What Are The Best Car Insurance Discounts in 2026 (And How To Get Them)?

Car insurance discounts are price reductions you get if you meet certain conditions set by the car insurance company. Typically, they’ll offer discounts to drivers they believe represent a lower risk to the company than the typical driver. 

Examples include low mileage, a good driving record, bundling policies, multiple cars on one policy, safety equipment, military service, good grades, driver safety courses, and telematics programs.

That said, discounts aren't the only way to save money on car insurance. Sometimes an insurer that offers fewer discounts may charge a lower base premium for your driver profile. That’s why it's worth comparing multiple quotes from trusted insurers on Luva.

Discount programs differ widely, depending on your insurer, your location, where your car is garaged, and the driver or policy owner.¹ Most common discounts fall under one of these categories:

• Driver-based discounts

• Policy-based discounts

• Payment method discounts

• Vehicle-based discounts

• Affiliation discounts

Let's take a closer look at each of these categories, and their respective discount types. Not every discount is offered in every state, and the size varies by company.

Mileage and bundling are the most significant common discounts, by percentage.

While savings can vary, discounts for those who drive very few miles average about 22% among the leading insurers we analyzed, as shown below. And bundling home and auto came next at about 14%.

Loyalty discounts typically don't account for very much. The National Association of Insurance Commissioners (NAIC) found that some companies actually charge more to long-time, loyal customers than they charge to frequent shoppers.²

Luva research shows more than half of insured drivers shopping for car insurance have held continuous coverage for at least four years.³ Compare quotes regularly on Luva to ensure you’re still getting a competitive price.

Telematics programs, also called usage-based insurance programs, may be worth a try if you drive safely and don't mind being tracked. Insurers often provide significant discounts to drivers who demonstrate good, safe driving habits sustained over several weeks, as measured by a mobile app or an OBD-II device that plugs into your car.

These devices may track things like your mileage, how hard you brake, your speed, and what time of day you drive.

Often, your insurance company will offer you a discount just for participating, and then another, larger discount for their safest drivers.

But enrolling in telematics can cut both ways: some insurers may increase your rate if your telematics indicate poor or unsafe driving habits, lots of miles, or if you frequently travel late at night, when there are more accidents.¹

Some discounts get applied automatically, based on the information in your application. But many aren't. You may have to call your insurance company or agent directly when you enroll or renew.

How do you know if you qualify for a discount?

Every car insurance company is different, and not every type of discount is available in every state. But if you can answer "yes" to any of these questions, chances are good you can qualify for a discount at many insurance companies.

• Do you drive fewer than about 7,500 miles a year, work from home, or carpool?

• Do you own or rent a home you could insure with the same company?

• Do you have two or more vehicles that can go on one policy?

• Can you pay the full term up front instead of monthly?

• Has every driver kept a clean record for three to five years?

• Can you enroll in an approved defensive driving course?

• Is there a full-time student on the policy with a "B" average, or one away at college without the car?

• Do you belong to an employer group, an alumni association, a professional group, or the military community?

• Are you willing to get your statements and policy documents electronically instead of in the mail?

• Is there a telematics program you can enroll in?

• Do you have qualifying safety or anti-theft equipment on your car, like daytime running lamps, anti-lock brakes, or a car alarm system?

• Are you willing to enroll in autopay?

Every time you renew, call your insurance company or agent and ask for a line-by-line discount review. Your renewal period or a major life change, such as getting married, moving somewhere with a shorter commute, or having a child leave for college, provides an opportunity to potentially lower your premium.

Tip: Turn on autopay or paperless billing if it earns a discount, and pay the term in full if you can spare the cash. Paying in full may help you save through a discount, fewer fees, or both.

Discounts aren't the only way to save. Your coverage choices and shopping around can also help.

Increase your deductible

Your deductible is what you pay out of pocket before insurance kicks in on a claim. The Insurance Information Institute (III) states increasing your deductible from $200 to $500 can cut the collision and comprehensive part of your premium by 15% to 30%, and increasing it to $1,000 can reduce your comprehensive and collision premiums by 40% or more.¹

The catch: you'll pay more after a claim. When you increase your deductible, you are taking on more of the risk yourself. Only do this if you can cover the higher deductible.

Drop comprehensive and collision on an old car

Here's an old rule of thumb from the insurance industry: if your car is worth less than about 10 times the annual cost of collision and comprehensive coverage, and you can afford to replace your car if necessary, you might be better off dropping those two coverages and just carrying liability.¹ However, be sure to review these coverages first before moving to liability only.

You can take the premium you save and direct it to savings. So when it's time to replace your car, that cash will be there.

Shop around at renewal. 

Every six months or so, compare real quotes from multiple insurers on the same coverage.

Yes, a good credit rating typically means lower premiums in most states, making your personal credit record among the biggest pricing factors of all.⁴

As shown above, simply moving from poor credit to good credit can save more than $2,000 a year. 

However, location matters. Four states — California, Hawaii, Massachusetts, and Michigan — largely prohibit insurance companies from using a credit-based insurance score. Several others limit the practice in smaller ways.⁴

Where credit-based pricing is permitted, drivers with poor credit tend to switch carriers more often. In Luva’s research, more than one in four shoppers with poor credit had held their current coverage for less than a year, roughly three times the rate of shoppers with excellent credit.³

Several national insurers offer discounts for active-duty and reserve-component members and veterans, including the following:

• GEICO offers up to 15% for active-duty, National Guard, Reserve, retired, and veteran drivers, plus an extra discount if you're deployed.⁵

• Liberty Mutual has a military discount for active-duty, retired, and reserve members, but doesn't publish a single nationwide rate; it varies by state.⁶

• USAA, which serves the military and veteran community and their families exclusively, takes up to 15% off comprehensive coverage when your car is garaged on a military base, and up to 60% when it's in storage during a deployment.⁷

The exact savings, qualifications, and the proof you'll need such as a DD-214 or military ID, vary by company, state, and program.

The best car insurance company for you is the one that charges you the lowest premium for the coverage you need and still treats you well when you file a claim.

A company with fewer discounts but a lower base premium for your specific situation can be cheaper than one advertising lots of special discount plans but a much higher base premium.

That's why it's a good idea to compare rates after all discounts are applied, not just the discount lists themselves. Luva lets you compare quotes from multiple insurers on the same coverage, so you can see the real price difference.