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Video — 7 Ways To Reduce Auto Insurance Premiums

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Here are some options that may help with auto insurance. Premium costs, one. Raise your deductible. It may. Lower premiums. Keep in mind, you'll have to pay more out of pocket for any damage. Two. Ask about discounts based on lifestyle, age, or car model. Good drivers, diligent students, seniors, and members of the military may be. Hybrid cars and older models may also cost less. Three, combine policies from multiple vehicles into one policy. Four, improve your credit score if your company uses it to determine rates. Five. Don't buy a new model that hasn't passed safety standards. Research the safety credentials of any car you are. Safer cars equal lower premiums. Six. Drive well safer drivers equal lower premiums. Seven. Drive less. Less time on the road equals less likelihood of accident which could equal lower premiums. Review your policy regularly with your agent or carrier.

13 Ways To Love Your Car Insurance More


Some things are out of your hands, like how much it costs to fix your car or how much your medical bills are going up.

If you think your insurance rate is too high, the good news is that there are some things you might be able to do to bring it down.

Here are some ways to save money on car insurance:

  1. Make your deductible higher.
  2. Compare auto insurance quotes to see if you can get a discount.
  3. Keep your driving record clean.
  4. Participate in a safe driving program
  5. Take a course on safe driving
  6. Explore payment options
  7. Get your credit score up.
  8. Take part in a program for driving less.
  9. Look over your current plan.
  10. Think about what your car has.
  11. Find out how to save money when teens drive.
  12. Bundle your policies

1. Make your deductible higher.

Depending on your insurance company, a quick and easy way to lower your car insurance payments is to pay a higher deductible. This is the amount you pay out of pocket before your insurance coverage kicks in after an accident.

You might be able to do this online or through a mobile app from your insurance company. Remember that if you get into an accident, you'll have to pay the deductible yourself. Make sure you have enough money saved up to pay your deductibles.

2. Make sure you're getting all the discounts you can.

Find out what discounts your insurance company offers to make sure you're getting the best deal on your car insurance.

You might not have known about some discounts. Most insurance companies offer discounts for doing things like going paperless or signing up for a new policy before your old one runs out.

Common ways to save money on your car insurance

  • Buying your policy online Signing up for preferred payment options like automatic payment
  • When you bundle your car insurance with your home insurance or if you have more than one vehicle, you can save money.
  • Taking part in a program for safe driving like RightTrack®
  • Putting high-tech safety and anti-theft features in your car is a good idea.
  • Having a car that uses less gas is good for the environment.
  • Teens and young drivers should do well in school or be away at school.
  • Being a member of the military, whether you are active, retired, or on reserve

Some companies may even give you a discount if you park in a garage (especially if you live in an area with a lot of thefts) or if you drive a lot.

3. Compare car insurance plans.

Make sure to get several quotes, either online or from an insurance agent in your area.

Remember that the least expensive insurance isn't always the best. Pay attention to the coverage you need and make sure the quotes you get match that. If an auto insurance quote seems too good to be true, it probably is.

If you find a good deal, you'll want to find out how to switch car insurance companies.

4. Keep your driving record clean.

Good drivers always save money. It pays to drive safely, and it also keeps you and other people safe on the road.

Don't ever speed, get in an accident, or do anything else bad while driving. Not only do you avoid getting expensive tickets for speeding or other moving violations, but you also show that you are a safer driver, which helps keep your insurance rates low.

You can also get discounts if you have never filed a claim or been in trouble with the law.

5. Sign up for a safe driving program

Have a bad driving record or have you just been in an accident? You can always do better. No matter what your driving record is, you can show that you are a safe driver with a safe driving program.

These programs can be a great way to show that you are a responsible driver without having to wait for your insurance rates to go down after an accident or driving violation.

6. Take a course on how to avoid accidents

Not only new drivers take driving classes. Some insurance companies allow policyholders in certain states can get a discount if they take a qualified driver safety course. You can even take some classes online.

7. Explore payment options

If you are flexible about how you pay for your car insurance, you might be able to save money.

If you pay for your policy in one or two annual payments, some insurance companies will give you a discount. You can also save money by choosing a preferred way to pay, like linking a bank account.

Going paperless with your account statements and other communications is another option. You'll save money on your policy and help the environment. Everyone wins.

8. Work on your credit rating

How does my credit score affect my auto insurance? In some states, an insurance company may check your credit as part of figuring out how much of a risk you are.

When it comes to car insurance, people with higher credit scores sometimes pay less because that means they drive safely.

If you want to start improving your credit score, make sure you pay your bills on time every month, lower your credit utilization rate (the amount you spend compared to your total line of credit), and make sure the information on your credit report is correct; you can dispute anything that isn't right.

9. Do you work from home or do you only drive a few miles a day?

You might be eligible for a low mileage discount if you work from home, take public transportation, or have a short commute.

10. Take a look at your current plan

If you've had the same policy for a few years or more, you might want to look at it again to see if your needs for coverage have changed.

One thing to think about is that the more years your car has been around, the less it will cost to replace if it gets in an accident. This means that you might be able to lower your limits for things like collision and comprehensive.

If you have paid off your car loan or only owe a small amount on it, you may not need gap insurance. If you lease or finance your car, you may be required to have a certain amount of coverage for things like theft and accidents. If you own your car, you might be able to lower these coverages or drop them altogether.

You might even be eligible for more discounts now that you have a policy. If you turned 25 or older, got married, or bought a home, make sure your policy shows that. All of these things could help you save money on your premium.

11. Find out how much insurance costs before you choose a car.

The car you drive is one of the things that affects your insurance rate, since some cars are more expensive to insure than others. Think of a fast sports car and a minivan that puts safety first.

When you're shopping for a new car, it's important to think about how much it will cost to insure. And it's good to know that the cheapest cars aren't always the cheapest ones to insure.

When choosing a car, keep in mind that the more expensive it might be to fix, the more likely it is that your insurance rate will reflect that. So, adding features like upgraded trim, cutting-edge audio systems, and more technology could add up.

Cars that, on average, currently have the least expensive insurance rates

  • Subaru Outback
  • Jeep Wrangler
  • Honda CR-V
  • Subaru Forester Ford Escape
  • Ford F-150

13. Bundle your policies

One of the easiest ways to lower your insurance rate is to get your home and car insurance from the same company.

Whether you own or rent your home, you can save money by putting it on the same policy as your car. You'll save time, money, and more when you only have to manage one account with one login and less payments to keep track of.

Get a quote for more than one policy to see how much you could save by combining your home and car insurance.

Marco Giordano
Writer, Researcher & Video Editor
January 27, 2023
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