Car insurance is a necessary expense, but that doesn't mean you have to overpay. Here are 12 proven strategies that can help you lower your premium while maintaining the coverage you need.
1. Compare Quotes From Multiple Carriers
This is the single most effective way to save money on car insurance. Rates for the same driver and vehicle can vary by 50% or more between companies. An independent agent can do this comparison shopping for you across 10+ carriers.
2. Bundle Your Policies
If you have both a car and a home (or renter's insurance), bundling them with one carrier can save you 15-25%. This is one of the easiest, most reliable discounts available.
3. Raise Your Deductible
Increasing your deductible from $250 to $500 can save 10-15% on your collision and comprehensive premiums. Going to $1,000 can save even more. Just make sure you can afford the higher deductible if you need to file a claim.
4. Maintain a Clean Driving Record
Accidents and traffic violations can increase your rate by 20-50% or more. Defensive driving habits save lives and money. Many carriers offer accident forgiveness programs for your first at-fault accident.
5. Ask About Every Available Discount
Common discounts include: good student (typically 10-15% off), defensive driving course completion, low mileage, anti-theft device, good credit, multi-vehicle, paperless billing, autopay, and loyalty discounts. Not all carriers offer the same discounts, so ask your agent.
6. Review Your Coverage Annually
As your car ages, the value decreases. If you're driving an older vehicle worth less than $3,000-$4,000, it may make financial sense to drop comprehensive and collision coverage and keep only liability.
7. Improve Your Credit Score
In most states (including ND, MN, SD, and AZ), insurers use credit-based insurance scores. Drivers with excellent credit pay significantly less than those with poor credit. Paying down debt and correcting errors on your credit report can help.
8. Drive Less
Many carriers offer low-mileage discounts for drivers who travel fewer than 7,500-10,000 miles per year. If you work from home or have a short commute, make sure your carrier knows.
9. Choose Your Vehicle Wisely
Before you buy a new car, check insurance costs. Sports cars, luxury vehicles, and models with high theft rates cost more to insure. Midsize sedans and SUVs with good safety ratings tend to be the most affordable to insure.
10. Take a Defensive Driving Course
Many states offer a discount (typically 5-10%) for completing an approved defensive driving or accident prevention course. The courses are often available online and can usually be completed in a few hours.
11. Pay Your Premium in Full
Paying your annual premium upfront instead of monthly can save you installment fees. Some carriers also offer a discount for paying in full. If you can swing it, you'll save $50-$100 per year in most cases.
12. Work With an Independent Agent
An independent agent works for you, not for an insurance company. They can shop your policy across multiple carriers, identify discounts you might be missing, and help you find the best balance of coverage and price.
The bottom line: the best time to review your car insurance is now. Get a free quote and see how much you could save.