How to Lower Your Car Insurance: An Expert Guide (2024)

With the average cost of car insurance at an all-time high, it’s more important than ever to save money on car insurance and lighten the load of your monthly expenses.

Insurance companies use various factors to determine your auto insurance rates. These include your age and driving history, the type of vehicle you own, and your location. While it may not be possible to change some of these factors, there are steps for how to lower your car insurance rate that you can take right now.

This guide will look at some of the best ways to save money on car insurance and how to lower car insurance costs regardless of what types of car insurance coverage you have. Read on to find out how to save money on your car insurance.

How to Get Lower Car Insurance Rates

Saving money on car insurance can help you stretch your budget while ensuring that you are always well-protected.

Here are some tips to help you save on car insurance:

Lower Car Insurance Rates by Increasing Your Deductible

Increasing your deductible is one easy way to lower your car insurance premium. While you’ll be responsible for paying a bit more should you file a car insurance claim due to an accident or other emergency, you can enjoy lower monthly car insurance payments.

Check that your preferred provider accepts this option and how it works with their specific policies before making any coverage changes. Also, make sure you have enough savings available if you need to cover the deductible yourself if a claim comes through. 

Read more:

• Can I change my car insurance coverage at any time?
• How often should I review and update my car insurance coverage?

Save Money on Car Insurance With Discounts

Most insurance companies offer various discounts for their customers. Common discounts that help with lowering car insurance rates include:

• Buying your policy online
• Having an automated payment system set up
• Driver status insurance discounts (good student, senior citizen, student away, etc.)
• Safety features discounts (anti-theft devices, airbags, etc.)
• Multi-car policy discounts

These discounts can add up to significant savings on your car insurance premiums. Check out our guide on car insurance discounts and ask your insurance company about any that apply to you.

Read more:

• Good Student Car Insurance Discount
• How to Lower Your Car Insurance Premiums

Shop Around to Get Lower Car Insurance Rates

It’s always important to shop around with multiple companies when looking for car insurance. Request quotes from several local insurers and compare their rates. Remember that some companies may offer better rates for certain vehicles or drivers, so compare quotes to find the right policy for your needs. 

Look into the customer reviews and compare the financial ratings of the insurance companies you’re considering. 

Read More: What is the process for transferring car insurance to a new car?

A Good Driving Record Helps Save Money on Car Insurance

The better your driving record, the lower your car insurance rates will be. Make sure to drive carefully and follow all traffic laws to help keep your record clean.

Avoiding moving violations such as speeding and reckless driving can help save you money. Find out the best car insurance companies for good drivers.

How to Get Lower Car Insurance Rates by Enrolling in a Safe Driving Program

Insurance companies give discounts to drivers who take steps to be safer and more responsible behind the wheel. 

Depending on the insurance company, completing a safe driving program can mean taking a class online or in person, installing a device in your car to track how you drive, or meeting other requirements, like taking a certain number of training hours or passing a final exam. 

Taking an Accident Prevention Course Can Also Help Save Money on Insurance

Aside from safe driving courses, many insurance companies provide discounts to drivers who demonstrate their commitment to accident prevention by enrolling in an approved course. These classes typically cover defensive driving techniques, traffic laws, and other safety standards. 

If you complete an accident prevention course, you may be eligible for lower auto insurance rates.

Explore Payment Options to Get Lower Insurance Rates

Many insurance companies offer different ways to pay that can help drivers save money on auto insurance. For example, options such as paying monthly, quarterly, or semi-annually are often available. You may also get lower rates if you pay for six months or more of coverage upfront.

Lowering Your Car Insurance Rates by Improving Your Credit Score

Depending on where you live, your credit score can be used to determine your insurance premium. Credit-based insurance scores are essentially a rating system that indicates how likely you are to file a claim based on your credit history. 

According to the Insurance Information Institute (III), people with higher credit scores tend to make fewer claims, so companies like to reward good credit histories — it’s why those with better credit usually get lower insurance rates. 

How can you improve your credit score? Start by paying all your bills on time and working to reduce your debt.

How to Lower Your Car Insurance as a Low Mileage Driver

If you don’t drive often, many insurers offer discounts for drivers who stay well below the U.S. Department of Transportation’s annual mileage of 14,263. It may vary from company to company, but you can expect lower car insurance rates if you drive fewer than 7,500 miles per year.

It may not be applicable everywhere, but it never hurts to inquire — it could be the difference between overpaying and getting the best deal possible.

Likewise, driving infrequently and storing your vehicle in a garage can reduce the risk factors associated with theft and vandalism, resulting in additional savings on your premiums. Find out the best car insurance companies for people who don’t drive often.

Bundle Your Insurance Policies for Cheaper Car Insurance

Bundling different insurance policies, such as home and auto, under a single provider is one way to save money on insurance. Besides getting discounts, you will also enjoy the convenience of managing a single account, making a single monthly payment, and having a single login for easier access. Learn more about how to save money by bundling insurance policies.

Read more: Can I bundle my Auto-Owners car insurance with other policies?

Review Your Current Policy For Ways to Save Money on Car Insurance

Take a close look at your auto insurance policy and review it regularly to ensure you’re getting the best possible rates for your current situation. 

Your age, marital status, credit score, driving record, coverage limits, and deductibles may have changed since you first signed up for the policy. As a result, you may be paying for coverage you no longer need or missing out on discounts for which you are now eligible. 

For instance, consider dropping those coverages from your policy if you’re paying for collision coverage on an older car or roadside assistance when you already have another service provider.

Consider Car Insurance Costs When Buying a Car

When selecting a new vehicle, you should consider the sticker price and the insurance rates. Unfortunately, the cheapest car is not always the most affordable option in terms of premiums. 

Even if you buy a less expensive model, anything from upgraded trim to state-of-the-art audio systems can increase insurance costs. So before making a purchase, consider your monthly cost for coverage. 

On the other hand, some popular models, such as the Subaru Outback, Jeep Wrangler, Honda CR-V, and Subaru Forester, are among the least expensive to insure. These could be good choices if you’re looking to keep premiums low.

How to Lower Insurance Rates With Teen Drivers

As a parent of a teen driver, you understand how costly car insurance can be. Fortunately, there are several ways to save money on premiums while still covering your teen. Many insurance companies provide discounts to teenagers who excel in school and complete an approved driver’s education course. 

If you are shopping for auto insurance for your teen, check out our list of the best auto insurance for young adults.

Case Studies: Strategies to Lower Car Insurance Costs

Case Study 1: Lowering Premiums With Increased Deductible

One car owner, John, was looking for ways to lower his car insurance premiums. He decided to increase his deductible, which means he would have to pay more out of pocket in case of an accident or emergency.

However, by raising his deductible, John was able to enjoy lower monthly insurance payments. This strategy allowed him to save money on car insurance while still maintaining adequate coverage.

Read more: What is the difference between a deductible and a premium in car insurance?

Case Study 2: Maximizing Savings With Discounts

Sarah, another car owner, explored the various discounts offered by insurance companies. She discovered that her insurance provider offered discounts for having a clean driving record, being a good student, and bundling multiple policies.

By taking advantage of these discounts, Sarah was able to significantly reduce her car insurance premiums and save money in the process.

Case Study 3: Finding the Best Rate Through Comparison Shopping

Mark wanted to ensure he was getting the best possible car insurance rate, so he decided to shop around and request quotes from multiple insurance companies. He compared the rates and coverage options offered by each company and carefully reviewed customer reviews and financial ratings.

In the end, Mark found a policy that provided adequate coverage at a more affordable price, allowing him to save money on car insurance.

Case Study 4: Improving Credit Score For Lower Premiums

Emily discovered that her credit score could impact her car insurance premiums. She decided to work on improving her credit score by paying bills on time and reducing her debt.

Over time, her credit score improved, and she found that her insurance premium decreased as well. By actively managing her credit, Emily was able to lower her car insurance costs and enjoy greater savings.

The Bottom Line on How to Lower Your Car Insurance

With the cost of car insurance rising, it’s important to understand how to lower your premiums.

You can take a few easy steps to save money on your auto insurance, such as improving your credit score, taking advantage of low-mileage discounts, bundling policies, reviewing your current policy regularly, and considering insurance costs when choosing a car.

If you are a parent of a teen driver, you can take advantage of discounts for students who do well in school and complete an approved driver’s education course. Taking the time to shop around and compare rates can also help you save money, so research multiple companies before selecting a policy.