Car insurance is one of the few bills where two people with identical cars can pay wildly different amounts. The difference usually comes down to who shopped around and who asked for discounts. Here is how to get on the right side of that gap.
1. Shop around every renewal
Loyalty rarely pays in insurance. Insurers quietly raise rates on existing customers while offering lower prices to new ones. Get quotes from at least three carriers every year before renewing.
2. Raise your deductible
Moving your deductible from $250 to $1,000 can cut your premium 15% to 30%. Just keep enough savings to cover the higher deductible if you file a claim.
3. Bundle your policies
Combining auto with home or renters insurance through the same company typically earns a 10% to 25% multi-policy discount.
4. Improve your credit
In most states, insurers use a credit-based insurance score. Better credit means lower premiums — sometimes dramatically lower. Paying down balances helps here too.
5. Ask about every discount
- Safe driver / no claims
- Low annual mileage
- Anti-theft devices
- Defensive driving course completion
- Good student (for younger drivers)
- Paperless billing and autopay
6. Drop unnecessary coverage on old cars
If your car is paid off and worth under $4,000, collision and comprehensive may cost more than they are worth. Run the math.
7. Use telematics / usage-based programs
Programs that track your driving can reward safe drivers with discounts up to 30%. Good for low-mileage and careful drivers.
8. Reduce your mileage
Fewer miles means lower risk. If you work from home or carpool, report your reduced mileage — many insurers offer low-mileage discounts.
9. Choose your car wisely
Insurance cost should factor into your next car purchase. Sports cars, luxury vehicles, and frequently stolen models cost far more to insure than a midsize sedan.
10. Pay the full premium upfront
Paying six or twelve months at once avoids monthly installment fees that can add 3% to 8%.
11. Maintain continuous coverage
Gaps in coverage flag you as higher risk. Even a short lapse can raise your rate at the next policy.
12. Take a defensive driving course
Many states and insurers offer a discount for completing an approved course — useful for both new and older drivers.
Shopping around, bundling, and raising your deductible are the three changes that move your premium the most. Start with those.
Before you shop, use our auto insurance calculator to estimate a fair premium for your vehicle and profile, so you know whether a quote is competitive.