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Car Insurance Discounts: Maximize Your Savings for 2023
The constant search for all of the different car insurance discounts is over! We compiled a complete guide to car insurance discounts for 2023. Broken down into five categories- car insurance discounts can be classified as driver status, driver safety, policy discounts, vehicle-based and usage-based discounts.
Table of Contents:
Driver Profile Car Insurance Discounts
The first kind of discounts we will cover are driver profile discounts. You can be eligible for these just by being you! No need to add extra safety measures to your car or take courses. These include occupation-based discounts, student discounts, and more.
|Discount Name||% Off||Providers|
|Good Students||5 to 25%||Travelers, Nationwide, Progressive, Allstate, SafeCo|
|Away-from-home Student||5 to 25%||Allstate, Travelers, SafeCo, Nationwide|
|Military||8 to 15%||SafeCo, Kemper|
|Senior Driver||5 to 10%||Allstate, SafeCo|
|Health Care Workers||2 to 10%||SafeCo, Nationwide|
|First Responders||2 to 10%||Travelers, SafeCo|
|Alumni Groups||2 to 10%||Travelers, Nationwide, SafeCo|
Before you turn 25, it is very expensive to insure young drivers. You can save 5-25% on your annual premium with a good student discount. To secure these savings, your student must maintain a B average. You also need to be able to provide school records of grades to your insurance company and be enrolled full-time. Want more information on good student discounts? Check it out here!
Your baby is off at college! Now you are thinking of ways you can save some money. If you send your child to school without their car, you can get a discount on insurance. It can range from 5-25% off your liability coverage. To qualify, your student must live more than 100 miles from home where the insured vehicle is. Here are a breakdown of away-from-home student discounts.
If you served the United States through military- or federal government employment- you are eligible for car insurance discounts. These can range from 8-15% off of your annual premium. This includes active service members, veterans, federal employees, and retirees.
Drivers over the age of 55 are eligible for a 5-10% discount on their annual car insurance premium. Allstate offers a discount for their basic property damage and liability coverage. Insurance companies also reward mature drivers for taking a mature driver improvement course to improve their skills. This course is similar to defensive driving. To learn more about senior driver discounts, click here.
You can get a discount for being a healthcare worker. It can range from 2-10% off your annual premium. You get this discount by being a doctor, nurse, or other professional health care worker. We found some other health care worker discounts you can read about here.
The discount for first responders is similar to that for other healthcare workers. The discount is provided through their employer or organization, and they can redeem 2-10% on their insurance. For more information on first responders car insurance discounts, click here.
Alumni Groups Discounts
Some insurance companies partner with other organizations that provide members with discounts on car insurance. For example, if your college alumni group works closely with Nationwide, you could receive a 2-10% discount for being a member of the alumni group.
Driver Safety Car Insurance Discounts
The next category of discounts in this article is all about how your safety habits can give you a reduced rate on your car insurance premium. These are based on your accident history, how you drive, and how much you use your vehicle.
|Discount Name||% Off||Providers|
|Defensive Driving||10 to 15%||Allstate, Travelers, Nationwide, Progressive|
|Accident-free||Allstate, Travelers, Nationwide, Progressive|
|Safe Driver||10%||Allstate, Travelers, Nationwide, Progressive|
|Low-Mileage and Usage||Up to 20%||Allstate, Travelers, Nationwide, Progressive|
Defensive Driving Discount
You can save 10-15% on your liability, collision, and PIP or medical payments coverage if you take a certified defensive driving course. The classes are similar to a driving school, where you learn how to handle traffic and weather conditions and avoid accidents.
According to the Texas DPS, a defensive driving course costs $25 and takes a few hours to complete. With the average Texan paying $1,800 in car insurance premiums yearly, you could save anywhere from $40 to $150 yearly! That is great savings!
When setting up your policy, you typically get asked if you have completed the course, but if you want to add it in the middle of your policy, just contact your agent. Before signing up for the course, be sure to contact your provider to see if you are eligible for the discount.
Accident-Free and Good Driver Discounts
If you have avoided an accident in the last 3-5 years, you could get a safe driver’s discount from any of the top carriers. Typically, this discount is automatically applied to your account, so you don’t need to do anything except stay driving safe! If you are on the edge of your three years, be sure to mention it to your agent at the time of your renewal. “Good driver” definitions vary between insurers, so make sure you call your provider and see their details.
Safe Driver Discount
For people with conservative driving habits, this one’s for you! Drivers get rewarded for wearing their seatbelts, avoiding aggressive braking, and driving at the speed limit. Insurers have discounted drivers’ liability and collision premiums by 10% when they are found to follow these rules of the road.
A lot of the time, safe driving and good driving discounts are similar, but other times they are offered as separate reductions on your premium. Certain companies monitor this through telematics- which we will get to later!
Low Mileage and Low Usage Discounts
This one is for the work-at-home crowd! When you get a new car insurance policy, your agent will ask you about your average annual mileage. On average, a person drives 12,000 miles a year, but you can get some money off your premium if you drive less than 7,500 miles a year. Some insurers may require telematics and drive monitoring technology, which qualify you for this discount. SafeCo offers a discount as high as 20% for low-usage drivers.
Vehicle Safety Car Insurance Discounts
Add-ons to your vehicle, such as anti-lock brakes and anti-theft devices, can qualify you for a deduction on your annual premium. These lower car insurance costs because they make insurance providers more comfortable due to the prevention of costly damage and loss.
|Discount Name||% Off||Providers|
|Anti-Theft||5 to 15%||Allstate, Travelers, Nationwide, Progressive|
|Anti-lock Brakes||5 to 10%||Allstate, Travelers, Nationwide, Progressive|
|Passive Restraint||25 to 30%||Allstate, Travelers, Nationwide, Progressive|
|New Car||10%||Allstate, Travelers, Nationwide, Progressive|
|Daytime Running Lights||3%||Allstate, Travelers, Nationwide, Progressive|
Anti-theft Devices Discount
When it comes to anti-theft devices, they can do a lot for the vehicle owner, but actually very little for saving you money on your premium. Drivers can save 5-15% on their comprehensive coverage– which is typically the cheapest part of your car insurance. Since these devices cost up to $200, the cost normally outweighs your savings. If your car already has it, or you got it as a gift, it is a great thing, and you should inform your insurance provider that you have it!
Anti-lock Brakes Discount
To qualify for this discount, you may be required to get your anti-lock brakes to be factory-installed. The discount is normally automatically applied when you get this done. It could get you 5-10% off of your collision coverage. Depending on your coverage and car type, it could bring you up to $100 in savings a year.
Passive Restraint Discount
In layman’s terms, passive restraints are seat belts and airbags. All cars after 1983 have default passive restraint systems. Insurance providers give out hefty discounts for seat belts and airbags for your front passenger seats. You can see up to 25-30% off your policy’s personal injury protection, PIP, and medical payments coverage.
New Car Discount
Depending on your insurer and the state you live in, you could receive a discount of up to 10% for insuring a car you just bought. Some providers have different restrictions on what makes a car “new.” For example, Allstate requires that the driver is the first title-holder of the vehicle and it is a current model year or one year old. However, the discount will remain on the policy for three years without additional renewal action.
Daytime Running Lights
Having daytime running lights has been believed to reduce accidents on the road. Not all cars are equipped with them, but those that are can get around a 3% discount on their annual premium. That’s right- all of it!
Policy Car Insurance Discounts
These discounts are available to you based on your policy type, how you choose to pay your policy, and how long you have been with a provider. It is possible to alter your policy to make these discounts available to you. As always, talking to your agent is the best way to know if these policies are automatically applied or need to be manually put on there.
|Discount Name||% Off||Providers|
|Home and Auto Bundle||5 to 25%||Allstate, Travelers, Progressive, Nationwide|
|Multi-car||Up to 25%||Allstate, Travelers, Progressive, Nationwide|
|Early Signing||3%||Allstate, Travelers, Progressive, Nationwide, SafeCo|
|Pay in Full||5 to 10%||Allstate, Travelers, Progressive, Nationwide|
|Electronic Billing/Autopay||5 to 10%||Allstate, Travelers, Progressive, Nationwide, SafeCo|
|Loyalty||Up to 20%||Allstate, Travelers, Progressive, Nationwide|
Home and Auto Bundle Discount
By using the same provider for your home, auto or any other insurance you may need could save you money. If you keep it to one company, you could save anywhere from 5-25% off the total auto premium for bundling.
According to Value Penguin, providers have discounted as much as 25% on a multi-car auto insurance policy. Whether you are family by blood, married, or even roommates, getting one policy is a good idea if you plan on sharing or driving both cars. You could save $200 on your premium by having multiple cars on the same policy.
Early Signing Discount
Shopping around for policies is what we do best at TGS Insurance! If you want to change your policy before it expires, keep an eye out for early signing discounts. These discounts are harder to come by, but people have gotten 3-10% taken off their policy premium when they are available. Travelers offer this discount up to three days before your previous policy expires!
Pay in Full Discount
This is offered by insurance providers to encourage people to pay their entire premium at once, whether that be their six-month or annual premium. This is a different and separate option you will have to choose on your quote page and typically requires full premium payment on the first effective date of the policy. The discount could be anywhere from 5-10%.
Electronic Billing Discount
Everything is electronic nowadays, so this one is easy to get if available. Most larger carriers with a strong online presence have some sort of reduction for paying online. Allstate has two separate discounts: 5% for automatic EFT payments and 10% for paperless billing. Nationwide takes $30 off your cost for setting up automatic payments.
Obviously, providers want you to stay with them. To keep customers in, many companies provide a discount after you have been with them for an allotted amount of time. Some count home and auto bundle discounts as their loyalty program, while others look at the years you have renewed with them.
This does not always come in the form of a premium deduction. For example, Progressive has an accident forgiveness program for 5th-year customers, which could save you a ton if you get in a large accident.
TGSI Tip: Even though loyalty benefits could be great, it is still a good idea to shop your policy around if your provider regularly raises their rates. According to the Office of Public Insurance Counsel in Texas, long-term policyholders could save 19% by switching.
Usage-Based Car Insurance Discounts
Usage-Based Insurance (UBI) is a type of auto insurance that utilizes in-vehicle telecommunications devices (telematics) to track users’ mileage and driving behaviors. The basic concept behind usage-based insurance is for providers to monitor a driver’s behavior to more closely align them with a premium rate.
Related Reading: Is Usage-Based Car Insurance A Good Option?
Since auto insurance is required in Texas, usage-based insurance coverage can benefit folks who have safe behind-the-wheel habits or don’t drive a lot. If you are diligent about not using your phone on the road and avoid sudden acceleration and braking, it could lead to big savings. Most programs will not raise your rates for bad driving habits, but some will.
A great part about these small discounts, you can combine them- to an extent. Say you are a student with a brand-new car; you can bundle those two types of discounts and get big savings on your auto insurance premium!
As always, different providers have terms and conditions that allow and ban certain discount bundles. Calling an agent who knows your policy best is a great way to know what discounts you can apply to your policy.
Find the Right Discount For You!
We want you to have the best car insurance rate out there! Here at TGS Insurance, it is our job to take the hassle of shopping for your policy from you. We can look at your driving record and the make and model of your car and find your potential for auto insurance premium discounts. Leave it to us! Call one of our agents today to find out how much you can save.