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Jun
24

What Car Insurance Discounts Should Drivers Know About?

UPDATED: June 20, 2025
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Car insurance discounts can save Illinois drivers hundreds of dollars each year. Common discounts include safe driver, multi-policy bundling, multi-car, good student, and anti-theft device savings. Some insurers also offer incentives for using telematics apps, enrolling in autopay, or taking a defensive driving course. In Illinois, seniors aged 55+ are legally entitled to a discount after completing an approved driving class. Most discounts stack, so the more you qualify for, the more you can save. 

To explore your options, call Insure On The Spot at 773-202-5060 or get a free online quote.

What Are Car Insurance Discounts?

Car insurance discounts are price reductions applied to your premium based on your behavior, vehicle, and insurance history. They help insurers reward low-risk drivers, retain loyal customers, and promote safe habits. These discounts may apply automatically or require documentation, like proof of good grades or a defensive driving course certificate.

In Illinois, most insurers offer nationwide-standard discounts. However, Illinois law also requires a discount for mature drivers age 55 and up who complete an approved driver safety course. Additional discounts may apply based on your marital status, employment, or homeownership.

Common Car Insurance Discounts to Know

Multi-Policy Bundling

Save by combining your car insurance with a homeowners, renters, motorcycle, or condo policy from the same company. This discount typically ranges from 5% to 25%. Insurers reward you for bringing all your business under one roof.

Multi-Car Discounts

Insuring two or more vehicles on the same policy can reduce your overall premium. Savings often fall between 10% and 25%, depending on your insurer. All drivers and vehicles generally must live at the same address.

Safe Driver Discounts

If you’ve gone three to five years without a traffic ticket or at-fault accident, you may qualify for a 10% to 30% safe driver discount. These are typically applied at renewal and may increase the longer you maintain a clean record.

Defensive Driving Course

Illinois requires a 5% to 10% discount for drivers age 55+ who complete a state-approved safety course. Many insurers also extend this discount to younger drivers who voluntarily complete similar classes.

Good Student Discounts

Full-time students under age 25 with a GPA of 3.0 or higher can qualify for a 5% to 25% discount. You’ll need to submit report cards or transcripts each policy term to maintain eligibility.

Telematics or Usage-Based Programs

Programs like Drivewise (Allstate), Snapshot (Progressive), or Drive Safe & Save (State Farm) track your driving habits. Safe driving behaviors—like avoiding late-night trips or hard braking—can save you up to 30% or more.

Vehicle Safety Features

Cars equipped with features like airbags, anti-lock brakes, and electronic stability control often qualify for 2% to 10% off per feature. These savings are typically applied automatically based on your VIN.

Anti-Theft Devices

Factory or aftermarket alarms, GPS tracking systems, and engine immobilizers can qualify you for 5% to 25% off the comprehensive portion of your premium. Let your insurer know if you’ve installed any new anti-theft tech.

New Car Discount

If you’re the first owner of a car that’s fewer than three years old, you might receive 5% to 15% off, thanks to lower repair risks and improved crash protection.

Discounts for Payment Preferences

Pay-in-Full

Paying your policy upfront instead of monthly can save 5% to 10%, plus you’ll avoid installment fees.

Autopay (EFT)

Setting up automatic monthly payments from your bank account often qualifies for a small discount (1% to 3%).

Paperless Billing

Opting into digital billing and document delivery can save you a few dollars each term—another easy win.

Loyalty and Early Action Discounts

Early Signing (Advance Quote)

If you get a quote and commit at least 7–10 days before your policy starts, some insurers will give you 5% to 10% off for not waiting until the last minute.

Loyalty & Continuous Coverage

Staying with the same insurer for multiple years may lead to loyalty discounts of 5% to 20%. Likewise, insurers reward drivers who avoid coverage gaps with lower premiums. Don’t let your policy lapse, even briefly.

Lesser-Known Discounts You Should Ask About

  • Homeowner discount (even without bundling)
  • Occupation-based savings (teachers, nurses, military, etc.)
  • Affinity group discounts (e.g., alumni associations or unions)
  • Green vehicle discounts (hybrids and EVs with certain carriers)
  • Garage parking or dashcam discounts (with some insurers)

Do Car Insurance Discounts Stack?

Yes. Most discounts stack unless they overlap. For example, bundling, safe driver, paperless billing, and multi-car discounts can all apply together. Some insurers may cap total discounts at 50%, but this rarely applies. The more you qualify for, the more you save.

How to Make Sure You’re Getting Every Discount

  • Review your declarations page to see what’s already applied.
  • Provide updated documents (e.g. student transcripts, safety course certificates).
  • Inform your insurer of life changes (like buying a home or getting married).
  • Don’t let your policy lapse—it could disqualify you from future discounts.
  • Ask your insurer or agent: “What other discounts do I qualify for?”

Frequently Asked Questions


Q: What car insurance discounts can Illinois drivers get?
A: Illinois drivers qualify for standard national discounts, plus a state-mandated discount for mature drivers who take a defensive driving course. Other common discounts in Illinois include bundling, safe driver, multi-car, homeowner, and usage-based discounts.


Q: Are discounts automatically applied, or do I need to ask?
A: Some are automatic (like VIN-based safety features), but others—like good student or defensive driving—require documentation. Always confirm your applied discounts with your agent or on your declarations page.


Q: Can I negotiate my insurance rate?
A: Not directly, but you can lower your premium by applying for discounts, raising deductibles, or removing optional coverages. The best way to reduce costs is to maximize discounts and shop around.


Q: Does good credit help with car insurance rates?
A: Yes. In Illinois, insurers can use credit history to help determine your premium. Better credit usually means lower rates. Even though it’s not listed as a “discount,” it’s one of the biggest pricing factors.


Q: Can high-risk drivers still get discounts?
A: Yes. Even if you require SR-22 insurance, you can still qualify for multi-car, bundling, telematics, and payment-related discounts. Keeping a clean record moving forward can unlock more savings over time.


Save on Car Insurance with Insure On The Spot

At Insure On The Spot, we specialize in helping Illinois drivers—especially those in Chicago—get the lowest possible rates. We’ll walk you through every discount you’re eligible for and make sure you’re never overpaying. Call 773-202-5060 today. Let us help you unlock every discount you deserve.

 

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