Best car insurance discounts in 2025

Car insurance is a legal requirement in most states, but the cost of this mandatory financial protection is on the rise in 2025. With inflation and car repair costs driving up the price of coverage, looking into discounts is one of the easiest and best ways to reduce auto insurance costs.

How to get discounts on auto insurance

There are two primary ways to use auto insurance discounts to your advantage. First, if you have an active auto insurance policy, review the discounts currently applied to your policy and see if your insurance company offers other discounts that could lower your rates. You can review your policy’s declarations page on your own or speak to your insurance agent and request a thorough policy review. Ask your agent about available discounts on auto insurance that fit your profile.

If you’re not satisfied with the discounts you’re currently getting, look at discount options available from other car insurance companies and consider switching carriers for a lower rate. While some discounts, such as bundling discounts and multi-car discounts, are fairly standard across carriers, discount amounts, eligibility terms and unique discounts can vary considerably between companies.

Types of car insurance discounts

Bankrate’s team of insurance experts has identified four main types of car insurance discounts: driver-based or demographic discounts, driving-based discounts, vehicle-based discounts and loyalty-based discounts. Your insurer may also have other miscellaneous discounts, but these four categories cover the bulk of the common auto insurance discounts offered by most carriers.

Because eligibility and the amount saved for each discount on auto insurance vary by insurance company, it’s important to shop around with different carriers when looking for cheap car insurance. After receiving quotes back, review the discounts and their impact on your insurance rates, and check if you might be missing any of the discount opportunities below.

Driver-based discounts

Some car insurance discounts are based on a driver’s characteristics, such as their age group, profession or membership in an affiliated group. While certain discounts may be applied automatically, it never hurts to ask if you don’t see a discount you think you’re eligible for on your declarations page.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

• Young driver discounts

  Young drivers face some of the most expensive average car insurance rates of all age demographics, but there are ways to earn discounts. To save money on car insurance for young drivers, some carriers offer a discount for completing a safe driving course designed for teen and young drivers, while others offer telematics programs intended to help young drivers practice safe driving habits.

  Offered by major insurance companies like: Amica, Progressive, State Farm

• Student discounts

  Adding student discounts is another chance to save on your car insurance premium. By maintaining a good GPA (typically a B average or higher), high school and college students may be able to add a good student discount to their policy. Additionally, college students who attend school far away from home and don’t take a family car with them may also be able to qualify for a distant student discount. Students typically need to be enrolled full-time to be eligible for this type of discount.

  Offered by major insurance companies like: State Farm, Auto-Owners, Geico

• Military discounts

  Most insurance companies pay respect to military members by offering them a solid discount for their service. Whether you are on active duty or active reserves, or retired or honorably discharged, you and qualified family members may be able to qualify for an extra discount, as well as specific discounts for deployed service members. In addition, active duty military personnel based in Louisiana are eligible for a mandatory 25 percent discount from all insurance carriers. USAA, being limited to military members and their families, offers less of a discount and more of an exclusive access to affordable rates to its base.

  Offered by major insurance companies like: Geico, Liberty Mutual, Farmers

• Professional discounts

  Many insurance companies offer special car insurance discounts for particular professions. Certain professionals, like those in the medical, educational, engineering and financial fields, may qualify for discounts based on their careers.

  Offered by major insurance companies like: Farmers, Geico, Travelers

• Organizational discounts

  Membership in an organization could qualify you for another car insurance discount. While discounts are most commonly advertised for federal employees, alumni group members or employees of associated companies, asking your insurance agent if your particular membership qualifies you for a discount is the best way to find another savings opportunity. One example being The Hartford offering organizational discounts to individuals who are AARP members.

  Offered by major insurance companies like: Farmers, Geico, Travelers

Driving-based discounts

Having a clean driving record is generally the best way to qualify for many safe driving discounts, as it indicates to insurance companies that you are less likely to file claims. However, even without a spotless record, there are still some driving-based discounts you could qualify to earn auto insurance savings for your driving.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

• Safe driver discounts

  To qualify for a safe driver discount, a driver must go a certain number of years — usually three to five — without any at-fault accidents or moving violation convictions. The amount of time required to qualify as well as the size of the discount differ depending on the insurance company, so it’s worth shopping around to see what different carriers offer you.

  Offered by major insurance companies like: Geico, Nationwide, USAA

• Telematics discounts

  Most major insurers now offer telematics programs, which allow drivers to track their driving in real time using GPS technology and share the data with their insurance company via a mobile app. In most cases, drivers must track and share their driving for a certain trial period, during which they receive a small discount for program enrollment. Following the test period, the insurance company will recalculate premiums based on driving data, with discounts awarded to drivers who avoid unsafe behaviors like harsh acceleration and hard braking, speeding or phone use. It’s worth noting that some usage-based insurance programs increase rates for risky driving behaviors. Checking the discount details and evaluating J.D. Power’s Usage-Based Insurance Study can help you pick the right telematics program for you.

  Offered by major insurance companies like: Nationwide, Progressive, State Farm

• Low-mileage discounts

  The average driver puts around 13,500 miles per year on their car. Drivers who have lower than typical annual mileage may qualify for a low-mileage discount. If you normally drive less than the average U.S. driver or only drive occasionally, a program specifically for low-mileage drivers could be worth a look. Most auto insurance companies also request odometer readings every year to calculate your rates correctly. If you do not drive very often, it may be worth contacting your insurance carrier to learn the requirements to qualify for this type of discount.

  Offered by major insurance companies like: Allstate (Milewise), Nationwide (SmartMiles), American Family (MilesMyWay)

• Defensive driving course discounts

  Discounts for completing a defensive driving course may vary by state and carrier, but they’re most often available for drivers over age 55 or teens looking to improve their skills. The course will generally need to be approved both by the state and the insurer in order to result in a discount for car insurance.

  Offered by major insurance companies like: Farmers, Geico, Nationwide

What Bankrate staffers have to say about their driving-based discounts

We asked Bankrate staff members who have gotten an auto insurance discount based on their driving about their experience. What we heard: while this type of discount might not make a huge dent in your premium, it’s a helpful tool to keep your rates a bit lower.

Vehicle-based discounts

Your car’s installed features, such as anti-lock brakes, adaptive cruise control, daytime running lights and safety features, may make driving safer and help you to avoid accidents. Depending on your car insurance carrier, you may earn a discount for these features due to your lower risk.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

• Safety features discounts

  Most new cars may come with a few standard safety features, such as anti-lock brakes, passive restraint and air bags. You may even be able to customize your car to include more safety add-ons. However, keep in mind that every car insurance company is different, and the qualifications for safety features and discount amounts may vary.

  Offered by major insurance companies like: Allstate, Geico, Amica

• Anti-theft discounts

  Comprehensive insurance covers theft of your car, which can be costly for your insurer and inconvenient for you. For this reason, some carriers may offer an additional anti-theft discount for installing security systems or alarms in your car. Qualifying can also be as simple as informing your provider that you regularly park your car in a private, enclosed garage, instead of the street.

  Offered by major insurance companies like: Farmers, Geico, Nationwide

• Hybrid/electric vehicle discounts

  Some insurers incentivize customers who own alternative fuel vehicles, including hybrid and electric cars, by offering discounts on car insurance. Only a few companies currently offer this type of discount, so shopping around could save you money if you own an EV or hybrid.

  Offered by major insurance companies like: Farmers, Travelers, The Hartford

• New vehicle discounts

  In some cases, your insurance company may offer a discount if you own or lease a new vehicle (typically three-model-years-old or newer). You may also need to prove that you’re the car’s first owner in order to qualify for a discount.

  Offered by major insurance companies like: Geico, Allstate, Travelers

Loyalty-based discounts

Once you have found a company that works for you, you may earn additional discounts for staying insured by the company, especially if you bundle your car insurance with home, life, boat or another type of insurance.

*This is the highest discount based on our research of top providers in the market. Your actual savings may vary.

• Multi-car discounts

  If you are insuring more than one car, including both vehicles on a single policy could be an easy way to earn a discount. Keep in mind that the car needs to be registered to you or your spouse if you are married.

  Offered by major insurance companies like: Geico, Liberty Mutual, Progressive

• Multi-policy discounts

  Bundling is a common discount offered by most major insurers and often offers significant savings. Whether you own your home or rent, having both your car insurance and your homeowners or renters insurance with one company could give you a discount on the premiums. There may also be bundling discounts available for bundling your auto insurance with other policies, like life or umbrella.

  Offered by major insurance companies like: Nationwide, State Farm, Travelers

• Continuous policyholder discount

  Depending on the carrier, this discount could be interpreted in two ways. Some insurance companies, like Progressive, may offer this discount to new policyholders based on how many years they were continuously insured at a previous carrier. Other insurance companies may consider how many years an insured has been with them, although it is common that it’s not included as a discount, but factored into the overall premium before discounts.

  Offered by major insurance companies like: Amica, Travelers, USAA

• Legacy discount

  A few carriers offer special discounts to young policyholders who split off of a parent’s policy to establish their own account with the same insurer. Exact eligibility requirements vary, but you typically must have been insured on a parent’s policy for at least a year before starting your own standalone policy.

  Offered by major insurance companies like: Amica, USAA

Other car insurance discounts

We’ve covered the most common auto insurance discounts, but more opportunities to save on car insurance may be available. Below are discounts that only certain insurers offer, but they are worth asking about to make sure you’re taking advantage of all potential savings opportunities.

New policyholder discount

To incentivize drivers considering switching their car insurance companies, some carriers may offer a new policyholder discount. This additional discount may be applicable for the first period of the new policy and eventually fall off.

Homeowner discount

As homeowners are generally more financially stable than renters, they may be able to receive a discount on auto insurance due to having a lower likelihood of needing to file claims. You don’t necessarily even need to bundle your policies to qualify, you just need to be a homeowner. If your insurance company doesn’t offer home insurance, making a multiple policy discount unavailable, you can ask if a homeowner discount is available.

Billing discounts

Depending on your billing and payment method, you may be able to earn more discounts on your policy. The most commonly seen are paperless billing, automatic billing and paid-in-full discount, but check with your insurance agent to see if there may be anything unique to your company that you can participate in.

How to find the best car insurance discounts

Shopping for car insurance can be an involved process. You may be considering how much car insurance you need, what coverage options to include and which carrier will give you the most competitive premium. Knowing how to get discounts on car insurance can help you find the best price for the coverage you need. Below are some tips on finding car insurance discounts:

• Research a carrier website. This is a good place to start. Most carriers list discounts you could be eligible for and any additional information about eligibility guidelines and how to claim the cost-savings.
• Ask a licensed agent. They can provide even more specific information regarding discounts you’ve already identified and share details about state-specific discounts you may not know about.
• Talk to friends or family. Referrals are a great way to find an insurance company that offers generous discounts. You may find that the discounts are more attractive than your current provider offers, and it could be worthwhile to switch insurance companies to receive the same level of coverage at a lower rate.

Other ways to save on car insurance

Discounts could help to lower your car insurance premiums, but other smart saving strategies include: 

• Compare rates often. As the insurance market continues to respond to inflation, carriers may change rates often — so shopping around whenever your policy is up for renewal could save you money. 
• Practice safe driving. A clean driving record puts you at a significant advantage when looking for affordable car insurance. In addition to qualifying you for discounts, it also ensures you’ll pay a lower base rate for coverage. 
• Build your credit. In most states, your credit history plays a major role in the amount you pay for auto insurance. Moving to a higher credit tier could reduce your car insurance costs. 
• Raise your deductibles. If you have full coverage on your policy, raising the deductibles attached to your comprehensive and collision coverage could slightly reduce your premiums. Be careful, however, not to select a deductible you can’t realistically pay in the event of a covered loss. 

Frequently asked questions

• Where do I find all the discounts added to my policy?

  All included discounts on your car insurance policy can be found in your policy declarations page. If you’re still in the quoting process, it will be on the quote completed by the company. You can use this to compare carriers to one another to see which one offers you more discounts and how much the discount decreases the premium.

• Does my mileage affect my car insurance premium?

  Most car insurance companies will ask for an odometer reading when you start your policy, and may also request one every year thereafter to get a sense of how much you drive. Drivers who are on the road more often tend to pay higher rates compared to low-mileage drivers. If your commute or annual mileage has changed recently, check with your insurance agent on how this might affect your car insurance rates.

• Why is it important to shop around for car insurance quotes?

  Each insurance company uses its own underwriting algorithm to determine your rate. For example, let’s say you have a speeding ticket on your record. Some insurers may quote you a higher rate because of your driving history, while others may look more favorably on drivers with less-than-perfect driving records. The same goes for any other car insurance rating factor.

  Because these rating factors are interdependent, and because insurance companies don’t make their underwriting algorithms public, casting a wider net in your car insurance search can help you hone in on the provider that offers you the best rate for your unique driving profile and coverage needs. Different providers also may offer different discounts for auto insurance, which is worth keeping in mind while you shop.

• How does vehicle type affect car insurance discounts?

  The kind of vehicle you drive can play a large role in determining both your rate and the number of discounts you can add to your car insurance policy. If your vehicle comes equipped with safety features, those could help you earn more discounts. These features may help you avoid accidents that could cost both you and your insurer quite a bit of money.

• Which car insurance company offers the most discounts?

  Farmers and Geico top the list, each advertising over 20 discounts on their websites. However, just because a provider doesn’t list discounts doesn’t mean they don’t offer them. Even when discounts are advertised, specific savings percentages are often missing. It’s always worth asking your agent or insurance company about available discounts to maximize your savings and get the best rates.