Auto insurance discounts: Complete guide for 2023

Discounts are one of the best ways to get cheaper car insurance. And while insurance companies try to apply discounts based on the information you give them, sometimes a discount might be missed.

To help you get the most and best car insurance discounts, we’ve gathered a complete list of available discounts, how much they will save you, and which companies offer them.

Types of car insurance discounts

Auto insurance discounts tend to fall into a few categories, and within those categories, there may be dozens of possible discounts.

Here is a summary of different car insurance discount types by category.

Auto insurance discount types

Common car insurance discounts and savings

The following common auto insurance discounts may be available to you; be sure to ask about these opportunities to save. Note that car insurance discounts may vary by state, vehicle, driving record, credit history, and other factors.

How much can I save with car insurance discounts?

As the chart above shows, safe driver, accident-free driver, student, home-auto bundle and multi-car discounts can garner great savings, while others might save just 2%. Advertised discounts also don't necessarily apply to your entire insurance bill. A discount might only apply to your personal medical coverage, which is a relatively small part of your policy. It's also possible that when you claim one discount, the insurer may reduce or eliminate others.

There is often a limit on the overall discount you can get on a policy, for instance, some insurers permit total discounts of no more than 25% or 30%.

Your savings may also depend on where you live, and not all discounts are offered in all states. Take a look below at some examples of average savings for different types of common car insurance discounts in several states for comparison, as well as the national average.

New driver training discount

New drivers who take a driver training course can enjoy some savings. For experienced drivers, refresher courses or defensive driving training can give you a smaller discount, but every little bit can help.

Good student car insurance discount

The good student discount for families with student drivers under 25 also varies considerably.

Student away at school discounts

If your child is on your auto insurance but goes away to school, you could save hundreds.

Car insurance discounts by company

Not all companies offer all discounts. Below you’ll find a list of top companies and which discounts they offer.

How to get discounts on car insurance

Getting discounts on car insurance is easy; you simply have to know what’s available and then find out if you qualify. And if so, you have only to ask. Here are some simple steps to getting more car insurance discounts.

1. Know the available discounts

Make sure you know which discounts you qualify for, and then make sure they’re added to your policy.

Insurance is a business, and its goal is profit. Dan Wade, an attorney with the California Department of Insurance and formerly with the non-profit consumer advocacy group United Policyholders, talks about "insurers' increased use of 'price optimization,' which refers to how much a consumer is willing to pay for the product/how much of a price increase they will tolerate or notice before switching."

In other words, your premiums may be based on what your company thinks you're willing to pay rather than the risk you present. And they might not give you discounts unless you ask.

2. Shop around yearly – especially for discounts

Discounts vary widely by company and state, so the only way you can be sure you're getting the best deal is to compare quotes whenever you renew or change insurers. And don’t just look at discount.

"One important thing to keep in mind is that the key to savings is not necessarily getting discounts, but the final price. A company that offers few discounts may still have a lower overall price," Loretta Worters, vice president of communications at the Insurance Information Institute says.

3. Don't spend money to get discounts

Be cautious about spending money to obtain richer discounts. For example, you might earn a discount of between 2% and 23% for fitting anti-theft devices (though some companies insist they're factory-fitted to qualify), such as tracking devices, alarms and kill switches. But some expensive add-ons earn you very little.

Tracking devices can cost you more than $1,000, but only save you well under $100 yearly.

4. Make sure you get what you need

When you're comparing quotes for automobile insurance, it's easy to focus on the bottom line, and go for the lowest premium. But that's a dangerous strategy.

Senior vice president and managing director of Private Client Advisors at HUB International Patti Clement says she regularly sees how chasing those discounts without regard to other factors can lead to trouble.

"Make sure that you understand what insurance coverage you have and what your potential out-of-pocket expenses will be in the event of a loss,” she says.

And Clement warns, "Also, make sure that you carry good liability coverage, not the minimum state requirement. Many people are under-insured – not understanding that if you cause bodily injury or property damage to others that you are responsible for the damages, even if they exceed your insurance policy limits."

6. Compare quotes quickly but carefully

Comparison shopping for insurance and financial products can be daunting, but there are ways to simplify the process:

1. Gather what you need to get quotes, including driver and vehicle details, to make sure the quotes are accurate.
2. Get car insurance quotes from multiple companies.
3. Organize them in order of cost, with the least expensive on the top of your actual or metaphorical pile.
4. Read through them first, comparing what it offers with your existing policy. Focus especially on coverage, exclusions and deductibles.
5. Work your way down the pile, pulling out the ones that give you all you need at low prices.
6. Check each company’s reputation with third-party sites like AM Best and J.D. Power.
7. Call the insurers' call centers and run through the list of discounts on this page to see if you can get an even lower premium.

Taking a little time ensures the best policy at the best price.

FAQ: Auto insurance discounts