Best Car Insurance Companies for Discounts

Which company has the best car insurance discounts? Find out why Farmers, GEICO, and State Farm topped our list of best companies.

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Discounts are a great way to save money on car insurance. Just about every insurer has them. But the savings or number of discounts can differ. We ranked the major insurers based on the quality of their discount selections. Based on our research, Farmers is the best car insurance company for discounts.

Even though Farmers is our number one pick, it may not be right for you. This article will help you compare the major companies’ discounts so you can find the right match for your needs.

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Best Car Insurance Company for Discounts: Farmers

We found that Farmers is the best car insurance company for discounts. The insurer offers a total of 23 discounts. This is far more than any other company. Many of which are very easy to qualify for. Here’s why we think Farmers is the best:

More Discounts Than Any Other Company

This one is simple. Farmers offers more discounts than anyone else. There are 23 discounts you can get with the insurer. Many of these discounts take little effort to get, like the pay-in-full and passive restraint discounts.

If you’re a homeowner, you can also save with Farmers’ discounts. You can qualify for the homeowner and bundling discounts. Each can help you save plenty of cash on car insurance.

Keep in mind that not all of Farmers’ discounts are available in every state. Be sure to ask your Farmers agent about discount availability.

Discounts for Young Drivers

Farmers recognizes that new and young drivers pay more for their insurance and make less money. Young drivers can benefit from a few different discounts Farmers created just for them. These include:

  • Distant student discount. Students can get a discount for living 100 or more miles away from home without their car.
  • Good student discount. Maintaining a 3.0 or higher GPA, being on the honor roll, or scoring in the top 20% on standardized testing can get you a discount.
  • Youthful driver discount. Farmers will give you a discount just for being under the age of 25 and on a policy that’s been in force for at least 12 months.

Discounts Yield High Savings

While most companies have discounts, savings can vary. And many of them don’t save you that much. With Farmers, you stand to save a lot with certain discounts. Bundling your home and auto insurance with Farmers can save you, on average, 20%. This is more than some other companies.

Farmers’ telematics program, Signal, can also save you up to 15% on your car insurance. These savings are comparable to most other insurance companies’ telematics programs.

Final Word on Farmers

Farmers is a great choice if you’re looking for a ton of discounts on car insurance. Not to mention, Farmers’ discounts can actually save you big money. A lot of these discounts are very easy to qualify for. If you’re looking for even bigger savings, the Signal telematics program can help you do just that. The only downside to Farmers is that it only provides insurance in 41 states.

Second-Best Company for Discounts: GEICO

GEICO takes second place for best car insurance discounts. It has a total of 16 discounts. Each one comes with sizable savings. If you’re a military member or government employee, GEICO will give you additional discounts. Here’s a full explanation for why GEICO’s discounts are so good:

GEICO’s Discounts Come with Huge Savings

GEICO may just offer the best savings per discount than any other insurer. Most of the insurer’s discounts can knock a large chunk off of your rates. After you qualify for a few, the discounts add up quickly. These are some of GEICO’s biggest discounts:

  • Multi-vehicle – 25%
  • Emergency deployment – 25%
  • Anti-theft devices – 23%
  • Good driver – 22%

Great Savings Opportunities for Military and Government Employees

If you’re a military member or a government employee, GEICO may just be the company for you. After all, GEICO stands for Government Employee Insurance Company. It makes sense that the company offers special benefits for you if you serve our country in some way. GEICO offers these affiliation discounts for you if you’re in the military or are a government employee:

  • Emergency deployment discount. If you’re in an emergency deployment to an imminent danger area, you can get a discount of up to 25%.
  • Military discount. Being a current or former military, National Guard, or Reserves member can give you a discount of up to 15%.
  • Membership and employee discounts. GEICO will give you a discount if you’re a member of one of the groups they’ve partnered with.
  • Federal employee discount (eagle discount). You can get a discount if you’re a current or retired federal employee. Savings can reach up to 12%.

Rewards for Having a Safe Vehicle

You can easily get discounts with GEICO if your car has certain safety features. Many of these discounts come with large savings percentages. These are GEICO’s safety feature discounts and how much you can save with each one:

  • Air bag discount – 23%
  • Anti-theft system discount – 23%
  • New vehicle discount – 15%
  • Anti-lock brakes discount – 5%
  • Daytime running lights discount – 3%

Final Word on GEICO

GEICO has an impressive array of car insurance discounts. Many of which can save you a ton of money. Also, most are fairly simple to obtain. The insurer is also very helpful if you’re a government employee or military member. Overall, GEICO is a good auto insurer if you’re looking for discounts.

Third-Best Company for Discounts: State Farm

The third-best company for discounts is the largest insurer in the US, State Farm. It offers a total of 12 car insurance discounts. And, depending on your state, you could be eligible for many more. The company offers famously cheap rates and large savings with certain discounts. Here’s why we chose State Farm at number three:

Best Insurance Bundle

Bundling is one of the most common and useful discounts out there. Most companies will give you a nice discount for buying both your home (or any other valid type of insurance) and auto insurance from them.

State Farm is our pick for the best car and home insurance bundle. You can save up to 20% by bundling with the insurer. In 2021, State Farm customers saved an average of $1,127 by bundling their home and auto.

Excellent Telematics Program

Most insurers have a telematics program to help drivers save money. Telematics devices track your driving habits via an app on your phone and reward you for being safe. State Farm’s program, Drive Safe and Save, can save you up to 30% on your car insurance if you drive safely.

Defensive Driving Discounts for Senior Drivers

If you’re an older driver who’s looking for a way to lower your rates, State Farm’s defensive driving discounts can help you. State Farm gives discounts to drivers over the age of 55 who complete a defensive driving course. The exact savings can range from 5 to 15%.

Final Word on State Farm

State Farm is an overall good choice if you’re looking for car insurance discounts. The company has the best auto and home insurance bundle. You can also find a useful telematics program that rewards you for keeping yourself and others safe. Finally, State Farm is second to none in overall customer satisfaction ratings and has some of the cheapest rates in the nation.

Compare Quotes From the Best Companies for Discounts

The companies above have the best car insurance discounts. Now, it’s up to you to compare quotes and find the company that’ll give you the best rates.

Honorable Mentions

Farmers, GEICO, and State Farm make up our top three for best car insurance discounts, but other insurers have good selections as well. Below are four honorable mentions for the best discounts:

American Family

American Family (AmFam) has a great selection of auto insurance discounts. With 18 in all, you stand to save a lot of money with AmFam. AmFam is especially great for young drivers, as there is a whole category of discounts just for them. These include:

  • Good student discount
  • TeenSafeDriver discount
  • Away at school discount
  • Young volunteer discount
  • Generational discount

You can also expect to save quite a bit per discount with AmFam. Bundling your auto with other policies can save you up to 23%. AmFam’s telematics program can lower your premium an additional 20%.


Travelers Insurance offers 14 different discounts. This includes IntelliDrive, a safe driving telematics program. But be aware that this program can also raise your rates if you drive unsafely. Travelers also has a bundling discount, which can save you up to 13% on your auto policy.

Travelers’ discounts are fairly easy to qualify for. For example, you can save money just by setting up automatic payments each month. You can also get a discount if you drive a hybrid or electric car. Students will find the student away and good student discounts helpful as well.


Progressive offers 16 discounts in total. On average, customers don’t save as much per discount as other companies. However, many of Progressive’s discounts are very easy to qualify for. This means you can easily stack discounts for maximum savings!

Progressive offers some discounts that are almost impossible not to qualify for. These include:

  • Online quote. Getting an online car insurance quote with Progressive can save an average of 7% off of your rates.
  • Sign online. Choosing to sign your insurance documents online can get you a discount.
  • Paperless. If you opt to receive your documents and bills in a paperless manner, you’ll get a discount. You’ll help the environment, too!
  • Multi-policy. To get this discount, all you have to do is bundle your insurance policies with Progressive.

Progressive is also helpful if you have a young driver on your policy. You can get a discount just for having a driver under the age of 18 on your policy. There are also the good student and distant student discounts, which can save you additional money each month.


USAA is a great choice if you or someone in your family is a military member. Many of the company’s discounts are meant specifically for military families and the situations they deal with. For example, you can get a discount of up to 60% if you need to garage your car at a military base. This is extremely helpful during deployment.

Like many other insurers, USAA has a telematics program to help you save money. Enrolling in the SafePilot program and driving safely can get you a discount of up to 30%. USAA also has a bundling discount, which can save you up to 10% on your homeowners or renters insurance.

How We Made Our Decision for the Best Company for Discounts

Our decision for the best company for discounts is based on several factors. The first is simply how many discounts a company provides. The second, and possibly the most important, is how much you can save with each discount. We also considered how easy it is to qualify for certain discounts. Finally, we assessed an insurer’s overall quality and customer satisfaction ratings.