How to save on auto insurance with discounts and programs

Overview: Discover ways that may help you save on auto insurance by leveraging available discounts. Insurers commonly offer reductions for safe driving, good grades, vehicle safety features, bundling policies, insuring multiple cars, usage-based programs (telematics), loyalty rewards and professional affiliations. Speak with your agent to confirm eligibility and ensure you’re optimizing your savings. Below, we’ll explain how to save on car insurance by exploring common auto insurance discounts.

Maximize potential savings with these common auto insurance discounts

One of the easiest ways to help save you on auto insurance is by exploring the variety of programs offered, like auto discounts offered by State Farm. Insurance companies provide numerous opportunities for discounts based on driver behavior, vehicle attributes and policy details. Here are some of the most common:

Driver-based discounts

Driver-based discounts reward specific behaviors and achievements that reduce risk. Here are ways to save on insurance under this category:  

• Safe driving — if you maintain a clean driving record for three to five years, free of at-fault accidents or traffic violations, you could be eligible for significant discounts.
• Good student — full-time students who keep their grades high (usually a “B” average or better) can qualify for savings. This is a great way for families to save on car insurance for teens.
• Defensive driving courses — completing a certified safety or driver training program can lead to additional savings. Check with your insurer for approved courses.
• Student away at school — if a student in your household lives at college at least 100 miles away without taking their car, you might qualify for a discount.

Vehicle-based discounts

The make, model and features of your car can also qualify you for significant discounts.  

• Vehicle safety features —airbags, anti-lock brakes and other advanced safety systems often result in added savings. These features can reduce the risk of an accident or reduce the severity of an accident.
• Anti-theft systems — vehicles with security alarms, tracking systems or other theft-deterrent devices often qualify for reduced rates on comprehensive coverage.
• Electric vehicle (EV) discount — some insurers offer discounts for owning or leasing hybrid or electric vehicles.
• Newer vehicles — insurance for newer models may come with added savings due to their updated technology and safety features. 

Policy-based discounts

How you structure your insurance policy influences the price. Here are some ways you can save money on car insurance with policy-based strategies:  

• Bundling policies — combine your auto insurance with renters, homeowners or life insurance to receive a significant multi-policy discount. 
• Multi-car savings — if your household has more than one car, insuring them under the same policy may lower your costs. 
• Payment options — some insurers may provide discounts if you pay your premium in full, set up automatic payments or opt for paperless billing.

Loyalty and affiliation discounts

Your occupation, memberships, or long-term relationship with an insurer may also unlock savings:  

• Military and occupation-based discounts — military members, teachers, first responders and some professional groups may be eligible for exclusive savings with certain insurers.
• Loyalty programs — some insurers reward long-time customers with discounts for renewing policies consecutively over several years.

Usage-based insurance/telematics discount opportunities

Usage-based insurance (UBI) programs use telematics to transmit your driving habits, usually through a mobile app or device in your vehicle. These programs can reward safe, and sometimes low-mileage drivers with personalized savings, creating a more tailored price.  

• Telematics programs — companies like State Farm offer telematics options such as Drive Safe & Save®, which provides potential savings for safe driving.
• Low mileage discounts — if you drive fewer miles than the average person per year, you might qualify for a reduced premium.

Understanding key auto insurance discounts at a glance

Tips for getting the most out of discounts

While discounts can save you money, there are a few important steps to keep in mind:

• Verify eligibility directly. Each insurer has its own requirements. Ask your agent or customer service representative about which discounts you qualify for.
• Compare offers before bundling. While bundling is a popular way to save on insurance, ensure that the bundled rate is cheaper than purchasing standalone policies elsewhere.
• Regularly review your policy. Comparing rates based on the same coverages, limits and deductibles can help ensure you are still receiving the coverages you need at a competitive price.
• Understand telematics thoroughly. If you’re considering enrolling in a usage-based program, know how it works and any privacy considerations tied to sharing your driving data.

By leveraging auto discounts, reassessing your policy, driving safely and comparing quotes, you may help make substantial progress in reducing your premiums. Always stay informed about which options are available to you and take the time to communicate regularly with your agent to ensure your policy remains optimized.

Empowered with this knowledge, you’re well-equipped to take control of your auto insurance expenses and find the coverage you need at a competitive price. Contact your agent today and start exploring the discounts and programs available to you.

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