Personal Finance Expert
Tyron Jones is a finance expert who has operated within the auto insurance business for more than 10 years. He has written many other finance related articles for a number of prominent publications.
Your auto insurance is often one of your primary expenses. While it can be painful having to pay to insure your car, it's a necessity – you must abide by local laws and protect yourself from the large costs associated with accidents or injuries. Fortunately, while auto insurance is still expensive, there are a variety of ways to decrease your costs.
Drivers that are vigilant about what they're paying can avoid overpaying for their insurance premiums. In this article, we've explored various methods you can use to lower your insurance payments. If you're hoping to save more money over the next year, this is an excellent way to create some room in your budget.
Check out our top 20 ways below!
1. Maintain a Good Driving Record
It goes without saying, but one of the best ways to avoid expensive car insurance is to maintain a good driving record. One of the primary components that determine your car insurance premiums is your ability to stay safe on the road. Auto insurance companies want to work with drivers that understand the importance of avoiding trouble.
By avoiding accidents, tickets, and other infractions, you can position yourself to receive affordable car insurance quotes. In some cases, if you have a bad driving record already, you can improve your rates over time by making an effort to improve your habits.
2. Always Compare Multiple Insurance Providers
Another popular way to guarantee access to affordable insurance rates is to compare quotes from multiple providers. While this used to be a painstaking process that would require you to contact multiple brokers in-person or via telephone, this is no longer the case.
Drivers can now use the power of the internet to compare multiple quotes from insurance companies around the country. In most cases, it will only take a matter of minutes to receive a quote for your policy. With so many different insurance companies to choose from, it's essential to check which ones are offering the most competitive rates.
We find that one of the primary reasons people pay too much for insurance is that they're loyal to their current insurance provider. By regularly comparing the market each time you need to buy a new policy, you can make sure that your insurance company isn't taking advantage of your ignorance. If you really want to stay with your current company, ask them if they're willing to price match.
3. Check for Agreements with Your Job or Company
In some cases, insurance companies have special agreements with industries or companies. If you work for a particular industry or company, check with them to ensure there aren't any insurance company agreements that can save you money. In many cases, switching to an insurance company that offers discounts to your company can save you serious money.
If you're going to switch to a new job, it's useful to check if this will be a perk. While we don't suggest you move jobs to get better auto insurance, it can sometimes be an extra incentive.
4. Seek Lower Coverage for an Ageing Car
If your car is getting older, it might be worth seeking a lower coverage amount. There's no point spending a lot of money on an insurance policy on a car that isn't valuable. If you think you'll replace your vehicle in the next few years, it's a good idea to consider the downfalls of having too much insurance.
We recommend that you talk to your insurance company about what they believe will offer a decent level of coverage for your car.
5. Bundle Multiple Policies Together
Another new phenomenon that is helping people save money on their auto insurance is ‘bundling.' By grouping various policies together with the same provider, you can sometimes access exclusive discounts that aren't available to clients who only have one type of insurance.
For example, if you buy auto insurance coverage from an insurance company that also offers home insurance or life insurance, it can be worth asking if there are any bundling deals available. This is an increasingly common cost-saving measure available with many of the world's largest insurance firms.
Not only can this save you money, but it can also help make insuring your car much more convenient. By having all your policies in a single location, you won't have to worry about managing multiple payments or insurance company policies.
6. Get Good Grades
One excellent incentive that you find in many American auto insurance companies is ‘good grades' discounts. Whether you're in high school or in college, you can save a significant amount of money by showing evidence of good grades. Many insurance companies view getting good grades as a sign of good responsibility – this can make you a less risky driver in the eyes of insurers.
The types of grades that you will need depends on the insurance company's policies. Make sure to ask about what's expected – it's a good way to set some extra goals and incentives when you're in college.
7. Combine Family Policies
If you have family members that also drive, combining your policies together can help you unlock savings. If you have multiple auto policies, consider combining them together.
8. Take Advantage of College Exclusion Policies
If you have a child that is heading off to college, you might be able to use it to reduce your current insurance premiums (if you're already paying for your kid's insurance). If the child's college is a large distance away from your home, and they won't be taking a car with them to drive, you might be able to access lower rates.
This is because auto insurance companies are willing to acknowledge that your child will be using the car much less frequently. If you have someone that's getting ready to head to college, make sure to ask about this potential benefit.
9. Assess Your Policy and Your Requirements
If you've had the same policy for years, you might be paying for benefits that you don't need. Take a look at your policy and determine if there are any features that you're not benefiting from. If you find there are items on your policy that aren't helping you, contact your insurance company and request a quote on a policy that doesn't include the features that you don't need.
10. Raise Your Deductible
The deductible is the amount of money that you must pay towards any insurance claim. For example, if you get in an accident that costs $1,000, but your deductible is $400, the insurance company will only pay out $600 (you have to contribute the first $400 towards the accident).
The lower your deductible, the less you pay if you're in an accident. This being said, a lower deductible also means that your premiums will increase dramatically. Calculate how much money you can save by having higher deductibles and decide if it's a useful option for saving money.
11. Low Mileage Incentives
The more you drive your car, the more likely you are to get into an accident. For this reason, there are insurance companies that offer low mileage bonuses to clients that don't drive as much as others. If you're someone who doesn't use your car for long journeys, it can be worth looking for a low mileage bonus.
If you're having problems finding affordable insurance, it might be worth looking at insurance providers that will give you lower rates for lower mileage. Then you can work towards keeping your mileage below certain levels.
12. Discounts for Added Safety Features
Another way to reduce your insurance cost is to ensure you have safety features in your vehicle. If you have modern safety features included in your car, you can reduce your overall insurance costs with some companies. This is because these safety features might be able to help you avoid accidents or damages.
Make sure to contact your auto insurance company to ask if there are specific safety features that can help you reduce your insurance payments.
13. Pay for Your Policy Upfront
If you can afford to pay for your policy upfront, you can often access discounts that can drastically reduce the cost of your insurance. This is because insurance providers understand the benefits of receiving all the money at once – they won't have to risk you running out of money to pay quarterly or monthly installments in the future.
If you combine this with other options on our list, you'll find that it's an excellent way to save money. In most cases, you won't have to search for this feature – you'll often have multiple payment options when you sign up for an account.
14. Take Advantage of Marriage Discounts
Believe it or not, but many insurance providers offer marriage discounts for individuals that are buying joint insurance policies. This is yet another way that married couples are able to save on their living expenses.
While we don't suggest you get married purely to reduce your car insurance payments, you'll find that there are plenty of ways to save money once you're married to your significant other. If you're already married, but you're not receiving any auto insurance benefits, make sure to contact your insurance company and ask if there's any way to access marriage benefits.
15. Buy the Right Type of Car
There are certain types of cars that insurance companies are much more excited to cover. If you buy a car that has solid safety features, strong anti-theft capabilities, and a host of other benefits, you'll find that you can get excellent insurance quotes.
If you're planning on buying a new car, it's a good idea to speak to insurance companies about the types of cars that can offer lower quotes.
16. Take a Defensive Driving Course
If you're someone who is struggling to get a good insurance quote because your driving record is poor, you should consider taking a defensive driving course to prove that you're serious about avoiding further issues. Many insurance companies will offer discounts to individuals who are willing to take defensive driving courses. Other than that look for companies that specialize in high risk drivers insurance.
You can find local courses by heading online and searching for classes in your area. Make sure that it's a course that is accepted by your insurance company before you make any financial commitments.
17. Take Advantage of No Claims Bonuses
Many insurance companies offer ‘no claims bonuses' to clients that never make insurance claims. If you're someone who is a responsible driver, this can be an excellent way to save money. It also means you should sometimes avoid making a claim if the cost is less than you deductible.
18. Buy a Smaller Car
If you're currently driving a large car, you might be paying too much for your auto insurance. This is because auto insurers typically offer cheaper car insurance to smaller cars. While this isn't always the case, you can typically rely on paying less money to insure a sedan than an SUV.
This is can be food for thought if you're thinking of switching to a new vehicle in the future – bigger isn't always better!
19. Move to a Better Neighborhood
Many people don't realize that the neighborhood they live in has a major impact on the cost of their insurance – this is especially true if you have comprehensive insurance that covers car theft. This is because car insurance companies want to insure cars that they know won't be exposed to high levels of crime and vandalism.
Moving to a safer neighborhood can help you save money on your insurance. Make sure to ask your insurance company if you're currently being charged extra because of crime rates in your area.
20. Improve Your Credit Score
Lastly, one of the quickest ways to access a better insurance policy is to increase your credit score. While this might not seem like an intuitive connection, many insurance companies look at your credit score as a way to determine your level of responsibility. Paying down your debt and increasing your score can go a long way in helping you access cheap insurance policies.
Verdict: Learn More About Car Insurance
One of the best ways to ensure that you access the most affordable car insurance rates is to constantly learn about the auto insurance industry. By staying on top of the industry, you can make sure you're always aware of new ways to save money. Make sure to check out the additional content on our page if you want more information!
If you're like most drivers, you're always looking for ways to decrease your car insurance costs. The harsh reality is that you'll always have to pay for insurance if you want to drive your car – but you can still use various techniques to lower your premium costs. We receive a lot of questions from readers seeking cheaper auto insurance – check them out in more detail below!
Ways to Lower Car Insurance General FAQs
This section covers the general questions we receive about ways to lower your car insurance. You'll likely find answers to your insurance questions below:
What are the best ways to legally lower your car insurance premiums?
There are various tools you can use to lower the costs of your car insurance legally. Using a comprehensive approach is the best option. Start by looking at incentive discounts, lowering your deductibles, bundling policies together, and shopping around for rates from other insurance providers. Related: How much does liability insurance vs full coverage cost?
How to negotiate lower car insurance?
If you want to negotiate lower car insurance, you should make sure to get quotes from other insurance companies. Bring this to your insurance provider and ask them to price-match your new quotes. Sometimes you can ask for a car insurance no money down option.
How to lower car insurance rates?
If you want to lower your car insurance rates, make sure to shop around for new rates on the market. You can also lower your rates by improving your credit score, improving your driving record, reducing your deductibles, and using a host of other techniques.
How to lower car insurance premiums?
If you want to lower your car insurance premiums, it's critical to use a multi-faceted approach. By using strategies like increasing your credit score, increasing your deductibles, finding cheaper insurance companies, combining multiple family members into a single policy, and more, you can greatly reduce your insurance costs.
How to respond car insurance claim to lower the price?
If you want to lower the cost of a car insurance claim, it's a good idea to research how much you should be paying for the repair. Blindly accepting a quote from a mechanic can cost you much more money than it needs to.
Why get a lower deductible car insurance is better?
It's not always better. If you want to lower your insurance premiums, it can be a good idea to raise your deductibles. Your deductible is how much you have to contribute to a claim before your insurance company begins paying. By raising your deductibles, your insurance company will likely lower your insurance premiums. This being said, a lower deductible leaves you less exposed to the costs of a claim.
Does your car insurance lower when you pay off your car?
In some cases, it can. For example, your auto lender will no longer have control over your policy, which means you'll be free to shop around for a rate that is more suitable to your budget. Also, lower debt means your credit score might increase, which can lower your insurance premiums.
I'm 55 and how can I lower car insurance?
If you're 55, you shouldn't have major issues lowering your insurance. While you're likely too young to take advantage of a senior discount, you'll have access to lower premiums than under 25-year-olds. Make sure to compare rates against multiple providers to source lower premiums.
How to cut car insurance by as much as 50%?
If you want to cut your insurance by as much as 50%, it's best to get quotes from other insurance providers. You can save serious money by switching to a new insurance company – combining this with raising your deductibles can shave money off your premium. Also used car insurance can sometimes be less expensive. So perhaps getting an older model car would be a good idea. Look at insurance quotes before buying though.
How to use a different address for a lower full coverage car insurance?
Your car insurance rates can be directly linked to the neighborhood that you live in – the safer the neighborhood, the less you'll pay. Moving to a new address can help you shave money off your premiums. If you need temporary coverage while you move look into 24 hour car insurance coverage. Related: Where can I find cheap full coverage auto insurance near me?
How much does getting married lower your car insurance?
This will depend on your auto insurance provider, but there's no doubt that you can lock in significant savings by getting married. There are plenty of insurance companies that offer marriage discounts.
What can you say to lower your car insurance?
While this will depend on the insurance company that issues your policy, you can always ask them to lower your premium. We suggest that you seek estimates from other insurance companies and use them to show your insurer that other companies are offering better deals. Use an online tool to compare your auto insurance rate by zip code to make sure you're not overpaying.
What colors lower car insurance?
While many people believe that red cars cost more to insure, this is largely a myth. The color of your car should have no impact on your auto insurance premiums.
How much lower is insurance on a super cheap car?
This depends on the type of car that you're purchasing. For example, if the car is extremely large, it still might be more expensive to insure than a smaller car that has slightly more value.
How does a single woman lower car insurance?
There are a host of different factors that determine your insurance premiums, so a single woman will still be subject to other car insurance premium components. Still, women typically have access to lower insurance premiums to men. This being said, this is largely thought to be due to other factors – different car sizes and preferences.
How can I lower my car insurance with lease car?
It can be hard to lower your insurance premium with a lease car because your car's lease provider has control over your insurance options. Still, speaking to your leasing company about practical solutions might lead to access to lower rates. Related: How can I get help with car insurance payments?
Is auto insurance lower when car is paid off?
This depends on how you approach your car insurance policy. Because auto loan providers often have control over the type of insurance that you purchase, you can shop around for better rates once your car is paid off. There's no reason why you shouldn't be able to lower your rates when you pay off your car.
Ways to Lower Car Insurance with Bad Driving Record
If you have a bad driving record, some of these questions and answers may be relevant to you:
How to lower car insurance after accident?
If you want to lower your car insurance after an accident, it's essential to consider increasing your deductibles or taking a defensive driving course. Speak to your insurance companies about discounts that you can unlock – and make sure to avoid accidents in the future.
Can you get lower car insurance when you have no DUI?
It can be much harder to access lower insurance rates if you have a DUI. Still, by taking different driving classes and having alcohol detection technology installed in your car, you might be able to lower your rates.
How to get lower car insurance with reckless driving?
If you have a history of reckless driving, you might have to take a defensive driving class if you want to avoid extortionate insurance rates. Make sure to source a defensive driving class that is approved by your insurance provider.
How to lower my car insurance payments when I have traffic violations?
If you have traffic violations, it's a good idea to make commitments to improve your driving record. One of the best ways to do this is to take an approved defensive driving class. You should also make sure to avoid any further driving violations.
How to lower car insurance cost after 2nd speeding ticket?
If you're on your second speeding ticket, you'll likely see an increase in your insurance premiums. If you're willing to increase your deductible or take defensive driving classes, you might be able to convince your insurance company to lower your rates.
How long after DUI can I get lower auto insurance?
Ways to Lower Car Insurance Specific Insurance Firms
If you're looking to lower insurance rates at a specific insurance provider, this section is for you:
How to lower car insurance Geico?
If you want to access lower car insurance at Geico, there are a few steps you can take. Geico offers extra discounts to those who install safety features and those who bundle policies together. Related: Why is car insurance so expensive?
How to lower Progressive car insurance?
Progressive is known for offering a range of discounts that can help you save money. Unlock the benefits of good student discounts, policy bundles, multi-driver policies, good driver discounts, and more. They host a full list on their site.
How to lower car insurance State Farm?
State Farm also offers a host of different discounts to their customers. You can access accident-free discounts, defensive driving discounts, student away at school discounts, and more.
How to lower car insurance premiums USAA?
To lower your car insurance at USAA, the insurer recommends that you improve your credit score, reduce physical damage coverage, and raise your deductible.
How much does add house insurance lower car insurance Progressive?
This will depend on your individual policy, but you can typically save money by bundling policies with most providers. This is also a much more convenient way to manage your insurance policies.
How to lower car insurance All State?
If you want to lower your insurance at All State, it's a good idea to consider bundling multiple policies together. You can also access good grades bonuses at All State.
Ways to Lower Car Insurance for Young People
If you're trying to insure a young driver, you probably have a range of your own questions. Check out our young driver insurance FAQs below:
How to lower teenage car insurance?
One of the best ways to lower teenage car insurance is to ensure that your entire family is on the same insurance policy. In doing so, you'll be able to take advantage of savings that aren't available with single insurance policies.
How to lower car insurance for first time drivers?
While combining your insurance can help you save money on first-time drivers, it's also a good idea to consider an insurance company that offers tracking. By using a tracking box that determines speed and other variables, you can unlock savings.
How to lower car insurance premiums for young drivers?
While tracking boxes have been a success in other countries, they're largely a new concept in the United States. Still, you can now use GPS tracking boxes that determine speed, driving capabilities, and other data points to lower your rates. It’s an excellent way to access more affordable insurance for young drivers. Related: How do a get liability insurance for car purchase?
What is the GPA requirement for lower car insurance?
Many auto insurance providers now offer discounts for good grades. If you're someone who is looking to unlock extra savings, a certain GPA might help you lower your premiums. The GPA requirements of each provider vary – make sure to ask them what they expect.
Does your car insurance lower when you turn 25?
While this depends on the insurer, in many cases you can expect lower insurance for drivers that are over the age of 25. Keep in mind that this can vary depending on other factors.
How old do I need to be for car insurance to lower?
There isn't a set age that car insurance lowers. This being said, the older you are, the more likely you are to gain access to cheap insurance. There are other factors, such as driving record, insurer, car type, and more that will also impact the cost of your insurance.
Does your car insurance lower when you turn 21?
The older you are, the less you'll pay for insurance. In many cases, insurance companies will offer lower rates to those who are above the age of 21. Make sure to request a lower rate if your birthday is around the corner.
Other Ways to Lower Car Insurance
If you have any more questions about lowering your car insurance, check out the options below:
How to lower car insurance by installing a car alarm?
In some cases, an insurance provider will be willing to lower your premiums if you add safety features. If you want to add a car alarm to save money, make sure this is an option with your insurance provider before you do it!
How long does it take for auto insurance to lower after a at fault wreck?
This is largely dependent on a host of factors, including other driving record incidents or infractions. The better your driving record is, the quicker you have a chance of restoring your previous rates.
When you pay for car insurance is it on purchase price or does it lower with depreciation?
While there are various factors to consider when you're determining the cost of your insurance, you should be able to access cheaper insurance if your car isn't brand new. This being said, some new features (such as safety features) can have a positive impact on your insurance quote.
How to lower car insurance Driver's Ed discount?
If you want to use a Driver's Ed discount to lower your insurance premiums, it's a good idea to make sure that your course is approved by your insurance company.
When do car insurance companies lower their rates for seniors?
This will depend on the age set by your specific insurance company. If you want to access senior rates, contact your insurance company directly to ask when you're eligible.
How old does a car need to be for lower insurance?
This will depend on the type of coverage that you're looking for. For example, comprehensive insurance costs may reduce as your car ages – this is because the replacement cost of the car is lower.
How to lower car insurance with good driving record?
If you have a good driving record, you'll be in an excellent position to access lower auto insurance. There are plenty of insurance companies that now offer ‘no claims' bonuses that provide extra money to those who don't make claims.
How to lower car insurance by 100 dollars?
It's hard to predict how much you can lower your insurance. If you want to lower your rates by $100, make sure to contact your insurance provider and ask for any deals or incentives. You can also offer to increase your deductible.
Who has best overall homeowners and car insurance at lower rate?
This is constantly changing. While it's easy to save money by bundling home and auto insurance, you should also make sure that you're constantly looking at the best rates. Using online comparison tools will help you spot the top offers.
Which car helps lower insurance?
The more safety features your car has, and the smaller it is, the lower your insurance will be. If you want cheap insurance and you're planning on buying a new car, speak to your insurance provider about the best options.
Not using one of cars much, how to lower rates on it for car insurance?
If you want to lower rates on a car that you don't use frequently, it's a good idea to see if there are any low mileage bonuses available. Some insurance providers will offer discounts if you keep a car's mileage below a certain level. Related: Is there a grace period after car insurance expires?
Does my credit go lower when I get an auto insurance quote?
This will depend on whether an insurance provider performs a hard credit check on your credit file. If they do, you will likely see a drop in your credit score. Make sure to ask insurance providers before they run a credit check.