Car Insurance Discounts You May Not Be Aware Ofby Preston Davis Sep 13, 2022
It’s painful at the pump: Soaring gas prices have left many a driver feeling sore, not to mention searching for ways to save money by limiting other expenses. Surprisingly, your car – in particular, your car insurance – might just hold the key to savings: Car insurance companies offer a plethora of discounts to help you save money, but oftentimes consumers aren’t aware of them.
Read on to learn about the discounts that car insurance companies don’t necessarily tell you about. You could end up saving a bundle and filling up your wallet, which could help to offset the high cost of filling up at the pump.
Green Vehicle & Safe Driver Discounts
Green Vehicle Discount | Liberty Mutual, Travelers, Farmers
Going green can mean saving some green: If you drive an electric car, a hybrid, or an alternative fuel vehicle, you might be eligible for an insurance premium discount.
Safe Driver Discount | American Family, Allstate, Geico, Liberty Mutual, Progressive, Nationwide, State Farm, Travelers, USAA, Farmers
Accident-free driving is its own reward – but it can also save you some cash. Some insurers offer safe driving discounts after only three years, but others may require five years of accident-free driving before giving you some policy payment relief.
Military, Low Mileage, & Loyalty Discounts
Military Discount | State Farm, Geico, USAA, Farmers
Some insurance companies offer active service members, surviving military family members, and retired military personnel a discount on auto insurance policies. For example, Geico provides discounts of up to 25% when a military policyholder experiences emergency deployment, and USAA offers up to 15% off premiums when policyholders live on base.
Low Mileage Discount | American Family, Allstate, Farmers, Liberty Mutual, Progressive, State Farm, USAA, Farmers
It’s a simple equation: The less you drive, the less likely you are to be involved in a car accident, which is why some insurance companies reward drivers with a history of low car mileage. Today, most major car insurers offer “telematic” driving monitoring programs that can track driving habits and mileage.
Loyalty Discount | Progressive, State Farm, USAA, American Family, Farmers
Been with the same insurance company for years? Check into whether the company offers a loyalty discount. Some State Farm customers receive a price break after just one year.
Air Bags & Multivehicle Discounts
Air Bags Discount | American Family, Geico, Nationwide, State Farm, USAA, Farmers
If you have a newer car with airbags or “passive restraints” such as motorized seat belts, you could be eligible for this discount. American Family policyholders could save up to 30% on the overall cost of their policy if their vehicle has factory-installed airbags.
Multivehicle Discount | American Family, Geico, Liberty Mutual, Nationwide, State Farm, Progressive, Travelers, USAA, Farmers
Two cars in your driveway? That could be the green light in terms of snagging an insurance discount. Just about all insurance companies offer a discount on your premium if you have multiple vehicles under a single account. And even if you have multiple, and different, insurance policies in your home, you could still be eligible for up to 25% in savings on your premiums.
Homeowner & Electronic Payment Discounts
Homeowner Discount | Nationwide, State Farm, Progressive, Travelers, Farmers
Some auto insurers now give discounts to policyholders who own their residence, be it a condo or a house. But look carefully at the caveats: For example, Nationwide customers in Connecticut can save up to 7% on their car insurance if they own a home – and if they agree to insure that property through Nationwide within twelve months.
Electronic Payment Discount | Allstate, Geico, Liberty Mutual, Progressive, Nationwide, American Family, State Farm, Travelers, Farmers
Whether it’s called electronic billion, paperless billing, or automated payments, the result is the same: Most insurance companies offer a discount if you set up automated billing, on an agreed-upon schedule, from either your credit card or bank account.
Full Payment & Good Student Discounts
Full Payment Discount | Allstate, American Family, Liberty Mutual, Geico, Progressive, Travelers, Nationwide, Farmers
Some insurance companies charge a “billing fee,” which will be indicated on your invoice. But if you pay the full six-month cost of your auto policy all at once, instead of in installments, you could be spared the billing fee and save a percentage on your premiums.
Good Student Discount | American Family, Allstate, Geico, Liberty Mutual, Progressive, Nationwide, State Farm, USAA, Travelers, Farmers
There’s a lesson to be learned when it comes to saving on car insurance: Companies believe that drivers with high GPAs are more responsible, and therefore less likely to be involved in car accidents. All 10 of the top auto insurers offer discounts to students that hold a B average or higher.