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 they offer 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 car insurance you need. If you’d like more insight on how each provider stacks up against each other, be sure to read our article on the top overall auto insurers.

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Best Car Insurance Company for Discounts: Farmers

We found that Farmers is the best company for discounts. The insurer offers a total of 23 discounts on its website. 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 a whopping total of 23 for you to choose from. Many of them are easy to qualify for, like the pay-in-full and passive restraint discounts.

Owning a house gives you even more potential savings. You can qualify for both the homeowner and bundling discounts. Each can help you save plenty of cash on your premium.

Keep in mind that some Farmers’ discounts aren’t 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:

  • 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 good student discount.
  • Youthful driver discount. Farmers will give you a discount just for being under 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 won’t save you that much. With Farmers, however, the savings can pile up. Bundling your home and auto 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 auto coverage. These savings are comparable to most other insurers’ telematics programs.

Final Word on Farmers

Farmers is a great choice if you want to lower your auto premium. Not to mention, Farmers’ discounts can save you big money. Many are easy to qualify for. If you desire even more savings, the Signal telematics program can help you do just that. Farmers is the best insurance company for discounts. The only downside is that it only operates in 41 states.

Second-Best Insurance Company for Discounts: GEICO

GEICO takes second place for the best insurance company for discounts. It has a total of 16 on its website. Each one comes with sizable savings. GEICO gives military members and government employees an additional bonus. Here’s a full explanation of why GEICO’s discounts are so good:

GEICO’s Discounts Come with Huge Savings

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

Great Savings Opportunities for Military and Government Employees

Military members and government employees will find GEICO a solid choice. After all, GEICO stands for Government Employee Insurance Company. It makes sense that the company offers you benefits for serving the country. GEICO offers these affiliation awards for military members and government employees:

  • 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 military discount of up to 15%.
  • Membership and employee discounts. GEICO lowers premiums for members of partner groups.
  • Federal employee discount (eagle discount). Current and retired federal employees qualify. Savings can reach up to 12%.

Rewards for Having a Safe Vehicle

You can get discounts with GEICO if your car has certain safety features. Many of them come with large savings percentages. Here are some of the safety features and how much GEICO rewards you if they’re installed on your vehicle:

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 ways to lower your rates.

Third-Best Insurance 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 on its website. 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 as number three:

Best Insurance Bundle

Insurance bundling is one of the most common and useful discounts. Most companies will give you a nice discount for buying both your home (or any other valid type of coverage) 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. The State Farm Drive Safe & Save program can save safe drivers up to 30% on auto insurance.

Defensive Driving Discounts for Senior Drivers

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

Final Word on State Farm

State Farm is an overall good choice if you’re looking for 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:

American Family

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

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

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 by an additional 20%.

Travelers

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 helpful as well.

Progressive

Progressive offers 16 discounts in total. On average, customers don’t save as much per discount as other companies. However, many of them are very easy to qualify for. In addition, 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 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 paperless billing discount. You’ll help the environment, too!
  • Multi-policy. To get this discount, all you have to do is bundle your 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

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.

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