Ever feel like you’re paying more for auto insurance than you should? It’s not just you. A surprising number of drivers are overpaying for their car insurance – and a big reason is that they don’t realize how many discounts they could be missing. Whether it’s your driving habits, your car’s safety features, or even your education, there are tons of ways to lower your premium.
In fact, the discounts are out there – you just have to know where to look. From bundling your policies to taking a defensive driving course, these discounts could save you hundreds of dollars a year. And who doesn’t love saving money? Let’s dive into the top 10 discounts that might be available to you but aren’t always obvious. These discounts can help you bring down your monthly premium and keep some cash in your pocket.
1. Good Driver Discount
It might sound like a no-brainer, but you’d be surprised at how many drivers overlook this discount. If you’ve been accident-free for a certain period (often 3–5 years), you could be eligible for a good driver discount. Insurance companies love safe drivers because they represent a lower risk of filing a claim.
For many people, the good driver discount is automatic, but it’s still a good idea to check with your insurance provider to ensure it’s applied. Even if you haven’t had a major accident, some insurers also offer this discount to drivers who haven’t had any moving violations, such as speeding tickets or DUIs.
Pro Tip: If you’ve had a few tickets in the past but haven’t had an accident, ask your insurer if you can still get the good driver discount. They might make exceptions based on the amount of time you’ve been violation-free.
2. Bundling Discounts
Insurance companies love it when you bundle multiple policies together. If you have your home, renters, or life insurance with the same company as your auto insurance, you’re likely eligible for a bundling discount. In some cases, bundling all of your policies can save you as much as 25% on your premiums. That’s some serious savings!
What’s great about bundling is that it’s typically an automatic discount that requires minimal effort from you. You might not even realize that your auto insurance company offers this if you’re already happy with your other policies. It’s worth comparing pricing to see if bundling could result in more savings than you might think.
Pro Tip: When bundling, make sure to compare the total price of both individual and bundled policies. Sometimes the combined discount can be enough to make switching insurers worth it.
3. Students: Good Grades = Big Savings
Attention, students! You might not realize it, but maintaining good grades in school can make a big difference in your insurance premium. Many auto insurance companies offer discounts to students with a B average or higher. It’s their way of rewarding students for being responsible and safe – both in the classroom and on the road.
This discount usually applies to full-time students under a certain age (typically 25), but it’s definitely worth asking your insurer about if you’re in school or have kids who are. It’s an easy way to bring down the cost of your car insurance while you focus on your studies.
Pro Tip: Have your report card handy when contacting your insurer. Some companies may ask for proof of grades to apply this discount.
4. Anti-Theft Features
We all know that theft is a risk for car owners, and the more equipped your car is to avoid it, the better. If your car is equipped with anti-theft devices, like a car alarm, GPS tracking, or steering wheel locks, you could receive a discount on your premium. Many insurers view these added safety features as a way to reduce the risk of a claim.
Even if you’ve added these features yourself, make sure you tell your insurance company about them. They can lower your rates by reducing the risk of theft, and you’ll benefit from the savings. This is particularly important for people who live in high-theft areas or have valuable cars.
Pro Tip: Always notify your insurer about any new anti-theft devices you install. If you’ve upgraded your security in the past, it’s possible your insurer doesn’t have that information on file, and you may be missing out on the discount.
5. Low Mileage Discount
If you’re one of the lucky people who don’t spend much time on the road – whether because you work from home or simply drive less – you could be missing out on a low mileage discount. Many insurance companies offer this discount to drivers who put fewer miles on their cars each year, often under 7,500–10,000 miles annually.
Not only do you save on your premium, but driving less generally means you’re at a lower risk of getting into an accident. For many people, this discount can make a significant difference in their rates.
Pro Tip: Keep track of your mileage to ensure your insurer knows how little you drive. If you’re working remotely or have a long commute but now drive less, update your mileage information to reflect this.
6. Defensive Driving Course
Taking a defensive driving course isn’t just a good way to sharpen your driving skills – it can also make you eligible for a discount on your car insurance. Defensive driving courses teach you safe driving techniques, how to react in dangerous situations, and how to avoid accidents. Many insurance companies reward this proactive behaviour by offering discounts for completing a course.
Most defensive driving courses are available online or in-person, and the discount often lasts for 3 to 5 years, depending on the insurer. In some states, it’s even mandated that drivers over a certain age take these courses for an insurance reduction.
Pro Tip: Defensive driving courses can also help you stay sharp on the road and improve your reaction time. It’s a win-win!
7. Paying in Full
While paying your premium in instalments might be more convenient, did you know you can save by paying your entire premium upfront? Many insurance companies offer a pay-in-full discount, which reduces your overall premium if you choose to pay all at once. This is especially helpful if you have the flexibility to make a lump sum payment.
Not only does this save you money, but it can also save you from having to deal with monthly billing fees. The discount typically ranges from 5% to 10%, depending on your provider.
Pro Tip: If you can’t pay in full, but still want to save, consider paying semi-annually instead of monthly to avoid some of the instalment fees.
8. Safety Features Like ABS or Airbags
Modern cars come with all kinds of safety features, and some of these can qualify you for a discount. Features like anti-lock brakes (ABS), airbags, and electronic stability control (ESC) can lower your risk of serious injury in an accident, which lowers the insurer’s risk of paying a claim.
Many newer vehicles come with these features standard, so it’s a good idea to check with your insurer to see if they qualify for a discount. Even if these features are factory-installed, you could be leaving money on the table by not mentioning them.
Pro Tip: If your car has additional safety features like lane departure warnings or collision avoidance, don’t forget to mention those as well. They could help you save even more.
9. Loyalty Discounts
If you’ve been with the same insurance company for several years, you may be eligible for a loyalty discount. Many insurers offer rewards for long-term customers as a way of showing appreciation for their business. Depending on the length of time you’ve been with the insurer, the discount can range from 5% to 10%.
Loyalty discounts are often overlooked because they’re not as commonly advertised, but they’re worth asking about if you’ve been with your provider for a while. It’s always good to make sure you’re not paying more simply because you’ve stuck with the same insurer.
Pro Tip: If you’re reaching the anniversary of being with your insurer, it might be a good time to check in and ask about any loyalty discounts or loyalty-related offers that might apply to your policy.
10. Military and Veteran Discounts
To honour the service of military members, many insurance companies offer special military discounts to active duty personnel, veterans, and sometimes even their families. These discounts can range from 5% to 15%, and can be offered on both auto and home insurance policies.
If you’re in the military or are a veteran, it’s worth asking your insurance provider about this discount. It’s one of those little-known perks that can make a big difference.
Pro Tip: Always ask if there’s a military discount, even if it’s not advertised. Some insurers offer this benefit but may not highlight it on their website.
Bonus Tip: Always Ask About Hidden or Local Discounts
Some discounts aren’t heavily advertised. Seasonal deals, location-based savings, or promotional offers may be available where you live or when you renew your policy.
Make it a habit to ask your insurance agent every year, “Are there any discounts I qualify for that I’m not currently getting?” This simple question can unlock unexpected savings.
Final Thoughts: Don’t Overpay for Auto Insurance
By now, you should have a better idea of just how many auto insurance discounts you might be missing out on. Whether you’re a safe driver, a student, or someone who’s installed extra security features in your car, these discounts are worth asking about. You could save a significant amount of money just by making sure your insurer knows about the steps you’ve taken to reduce risk.
Take a few minutes to reach out to your insurance provider and inquire about these discounts. It’s one of the easiest ways to ensure you’re not overpaying for your auto insurance.
Ready to Save?
Reach out to your insurance provider today or use an online comparison tool to see what discounts you qualify for. Getting the best deal on auto insurance doesn’t have to be complicated—just smart.
Start saving now and put those discounts to work for you!
