What Discounts Can I Get on Car Insurance? 27 Ways to Save in 2026

The 27 Most Common Car Insurance Discounts

Organized by category and typical savings:

How to Stack Discounts for Maximum Savings

Most insurers allow you to stack 5-8 discounts, but cap total savings at 40-60%.

Example: How to save 45% ($900/year)

Driver profile: 35-year-old married homeowner, clean record, drives 8,000 miles/year

Starting premium: $2,000/year

Discounts applied:

• Multi-policy (auto + home): -20% = -$400
• Safe driver (5 years clean): -15% = -$300
• Low mileage (8,000/year): -10% = -$200
• Telematics (safe driving score): -12% = -$240
• Auto-pay: -5% = -$100
• Paperless: -3% = -$60
• Homeowner: -5% = -$100
• Advanced safety features: -8% = -$160

Total potential savings: 78% = -$1,560

Insurer cap: Maximum 50% discount allowed

Final premium: $1,000/year (50% savings = $1,000 saved)

Key strategy: Apply largest discounts first (bundling, safe driver, low mileage, telematics). Once you hit the cap, smaller discounts won't reduce your rate further, but they maintain your savings even if one large discount expires.

Discounts Insurers Don't Advertise (Ask About These)

Many valuable discounts aren't promoted—you must ask:

1. Early signing discount

• Sign new policy 7-30 days before current policy expires
• Savings: 5-10%
• Why: Reduces last-minute policy lapses

2. Transfer discount

• Switch from competitor listed on insurer's preferred transfer list
• Savings: 5-10%

3. Smart home discount

• Home security system, smart thermostat, leak detection (if bundling home + auto)
• Savings: 5-15% on home policy, 2-5% on auto

4. EV/hybrid vehicle discount

• Electric or hybrid vehicle
• Savings: 5-10%
• Insurers offering: Farmers, Travelers, Nationwide

5. Accident forgiveness (first accident doesn't increase rate)

• Not a discount but valuable protection
• Requirement: Usually 5+ years claim-free
• Value: Prevents 20-50% rate increase after first accident

6. Renewal discount for shopping/confirming coverage

• Some insurers reward you for actively reviewing your policy at renewal
• Savings: 2-5%

7. Pay-per-mile insurance (Metromile, Mile Auto)

• Pay a base rate + per-mile rate
• Savings: 30-50% if you drive under 7,000 miles/year
• Best for: Extremely low-mileage drivers

How to access hidden discounts:

Ask your agent: "What discounts am I not currently receiving that I might qualify for?"

Step 1: Audit your current discounts

• Review your policy declarations page
• List all discounts currently applied
• Compare to the 27 discounts above

Step 2: Identify qualification gaps

Easy wins (can do today):

• Sign up for paperless billing
• Set up auto-pay
• Request homeowner discount (if applicable)
• Provide military ID (if applicable)
• Check affinity/employer discounts

Short-term actions (within 1-3 months):

• Take defensive driving course ($20-$100 investment, saves $50-$200/year)
• Enroll in telematics program (free, saves 10-30% if you drive safely)
• Install anti-theft device ($30-$300, saves 5-20% on comprehensive)
• Bundle policies (get renters/home insurance with same company)

Long-term goals (within 6-12 months):

• Maintain clean driving record (no tickets/accidents)
• Reduce annual mileage (work from home negotiation, carpool, public transit)
• Help student achieve/maintain 3.0+ GPA

Step 3: Call your insurer

Script:

"I'd like to review all available discounts. I currently have [list your discounts]. Am I eligible for any additional discounts based on [homeownership, military service, affinity groups, low mileage, safety features, etc.]?"

Step 4: Shop competitors annually

• Different insurers offer different discount combinations
• One insurer may weight your specific profile more favorably
• New customer discounts often beat loyalty discounts
• Get 5-10 quotes to compare total cost after all discounts

Step 5: Re-audit annually

• Life changes = new discount eligibility
• Examples: Marriage, buying a home, working from home, student graduating, vehicle safety upgrades, becoming eligible for mature driver discount

Set a calendar reminder: Review discounts every January or at policy renewal.

Common Mistakes That Cost You Discounts

1. Not asking for discounts

• Insurers don't proactively apply all eligible discounts
• Solution: Ask annually

2. Letting defensive driving course expire

• Discount expires after 3 years
• Solution: Set reminder to retake course

3. Not updating insurer when you reduce mileage

• Work-from-home, retirement, new short commute
• Solution: Notify insurer of mileage changes

4. Not providing updated transcripts (good student discount)

• Insurer may remove discount if not re-verified annually
• Solution: Submit transcript/report card at renewal

5. Dropping below 3.0 GPA without telling insurer

• If discovered during claim, can result in claim adjustment or denial
• Solution: Be honest; work to improve GPA for next semester

6. Not bundling because you assume it costs more

• Many people don't bundle thinking it's more expensive
• Solution: Always get a bundled quote—it's usually 15-25% cheaper overall

7. Ignoring telematics programs due to privacy concerns

• Safe drivers leave 10-30% savings on the table
• Solution: If privacy matters, choose program that only tracks mileage (not behavior)

8. Not shopping after major life changes

• Marriage, buying home, job change, retirement
• Solution: Get new quotes—your risk profile changed and different insurers may value it differently

9. Paying monthly instead of annually (if cash flow allows)

• Paying monthly costs 5-10% more in installment fees
• Solution: If financially feasible, pay annually

10. Staying loyal without shopping

• Loyalty discounts often don't offset rate increases over time
• Solution: Shop every 1-2 years; show competitor quotes to negotiate

Which Discounts Are Worth the Effort?

High ROI discounts (prioritize these):

1. Bundling (auto + home/renters):

• Effort: 30 minutes to get quotes
• Savings: $300-$600/year
• ROI: Excellent

2. Telematics program:

• Effort: 15 minutes to enroll + drive safely
• Savings: $100-$600/year
• ROI: Excellent (if you drive safely)

3. Low mileage verification:

• Effort: 5 minutes (odometer photo)
• Savings: $150-$500/year
• ROI: Excellent

4. Defensive driving course:

• Effort: 4-8 hours + $20-$100
• Savings: $50-$200/year for 3 years
• ROI: Good ($150-$600 total savings over 3 years)

Medium ROI discounts:

5. Anti-theft device:

• Effort: $30-$300 + installation
• Savings: $50-$200/year
• ROI: Good (payback in 1-3 years + actual theft protection)

6. Good student maintenance:

• Effort: Already doing (or should be)
• Savings: $200-$600/year
• ROI: Excellent (no extra effort beyond academics)

Low-effort, small-savings discounts (do them anyway):

7. Paperless, auto-pay, paid-in-full:

• Effort: 5-10 minutes
• Savings: $50-$200/year combined
• ROI: Excellent (minimal effort)

Bottom line: Start with bundling, telematics, and low mileage. Add paperless/auto-pay. Then pursue defensive driving and safety devices if savings justify effort.

Frequently Asked Questions