Car Insurance Discounts Guide 2025 – Forbes Advisor

Major Car Insurance Discounts in 2025

Discount Type	Typical Savings	Key Details
Multi-Policy (Bundling)	5%–25%	Combine auto with home, renters, condo, motorcycle, boat, RV, or life insurance for savings.
Multi-Car	8%–25%	Insure more than one vehicle with the same insurer.
Vehicle Safety Features	Up to 40% (specific coverages)	Features like anti-lock brakes, airbags, and daytime running lights can earn discounts.
New Car	10%–15%	Cars less than three years old often qualify.
Defensive Driver	5%–10%	Complete an approved defensive driving course (often for drivers 50+).
Good Student	8%–25%	Full-time students aged 16–25 with at least a B average.
Good Driver	10%–40%	Maintain a clean driving record with no recent accidents or violations.
Pay in Full	6%–14%	Pay your policy’s full term up front instead of monthly.
Electronic Funds Transfer	3%–6%	Use automatic withdrawals for installment payments.
Paperless	1%–6%	Opt for electronic policy documents and billing.
Online Quote	4%–12%	Get a quote and sign up for a policy online.
Early Bird	2%–15%	Purchase a policy 7–14 days before your current one expires.
Usage-Based Insurance	5%–40%	Discounts based on actual driving behavior, tracked by app or device.

Additional Notes

Bundling is often the largest discount, especially when combining auto and home insurance. For example, State Farm averages a 23% discount for bundling2.

Good driver and usage-based discounts can also be substantial, rewarding safe driving habits with up to 40% off.

Eligibility for some discounts (like defensive driving) may depend on age or state regulations26.

Discounts are not always automatic—ask your insurer to review your policy for all available savings2.

Expert Tips

Shop around: Rates and available discounts vary by company, so compare quotes from several insurers for the best deal1.

Combine discounts: Many can be stacked for greater savings (e.g., bundling, good driver, and paperless together)2.

Review annually: As your circumstances change (new car, student in household, etc.), check for new discount opportunities2.

These discounts can help offset rising insurance, fuel, and vehicle repair costs in 2025, making it worthwhile to review your policy and ask your insurer about all available savings