What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

Car Insurance Discounts

Every person who purchases auto insurance is likely qualified for some kind of car insurance discount. There are many different types of auto insurance discounts. These discounts can help you secure the most affordable car insurance available to you based off your current situation and status. Types of discounts on car insurance include: mileage and usage based discount programs, vehicle discounts, driver safety discounts, policy discounts, and driver status discounts. These categories of auto insurance discounts can be broken down to several sub-categories, making auto insurance discounts probable for many people. Some of these potential discounts are applied at the time of requesting a quote, automatically. Some car insurance discounts require a driver to take action to see if they are qualified.

Information is knowledge and the more you know about auto insurance discounts the more you are able to apply discounts to your policy. The simplest way to make sure before you accept a new policy ask the insurance company for the list of all the possible discounts. After you have that list, you can review it and bring up the kinds of discounts you believe your qualified for to the insurer.

Driver Safety Car Insurance Discounts

Driver safety car insurance discounts award good and safe drivers insurance discounts. These types of discounts are the most known between car insurance companies. These discounts amount to a major portion of driver’s savings on auto insurance. Some examples of possible reduction to your car insurance include the following discounts: defensive driving discount, accident free reduction, safe driver discount, and low mileage.



Typical amount



Drivers with no "chargeable" accidents (those that cost the insurer money) during the past three to five years.


Driving History

Affiliation or "affinity"

Discounts through employer, school, team, club or other membership.



Anti-lock brakes

Cars with anti-lock brakes.




Alarms, tracking systems, and kill-switches. May have to be factory-installed.

5 - 20%



Set up automated payment from checking.

$45 - $50 / year


Bundled (multi-policy)

Discounted rates often apply when drivers have unrelated policies (for example, bundled home and auto, life, or health) with the same insurance company.

5 - 10%

Customer Loyalty

Defensive driving course

May be limited to seniors, teens or inexperienced drivers. Approved course only.


Driver Training

Driver Training

Usually for drivers under 21. Approved course only.

8 - 10%

Driver Training

Early signing/renewal

For signing / renewing before policy expiration.


Customer Loyalty

Emergency road assistance

For purchasing roadside assistance or driving a car that comes with it.



Good or safe driver

No at-fault accidents or moving violations during last three to five years.


Driving History

Good student

High school or college students (under age 25) with at least a 3.0 (B) grade point average.

15 - 25%


Green/hybrid car

Owning or leasing a hybrid or electric vehicle.




Insured owns a single family home or condominium.

5 - 15%


Low income or occupation

State-mandated requirement for income-eligible drivers



Customer Loyalty

For policies in-force more than one consecutive year. May increase with each successive year.

15 - 25%

Customer Loyalty


Active military personnel and their households.

15% on base, 90% for deployed



Insure more than one car on a single auto insurance policy.

10 - 25%

Customer Loyalty

New car

Own a car that is three or fewer years old.




Pay premium in its entirety, at the beginning of its contract.

5 - 10%



View and pay your bill online.



Safety; passive restraint and airbag

Usually applies to older vehicles (1990s or earlier) with factory-installed airbags.




Usually state-mandated and apply to drivers over age 65.

15 - 35%


Students away from home

Students without regular access to a vehicle, and living > 100 miles from home.

7 - 30%


Usage or low-mileage

Driving 5k to 15k miles per year, depending on insurer.


Driving History

Good Driver Discount / Accident Free

Many insurance companies offer reductions in insurance policy if you have been without car accidents for three to five years. This reduction is typically automatically enforced. If you are not adequate at the time you sign up for your policy you can change your premium when you renew your policy once you are qualified. Good driver definition may vary between insurers.

You can receive up to a 10 percent discount if you are deemed a safe driver. Safe driver reductions are given to drivers who are sure all passengers where their seatbelts, drive slow and are more cautious on the road. Some insurance companies will ask you to put a safety monitor in your vehicle to make sure you are a safe driver.

Defensive Driver Reduction

You can take a defensive driving class from a institution that is certified and registered and you will then be qualified a 10 to 15 percent discount on collision, personal injury, liability, or medical payment coverages. You can find out information on how to sign up through the National Safety Council. The National Safety Council offers online defensive driver’s classes and it’s available in most states. You will learn how to access road, weather, and traffic conditions in order to avert accidents. The class can cost anywhere from $15 - $30 depending on what state you live in.

Cost Reduction for Low Mileage and Usage

You may qualify for savings on your auto insurance policy if you don’t use your car too often. Insurers ask about your average mileage per year every time you get a quote. You can start receiving the benefits of this discount if you drive less than 7,500 miles annually and can receive up to a 20 percent reduction.

Driver Status Based Auto Insurance Discounts

These ways to reduce your bill are based on the actual driver and not the driving habits. These discounts include: Senior discount, professional discount, good student discount, military discount, and a student away discount.

Good Student Discount

Auto insurance for young adults who are 25 years or younger can be expensive. One way to reduce the premium is if you are a good student with a B average. You must be in school full time and provide proof of your grades and you can get up to 25 percent in reduced payments.


If you have served in the military some insurance companies offer a discount as an honor. You can receive anywhere from 8 to 15 percent off.

Senior Driver Discount

If you are over 55 years old you can qualify for a reduction from 5 – 10 percent. Be sure to ask your insurer about this possible discount if you believe you may qualify.

Professional Employee Discounts

Many car insurance companies have partnerships with other organizations that allow for discounts for their employees or members. It is typical of alumni university groups and trade organizations. The discount can be anywhere between 2 – 10 percent.

Away From Home Student Discount

This helps family’s whose child went away for college. The discount applies on the car that the kid left behind. The college or university must be at least 100 miles away from home. You can receive a reduction of up to 25% on liability coverage.

Policy Car Insurance Discounts

These discounts are based on your policy. You can always change the details of your policy in order to receive these discounts and include the following: Homeowner, Bundling / multi-policy, Early signing, Paid in full, E-bill, and Loyalty.

Homeowner car insurance can give you up to 3 percent back. Bundling / multi-policy discount can be up to 25 percent in savings and can protect many vehicles or other assets. You can receive 3 percent off for purchasing your insurance before your current policy expires. Also if you can pay your policy in-full, you may be qualified to a reduction of up to 10%. If you opt for an e-bill, there is often you are qualified for savings up to 10%. Auto insurance companies will fight to keep you as their client and you may be qualified for a loyalty discount and it can be a savings of up to 20 percent off.

Vehicle Car Insurance Discounts

If your vehicle comes with features such as an anti-theft device or anti-lock breaks, you are likely to be able to get some discounts. These include: Anti-theft, Anti-lock brakes, Passive restraint, New car, and Daytime running lights.

Anti-lock brakes discount could give you 5 to 10 percent in savings. Anti-theft gives you a savings of 5 – 15%. Passive restraint discounts are of 25 – 30 percent and are typically adjusted in the policies, PIP or medical payment coverage. The new car discount can be up to 10 percent off. Daytime running lights can reduce accidents and these will give you up to 3 percent in savings.

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