With car insurance rates up more than 30% from 2023, there's no better time to take a second look at your policy.
One great way to lower your bill is to compare the discounts available from your carrier and the competition. Insurers offer rate reductions for all kinds of things, including putting more than one car on your policy, bundling home and auto coverage, completing a safe-driving course and even being a homeowner.
- Read on: Best cheap car insurance companies
Not all discounts are available in all states, however, and some discounts can't be combined. So, be sure to research an insurer before enrolling.
We reviewed our previous reporting on the best auto insurance companies to identify the brands offering the best discounts across numerous categories.
For more on how we made our selections, check out our methodology.
Best auto insurance discounts
Best bundling discount for homeowners: American Family
- Low NAIC complaint index
- Offers gap coverage
- More than 15 total discounts available
- Ability to bundle home and auto insurance for a discount up to 23%
- Only available in 19 states
- Low customer review BBB rating
- Slightly higher prices than some car insurance competitors
Who's this for? American Family offers auto-and-home bundling discounts of up to 40%, one of the biggest we've seen in the industry.
Standout benefits: American Family offers a diminishing deductible option, which reduces your deductible by a certain amount each year you remain claim-free.
Best bundling discount for renters: Lemonade
Lemonade Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Lemonade offers coverage for a variety of scenarios, including: car crashes, highway stalls, damage from fire, vandalism and weather, damaged glass and windshield, if you're sued for liability and if your car gets stolen
Terms apply.
Who's this for? Most insurers offer a discount for taking out auto and homeowners policies. But Lemonade cuts renters into the deal with a discount of up to 10% for bundling auto and renters insurance.
Standout benefits: Lemonade's auto insurance includes free roadside assistance for towing, lockouts and jumpstarts. And its AI-powered claims process can get you paid in as little as three minutes.
Best student discount: State Farm
State Farm Auto Insurance
Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Discounts
More than a dozen discounts, including for safe driving, bundling and good students. Drive Safe & Save program offers up to 30% off for lower mileage and safe driving habits.
Availability
State Farm liability car insurance is available nationwide except for Massachusetts and Rhode Island.
Terms apply.
Read our State Farm auto insurance review.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires 9 years accident-free
- Have to work with an agent to buy a policy..
Who's this for? State Farm offers teen drivers with a B or better GPA up to 25% off, the best good-student discount we've found.
Standout benefits: Teen drivers can also earn discounts for completing an approved safe-driving course and for enrolling in Steer Clear, a telematics program providing feedback on their driving habits.
Best multi-vehicle discount: Geico
- 16 discounts are available to lower premiums
- Easily purchase and manage policy online
- Policy add-ons can include roadside assistance and mechanical breakdown insurance
- No gap insurance
- Few branches for in-person services
- Ranks below average for customer service and claims on J.D. Power surveys
Who's this for? Have more than one car? Geico lowers rates by up to 25% for adding more than one vehicle to a policy, offering the best multi-vehicle discount we've found.
Standout benefits: Geico also offers a 15% discount if your car is three model years old or newer.
Best EV discount: Travelers
- Lower rates
- Discount for hybrids/EVs
- Not available in all states
- Some discounts not available in every state
- Below-average customer satisfaction scores
Who's this for? Research suggests EV drivers pose a lower risk of filing a claim, in part because they drive fewer miles overall. Travelers will take up to 10% off your premiums if you drive a hybrid or EV, in addition to more than a dozen other discounts.
Standout benefits: Travelers offers some of the lowest rates in the market for families with teen drivers and high-risk motorists.
Best senior discount: The Hartford
AARP® Auto Insurance Program From The Hartford
Policy highlights
Policies are exclusively available to AARP members age 50 or older. Standout benefits include new car replacement, a lifetime repair guarantee and the RecoverCare feature, which pays for services you need help with after an accident, like housekeeping or shoveling snow.
Discounts
The Hartford offers a variety of discounts, including for paying your premium in full, for using an alternative fuel, for completing a defensive driving course and for enrolling in its TrueLane safe driving program.
Availability
The Hartford issues car insurance in 34 states.
Pros
- Discount for using alternative fuel
- Above-average J.D. Power score for claims
- Repairs from approved auto shops come with lifetime guarantee
Cons
- Must be AARP member 50 or older
- Somewhat high volume of complaints
- Accident forgiveness can only be earned after five years
Who's this for? Seniors can automatically receive 10% off car insurance with The Hartford simply for joining AARP. Other benefits of membership include new car replacement, lifetime repair guarantees and RecoverCare coverage to help pay for home services if you're injured in an accident.
Standout benefits: TrueLane, The Hartford's per-mile car insurance program, can save infrequent drivers up to 12% on their premiums.
Best teacher discount: Horace Mann
Horace Mann Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Horace Mann Insurance offers special perks to educators, including rate discounts, new car replacement coverage and no deductible for collisions or vandalism losses on or near school property.
Pros
- New car replacement coverage for teachers
- $1,000 in property coverage if educational items are stolen/damaged
- Deductible waived for collisions or vandalism claims near school property
Cons
- Most benefits are limited to educators
- personal injury protection and MedPay not offered
- Above-average volume of complaints
Who's this for? Horace Mann offers rate discounts for educators and liability coverage if you transport students in an insured vehicle. According to the brand, when you couple that with bundling and multi-car discounts, you can save more than $600 a year by switching insurers.
Standout benefits: Horace Mann's Educator Advantage plan offers replacement car coverage and trip interruption protection. The package also waives deductibles for collision and vandalism losses that occur on or near school property or during a school-sponsored event.
How much is car insurance?
The average cost of car insurance in September 2025 has reached $2,671 per year for full coverage and $806 for minimum liability coverage.
However, the exact price you'll pay will vary significantly depending on your location.
| State | Average annual cost for full coverage | Average annual cost for minimum coverage |
|---|---|---|
| Alabama | $2,056 | $502 |
| Alaska | $2,488 | $523 |
| Arizona | $2,637 | $813 |
| Arkansas | $2,444 | $498 |
| California | $3,102 | $915 |
| Colorado | $3,233 | $569 |
| Connecticut | $2,715 | $1,075 |
| Delaware | $2,931 | $1,075 |
| Florida | $3,874 | $1,056 |
| Georgia | $2,867 | $1,009 |
| Hawaii | $1,650 | $403 |
| Idaho | $1,443 | $376 |
| Illinois | $2,491 | $689 |
| Indiana | $1,704 | $446 |
| Iowa | $1,911 | $331 |
| Kansas | $2,486 | $579 |
| Kentucky | $2,581 | $722 |
| Louisiana | $3,953 | $1,014 |
| Maine | $1,631 | $418 |
| Maryland | $2,966 | $1,014 |
| Massachusetts | $2,096 | $649 |
| Michigan | $3,225 | $902 |
| Minnesota | $2,552 | $709 |
| Mississippi | $2,302 | $525 |
| Missouri | $2,491 | $636 |
| Montana | $2,364 | $401 |
| Nebraska | $2,358 | $513 |
| Nevada | $3,566 | $1,081 |
| New Hampshire | $1,655 | $460 |
| New Jersey | $3,061 | $1,331 |
| New Mexico | $2,124 | $443 |
| New York | $4,031 | $1,729 |
| North Carolina | $1,825 | $578 |
| North Dakota | $1,736 | $384 |
| Ohio | $1,820 | $485 |
| Oklahoma | $2,798 | $558 |
| Oregon | $2,096 | $558 |
| Pennsylvania | $2,397 | $521 |
| Rhode Island | $2,959 | $916 |
| South Carolina | $1,941 | $624 |
| South Dakota | $2,287 | $370 |
| Tennessee | $1,972 | $502 |
| Texas | $2,599 | $746 |
| Utah | $2,136 | $812 |
| Vermont | $1,491 | $329 |
| Virginia | $2,146 | $766 |
| Washington | $1,890 | $577 |
| West Virginia | $2,164 | $547 |
| Wisconsin | $1,920 | $452 |
| Wyoming | $1,760 | $265 |
| Washington, D.C. | $2,825 | $878 |
Source: Bankrate data as of September 2025
How to save on car insurance
While car insurance has become a big expense for many Americans, there are still ways to save. Here are a few notable ways to cut down your car insurance bill:
- Raise your credit score: In many states, insurance companies can use your credit-based insurance score to decide how much you'll pay.
- Drive safely: Keeping a clean driving record free of accidents, tickets and other violations can help keep costs down.
- Consider a pay-per-mile insurance policy: If you aren't driving much, getting an insurance policy that charges by the mile could help lower your price.
- Pay in full: Many companies offer discounts for paying your premiums in full rather than paying month-to-month.
Car insurance discounts FAQs
How do I get a discount on car insurance?
To find car insurance discounts, research providers that offer policies in your state and review what rate reductions they offer. Get quotes for comparable coverage and deductibles to determine if a discount will actually save you money. American Family offers over 20 discounts, including those for bundling, insuring multiple vehicles, being a good student and completing a defensive driving course.
Do teachers get car insurance discounts?
Teachers can receive discounts on car insurance with certain insurance companies, including Horace Mann and Liberty Mutual.
Does my credit score affect car insurance?
Yes, your credit score can affect the price you pay for car insurance because it's a part of your credit-based insurance score. Typically, the higher your credit score, the less you'll pay. However, California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah prohibit or greatly restrict the use of credit scores in calculating premiums.
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties. We take pride in maintaining high journalistic standards and ethics.
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Our methodology
CNBC Select reviewed our current rankings and reviews on car insurance, combing through dozens of roundups that were based on our research of dozens of companies' cost, coverage, customer service, availability and online experience.
We incorporated customer satisfaction scores from J.D. Power, the National Association of Insurance Commissioners and the Better Business Bureau, as well as financial strength ratings from A.M. Best.
Information on average annual premiums is based on Bankrate analysis of Quadrant Information Services data for a 40-year-old driver with a clean driving record and good credit, driving a 2023 Toyota Camry five days a week with the following coverage:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
We gathered the companies that were awarded the best for discounts or affordability from roundups that focused on these particular groups, and sorted our choices by the:
- Best bundling discount for homeowners: American Family
- Best bundling discount for renters: Lemonade
- Best student discount: State Farm
- Best multiple car discount: Geico
- Best electric vehicle discount: Travelers
- Best senior discount: The Hartford
- Best teacher discount: Horace Mann
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