs.

Ask Independent Agents or Brokers for Assistance

Sometimes, it’s helpful to speak with an independent agent or broker who can assist in comparing insurance rates and discounts. You can also use online quote comparison tools to compare how much discounts may shave off your total rate at different companies.

Check Rates for Different Cars 

Some cars are more expensive to insure than others, so if you’re looking for a new car, compare rates before purchasing one. If the car you want is one of the most stolen vehicles in America or has expensive replacement parts, it’ll cost more than a car that qualifies for anti-theft and safety feature discounts.

Keep a Good Credit Score 

One way to reduce auto insurance costs is to keep a good credit score. Most auto insurance companies charge drivers with good credit scores significantly less than the cost of auto insurance for drivers with bad credit because poor credit scores indicate a higher likelihood of missed payments.

Missed payments may also lead to canceled car insurance policies and driving illegally without car insurance, which raises a driver’s risk status and makes it harder for them to find cheap rates.

Raise Deductible/Change Coverages

Ensure you aren’t carrying unnecessary coverages if you want to save on car insurance, meaning you could drop extra coverages like roadside assistance. Also, if your car is older than 10 years and no longer worth much in the market, you could drop full coverage auto insurance and just carry minimum liability auto insurance.

You can also raise your auto insurance deductible if you’re at lower risk of filing a claim but don’t raise it beyond an amount you can’t afford. If you raise it too high, you’ll be stuck paying to repair your car, potentially leaving you without a vehicle.

Shop at Renewal 

We recommend shopping around for insurance quotes every year close to your impending insurance renewal. Rates can fluctuate each renewal, even at the same company, so getting different quotes can ensure you’re getting the cheapest rate possible. 

Things to Know About Car Insurance Discounts 

Before we wrap up our guide to car insurance discounts, you should know some important facts. From capped insurance discounts to discounts that aren’t automatic, we’ve gone over some of the most important facts below. 

A State May Require Discounts

Some states have state-mandated discounts, meaning every state insurance company must offer that discount. Check your state-mandated discounts to see if there’s one you haven’t qualified for yet, such as a defensive driving discount. 

Discounts May Vary by State 

Insurance companies often post lists of their insurance discounts on their websites, but not all the discounts you see listed will be offered in every state. Make sure to read the fine print to see if the auto insurance discount you want is offered in your state. 

Discount Total May be Capped

Usually, discounts have a maximum amount. There may be dozens of eligible discounts adding up to 50% off your insurance policy, but your insurance company caps the maximum amount you can earn at 30%.

Individual Discounts May Not Give Full Discount Advertised

Also, individual discounts may cap at a certain amount. Anytime the words “up to” are used, you may not earn the full discount advertised. For example, a company may offer a safe driving discount of up to 10%, but you may earn less than this as only certain drivers qualify for the full discount.

Discounts May Not Apply to Full Bill

Some of the higher insurance discounts may not apply to your full policy bill. For example, a discount for anti-theft devices may only take a percentage off your comprehensive insurance since it’s the policy covering car theft and vandalism.

Discounts May Not be Automatic

Insurance companies won’t know if you installed an anti-theft device or took a defensive driving course unless you inform them. Therefore, don’t assume discounts automatically apply, especially if the discount requires proof to qualify. 

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The Final Word on the Most Common Auto Insurance Discounts 

Car insurance discounts can be a great way to reduce your auto insurance quotes. However, not all discounts automatically apply to your bill, so check out your insurance company’s list of discounts. 

If you want to jump right into finding car insurance savings, shopping around at different companies for quotes can help you find the best discounts. Use our free quote comparison tool to see what insurance companies offer the best rates in your area.

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