May 1, 2024 | Marlon Wright

23 Auto Insurance Discounts

How to Save on Auto Insurance

There are numerous discounts that can be applied to your auto insurance policy, depending on your eligibility.

Ranging from life, vehicle, history and more, discounts exist under a variety of conditions.

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Don’t wait for discounts to be offered to you. Ask!

It is advised to always ask about discounts upon renewing your policy to ensure you’re getting the best possible rate. Not all insurance companies will openly tell you about discounts.

Person in covering a small vehicle with his handsPictures of Money, flickr

Most Common Discounts

These are 23 of the most common auto insurance discounts that may be available to you. Take notes and ask your representative, hopefully you can save some money this year.

Man signing car insurance document or lease paper.PanuShot, Shutterstock

Multiple Vehicles

Most auto insurance companies offer a discount if you or your household own more than one vehicle. And this number grows if you have more cars than drivers in a household.

Main entrance of big residential house with car and truck parked on concrete driveway in frontImagenet, Shutterstock

Multiple Policies

Much like having multiple cars, having other policies can usually get you a discount as well. Bunding your home insurance or tenant insurance with your auto insurance can result in a lower rate altogether.

Man signing car insurance document or lease paper.Skrypnykov Dmytro, Shutterstock

Group Discounts or Group Rates

Find out if you belong to an eligible group that would allow you a discounted group rate. This is commonly found in employer benefits, union benefits, or for alumni of certain post-secondary institutions.

Photo of A Woman Holding a Contract, man and a woman sitting oppositeMikhail Nilov, Pexels

Higher Deductibles

If you’re willing to take a higher deductible, you’re going to pay a lower insurance rate. The trade-off here though is that you’ll need to pay more when you need it most. If you’re a good driver, this may still be worth it.

A Paper beside a Person Typing on a Laptop.Kindel Media, Pexels

Loyalty and Renewals

Always ask about loyalty discounts—this is the same for everything from utilities and phone bills to insurance and more. Oftentimes, people who have been with the same insurance company for 5+ years will get a 5% discount.

Elderly man Signing an Application FormKampus Production, Pexels

Driving School

If you attended driver’s education you may be eligible for a discount. Auto insurance companies often believe that educated drivers are safer drivers and pose less of a risk. As such, those drivers are rewarded with discounts.

Photo of a Person in front of a Driving School Automobile.Unknown Author, Pxhere


Telematics (usage-based insurance “UBI”) has combined leading-edge wireless communications and global position system (GPS) tracking technology that collects and analyzes data from moving motor vehicles.

Close Up Photo of A Person in a car using a GPS device.ERTICO - ITS Europe, Flickr

Telematics Discounts

This feature essentially puts discounted rates in your control. The better driver you are, the more you can save.

Close Up Photo of Man Inside, Pexels

Seasonal Tires

Certain regions offer discounts for policy holders who use winter tires. In some Canadian provinces, for example, insurance companies are required by law to offer you a 2-5% discount once informing them that you have winter tires.

Close Up Photo of Snow Tire on a Vehicle driving on snow.Andrew Moor, Flickr

Hybrid Cars

Hybrid and electric cars can have an effect on your insurance rates as well. In some places, electric or hybrid car owners can be eligible for a discount of up to 10% as companies appreciate that these vehicles are low risk, and tend to be safer with fewer break-downs.

Photo of Two Toyota Prius V Hybrid Cars.Robert Scoble, CC BY 2.0, Wikimedia Commons

Private Parking

In most major cities, having a safe parking spot for your vehicle can get you a discount. Parking on the road leaves your vehicle more vulnerable to break-ins and accidents. Parking in a private garage can save you money, and keep your car safe.

This beautiful cars parked in a garage1994McLarenF1, CC BY-SA 4.0, Wikimedia Commons


Having an anti-theft system in your vehicle may get you a discount as well. It’s important that the system is active and functioning. There is a plethora of anti-theft options available these days. Find out what your vehicle has and mention it to your broker to see what they can offer.

Anti-Theft System sign on a car window.Jack Zalium, Flickr

The Make/Model

Vehicles are rated in terms of safety and performance. Vehicles with higher ratings in those two categories can result in insurance savings. Typically, newer vehicles that have more airbags, or vehicles with good crash test ratings yield higher discounts.

The savings here can be massive, so do a little research before buying your next vehicle.

Close Up Photo of Black Car Air Vent and Airbag.Erik Mclean, Pexels


If you recently retired, you may qualify for a discount. Insurance companies believe that retirement often leads to a decrease in driving activity. As well, the retiree status indicates you’ve (likely) been driving for many years and are an experienced driver.

Man in Black Leather Jacket in Car facing the camera.Andrea Piacquadio, Pexels

Marital Status

Your marital status has an impact on your insurance rates. Believe it or not, married folk generally receive a bit of savings on auto insurance.

Man and Woman Sitting Inside a Car smiling and facing the camera.Antoni Shkraba, Pexels

Graduated License Discount

Drivers who progress through the graduated licensing system often receive a discount of 10% on all coverages.

This discount depends on where you live and what the licensing system is like in your region.

Happy woman with car key in modern automobile during car trip.Gustavo Fring, Pexels


Naturally, your age plays a role in your eligibility for auto insurance discounts. Teenagers, for example, will pay higher premiums than people in their 30s and 40s.

Typically, age 25 is definitive difference maker. Before that age, you typically pay more.

Man Holding the Steering Wheel While Driving.Tobi, Pexels


Your driving record most definitely plays a part in your insurance rates—a big one, actually. Demerit points can greatly increase your premiums, and so can traffic tickets and accidents in which you were at-fault.

Woman Driving Car On FreewayPeter Fazekas, Pexels

Repair Estimates

When insuring a vehicle, auto insurance companies will check to see how readily available the parts are for that vehicle. Exotic, rare, and premium cars will require specialized skills and parts, making their repairs expensive—thus, costing you a higher insurance premium.

Man in Black Jacket and Black Knit Cap Inspecting Car Engine.Andrea Piacquadio, Pexels

Roadside Assistance

In some places, having a roadside assistance plan can earn you a discount on auto insurance as well. Be sure your membership is kept up to date and active, otherwise you will lose that deal.

Handsome middle age man working in towing service on the road.hedgehog94, Shutterstock

Where You Live

Some states and provinces have higher insurance rates compared to others. It can vary by city, even.

Landscape Photo of Road with Louisiana State Line Sign.formulanone, CC BY-SA 2.0, Wikimedia Commons

Safety Features

Some insurance companies will offer discounts based on which safety feature add-ons your vehicle is equipped with. Many newer vehicles have an array of safety features that insurance providers love to hear about, so be specific and see how much you can save.

Crop businessman giving contract to woman to sign.Andrea Piacquadio, Pexels


Some insurance companies offer discounts to students who are away at school and have left their cars behind. This means they will obviously be driving less, and thus will receive a discount. Be sure to mention this if it applies to you.

Man in Gray Hoodie Driving Car.Ron Lach, Pexels

Proximity to Work

Living close to your workplace may present a discount available to you. Most accidents occur between work and home, so the closer you live to work, the less risk there is of getting into an accident.

The less you drive, the more you save.

Man in Black Suit Sitting on Car Seat.Ron Lach, Pexels

Bottom Line

There are a number of ways you may qualify for discounts when it comes to auto insurance. Not all companies will offer you what they have, so it pays (literally) to ask. Even if you don’t get it, it doesn’t hurt to ask.

Buying or selling new or used vehicle with car keys on tableOpat Suvi, Shutterstock

Bonus Tip

While you’re exploring the market for your next new ride, send your insurance representative the details of the vehicle you’re interested in and they can give you an estimated quote for that vehicle.

You’ll find that your rates will change based on the make/model and year of car, as well as the safety features it includes—as mentioned earlier.

Close Up Photo of Car insurance form and key on table.Africa Studio, Shutterstock


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