Lower Your Auto Insurance Rate: 20 Tips

Closeup of a car key on an auto insurance policy

In the United States, auto insurance is one of the most expensive types of insurance. In fact, in some states, it’s more than $1,000 a year. But amid inflation and other factors such as higher fuel prices, this expense can be tough to afford for many people. The good news is that there are ways to cut your cost without sacrificing coverage or protection. Here are some tips on how you can save money on auto insurance.

Car salesman handing over the keys for a new car to a young businessman

1. Shop around and compare rates.

It’s probably no surprise that this is the first tip, but it’s still worth mentioning. Rates vary drastically from company to company, so it definitely pays to compare what’s out there. Websites like Insure.com make it easy by allowing you to get free quotes from several insurers. Read the fine print, otherwise, you could wind up paying more than you need to.

2. Bundle your policies.

If you have other types of insurance—home, renters, health, etc.—you might be able to save money by bundling them all together with one company.

3. Get a low-mileage discount.

If you don’t drive as much as the average person, see if you can get a low-mileage discount. Some insurers offer this option, and it can save you a good chunk of change.

4. Increase your deductible.

This is another way to lower your premiums (the amount you pay each month). If you’re comfortable taking on more risk, increasing your deductible can be a big money-saver.

5. Drive safely and avoid accidents.

Believe it or not, safe driving habits can save you money on car insurance rates. So make sure to drive defensively and avoid getting into accidents if possible.

6. Avoid traffic tickets and violations.

Just like accidents, traffic tickets and violations can also increase your premiums. So do your best to avoid them.

7. Take a defensive driving course.

Most insurers offer discounts for drivers who have completed a defensive driving course. So if you haven’t already signed up for one and save some money. You can even find a DMV-approved online defensive driving course.

8. Park your car in a safe place.

If you have a garage or a driveway, parking in a safe spot will help keep your car from getting damaged (and thus protect your insurance policy).

9. Get an anti-theft device.

Many insurers offer discounts for cars that have anti-the theft devices installed. This can be a great way to lower your rates, especially if you live in a high-crime area.

10. Maintain good credit history.

Your credit score is another factor that most insurers use to determine rates. So make sure to keep your credit score as high as possible.

11. Drive a less expensive car.

This one’s pretty self-explanatory: If you’re looking to save money on auto insurance, driving a less expensive car will help.

12. Get the right amount of coverage.

Make sure you’re not overpaying for coverage by getting more than you need (or skimping on what you do need). This can be a tricky balance to strike, but working with an insurance agent can help.

13. Review your policy regularly.

This is another simple way to save money on car insurance premiums: Make sure you’re regularly reviewing your policy and making any necessary changes (such as increasing your deductible).

14. Pay your bill in full every month.

Paying your bill in full every month instead of monthly installments can help you save on interest and fees.

15. Don’t let your policy lapse.

If you let your insurance policy lapse, you could end up paying more for coverage when you re-apply. So make sure to keep up with your payments and keep your policy active.

16. Use direct deposit.

Most insurers offer a discount for using direct deposit to pay your premiums. So if this is an option for you, take advantage of it and save some money.

17. Join a usage-based insurance program.

A few companies (such as Progressive) offer usage-based insurance programs that can help you save money based on how much you drive. If you don’t drive very often, this could be a great way to lower your rates.

18. Drive less.

This one’s pretty simple: The less you drive, the lower your premiums will be. So if you can carpool, ride your bike, or take public transportation when possible, you could save some serious cash.

19. Install a telematics device.

Telematics devices (such as Progressive’s Snapshot) can help you save money by tracking your driving habits and giving you feedback on how to improve them. If you’re a safe driver, this could be a great way to get discounts.

20. Consider dropping collision and comprehensive coverage.

If your car is paid off and you have a good driving record, you may want to consider dropping collision and comprehensive coverage. This can save you a lot of money on your premiums, but it’s important to make sure you’re not putting yourself at risk financially if you do get into an accident.

In conclusion, there are a number of ways to lower your auto insurance rates. By following the tips above, you can save money on your premiums and keep your policy affordable. At the same time, you are still keeping yourself well-protected.

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