What are some things you can do to lower the cost of your car insurance?


Editorial team Published on

You can lower your car insurance cost by shopping around for competing quotes, raising your policy deductibles, bundling your policies, and taking advantage of available discounts.

Shop Around and Compare Quotes

  • Compare multiple insurers: Check rates from at least three different companies or use an online comparison platform, as switching providers can yield significant savings.
  • Re-shop before renewal: Insurance companies often raise rates incrementally over time for loyal customers, making periodic shopping a quick way to find a better price.

Adjust Your Policy and Coverages

  • Raise your deductibles: Increasing your collision and comprehensive deductible from $500 to $1,000 can lower your annual premium by 20% to 25%, provided you have enough cash set aside to cover the higher out-of-pocket cost if you crash.
  • Drop collision or comprehensive on older cars: If an older vehicle is worth less than 10 times the annual cost of collision and comprehensive coverage, drop those add-ons and carry liability-only instead.
  • Review your mileage: Report your actual driving to your insurer if you log fewer than 10,000 (or 7,500) miles a year to qualify for low-mileage discounts.

Bundle Policies and Maximize Discounts

  • Bundle home and auto: Combine your auto insurance with homeowners, renters, or condo insurance through the same company to save up to 30%.
  • Pay in full: Pay your annual or semi-annual premium upfront rather than in monthly installments to skip processing fees and earn a pay-in-full discount.
  • Enroll in telematics: Let your insurance company track your driving habits using a mobile app or a plug-in device for safe-driver discounts.
  • Take a defensive driving course: Complete an approved safe-driving or defensive driving course to qualify for minor rate reductions.
  • Student and teen discounts: Ask about good student discounts for teens or young drivers maintaining a B average (3.0 GPA) or higher, or remove inactive drivers away at school.

Maintain Good Driving and Vehicle Habits

  • Keep a clean record: Avoid accidents, speeding tickets, and moving violations to maintain or unlock safe-driver discounts.
  • Pick a cheaper car to insure: Research insurance rates before buying a vehicle, steering clear of luxury, sports, or high-theft models in favor of family-friendly sedans or small SUVs with high safety ratings.