What’s a Family Plan Discount? How Do I Get It?
If your family all uses the same insurance company, you could be eligible for a family plan discount on your auto insurance policies. Currently, you can buy family plan discount auto insurance from five national insurers. Drivers typically save 18% on average with affordable family plan discount auto insurance.
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UPDATED: Jul 21, 2021
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- Five national auto insurance companies offer a family plan discount to drivers
- Customers save 18% on average with this discount
- In some cases, family that does not live with you can still qualify for this savings opportunity
If members of your family all use the same auto insurance provider, you could earn a family plan discount on your auto policies.
Below, learn how to compare auto insurance quotes and take advantage of customer loyalty discounts like the family plan.
After you learn how to buy family plan discount auto insurance, remember to enter your ZIP code into our free rate tool above to compare quotes from the top providers in your area.
What auto insurance companies offer a family plan discount to drivers?
Currently, five national auto insurance companies offer a family plan discount to drivers.
Customers save 18% on average by earning this discount.
Check out a complete list below to determine if you already use a family plan discount auto insurance company:
- American Family Auto Insurance Company
- COUNTRY Financial Auto Insurance Company – 25%
- Farmers Auto Insurance Company
- Nationwide Auto Insurance Company – 25%
- The Hartford Auto Insurance Company – 5%
Local providers in your area might also advertise this savings opportunity.
Many different factors influence your auto insurance costs, including your age, driving record, and coverage needs.
Therefore, to accurately secure the best auto insurance for families, compare quotes online from multiple providers.
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What is a family plan discount?
According to DataUSA, the average number of cars per household is two. So insurance companies want as much of that business as possible.
Therefore, insurers offer family plan discounts to reward you and your family for your customer loyalty.
You might wonder, is auto insurance cheaper on a family plan? The average cost of insurance is about $1,056 annually.
Typically, remaining on a family plan is more affordable because it’s easier to earn discounts.
Other common discounts families can qualify for include:
- Multi-policy discount
- Multi-car discount
- Family legacy discount
- Multiple drivers discount
- Homeowner discount
- Good student discount
- Safe driver discount
Choosing between family auto insurance versus individual coverage depends on your family members’ driving records, ages, and coverage needs.
Teens and high-risk drivers with poor driving records can cause insurance rates to skyrocket.
Therefore, a family plan discount might help parents of teen drivers save money.
However, qualification rules and savings amounts also vary widely by provider.
For example, to earn this discount through Farmers, you must have more vehicles on your policy than people.
But with COUNTRY Financial, even children over the age of 25 who moved away can earn this discount.
Alternatively, with Nationwide, whatever discount one person on your policy earns is awarded to every named driver, leading up to a possible 25% rate reduction.
Unfortunately, families with many high-risk drivers might not be eligible.
Careful not to confuse this discount with family plans created by standard cellphone companies, like AT&T or Verizon.
Family Plan Discount: The Bottom Line
If your family already uses one of the providers listed above, ask about receiving the family plan discount.
Otherwise, compare quotes online to see if a new provider might offer you cheaper coverage.
Now that you’ve compared affordable family plan discount auto insurance rates, find the best company for you by entering your ZIP code into our free rate tool below.