Saving on car insurance is a common goal for many drivers. In this guide, we will explore various types of car insurance discounts, the potential savings the insurers offer and how these discounts can vary by company and state. We’ll also look at how your profession and age group can impact your eligibility for savings. So, let’s dive in and find out how you can save on your car insurance premiums.
Types of car insurance discounts
There are various types of car insurance discounts available to help drivers lower their premiums without sacrificing coverage. Some of the most common discounts include:
| Discount type | Average Saving (%) | Average Saving ($) |
| Air Bags | 2% | $ 46 |
| Anti-Theft Device | 1% | $ 42 |
| Daily Commute | 7% | $ 183 |
| Days Advanced Purchase | 7% | $ 173 |
| Days Per Week Driven | 6% | $ 161 |
| Education | 7% | $ 147 |
| Electronic Funds Transfer | 4% | $ 89 |
| Electronic Signature | 8% | $ 207 |
| Homeowner | 6% | $ 155 |
| Lower Annual Mileage | 6% | $ 155 |
| Loyalty – Years Renewal With Company | 10% | $ 225 |
| Marital Status | 8% | $ 187 |
| Multi Policy | 9% | $ 218 |
| Paperless/Electornic Documents | 4% | $ 88 |
| Payment Type | 9% | $ 228 |
| Primary Use | 10% | $ 230 |
| Profession | 12% | $ 257 |
| Purhase Status | 7% | $ 216 |
| Safety Devices | 3% | $ 85 |
| Student Away At School | 16% | $ 759 |
| Telematics | 10% | $ 216 |
| Vehicle Ownership | 8% | $ 245 |
Car insurance discounts by company: Find the perfect fit for your budget
When it comes to company-specific discounts, some companies appear to be more generous than others. Allstate, Progressive, Geico and Automobile Club MI (AAA) offer the most discount categories and also the maximum discount savings, among the carriers analyzed.
| Company group | Discount category | Average saving (%) | Average saving ($) |
| Geico | 16 | 6% | $ 120 |
| State Farm | 11 | 14% | $ 249 |
| Allstate | 17 | 7% | $ 233 |
| Progressive | 17 | 8% | $ 187 |
| Nationwide | 14 | 5% | $ 100 |
| Travelers | 15 | 6% | $ 105 |
| Farmers | 15 | 6% | $ 165 |
| Automobile Club MI (AAA) | 16 | 8% | $ 212 |
| American Family | 15 | 6% | $ 118 |
| Erie Insurance | 11 | 6% | $ 125 |
| USAA | 10 | 4% | $ 58 |
Car insurance discounts by state: Exploring car insurance discounts in your state
Michigan offers the highest savings on car insurance rates, at $374 followed by NewYork and California. Whereas Ohio and Idaho offers the lowest savings on car insurance premiums at about $94 and $84 respectively.
| State | Discount category | Average saving (%) | Average saving ($) |
| Alaska | 17 | 7% | $ 134 |
| Alabama | 18 | 7% | $ 137 |
| Arkansas | 18 | 8% | $ 158 |
| Arizona | 17 | 8% | $ 165 |
| California | 9 | 10% | $ 249 |
| Colorado | 18 | 8% | $ 191 |
| Connecticut | 21 | 8% | $ 182 |
| Washington D.C. | 19 | 6% | $ 130 |
| Delaware | 19 | 8% | $ 197 |
| Florida | 18 | 6% | $ 215 |
| Georgia | 17 | 7% | $ 153 |
| Hawaii | 16 | 7% | $ 118 |
| Iowa | 18 | 7% | $ 116 |
| Idaho | 18 | 7% | $ 84 |
| Illinois | 19 | 7% | $ 132 |
| Indiana | 18 | 7% | $ 115 |
| Kansas | 18 | 8% | $ 161 |
| Kentucky | 18 | 7% | $ 156 |
| Louisiana | 17 | 7% | $ 249 |
| Massachusetts | 14 | 7% | $ 145 |
| Maryland | 19 | 6% | $ 153 |
| Maine | 19 | 9% | $ 101 |
| Michigan | 16 | 8% | $ 374 |
| Minnesota | 18 | 7% | $ 165 |
| Missouri | 18 | 7% | $ 186 |
| Mississippi | 18 | 7% | $ 161 |
| Montana | 18 | 8% | $ 143 |
| North Carolina | 16 | 8% | $ 136 |
| North Dakota | 18 | 8% | $ 127 |
| Nebraska | 18 | 7% | $ 152 |
| New Hampshire | 19 | 7% | $ 119 |
| New Jersey | 21 | 6% | $ 158 |
| New Mexico | 18 | 6% | $ 116 |
| Nevada | 17 | 7% | $ 188 |
| New York | 18 | 8% | $ 356 |
| Ohio | 18 | 7% | $ 94 |
| Oklahoma | 19 | 9% | $ 208 |
| Oregon | 19 | 7% | $ 125 |
| Pennsylvania | 19 | 8% | $ 192 |
| Rhode Island | 21 | 6% | $ 161 |
| South Carolina | 18 | 8% | $ 166 |
| South Dakota | 18 | 8% | $ 202 |
| Tennessee | 17 | 8% | $ 155 |
| Texas | 20 | 8% | $ 204 |
| Utah | 18 | 8% | $ 146 |
| Virginia | 18 | 7% | $ 132 |
| Vermont | 18 | 8% | $ 113 |
| Washington | 17 | 6% | $ 114 |
| Wisconsin | 18 | 7% | $ 120 |
| West Virginia | 18 | 7% | $ 126 |
| Wyoming | 15 | 6% | $ 121 |
Car insurance discounts by profession
Profession-based discounts can also lead to significant savings on car insurance. Scientists enjoy the highest average savings of 13% ($288), followed by Fire Fighters at 13% ($287) and then comesEngineers and Farmers, all enjoying average savings of 12% ( $258, and $265, respectively).
| Profession | Average Saving ($) | Average Saving (%) |
| Civil Servant | $ 245 | 12% |
| Doctor | $ 226 | 10% |
| Engineer | $ 258 | 12% |
| Farmer | $ 265 | 12% |
| Fire Fighter | $ 287 | 13% |
| Law Enforcement | $ 245 | 11% |
| Lawyer | $ 253 | 12% |
| Scientist | $ 288 | 13% |
| Teacher | $ 251 | 11% |
Car insurance discounts for teenage drivers: Drive smart, pay less
Teenage drivers can benefit from car insurance discounts, with State Farm and Allstate offering 15% ($774) and 8% ($791) respectively. average savings of 1. Other companies like Progressive and Geicoalso offer substantial discounts for teenage drivers.
| Company group | # of Discount category | Average saving ($) | Average saving (%) |
| State Farm | 13 | $ 774 | 15% |
| Nationwide | 16 | $ 546 | 9% |
| American Family | 17 | $ 411 | 9% |
| Allstate | 19 | $ 791 | 8% |
| Progressive | 19 | $ 895 | 8% |
| Geico | 18 | $ 389 | 7% |
| Erie Insurance | 11 | $ 362 | 7% |
| Travelers | 17 | $ 316 | 6% |
| Farmers | 16 | $ 685 | 6% |
| Automobile Club MI (AAA) | 16 | $ 659 | 6% |
| USAA | 12 | $ 169 | 5% |
Unveiling car insurance discounts for senior drivers
Senior drivers can also find great discounts on car insurance. Allstate offers the most savings on car insurance discounts for senior drivers at about $225, followed by State Farm with an average saving of $220. Other companies such as Progressive, Farmers and Erie Insurance also provide attractive discounts for senior drivers.
| Company group | Discount category | Average saving ($) | Average saving (%) |
| Geico | 17 | $ 114 | 6% |
| State Farm | 12 | $ 220 | 13% |
| Allstate | 18 | $ 225 | 7% |
| Progressive | 18 | $ 171 | 8% |
| Nationwide | 15 | $ 84 | 5% |
| Travelers | 15 | $ 98 | 6% |
| Farmers | 16 | $ 160 | 6% |
| Automobile Club MI (AAA) | 17 | $ 191 | 7% |
| American Family | 16 | $ 104 | 6% |
| Erie Insurance | 12 | $ 127 | 7% |
| USAA | 11 | $ 59 | 5% |
How to qualify for car insurance discounts
Specific discounts can vary between insurance providers, but here are some common ways to potentially lower your car insurance premiums:
Maintain a clean driving record:
- No history of accidents, traffic violations, or claims.
- Demonstrate responsible driving and adherence to traffic laws.
- Install safety features in your vehicle such as anti-lock brakes, airbags, electronic stability control and anti-theft devices.
Bundle multiple insurance policies:
- Combine car insurance with other policies like home insurance or renters insurance.
- Simplify insurance management and qualify for multi-policy discounts.
Utilize telematics devices or smartphone apps to monitor driving behavior
- Factors monitored may include mileage, speed, and braking patterns.
- Safe driving habits may lead to discounts based on actual performance.
Final thoughts
Car insurance discounts are an excellent way for drivers to save money on their premiums without sacrificing coverage. You can significantly reduce your insurance costs by understanding the various types of discounts available and determining which ones you may be eligible for. Contact your insurance agent or provider to inquire about any potential discounts and ensure you’re maximizing your savings is essential.
Remember that each insurer may offer different discounts or have varying eligibility requirements, so it’s important to shop around and compare policies from multiple providers.
Frequently asked questions
Can good grades in school help me get a car insurance discount?
Yes, many insurance companies offer discounts for students with good grades. This is because good academic performance is often associated with responsible behavior, including responsible driving. Typically, students who maintain a certain grade point average (GPA) are eligible for discounts. Check with your insurance provider to see if they offer a good student discount..
Are there specific discounts for teenage or young drivers?
Yes, some insurance companies offer specific discounts for teenage or young drivers. These discounts are often aimed at promoting safe driving habits. Examples of such discounts include driver’s education discounts for completing a recognized driver’s education program, or discounts for young drivers who have completed defensive driving courses.
Is there a discount for insuring multiple vehicles under the same policy?
Yes, many insurance companies offer discounts for insuring multiple vehicles under the same policy. This is known as a multi-vehicle discount. By combining multiple vehicles onto one policy, you can often enjoy a lower premium for each vehicle compared to insuring them separately. This discount can be beneficial for families with multiple cars or individuals who own multiple vehicles. Check with your insurance provider to explore the details of their multi-vehicle discount and any requirements for eligibility.
Methodology
CompuQuote commissioned Quadrant Information Services to gather data for various discounts available for different professions in all the states. Data is based on a profile of a 40-year individual driving a 2021 Honda Accord carrying full coverage car insurance with a good credit score and driving record. To analyze the car insurance data, we compared 26,77,890 insurance quotes across 1,252 cities and different ZIP codes.
