10 Insurance Discounts You're Probably Missing (And How to Claim Them Today)

The average American family overpays for insurance by $400-$800 annually—not because their coverage is wrong, but because they're missing discounts they already qualify for.

At Pinoy General Insurance, when we review a new client's existing policies, we find an average of 2-3 unclaimed discounts per policy. These aren't obscure, hard-to-get discounts. They're standard industry discounts that insurance companies offer—but rarely advertise.

Why? Because insurance companies aren't required to tell you about every discount you might qualify for. They'll apply the ones you ask about, but they won't proactively search for ways to lower your premium.

That's your job (or your agent's job, if you work with a good one).

This guide covers the 10 most common insurance discounts that California residents miss, how much each one saves, and exactly how to claim them.

Auto Insurance Discounts

Discount #1: Multi-Policy (Bundling) Discount

What it is: Combining your auto and homeowners (or renters) insurance with the same carrier.

How much you save: 15-25% on both policies

Real numbers:

• Auto policy alone: $1,400/year

• Home policy alone: $1,600/year

• Total: $3,000/year

After bundling with 20% discount:

• Auto: $1,120/year

• Home: $1,280/year

• New total: $2,400/year

• Annual savings: $600

How to claim it: Contact your current carriers and ask for bundle quotes. Compare against quotes from carriers offering both products.

Insider tip: Even if you're happy with your current auto insurance, get a bundle quote. Sometimes switching both policies to a different carrier saves more than staying loyal to one.

Discount #2: Good Driver / Safe Driver Discount

What it is: No at-fault accidents or moving violations for 3-5 years (varies by carrier).

How much you save: 10-25%

Qualification criteria:

• No at-fault accidents in past 3-5 years

• No traffic violations (speeding, red light, etc.)

• No DUI or reckless driving

How to claim it: Many carriers automatically apply this after reviewing your driving record. If you meet the criteria and don't see it on your policy, call your agent and request it.

Insider tip: If you had a minor violation 3+ years ago, request a new driving record review. Once violations "age off" (typically after 3 years), you may qualify for this discount.

Discount #3: Telematics / Usage-Based Insurance Discount

What it is: Programs that monitor your driving via smartphone app or plug-in device and reward safe driving.

Programs available:

• Progressive Snapshot: Up to 30% discount

• State Farm Drive Safe & Save: Up to 30% discount

• Allstate Drivewise: Up to 25% discount

• Nationwide SmartRide: Up to 40% discount

What they monitor:

• Miles driven (less = lower risk)

• Hard braking events

• Speed

• Time of day (late night driving increases risk)

How much you save: 10-40% depending on your driving habits

Real example: A Cerritos client enrolled in Progressive Snapshot. They drive 7,000 miles/year (well below average), mostly during daytime, with minimal hard braking. After 6 months, their discount increased from 10% to 28%, saving $420/year.

How to claim it: Contact your carrier and ask to enroll in their telematics program. Most require 3-6 months of monitoring before applying the full discount.

Privacy concerns: If you're uncomfortable with tracking, skip this discount. But for safe drivers who don't drive much, it's significant savings.

Discount #4: Low Mileage Discount

What it is: Driving fewer miles per year = lower accident risk = lower premium.

How much you save: 5-15% depending on how few miles you drive

Qualification:

• Typically under 7,500-10,000 miles/year

• Some carriers offer tiered discounts (under 5,000 miles = bigger discount)

How to claim it: Review your policy—what annual mileage did you report? If you're driving significantly less (e.g., you now work from home), contact your carrier and request a mileage update.

Verification: Some carriers require odometer photos or annual mileage verification.

Insider tip: If you switched to remote work during or after 2020 and never updated your mileage, you're likely overpaying.

Discount #5: Paid-in-Full Discount

What it is: Paying your annual premium in one lump sum instead of monthly installments.

How much you save: 5-10% compared to monthly payments

Why it exists: Monthly payment plans include installment fees (typically $3-$10/month). Paying annually eliminates these fees.

Real example:

• Annual premium: $1,200

• Monthly payment: $105/month × 12 = $1,260

• Difference: $60/year (5% penalty for monthly payments)

How to claim it: If you can afford to pay annually without hardship, request this option at renewal.

Insider tip: Even if you can't afford the full annual premium now, save your monthly payment amounts in a high-yield savings account. After 12 months, you'll have saved enough to pay the next year's premium in full.

Discount #6: Defensive Driving Course Discount

What it is: Completing an approved defensive driving course.

How much you save: 5-15%

Qualification:

• Course must be approved by your insurance carrier

• Typically 4-8 hour online or in-person course

• Discount usually lasts 3 years, then you must retake the course

Cost: $20-$50 for the course

Return on investment:

• Auto premium: $1,200/year

• 10% discount = $120/year savings

• Course cost: $30

• Net 3-year savings: $330 (after course cost)

How to claim it: Ask your carrier for a list of approved courses, complete one, and submit your certificate of completion.

Insider tip: Especially valuable for older drivers (55+) and young drivers (under 25), who often receive larger discounts.

Discount #7: Anti-Theft Device Discount

What it is: Vehicles equipped with anti-theft devices (alarm, GPS tracking, immobilizer, LoJack).

How much you save: 5-15% on comprehensive coverage

Qualifying devices:

• Factory-installed alarm systems

• Aftermarket alarms

• GPS tracking systems (OnStar, LoJack)

• Steering wheel locks (Club)

• VIN etching

How to claim it: Notify your carrier that your vehicle has anti-theft features. You may need to provide proof (installation receipt, VIN etching certificate).

Insider tip: Most modern vehicles (2015+) have factory-installed alarms and immobilizers. If you drive a newer car and don't see this discount, you're likely missing it.

Homeowners Insurance Discounts

Discount #8: Home Security System Discount

What it is: Professionally monitored security systems with burglar alarms, fire alarms, or both.

How much you save: 5-20% depending on system type

Discount tiers:

• Burglar alarm (unmonitored): 2-5%

• Fire alarm (unmonitored): 5-10%

• Monitored burglar + fire system: 15-20%

Qualifying systems:

• ADT, SimpliSafe, Ring Alarm (with monitoring), Vivint, Brinks

How to claim it: Provide your carrier with proof of monitoring service (contract or monitoring company certificate).

Real numbers:

• Homeowners premium: $1,800/year

• 15% monitored system discount = $270/year savings

• Monitoring cost: $20-$40/month = $240-$480/year

• Net result: Roughly break-even, but you get security + insurance savings

Insider tip: Some carriers offer discounts even for self-monitored systems (like Ring without subscription). Ask your specific carrier.

Discount #9: New Home / Roof Age Discount

What it is: Homes built recently or with new roofs are lower risk (less likely to have issues).

How much you save: 5-15%

Qualification:

• Home built within 10-15 years

• Roof replaced within 10 years

• Updated electrical, plumbing, HVAC systems

How to claim it: If you've replaced your roof, updated electrical, or made major renovations, notify your carrier and provide receipts or permits.

Insider tip: If your roof is 15+ years old, your premium is likely higher (or you're being non-renewed). Replacing your roof can lower your premium enough to offset some of the replacement cost over time.

California-specific note: Some carriers require roof inspections for homes with roofs 20+ years old. A new roof can dramatically reduce premiums—or make coverage available if you were being non-renewed.

Discount #10: Claims-Free Discount

What it is: No homeowners insurance claims filed in the past 3-5 years.

How much you save: 10-25%

How it works: Insurance companies reward policyholders who don't file claims. The longer you go without a claim, the bigger the discount.

Discount tiers (example):

• 3 years claims-free: 10%

• 5 years claims-free: 15%

• 10+ years claims-free: 20-25%

How to claim it: This is typically automatic, but verify it's on your policy. If you've been claims-free for years and don't see this discount, call your agent.

Important consideration: This discount incentivizes NOT filing small claims. If you have a $2,000 claim and a $1,000 deductible, you'd receive $1,000 from insurance—but you'd lose your claims-free discount (worth $200-$400/year). Over 3-5 years, you'd lose more in increased premiums than you gained from the claim.

Strategy: Only file claims for significant losses ($5,000+). Pay for smaller issues out-of-pocket to preserve your claims-free discount.

Additional Discounts (Honorable Mentions)

Professional Association Discounts

Many carriers offer discounts for members of:

• AAA (auto club membership): 5-10%

• AARP (age 50+): 5-15%

• Alumni associations

• Professional organizations (engineers, teachers, nurses, military)

How to claim it: Provide proof of membership.

Good Student Discount (For Teen Drivers)

What it is: Teen drivers who maintain a B average (3.0 GPA) or higher.

How much you save: 10-25%

How to claim it: Provide a copy of your teen's report card or transcript.

Why it matters: Adding a teen driver increases premiums by 50-100%. A good student discount offsets some of that increase.

Real numbers:

• Auto premium before teen driver: $1,200/year

• After adding teen without discount: $2,400/year (+100%)

• After adding teen with 20% good student discount: $2,040/year

• Savings: $360/year

Paperless / Auto-Pay Discount

What it is: Enrolling in paperless billing and automatic payments.

How much you save: 2-5%

How to claim it: Log into your carrier's website and enroll in paperless billing + auto-pay.

Why it's offered: Reduces administrative costs for the carrier (no printing, mailing, processing checks).

Homeowner Discount on Auto Insurance

What it is: Some carriers offer auto insurance discounts to homeowners (even if you don't bundle your home insurance with them).

How much you save: 5-10%

How it works: Homeowners are statistically more responsible and lower-risk than renters.

How to claim it: Notify your auto carrier that you own a home (provide proof if requested).

How to Maximize Your Insurance Discounts

Step 1: Audit Your Current Policies

Pull out your auto and homeowners declarations pages and look for the "Discounts Applied" section. What discounts are you currently receiving?

Make a list of discounts you DON'T see but might qualify for.

Step 2: Call Your Agent or Carrier

Don't assume they'll automatically apply new discounts. Call and specifically ask:

"I'd like to review all available discounts. Can you tell me which discounts I'm currently receiving and which ones I might qualify for that I'm not using?"

Step 3: Provide Documentation

Many discounts require proof:

• Good student discount → report card

• Defensive driving → course certificate

• Security system → monitoring contract

• Professional association → membership card

Gather documentation and submit it to your carrier.

Step 4: Re-Shop Every 2-3 Years

Insurance companies adjust their pricing algorithms constantly. A carrier that gave you the best rate 3 years ago may no longer be competitive.

Shop at least 3 carriers every 2-3 years. You might find the same coverage for 20-30% less simply because another carrier is targeting your demographic.

Step 5: Work with an Independent Agent

Independent agents represent 10-15 carriers and can compare discounts across all of them. Captive agents (State Farm, Allstate, Farmers) can only offer discounts from their one company.

At Pinoy General Insurance, we quote 15+ carriers for every client. We identify every discount you qualify for across all carriers and show you the best overall price.

Real Client Example: Finding $847 in Hidden Discounts

Client: Cerritos homeowner, age 42, married, 2 vehicles

Original policies:

• Auto insurance: $1,650/year (Company A)

• Homeowners insurance: $1,400/year (Company B)

• Total: $3,050/year

Discounts they were missing:

1. Multi-policy bundling (not bundled)

2. Good driver discount (no accidents, but never requested)

3. Low mileage (working from home, driving 6,000 miles/year)

4. Home security system (had Ring with monitoring, never notified carrier)

5. Paperless/auto-pay

After we re-shopped and bundled:

• Auto + Home bundled with Company C

• All discounts applied

• New total: $2,203/year

• Annual savings: $847

Same coverage. Five simple discounts. $847/year in savings.

Common Mistakes That Cost You Discounts

Mistake #1: Not Updating Your Insurance After Life Changes

Life changes that affect discounts:

• Got married → multi-car discount

• Moved to a safer neighborhood → lower premium zone

• Started working from home → low mileage discount

• Turned 25 → lower age-based rates

• Paid off your car → can drop collision/comprehensive

• Installed a security system → security discount

Solution: Review your policy annually and update your agent about any changes.

Mistake #2: Assuming Loyalty = Savings

Many people think staying with the same carrier for 10+ years earns them loyalty discounts.

Reality: Most carriers raise rates on long-term customers because they assume you won't shop around. Loyalty often costs you money.

Solution: Shop competitors every 2-3 years even if you're happy with your current carrier.

Mistake #3: Not Asking About New Discounts

Carriers add new discounts regularly (telematics programs, smart home discounts, etc.). If you've been with the same carrier for 5+ years, there may be discounts that didn't exist when you first bought the policy.

Solution: Call your agent annually and ask: "What new discounts have been introduced since last year?"

Mistake #4: Filing Small Claims That Erase Your Claims-Free Discount

Filing a $1,500 claim might get you $500 (after deductible), but cost you $300/year in lost claims-free discounts for the next 3-5 years (total loss: $900-$1,500).

Solution: Use insurance for large losses ($5,000+), not small repairs.

How Pinoy General Insurance Can Help

We're not just here to sell you insurance—we're here to save you money while protecting you properly.

When you work with us, we:

✅ Quote 15+ carriers to find your best rate
✅ Identify every discount you qualify for across all carriers
✅ Review your policies annually to catch new savings opportunities
✅ Notify you when it's time to re-shop (most clients should shop every 2-3 years)
✅ Provide local, personal service—we're based in Cerritos at 17304 Norwalk Blvd

Free policy review—no obligation:

📞 Call: (562) 402-1737
📧 Email: info@pinoygeneralinsurance.com
📍 Visit: 17304 Norwalk Blvd, Cerritos, CA 90703
🌐 Online: pinoygeneralinsurance.com

We'll review your current policies, identify missed discounts, and show you exactly how much you could save—with no pressure to switch unless it makes sense for you.

Final Thoughts

Insurance discounts aren't secrets—they're just not advertised. Carriers won't proactively tell you about every discount you qualify for.

The average family qualifies for 5-8 discounts but only claims 2-3. That gap costs $400-$800/year.

Take 30 minutes this week to audit your policies, call your agent, and claim the discounts you're already entitled to.

It's the easiest $500+ you'll ever make.

About the Author:

Felix Lopez is a licensed insurance agent and business development manager at Pinoy General Insurance Services in Cerritos, California. Since 1993, Pinoy General Insurance has been helping Southern California families maximize insurance savings while maintaining comprehensive protection.