Auto insurance companies offer discounts based on your driving habits, like if you’ve been accident free for three years or if you’ve completed a defensive driving education course
You can get a discount on your car insurance policy if you buy another type of insurance — like your homeowners or renters insurance — with the same company
Safety features can also result in discounts, like if you have an anti-theft system in your car
Auto insurance is required in almost every state in the U.S., and even where it's not required, having auto insurance coverage is still important protection. That means that insurance companies don’t have to convince you that it’s a good idea to buy an insurance policy — the way they do with, say, life insurance — so much as sell you on the idea that you should be buying it from them instead of the competition.
One way insurance companies can entice customers is to offer discounts. Discounts can help make your car insurance more affordable, so it's good to know which ones are offered by different car insurance companies.
There are a lot of different auto insurance discounts you can get from your insurance provider, but most insurance companies categorize discount types into three main groups:
Before you buy car insurance, you can save money right off the bat by ensuring that you’re buying the right amount of car insurance. Need to know how much car insurance you need? We can help you figure out your ideal coverage amount, plus get you free car insurance quotes from America’s top insurers.
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One of the major factors in determining your car insurance rates is what kind of driver you are and what driving habits you have. There are some things, like your age, that you can’t do much about, but you can take advantage of some of your personal details to save big on your premiums.
Many car insurance companies will give discounts based on affiliations with certain groups, and this often takes the form of occupational discounts.
A few affiliations include:
Besides these broad groups, you can also look for more employer-specific discounts. GEICO, for example, has insurance discounts for employees of Berkshire Hathaway companies.
There are also discounts for how well or how often drivers drive.
Most insurance companies will offer discounts on your car insurance premiums for safety features that you can add to your vehicle.
A lot of auto insurance premium discounts are used for customer retention. Insurers want to give you every reason to stay with them and they want to make it worth your money to do as much business with them as possible: they want you to insure every car you have with them, plus other property, too.
Most insurance companies insure more than just cars; they offer a variety of insurance products, such as homeowners insurance and renters insurance. If you buy multiple policies, also called bundling, your insurance company may offer you a discount. If you have multiple cars, insuring them all through the same insurance company can get you a multi-car or multi-policy discount.
We can help you get an insurance checkup to see what your insurance needs are, and if you need more coverage, getting some if it in one place can save you money.
Family plans are also common for auto insurance. If you, your spouse, and your kids are all insured with the same company, you’ll probably get a discount. Plus, having all of your plans at one company makes it easy to avoid the hassle of multiple car insurance premium payments to multiple companies at different times.
How you pay can also save you money. Some insurers will offer a discount for things like:
The most obvious time to focus on customer retention is when a customer has to renew their policy, which is why most insurers offer some sort of renewal discount to keep you from switching to a different insurer.
Some insurance companies will offer you a discount if you transfer or switch your auto insurance policy to them. Basically, if you join with a new insurer they might give you a discount for ditching the competition. This makes it worth shopping around when it comes time to renew your car insurance — just in case you can find a better deal elsewhere.
There’s a lot of flexibility when it comes to your auto insurance. The car insurance discounts you’re eligible for can play a big role in which carrier you go with and how much you’ll pay every year. It’s important to do your research to see which company can get you the best deal.
Logan Sachon is the co-founder of The Billfold, a groundbreaking personal finance site for millennials that was named one of Time's 25 Best Blogs of 2012. Her work has been published in New York Magazine, Glamour, The Guardian, BuzzFeed and more.
Kara McGinley is an Insurance Editor at Policygenius. She previously worked as a freelance writer and a copywriter for various startups. Her work can be found in Teen Vogue, The Culture Crush, Mask Magazine, and more.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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