8 car insurance discounts that may save you money

By Allstate

Last updated: January 2024

Discounts on car insurance are no myth — they do exist. From having car safety features to being a safe driver, here are eight ways you may be able to cut down on auto insurance costs.

quality auto coverage starts here

When you drive with quality coverage, you drive with peace of mind. Allstate auto insurance can help you stay protected for wherever the road takes you.

1. Go for the multi-policy discount

The Insurance Information Institute (III) says many insurers offer multiple-policy discounts to reward customer loyalty. For example, you may qualify for a discount if you have homeowners insurance or life insurance and car insurance with the same company. Ask your insurer about "bundling" your policies and whether it would help maximize your savings.

2. Be a safe driver

Maintaining a driving record with no at-fault accidents or traffic violations may help keep your car insurance premiums down, according to the National Association of Insurance Commissioners (NAIC). In fact, the association says safe drivers pay lower car insurance rates.

3. Lower costs with lower mileage

Some insurers offer discounts to drivers who drive less than the average number of miles per year, explains the III. They may also offer policies where your payments are based on the number of miles you drive. If you drive less than the average driver, you may want to look into these types of discounts or policies to help you save money on insurance costs.

4. If you're a student, keep your grades up

Keeping up your grade point average (GPA) may help save money. The III says insurers frequently offer discounts for young drivers with good grades. This doesn't just apply to teenagers in high school. The NAIC says some insurers also offer discounts for full-time students up to age 25.

5. Ask about car safety features

Is your car equipped to help keep you safe from harm? The III says many insurers offer discounts for certain safety features — for example, airbags or an anti-lock brake system (ABS).

6. Install an anti-theft device

If your car isn't already equipped with an anti-theft device, consider the benefits of installing an alarm system or a stolen vehicle recovery transceiver. In addition to helping deter theft or vandalism, the NAIC says an anti-theft device may help you qualify for a discount from some insurers.

7. Install a telematics device

Telematics is a method used by some insurers to collect information about your driving habits and offer personalized feedback, rewards or discounts. If you enroll in a telematics program with your insurer, you may become eligible for car insurance discounts or rewards.

8. Renew your policy early

Don't wait until your car insurance policy has expired to switch to a different insurer. First off, going without car insurance is against the law (most states require that all drivers have liability coverage). Second, some insurers may offer incentives for new customers who sign a new policy before their old policy expires. Additionally, some insurance companies may offer a price reduction for policy owners who pre-pay their entire policy period, instead of paying in installments.