Car insurance is a must-have, but that doesn’t mean you have to overpay. In fact, many drivers in the U.S. are missing out on hundreds—sometimes thousands—of dollars in savings each year simply because they don’t know which discounts to ask for.
In 2025, as premiums continue to rise, finding ways to lower your auto insurance bill is more important than ever. Here are the top 7 car insurance discounts most drivers overlook—and how you can take advantage of them.
1. Low Mileage Discount
If you’re driving fewer miles than the average American (roughly 12,000 per year), you could qualify for a low mileage discount. Many insurers now use tracking devices or apps to verify your mileage and reward low-risk drivers with lower premiums.
Tip: If you work from home or use public transportation often, be sure to let your insurer know.
2. Good Student Discount
Got a teen or college student on your policy? Many companies offer discounts if they maintain a B average (3.0 GPA) or better. Why? Statistically, students with good grades are considered more responsible and less likely to get into accidents.
Tip: Submit transcripts or report cards each semester to keep the discount active.
3. Bundling Discount (Multi-Policy)
One of the easiest ways to save is to bundle your auto insurance with other types of coverage—like homeowners, renters, or life insurance. This can shave 10% to 25% off your total premiums.
Tip: Always ask your provider about multi-policy discounts—even if you’re already a customer.
4. Safe Driver Discount
If you’ve gone a few years without a ticket or accident, you may be eligible for a safe driver discount. Some insurers also offer additional savings if you complete a defensive driving course or participate in a usage-based program.
Tip: Enroll in your insurer’s safe-driving app to earn even deeper discounts based on real-time driving habits.
5. Anti-Theft Device Discount
Installing anti-theft technology like GPS trackers, alarms, or immobilizers can lower your risk—and your premium. Insurers often reward this with a vehicle safety discount.
Tip: Ask if your car’s factory-installed security system qualifies.
6. Pay-in-Full Discount
If you can afford to pay your 6-month or annual premium in one lump sum, most companies will knock off a small percentage—typically 5% to 10%.
Tip: Consider using a rewards credit card to pay in full, then pay off the balance to earn points or cashback.
7. Paperless & Auto-Pay Discount
Going green can save you green. Many insurers give small but stackable discounts for paperless billing and setting up automatic payments.
Tip: Combine this with other discounts for a compounding effect on your savings.
Final Thoughts
Don’t assume you’re getting the best deal just because you’ve been with the same insurer for years. Ask questions, compare quotes, and specifically inquire about these lesser-known discounts. With a few smart moves, you can protect your car—and your wallet.
