A smart driver's guide to vehicle-based car insurance discounts

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The car you drive can greatly impact your car insurance costs. With the right vehicle, you could tap into money-saving car insurance discounts, such as discounts for anti-theft devices, anti-lock brakes, backup sensors, daytime running lights and more.

Learn about vehicle-based discounts before you purchase a vehicle to optimize your car insurance cost savings. Alternatively, you can see which vehicle-based discounts you already qualify for.

We explore common vehicle-based discounts and how to lock in these potential savings.

Key Takeaways

Eligibility for a vehicle-based discount is based on the type of vehicle you drive and its features.
Vehicle-based discounts can help you lower your car insurance costs.
Some common car insurance discounts include discounts for anti-theft devices, anti-lock brakes and other safety features.

What are vehicle-based car insurance discounts?

A vehicle-based discount is granted based on the characteristics of your vehicle. If your vehicle has the right features, you could unlock significant savings. In general, the discounts are tied to safety features or energy-saving components.

Find vehicle-based discounts by state

Select your state below to see how much you can save with vehicle-based discounts.

State

Discount category	Discount sub-category	Company	Car insurance rate without discount	Car insurance rate with discount	% Savings	$ Savings
Air Bags	With Side Impact Air Bags	Allstate	$5,568	$5,255	6%	$313
Air Bags	Driver & Passenger Air Bags	Allstate	$5,568	$5,255	6%	$313
Safety Devices	Anti-Lock Brakes	Allstate	$5,568	$5,361	4%	$207
Air Bags	Driver & Passenger Air Bags	Farmers	$3,934	$3,866	2%	$68
Air Bags	With Side Impact Air Bags	Farmers	$3,934	$3,866	2%	$68
Purchase Status	New	Farmers	$3,934	$3,718	5%	$217
Safety Devices	Anti-Lock Brakes	Farmers	$3,934	$3,810	3%	$124
Air Bags	Driver & Passenger Air Bags	Geico	$2,541	$2,412	5%	$129
Air Bags	With Side Impact Air Bags	Geico	$2,541	$2,412	5%	$129
Anti-Theft Device	Active Disabling Device	Geico	$2,541	$2,511	1%	$30
Anti-Theft Device	Audible Alarm	Geico	$2,541	$2,511	1%	$30
Anti-Theft Device	Passive Disabling Device	Geico	$2,541	$2,511	1%	$30
Safety Devices	Anti-Lock Brakes	Geico	$2,541	$2,465	3%	$76
Anti-Theft Device	Passive Disabling Device	National General Insurance	$4,462	$4,435	1%	$27
Anti-Theft Device	Tracking Device	National General Insurance	$4,462	$4,435	1%	$27
Air Bags	Driver & Passenger Air Bags	Nationwide	$2,671	$2,571	4%	$100
Air Bags	With Side Impact Air Bags	Nationwide	$2,671	$2,571	4%	$100
Anti-Theft Device	Passive Disabling Device	Nationwide	$2,671	$2,645	1%	$26
Safety Devices	Anti-Lock Brakes	Nationwide	$2,671	$2,585	3%	$86
Safety Devices	Anti-Lock Brakes	Progressive	$3,164	$3,146	1%	$17
Safety Devices	Back Up Sensor	Progressive	$3,164	$3,039	4%	$124
Safety Devices	Driver Alertness Monitor	Progressive	$3,164	$3,089	2%	$74
Safety Devices	Anti-Lock Brakes	State Farm	$2,437	$2,353	3%	$84
Safety Devices	Anti-Lock Brakes	Travelers	$2,671	$2,652	1%	$19
Air Bags	Driver & Passenger Air Bags	United Automobile Insurance	$4,329	$4,125	5%	$204
Air Bags	With Side Impact Air Bags	United Automobile Insurance	$4,329	$4,125	5%	$204
Anti-Theft Device	Active Disabling Device	United Automobile Insurance	$4,329	$4,294	1%	$35
Anti-Theft Device	Audible Alarm	United Automobile Insurance	$4,329	$4,294	1%	$35
Anti-Theft Device	Passive Disabling Device	United Automobile Insurance	$4,329	$4,294	1%	$35
Anti-Theft Device	Tracking Device	United Automobile Insurance	$4,329	$4,276	1%	$53

Car insurance discounts for safety devices

The right safety devices can help you avoid an accident. Insurance companies offer savings in return for the lower risks associated with your vehicle.

In the following sections, we explore safety devices that can lead to savings and how much you can expect to save for each feature.

Airbags

Airbags deploy automatically to protect passengers during a severe crash. Not only can airbags protect you during a crash, but they can also lead to insurance savings. Drivers with driver and passenger airbags save an average of 2% on their premiums. Additionally, those with side impact airbags save an additional 2% on average.

Airbags	Before discount	After discount	Dollar difference	Percent difference
Driver and passenger airbags	$2,467	$2,422	$45	2%
With side-impact airbags	$2,479	$2,432	$47	2%

Anti-theft devices

Anti-theft devices can prevent your vehicle from getting stolen or help you recover it after a theft. In either case, insurance companies reward drivers with anti-theft devices.

On average, drivers with an active disabling device or audible alarm save 1% for each feature. Those with a passive disabling device or tracking device save 2% for each feature.

Anti-theft device	Before discount	After discount	Dollar difference	Dollar difference
Active disabling device	$2,516	$2,486	$30	1%
Audible alarm	$2,641	$2,609	$32	1%
Passive disabling device	$2,567	$2,518	$49	2%
Tracking device	$3,011	$2,949	$62	2%

Anti-lock brakes

Anti-lock brakes are designed to prevent skidding when you brake hard. In an emergency, the feature can help you maintain steering control. On average, drivers who use a vehicle with this feature save 3% on their premiums.

Discount type	Before discount type	After discount	Dollar difference	Percent difference
Anti-lock brakes	$2,770	$2,676	$94	3%

Backup sensor

A backup sensor alerts you when there’s something behind your vehicle. It can help you avoid bumping into things – or people – with your car. Since this feature can reduce potential accidents, insurance companies reduce rates for vehicles that have it. On average, drivers save 4% on their premiums when insuring a car with this feature.

Discount type	Before discount	After discount	Dollar difference	Percent difference
Back-up sensor	$2,480	$2,385	$95	4%

Daytime running lights

Daytime running lights offer a layer of protection against accidents. These lights make you more visible to drivers who might not see you. If your vehicle has daytime running lights, you’ll save an average of 2% on your car insurance premiums.

Discount type	Before discount	After discount	Dollar difference	Percent difference
Daytime running lights	$3,426	$3,354	$71	2%

Driver alertness monitor

A driver alertness monitor lets you know when you might be drowsy or distracted. The reminder is designed to get you to pull over and rest. Since an alert driver has a better chance of avoiding an accident, this feature is a positive one for insurance companies. On average, vehicles with this feature enjoy 2% lower premiums than those without it.

Discount type	Before discount	After discount	Dollar difference	Percent difference
Driver alertness monitor	$2,178	$2,126	$51	2%

Lane departure warning

Drifting over the lines into another lane can cause an accident. A lane departure warning system alerts you when your tires hit a lane-dividing line on the road. Drivers with this feature in their vehicles can save 1% on their premiums.

Discount type	Before discount	After discount	Dollar difference	Percent difference
Lane departure warning	$1,583	$1,570	$13	1%

Rearview camera

A rearview camera can help you navigate in reverse with more confidence. It allows you to see anything behind the vehicle so you avoid running over it. If you drive a vehicle with this feature, you’ll see an average savings of 1% off your premiums.

Discount type	Before discount	After discount	Dollar difference	Percent difference
Rearview camera	$1,583	$1,570	$13	1%

Top car insurance companies that offer discounts for safety devices

Top insurance companies like Allstate, State Farm and Geico offer discounts for safety devices. See the average savings from major insurers in the table below.

Company	Savings
Allstate	5%
State Farm	4%
Farmers	3%
Nationwide	3%
Progressive	3%
Geico	2%
Travelers	2%
USAA	1%

Auto insurance discounts based on vehicle ownership

Leasing or owning your vehicle can greatly impact your car insurance costs. In general, you can tap into more savings with a leased vehicle. But, of course, your costs can vary.

The difference is due to the lender or leasing company’s requirements. Since your lender is likely to require more insurance, you’ll pay more for coverage.

We break down the savings opportunities below.

Insurance discount if you own a car

Drivers who own their vehicle save an average of 5% on their car insurance premiums. While vehicle ownership is often more expensive on a monthly basis, at the end of your loan term you’ll get to keep the vehicle.

Discount type	Value	Before discount	After discount	Dollar difference	Percent difference
Vehicle Ownership	Owned	$3,307	$3,155	$153	5%

Insurance discount if your car is on lease

Drivers who lease their vehicles save an average of 17% on their auto insurance premiums. In general, leasing a car is more affordable on a monthly basis. But the catch is that you won’t own it at the end of your lease term.

Discount type	Value	Before discount	After discount	Dollar difference	Percent difference
Vehicle ownership	Leased	$2,675	$2,229	$446	17%

Top insurers that offer discounts based on vehicle ownership

The top insurers that offer discounts based upon vehicle ownership are Amica, Chubb and Travelers. See their discounts in the table below.

Company	Savings
Amica	17%
Chubb	5%
Travelers	3%

Car insurance discounts based on purchase status

A purchase status discount is provided for buying a new vehicle. Many insurers are willing to offer a discount to new vehicle owners because new vehicles have the latest safety features and fewer mechanical issues tied to wear and tear. On average, drivers with a new vehicle save 7% on their car insurance premiums.

Discount type	Value	Before discount	After discount	Dollar difference	Percent difference
Purchase status	New	$3,245	$3,030	$216	7%

Top insurers that offer discounts for a new car

If you buy a new car, you’ll save money on your car insurance with certain insurers. Amica, Geico and Farmers offer discounts for new vehicle purchases. See their discounts in the table below.

Company	Savings
Amica	9%
Geico	9%
Farmers	5%

The bottom line

While car insurance can get expensive, the good news is that discounts can add up quickly. Never be afraid to ask about discounts when shopping around. Finding the right discount could be a game-changer for your car insurance costs.

“My suggestion would be to always seek out discounts when purchasing or renewing car insurance,” says Michael Benoit, a licensed property and casualty insurance broker. “It’s important to regularly review your policy and see if you qualify for any new discounts, such as good driver discounts, low mileage discounts, or multi-policy discounts.”

Frequently asked questions

Where do I find all of the discounts added to my policy?

If you already have a car insurance policy, you can find all the discounts added to it on your policy declarations page. If you are still shopping around, you can find the discounts applied to your policy in the quote provided by the company.

How do I know if I qualify for car insurance discounts?

Ask the insurance company to determine if you qualify for a car insurance discount. Generally, you can determine whether or not you are eligible by a quick visit to an insurer’s website. But if you aren’t sure, you can ask an insurance agent for more information.

How can discounts help lower my car insurance rates?

Discounts are taken off the base rate the insurance company has calculated for you and your vehicle, reducing your monthly payment. If you think you qualify for a car insurance discount, ask the company for more information.

What our expert says

Michael BenoitLicensed property and casualty insurance broker.

“It's important to regularly review your policy and see if you qualify for any new discounts, such as good driver discounts, low mileage discounts, or multi-policy discounts.”

Resources & Methodology

Sources:

Insurance Information Institute.”What determines the price of an auto insurance policy.“Accessed March 2024.

Insurance Information Institute.“How to save money on car insurance.“Accessed March 2024.

Insurance Information Institute. “Nine ways to lower your auto insurance costs.“Accessed March 2024.

Insurance Information Institute. “How often should I review my policy?“Accessed March 2024.

Methodology

Insure.com editors in 2024 collected rates from Quadrant Information Services for a 40-year-old male driving a 2023 Honda Accord LX with a good insurance score and no violations on record for a full coverage insurance policy with limits of 100/300/50 and $500 comprehensive and collision deductibles. We analyzed 2,677,890 records, 4,686 ZIP codes and 1,252 cities nationwide.

Sarah Sharkey

Contributing Researcher

Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.

On this page

What are vehicle-based car insurance discounts?
Car insurance discounts for safety devices
Top car insurance companies that offer discounts for safety devices
Auto insurance discounts based on vehicle ownership
Top insurers that offer discounts based on vehicle ownership
Car insurance discounts based on purchase status
Top insurers that offer discounts for a new car
The bottom line
Frequently asked questions
What our expert says
Resources & Methodology

A smart driver’s guide to vehicle-based car insurance discounts