But do you have to pay full price for it? Car insurance discounts could be available to you based on various factors — you just need to know where to look.
Car insurance premium rates are regulated by state governments based on standard risk factors, including age, years of driving experience, type of vehicle driven and where it is parked. However, insurance discounts must be applied equally to all drivers and must not unfairly discriminate against policyholders. This includes any discounts that you may qualify for. Depending on your age, how long you’ve been driving, your driving record and organizations you belong to, you could be eligible for car insurance discounts you didn’t even know existed.
As you shop for car insurance, always ask companies what discounts they offer. Let’s look at how your initial car insurance quote is created — and the types of car insurance discounts that may help you lower that quote or shop for a better one.
Understanding the different factors that determine your car insurance rate can help you figure out what discounts you might be able to get.
Your driving record is an important factor insurance companies consider when setting your rate. They want to know how likely it is that you’ll get into a car accident, and past driving behavior is an important indicator of future results.
As you begin shopping around and comparing car insurance rates, you give companies permission to look at your motor vehicle report, which may include any accidents and moving violations over the last three to five years.
Simply put: Good drivers may get rewarded with discount car insurance.
Here are some other factors that could affect your car insurance quote.
It depends on which state you live in. In most states, your credit score could affect how much you pay for your premium. If you live in California, Hawaii, Massachusetts, Michigan or Washington state, auto insurance companies can’t use your credit score when establishing your premium. But insurance companies are limited on how they can use your credit score when determining your rate in Oregon, Maryland and Utah, for example.
In many situations, yes — car insurance discounts are available to policyholders. But you can only leverage the ones you’re eligible for.
When you’re shopping for car insurance, check on an insurance company’s discount page to see what’s offered, or speak to an insurance agent to find out if you may qualify for any discounts.
Here are a few of the discounts that some of the larger car insurance companies in the U.S. may offer — policies and availability of programs can vary by state.
Progressive | Geico | Liberty Mutual |
---|---|---|
Multi-policy: Policyholders save an average of 7% when they combine their auto and home insurance policies. | Vehicle equipment: Your insurance premium could go down based on your safety equipment, including airbags, anti-theft systems and daytime running lamps. | Violation free: If you don’t have any moving violations, you could qualify for discount car insurance. |
Homeowner discount: Progressive policyholders get a discount for owning a home. | Good driving history and habits: Geico offers discounts of up to 22% for drivers who have been accident-free for five years and potential discounts on certain portions of your premium if you and your passengers always wear seat belts. | Multi-policy discount: If you insure multiple cars with Liberty Mutual or have multiple policies (like home and auto), you may be able to get additional discounts. |
Continuous insurance: Progressive offers a discount based on how long you’ve been insured, regardless of the companies. | Driver affiliation: Members of the U.S. military, federal employees and individuals belonging to eligible groups may all qualify for additional discounts. | Early shopper discount: Get a quote from Liberty Mutual before your current policy expires, and you could save when you switch. |
Quote and sign online: When you get a quote and sign your documents online with Progressive, you could save an average of 7% on your premium. | Education discounts: If you take a defensive driving course, or if your driving student has a good academic record, you could get a discount. | Payment discounts: By buying online, going paperless or entering a preferred payment discount, Liberty Mutual offers additional discounts. |
Snapshot Safe Driving App: With usage-based insurance tracking through Progressive’s app, you could save money based on how you drive. | Customer loyalty: Geico also offers discounts for policyholders who insure their car and home together, or who insure more than one vehicle with the company. | RightTrack program discount: If you agree to enroll in Liberty Mutual’s driver tracking program, you could save up to 30% on your insurance based on your good driving habits. |
When it comes to car insurance policy discounts, it’s all about fit. If you’re not a full-time student or don’t have a child studying full time, a good-student discount won’t work for you.
But there are a number of common car insurance discounts that apply to a wide range of drivers.
Be sure to ask your insurance company about these common savings opportunities.
One of the most common car insurance discounts is the multi-policy option. Insurers want their customers to insure all of their major items with the company, and multi-policy discounts encourage this.
The selling points of bundled policies are that they save time — simplifying your insurance billing with a single company — and money. For example, a number of insurers advertise savings for multi-car coverage and discounts of around 20% to 25% when you bundle home and auto coverage. Some insurers also have options for bundling auto or motorcycle insurance with renters insurance.
Safe-driver discounts can be easier to qualify for — eligibility is partially in the driver’s control. If you keep a clean record and aren’t involved in an accident for a certain period of time — typically three to five years — insurance companies may be able to give you safe-driver or accident-free discounts.
If you’re driving a newer vehicle with top safety features — including airbags, anti-lock brakes, daytime running lights, an anti-theft system or lane departure technology — you could qualify for discount car insurance. Your discount may vary based on how many features your car has.
When you go shopping for discount car insurance, don’t just compare companies by their initial rate quotes. Look at what discounts they offer too — you could save even more.
If you’re unsure about whether a certain discount applies to you, you can always ask the insurance company. Let them know about your vehicle’s safety features, any organizations you might be a part of (like an alumni organization, employer group, professional organization or trade union) or if you’ve completed any defensive-driving courses.
And even if you’re not looking for a new car insurance company, it doesn’t hurt to explore these discounts with your current provider. If you’ve joined a discount-eligible group, moved to a less populated area or are commuting less since you first bought your policy, you could get a discount car insurance plan. Share these updates with your current insurer and see if you could bring your premium down.
]]>Updated April 17, 2023
This date may not reflect recent changes in individual terms.
Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
Written by: Joe Dyton
Editors’ take: Erie Insurance values one-on-one interactions — and its high customer satisfaction ratings reflect that. But you’ll need to contact an agent for most needs, which could feel inconvenient if you prefer online service. Still, Erie car insurance policies come with a lot of extras that could save you money.
Availability | Available in 12 states: Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin, as well as in Washington, D.C. |
J.D. Power customer satisfaction ratings | Higher than average |
Number of complaints in 2022 | Fewer than usual complaints for an insurance company of its size, according to the National Association of Insurance Commissioners |
How to get an insurance quote | Online, over the phone or through an agent |
How to submit a claim | Contact your Erie agent or call Erie |
Founded in 1925, Pennsylvania-based Erie Insurance offers auto insurance in 12 states along the East Coast and in the Midwest, as well as in Washington, D.C. According to the company website, Erie values providing a “human touch” through its more than 13,000 agents. In addition to car insurance, Erie offers a range of coverage options, including for other vehicle types as well as homeowners, life and business insurance.
Erie auto insurance policies may come with extras, including a waived auto glass repair deductible, a roadside and rentals bundle, locksmith services, personal item coverage, and even pet insurance in case your pet is injured in a car accident.
With the Erie Rate Lock feature (known as “Erie Rate Protect” in New York), your auto insurance rate won’t increase — even if you file a claim — unless you make a policy change, such as adding or removing a driver or vehicle or changing your address. Take note that Erie Rate Lock is not available in all states, and the rate lock period is limited to three years in Virginia.
Erie’s number of customer complaints in 2022 was lower than usual for insurance companies of its size in the market, according to the National Association of Insurance Commissioners.
The company also scores high in customer satisfaction in J.D. Power studies. It was rated above average in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study and No. 2 in the J.D. Power 2022 U.S. Insurance Shopping Study for midsize insurers. In addition, it was rated No. 1 in the Mid-Atlantic and North Central regions and No. 3 in the Southeast Region in the J.D. Power 2022 U.S. Auto Insurance Study, which looks at customer satisfaction related to billing, claims, interaction, price and policy offerings.
Erie Insurance’s coverage area might be limited, but its coverage options aren’t. Erie’s offerings include the following types of coverage:
Erie offers a limited number of common auto insurance discounts.
Erie Insurance offers first accident forgiveness. This means you won’t see a premium hike the first time you’re at fault in a car accident. But in most states, you’ll need to be an Erie customer for at least three years to qualify for accident forgiveness.
Erie offers a range of auto insurance coverage options, including standard liability, comprehensive and collision coverage, as well as a bunch of extras and add-on options. And Erie’s coverage doesn’t stop with cars. The company also covers other vehicles, including motorcycles, RVs, boats, ATVs, classic cars, golf carts and snowmobiles. Erie’s nonvehicle coverage includes home (homeowners, renters, condo, mobile home and flood), life insurance and business insurance.
Here are two other insurers to consider if you think Erie might not be the best fit for your situation.
]]>Once your car warranty expires, you’re financially responsible for any repairs going forward, which can be expensive. One way to keep those costs down is by getting car repair insurance — also known as mechanical breakdown insurance.
Car repair insurance serves a purpose similar to that of a vehicle warranty — easing your financial burden if something goes wrong with your car, like a failed engine or blown transmission. But keep in mind that this type of insurance doesn’t cover traditional wear and tear services like oil changes and tire replacement, or damage from an accident.
Before you buy car repair insurance, you’ll want to figure out if it makes financial sense for you. Based on your car’s age, how much you drive and your current financial situation, you may be better off without it. Let’s explore what car repair insurance is, what it covers and who it may be best suited for.
Car repair insurance, sometimes known as mechanical breakdown insurance, is coverage you can add to your current auto insurance policy to help pay for repairs that aren’t accident-related.
It’s important to note that all car repair insurance policies aren’t created equal — coverage can vary depending on the insurer you choose. And keep in mind that car repair insurance may not be available through every insurance carrier.
Eligibility requirements for car repair insurance vary from one company to the next.
While it may sound like car repair insurance and extended warranties function in similar ways, they actually work very differently. An extended warranty covers specific types of car repairs over a certain period of time or up to a mileage allotment, while car repair insurance provides ongoing coverage (again, what’s covered can vary) as long as you pay for it.
Before opting for an extended warranty, you’ll want to understand what’s covered. Keep in mind that these types of warranties often come with a hefty price tag — and depending on the type of repair you face down the road, you may still be stuck footing the bill.
First, while standard car insurance is required by law in most states to financially protect you and your vehicle if it’s in an accident, stolen, or damaged in some other way — car repair insurance is optional.
In addition, standard car insurance covers accident-related damage while car repair insurance covers mechanical problems unrelated to accidents. You can think of it this way.
Learn more about the types of auto insurance you can buy.
Here are examples of some of the parts and systems covered by car repair insurance:
Other components may be covered as well.
Car repair insurance doesn’t cover routine service and maintenance or damage caused by accidents.
There are several benefits to buying car repair insurance. It can give you peace of mind knowing that you likely have coverage for an unexpected repair. But like with all warranties, you’ll want to make sure that you know how the repair process works ahead of time, whether you’ll have to pay upfront and get reimbursed, or whether your service provider will pay for the repair.
You may want to consider getting car repair insurance as your car gets older, or if you buy a used car with significant mileage.
But buying car repair insurance might not make sense for a new car. The types of issues that car repair insurance typically covers (like engine, transmission and mechanical) may not come up for quite a while.
And if they do, your existing new-car warranty would likely cover the repair costs. So at least until your new-car warranty expires, it can pay to save your money and then consider whether buying car repair insurance makes sense for you.
Car repair insurance isn’t your only option if you want to protect yourself from the cost of unexpected repairs. Here are a couple of alternatives.
An extended warranty — also known as a vehicle service contract — covers the cost of certain repairs. You can purchase it to supplement the coverage provided by your car’s existing manufacturer’s warranty if it’s still in effect. If the manufacturer’s warranty has expired, you can use an extended warranty to get wide-ranging protection.
This coverage doesn’t include routine maintenance like oil changes and tire replacement.
An emergency fund is a cash reserve that can be used for unexpected expenses.
You can fund this cash reserve by consistently saving money from your paycheck. Another approach is to build this fund using one-time opportunities such as a tax refund.
Now that you have a better idea of what car repair insurance is, think about whether it’s a good value for you.
If it is, start by checking whether your current insurance carrier offers car repair insurance or something similar. If it does, request a quote — and be sure to ask for a detailed list of what repairs will be covered. Car insurance companies typically offer similar coverage when it comes to their auto insurance product. But their car insurance repair parameters can vary.
If you don’t think car repair insurance is worth it, don’t worry — there are alternatives. You can consider getting an extended warranty from your car manufacturer or third party before your factory warranty expires. Just like with car repair insurance, be sure to shop around for the best price.
Mechanical breakdown insurance is protection that covers the cost of repairs if your car breaks down or suffers other mechanical problems.
It depends on the situation. Mechanical breakdown insurance covers repair bills associated with unexpected breakdowns and mechanical problems. Collision insurance pays for repairs if your car is damaged in an accident with another vehicle or object.
Updated January 30, 2025
This date may not reflect recent changes in individual terms.
Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
Written by: Joe Dyton
Robert E. Wood, president of Sears, Roebuck & Co., founded Allstate in 1931 with the intention of selling auto insurance by mail. Today, the Illinois-based company offers a range of insurance products, including renters, homeowners, condo, motorcycle, business and term life insurance.
Allstate offers a range of rewards and discounts for policyholders who practice safe driving habits. Drivewise is a usage-based insurance program that allows you to earn rewards for safe driving habits in some states. You can sign up for the program in the Allstate mobile app and use it to track your driving.
Here are some more rewards and discounts for safe drivers.
Allstate was rated below average in the J.D. Power 2024 Insurance Shopping Study.
In addition to Drivewise, Allstate is one of only a few insurance companies to offer a pay-per-mile insurance program. With Milewise, you pay a daily base rate, plus a per-mile rate for each mile you drive. This program could be ideal if you have a short commute, work from home or just don’t drive much. Currently, Milewise isn’t available in every state.
Here are a few more things to know about Allstate auto insurance.
If you’re a historically good driver, Allstate insurance might be a good fit for you. The company’s many rewards and discounts for good driving habits could help reduce your insurance premium. And if you don’t drive much each day, Allstate’s Milewise program could help you save.
Allstate may also be ideal if you’re tech savvy and like the idea of being able to manage your policy and claims through a mobile app.
But if your driving record is spotty, you aren’t the safest driver or you want an insurer with higher shopping satisfaction, Allstate may not be the best choice for you.
You can get an online insurance quote at allstate.com, or you can get a quote by speaking with an Allstate agent.
Before you buy an auto insurance policy from Allstate, it’s a good idea to gather and compare quotes from other insurers. Shopping around can help you find the best auto policy for your needs and budget. Read our article on how to compare car insurance rates to learn more about the process.
If you’re not sure whether car insurance from Allstate is right for you, here are some other auto insurance companies to consider.
Updated January 14, 2025
This date may not reflect recent changes in individual terms.
Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
Written by: Joe Dyton
Farmers Insurance was started in a one-room office in downtown Los Angeles in 1928. Today, it serves millions of homes throughout the U.S.
Farmers works with thousands of exclusive and independent insurance agents, and it offers a full menu of insurance products in most states, including homeowners, renters, motorcycle, recreational, umbrella, business and life insurance. Farmers also offers coverage for boats and recreational vehicles, including motor homes and travel trailers.
Customers rated Farmers as below average among large insurers in the 2024 J.D. Power Insurance Shopping Study.
But Farmers was rated above average in the J.D. Power 2024 U.S. Auto Claims Satisfaction Study.
Farmers offers standard car insurance coverage such as liability, collision and comprehensive coverage — but it also offers a range of other, less-common options.
Farmers offers a range of services during the claims process to help you get back behind the wheel. Here are some of Farmers’ claims support features.
Here are a few more things to know about Farmers auto insurance.
Farmers auto insurance could be a good fit if you have a new car that you want added protection for. With an extensive list of coverage options, Farmers may also be ideal if you’re seeking a type of coverage that isn’t commonly offered by other insurers, such as spare parts (which could be useful if you have a classic or collector car, for example) or customized equipment coverage.
Farmers may also be a good choice if you prefer working with an agent.
You can get an auto insurance quote through the app, online at farmers.com or by calling a Farmers agent. You’ll need to provide information about your car, commute and drivers in your household.
Once you review your quote, you can also buy a Farmers auto policy online. But before you buy, it’s a good idea to get quotes from a few other auto insurance companies and compare them. Shopping around can help you get the best possible car insurance price for your situation. Check out our article on how to compare car insurance rates to learn more.
If you aren’t sure whether Farmers auto insurance is right for you, here are some other insurance providers to consider.
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