Do all car insurance companies offer the same discounts?
No. Car insurance companies don't always offer the same
discounts. The type and amount of discounts, as well as who
is eligible for the discounts, varies by company.
Discounts are a way for auto insurance providers to compete and
keep their current policyholders. So, each auto insurance
provider tends to have its own list of discounts it offers its
policyholders. Each company's eligibility guidelines for
discounts may also vary.
State laws can dictate what discounts can be offered by auto
insurance companies in that state and even mandate certain ones
that must be offered, so discount lists can differ for the same
insurance company by state.
Even if two car insurance companies offer the same discounts,
the actual discount amount offered to motorists can vary greatly.
For instance, one auto insurance provider may offer 10 percent off
for a safe driver discount while another may offer 25 percent
And, some discounts affect a portion of your coverage while
other discounts may affect the entire auto insurance
For example, a low-mileage discount applies to bodily injury
liability, personal injury protection (PIP), property damage
liability and collision premiums with most insurers. In
comparison, an anti-theft device discount typically only applies to
comprehensive coverage portion of your premium.
While not all car insurance companies offer the same discounts,
there are several discounts that are popular with most auto
insurance providers. Common discounts offered include:
Safe driver discount:
If your driving record is clear of accidents or violations for a
certain number of years --typically three -- you may receive a
Good student discount:
Full-time high school and college students (under the age of 25)
who maintain at least a B average, or achieve other certain
academic criteria spelled out by the insurer, can receive a
Low mileage discount:
A reduced rate is offer for car owners who drive less than a
specified number of miles a year (such as below 10,000 or under
If you have certain anti-theft devices or vehicle recovery
devices attached to your vehicle, a discount is offered off of
comprehensive coverage -- which is what covers a stolen
Safety feature discount:
If your vehicle has specific safety features, such as air bags or
antilock brakes, insurers tend to offer a discount.
If you have more than one vehicle on your car insurance policy
insurers will typically offer a discount.
If you choose to obtain more than one policy type, such as car
insurance and homeowners, with the same company you may receive a
discount on both policies for "bundling" your coverages with
Maintaining coverage with the same car insurance company
and renewing with them can get you a discount.
car insurance discount guide
for more information on how discounts are applied to your premium
and a more comprehensive list of discounts that various car
insurance companies offer.
There are also less common, and even odd, discounts that car
insurance companies will offer to either attract certain drivers or
just because some auto insurers find certain types of people
"better risks". (See "
6 weird car insurance discounts
" for more information)
Several car insurance companies offer
discounts to members of certain organizations
, such as credit unions or alumni associations. So always ask
an insurer about these types of discounts and check the list and
see if you qualify.
Since each car insurance company offers different discounts,
it's important to shop around when obtaining a car insurance
policy. Ask not only what discounts are offered, but how much
you'd receive off your total premium.
While discounts are a great way to reduce the cost of your car
insurance policy, keep in mind that it may be possible that a car
insurance company that offers fewer discounts may have a lower base
rate and could actually offer you the overall cheapest car