Many people overpay because they never ask about discounts. Common insurance discounts include bundling policies, safe driving, telematics programs, good student, defensive driving courses, low mileage, paying in full, paperless billing, home safety devices, roof upgrades, claims-free history and group affiliations. Availability and savings vary by insurer and state, so ask your agent to review every discount on your policy.
Insurance companies advertise their lowest rates loudly, but the discounts that actually lower your bill are often buried in the fine print. Some are applied automatically. Many are not, and you’ll only get them if you ask.
Here are 15 insurance discounts that are easy to overlook, plus tips for making sure you’re getting every one you qualify for.
Insurance discounts for auto policies
1. Telematics or usage-based programs
Many insurers offer programs that track driving habits through a phone app or plug-in device. Smooth braking, lower mileage and less late-night driving can earn a discount. Be aware that in some programs, risky driving could raise your rate, so read the terms first.
2. Low-mileage discount
If you work from home or rarely drive, tell your insurer. Lower annual mileage often means a lower premium. Some insurers also offer pay-per-mile policies.
3. Defensive driving course
Completing an approved defensive driving course can qualify you for a discount with many insurers. In some states, insurers are required to offer this discount to older drivers who complete an approved course.
4. Good student discount
Students who maintain good grades, often a B average or better, may qualify. Ask what proof your insurer needs, such as a report card.
5. Student away at school
If your teen attends college far from home without a car, you may get a discount since they’ll drive your vehicle less often.
6. Anti-theft and safety features
Anti-theft devices, vehicle tracking systems and certain safety features may lower your premium. Make sure your insurer has your car’s full equipment list.
Discounts for home and renters insurance
7. Protective devices
Monitored security systems, smoke detectors, deadbolts, fire extinguishers and water leak sensors can qualify for discounts. Some insurers ask for a certificate from your monitoring company.
8. Roof upgrades and wind mitigation
A new roof or impact-resistant roofing materials may lower your premium, especially in areas prone to hail or hurricanes. In some coastal states, insurers are required to offer discounts for qualifying wind mitigation features, documented through an inspection.
9. New or renovated home
Updated electrical, plumbing and heating systems lower the risk of fire and water damage. If you’ve renovated, let your insurer know.
10. Claims-free discount
Going several years without a claim can earn a discount. That’s one reason some people choose to pay small losses themselves rather than file a claim, though you should weigh that carefully.
Discounts that work across policies
11. Bundling
Buying auto and home or renters insurance from the same company is one of the most common ways to save. But don’t assume a bundle is automatically cheapest. Compare separate quotes too.
12. Multi-car discount
Insuring more than one vehicle on the same policy usually lowers the cost per car.
13. Paying in full
Paying your six-month or annual premium upfront can save money compared to monthly installments, which sometimes include fees.
14. Paperless billing and autopay
Going paperless, signing your documents electronically or setting up automatic payments can trigger small discounts with many insurers.
15. Affiliation and group discounts
Employers, alumni associations, professional organizations, credit unions and military service can all unlock discounts with certain insurers. Many people never mention these affiliations, so they never get the savings.
Discounts aren’t the only way to save
Stacking discounts helps, but a few other moves can lower your premium just as much:
- Review your coverage levels. Dropping collision or comprehensive on an older car worth very little may make sense, though lenders usually require it on financed vehicles.
- Adjust your deductible. A higher deductible lowers your premium if you can afford it when a claim happens.
- Maintain good credit. In many states, insurers may use a credit-based insurance score when setting auto and home rates. A few states restrict or ban this practice.
- Keep your record clean. Tickets and at-fault accidents usually raise rates for several years.
Say you just moved into a newer condo, started working from home and joined your alumni association. Each of those changes might qualify for a discount, but your insurer won’t know unless you tell them. One phone call could cover all three.
A word on health insurance savings
Health insurance works differently. ACA Marketplace plans can’t offer the kinds of discounts listed above, and premiums are mainly based on age, location, tobacco use and plan choice. Your main savings come from premium tax credits and cost-sharing reductions if your household income qualifies, plus employer wellness programs and HSA tax advantages where available.
How to make sure you get every discount
- Call your insurer once a year. Ask for a full discount review, not just a renewal quote.
- Report life changes. A new job, shorter commute, marriage, home upgrade or a student’s good grades can all affect your rate.
- Keep documentation handy. Report cards, course certificates, inspection reports and security system certificates.
- Compare quotes. Different insurers weigh discounts differently, so shop every year or two.
- Check the final total. A long list of discounts doesn’t guarantee the lowest price.
Discount checklist
- Do I have more than one policy or vehicle with this insurer?
- Have my mileage or driving habits changed?
- Has anyone in my household completed a driving course or earned good grades?
- Have I added security devices or upgraded my roof or home systems?
- Do I belong to a group, employer program or alumni association with insurance partners?
- Could I pay in full or switch to paperless and autopay?
Bottom line
The insurance discounts most people miss aren’t secret, they’re just rarely mentioned unless you ask. A quick annual review can uncover savings from bundling, safe driving, home improvements and group memberships. Discount names, eligibility and amounts vary by state and insurer, so ask a licensed agent to walk through your options and make sure every discount you qualify for is applied.
Frequently asked questions
Is bundling insurance always cheaper?
Not always. Bundling often earns a discount, but separate policies from different insurers can sometimes cost less overall, so compare both ways.
Can a telematics program raise my rate?
With some insurers, yes. While many programs only offer discounts, others may adjust your rate upward based on risky driving, so read the program terms before enrolling.
How often should I ask about insurance discounts?
At least once a year at renewal, and any time something changes, such as moving, buying a car, renovating your home or a student earning good grades.
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This article is for general information only and is not insurance, legal, tax or medical advice. Rules, coverage and prices vary by state, plan and insurer. Check your policy documents and speak with a licensed agent, your HR department or HealthCare.gov before making decisions.
