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How to get a discount on car insurance

By Rebecca Lake
Updated  February 26, 2021 4:52pm CST
Personal Finance
Content provided by Credible, which is majority owned by Fox Corporation. Credible is solely responsible for this content and the services it provides.
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Discount programs can make car insurance more affordable. (iStock)

Shopping for car insurance can be complicated, especially if you're hoping to find the lowest insurance rates. Getting auto insurance quotes online is a good place to start, though it isn't the only option.

Qualifying for one or more discounts can mean paying less for insurance coverage. Using an online marketplace like Credible to shop around for auto insurance brokers can also help. With Credible, you can compare online quotes for free and potentially save hundreds of dollars per year.

How can I get discounts on car insurance?

Here are some of the best types of car insurance discounts for lowering your monthly costs.

  1. Bundling discounts
  2. Group auto insurance discounts
  3. Car insurance discounts for veterans
  4. Safe driving discounts
  5. Good student discounts
  6. Multiple vehicle discounts

1. Bundling discounts

Purchasing car insurance coverage through the same company that you have homeowners insurance with can be one of the simplest ways to slash insurance rates.

"Bundling your auto and home insurance is a powerful discount that can save you up to 20% on both policies," said Troy Harmon, a licensed insurance agent in Coldwater, Michigan.

If you have homeowners insurance and car insurance with two companies, first ask both if bundling coverage is an option. Then, get insurance quotes from both to see which one could yield the most savings by bundling.

And if you don't have car insurance yet, you can visit Credible to explore auto insurance options.

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2. Group auto insurance discounts

Belonging to one or more member groups or associations can lead to car insurance discounts. Car insurance companies can extend discounts to members of various partner organizations, including:

  • Alumni associations
  • Business and professional associations
  • Fraternities and sororities
  • Athletic associations
  • Educational organizations
  • Military associations
  • Recreational organizations

You could save on car insurance and potentially enjoy other valuable benefits just for being a member. Harmon said your insurance agent should be able to tell you what, if any, group car insurance discounts might be available.

You can explore pricing and find the right auto insurance plan that fits your needs on Credible.

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3. Car insurance discounts for veterans

Many car insurance companies offered discounted rates on auto coverage for veterans and their families. Some auto insurance companies also extend discounts for active-duty military members and/or reservists.

You can start with your current car insurance company to ask about discounts for veterans. Then compare those savings to discounts offered to veterans and their families from other car insurance providers.

Wondering how much you could save? Head over to Credible ​who has partners to give you a free quote.​ It only takes two minutes.

4. Safe driving discounts

Having a clean driving record could work in your favor for saving on insurance rates. Car insurance companies can offer a safe driver discount to customers whose driving records are clear of speeding tickets, accidents or other violations.

You may also be able to get a driver discount for completing a defensive driving course. With defensive driving discounts, you should first weigh the potential savings on car insurance rates against what you'll pay for the course. If getting a safe driver certification would cost more than what you could save on insurance coverage, it may not be worth it.

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5. Good student discounts

Teen drivers are typically more expensive to insure but your insurance company may cut you a break if your student has a solid academic record. Good student discounts allow you to save money on car insurance when teens on your policy maintain good grades. Typically, teen drivers will need to complete driver's education training first before a good student discount can be applied. You may also need to provide your insurance company with a copy of their academic record or report card.

6. Multiple vehicle discounts

Having one or more vehicles in your household is another opportunity to save money on car insurance. Your insurance company might be willing to discount your premiums if you have coverage for two, three or more vehicles. This is essentially a type of customer loyalty car insurance discount. By sticking with your current car insurance company versus taking your business elsewhere, they can reward you with reduced car insurance rates.

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Take the next steps to save on car insurance

If you're ready to cut car insurance rates, follow Harmon's advice and be prepared.

"When calling to get quotes on car insurance, have all of your information on hand," he said.

Be ready to share details about your vehicle, driving history, credit history and any special circumstances that could lead to a car insurance discount, such as military status or membership in a professional association. "The more information you provide, the better and more accurate your quote will be," Harmon said.

Already have good car insurance but want to make sure you are alerted when you can get a better deal? Credible’s partners ​can send you free quotes if they find you a better rate.​ All you need to do is get started here.

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