Auto insurance is a necessary expense, but it doesn’t have to break the bank. In 2025, many American drivers are still overpaying simply because they’re unaware of the discounts available to them. The good news? Insurance companies offer a wide range of ways to save—some of which are easy to qualify for but often overlooked.
Here are seven auto insurance discounts you might be missing and how to take advantage of them.
1. Bundling Discount (Multi-Policy Discount)
Do you have homeowners or renters insurance? Bundling it with your auto policy could save you up to 25%. Many insurers reward customers who keep all their policies under one roof. It’s convenient—and it can significantly lower your total premiums.
2. Safe Driver Discount
If you’ve had no accidents or moving violations for the past three to five years, you’re likely eligible for a safe driver discount. Some companies use telematics programs or driving apps to track your behavior and reward good driving habits like smooth braking, consistent speed, and minimal phone use.
3. Good Student Discount
If you’re a student—or have a teen driver on your policy—ask about the good student discount. Most insurers offer savings for high school or college students maintaining a GPA of 3.0 or higher. This can reduce premiums by 10% to 20%.
4. Low Mileage Discount
Do you drive less than the average American (around 12,000 miles a year)? If you work from home or only drive occasionally, you might qualify for a low mileage discount. Fewer miles mean less risk, and insurers are happy to reward that with lower rates.
5. Vehicle Safety Features Discount
Modern cars often come equipped with advanced safety technology like anti-lock brakes, lane-departure warning, and automatic emergency braking. These features can help you qualify for a discount. Even something as basic as an anti-theft device could save you money.
6. Loyalty Discount
If you’ve been with the same insurer for several years, ask if they offer a loyalty discount. Some companies automatically reduce your premium over time, while others require you to request it. Either way, your loyalty could be paying off more than you realize.
7. Paid-in-Full or Automatic Payment Discount
Choosing to pay your premium upfront (instead of monthly) or enrolling in automatic payments can lead to additional savings. Insurance companies appreciate customers who make payments on time or all at once—it lowers their administrative costs, and they pass the savings on to you.
Final Thoughts
The key to saving money on auto insurance in the U.S. is not just comparing rates—it’s knowing what discounts to ask for. Many drivers qualify for multiple discounts but never claim them simply because they don’t know they exist.
Take a few minutes to review your current policy and contact your provider. Ask about these seven discounts—you might be surprised at how much you can save without changing a thing.
