Top 17 Ways You Can Save on Auto Insurance Now

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Car Insurance is a necessary evil and although most of us probably hate paying for auto insurance, that perspective would likely change at the first sight of an accident.

Being the savvy discount seeker that I am, I wanted to find solutions for you to afford good quality auto insurance.

So, I gathered as many discounts as I could find and put them in one huge post for you!

If you want to read more about other ways I like to save, check out some of the articles below!

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6 Fun Family Outings that Save Money

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You’re welcome my friend!

Good quality coverage is really important for those dreadful events when you need it, I went on a quest looking for ways you can save money and still get good quality car insurance.

Because let’s face it, no one wants to face the consequences of cheap auto insurance when all they want to do it fix their car and move on with their life.

Here are 17 ways to save on car insurance, no matter what carrier you choose (well…almost all of the carriers have these discounts).

Please note: These discount percentage rates vary based on a wide range of variable. So, be sure to check your insurance policy and talk to an agent to see if you qualify for any of these.

It never hurts to ask!!

1- Good Student Discount

Did you know that you qualify for this discount all the way through college? Well, as long as you are between the ages of 16 and 25. Every insurance carrier can differ on the requirements, but most require a 3.0 grade point average. The average discount rate for this is about 15%.

It seriously pays to be a good student, don’t you think? I can’t wait to use this for my daughter’s insurance, since teens are super expensive, so any discount will make a difference.

Teen driver coming through the Frugal Convert household shortly-wish me luck!!

2-Mileage Discount

This discount is one that I use now that I take a commute bus to work. You can read all about the awesome benefits of taking the bus (or any alternative public transportation for that matter) to work here.


Ever since I started taking the bus, I drive my car about 10 miles per day! That’s an amazing thing, since I used to drive about 40 miles a day.

You do have to fill out an annual mileage form and sign it, but as long as you stay beneath 15,000 miles (for most carriers), you qualify for the discount. We get 10% off our annual premium.

There are also insurance companies that have their rates based on mileage. It’s called “Pay per mile insurance”. Essentially, the less you drive, the less you pay.

3- Multiple Driver Discount

budget family outings

Combined coverage for the family can qualify you for a discount. The beauty is, as a family, most prefer to be together on one policy any way, so there isn’t any added work on you.

Remember, ever discount adds up.

4- Clean record/good driver discount

This one is not the easiest to come by. Driving in traffic, being on the road often, speeding just a tad to make it somewhere on time? All recipes for getting a ticket or worse, getting into an accident.

Did you know that even if the accident isn’t your fault, they still show that you had an accident? And your rate may increase? It really depends on the scenario.

Here’s a good article that talks specifically to this point.

So, sometimes, having a good driving record isn’t always something we can control. This is why I say this discount is not as easy as the others. But, it is completely possible if you are a defensive driver.

Speaking of being defensive driver, let’s move on to #5 (good segue, right?).

5- Defensive driver discount


Nowadays, insurance companies encourage their policyholders to take online classes as refresher courses and to help them become better defensive drivers.

The more of a defensive driver you are, the better suited you are to anticipate what’s ahead so you can avoid accident-prone situations.

You can find out what a defensive driver is here.

6- Full Payment Discount

Premiums are at such a high cost, I get how stressful it is to think about paying all of that up front….at once.

But, you may want to consider paying in full to save on the overall premium cost of your auto insurance.

Here’s an article that may help you determine if paying in full is right for you.

For us, paying our premium every six months has always worked out in our favor. Every time our payment comes up, it triggers me to compare prices and stay on top of our discounts.

If we paid once a month, it would likely be so second nature that we wouldn’t question our bill quite as often and the increases would be too gradual to really notice an issue.

And of course, the added benefit of paying less than if you paid month to month is a great plus.

7- Senior discount

Yup, once you turn 50, most insurance companies will reward you by giving you a small discount on your auto insurance.

auto insurance discount

I know….most of you won’t be able to use this discount for a while…but it’s nice to know it’s waiting for you.

I’m really glad that insurance companies take into account that most senior citizens are on a fixed income and every reduction in costs counts for them.

This is a great article on 5 ways seniors can save on their auto insurance.

8- Military discount

According to Geico Insurance, if you are on active duty, retired from the Military, or a member of the National Guard or Reserves, you may be eligible for a Military Discount of up to 15% on your total insurance premium.

9- Federal Employee discount

If you’re a federal employee, you may be eligible for a discount on your auto insurance. Check with your carrier, the discount ranges from 10% to 15%.

I wish state employees had this perk!

10. Daytime running lights

I didn’t even know that there was such a discount until I did my research for this article, did you?

I have noticed quite a few cars on the road that have daytime lights on, but never thought that they could claim that on their auto insurance.

Pretty cool, right?

11. Anti-theft system

If you have an alarm on your car, you can get this insurance discount. This discount actually benefits the insurance company more than the car owner.

If you have an alarm, the chances of your car being stolen decrease substantially. So, it makes sense that they would reward this car feature with a discount on your auto insurance premium.

12. Anti-lock brakes

Anti-lock brakes help your car make a sudden stop and prevents a ton of bumper to bumper accidents.

The less accidents you have, the less the insurance company has to pay up. They give you a small discount and they lower their liability risk.

13. Air bag

driving and auto insurance discounts

All of the car models after September 1st, 1998 have the airbag requirement. And you’re probably thinking if we all have to have airbags in cars modeled 1998 and later, why are the insurance companies offering a discount since it’s not an optional feature?

Well, because some people choose to still drive older cars (which is totally okay!). Those cars are not mandated by that law (at least that’s how I understood it).

So, technically having a newer car can save you money on your auto insurance, since it will automatically have the airbag feature.

Did you notice a pattern with the last few discounts? The features on your car make a difference on how much you end up paying for your auto insurance.

So, if you’re looking to buy a car anytime soon, keep these features in mind so you can save on your auto insurance coverage.

14. Driver’s education course discount

Having a teenager who currently has her permit, this makes me feel good knowing that insurance companies are encouraging driver’s education by offering a perk.

Driver’s education is super important, especially if you have never driven before.

I know, some people prefer relatives or friends to teach them. But, having a certified instructor teach you will help set a foundation that will last forever.

Plus, you get to take advantage of the insurance discount!

15. Multi-policy discount

If you own a home, an RV, a business, you may want to consider combining coverage under one policy for all your insurance needs.

You’ll not only be able to get a reduction in your insurance rate, but you’ll also have only one payment and one company to go to for all your insurance coverage questions or claims.

It’s easy on you and it saves you money as well.

16. Online quote discount

Did you know that if you get your quote online, you’ll be eligible for a premium discount (with most auto insurance companies)?

By getting your insurance quote online, you’re saving the insurance company money that they don’t have to spend to hire additional sales agents.

That savings gets passed down to you in a nice little insurance discount on your policy.

17. Paperless discount

I know banks have this benefit, but I didn’t know insurance companies had this discount as well (I need to switch over to online statements, haha).

Save trees and money just by choosing to get your insurance statements sent to you online instead of mailed to you the old fashioned way. It will also help you eliminate mail clutter….which we all suffer from!

Insurance premiums are constantly being increased based on newly implemented laws.

So, I encourage you to do your research and see what discounts you are eligible for that would help you save money on your auto insurance policy.

I make it a point to call my insurance company every year and check on my discounts. It’s hidden savings that you can enjoy!

Making the call or doing the research online will only take a few minutes, but it can save you hundreds on your auto insurance.

Did you know about all of these discounts?

I’d love to know if you have any that aren’t listed here! Let’s share in the comments!!

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4 Responses

  1. Could not have said this better myself. This is a great article, and I appreciate you taking the time to write it.
    I have Online Driver’s Ed. Courses Institution in Texas for a long time and have trained many students.
    There are many things I try and teach drivers on it, and i am going to reference this article.

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