Clovered's COVID-19 Response

How to Lower Your Car Insurance Premiums

  • Auto
  • /
  • How to Lower Your Car Insurance Premiums

Just because you’re required to carry auto insurance coverage in most U.S. states doesn’t mean you have to pay an exorbitant amount of money each month. 

There are a variety of factors that go into your car insurance coverage and the level of protection it offers you. But, hopefully, the only element you’ll be exposed to every month is the premium, which is the monthly cost of maintaining your coverage. If you think you might be paying too much for auto insurance, we have 10 ways to save on car insurance.

How to Lower Car Insurance Premiums

You can lower car insurance rates by making changes to your driving behavior, vehicle choice, auto insurance coverage options, or by simply shopping around for a new provider altogether. While some of these changes can take effect overnight, others may take some time to earn.

Here’s a closer look at 10 tips on how to lower your car insurance premium.

1. Reduce Your Insurance Coverage 

The first option for lower car insurance payments might be the most simple: reduce your coverage. It’s one of the quickest and best ways to lower car insurance instantly. You may only want to consider this option on an older vehicle because you should always maintain a minimum amount of coverage that’s unique to your vehicle and situation.

How much coverage you may need depends on where you live and your financial situation. Forty-eight of the fifty states require liability insurance. The minimum amount varies by state, but you’ll almost always have some bodily injury and property damage liability coverage.

Other than this, comprehensive and collision insurance policies are two very common coverages that drivers purchase, but they’re not required unless you drive a financed car.

So, assess your financial situation and driving situation. If you’re comfortable covering more repair costs after an accident, you might opt for the minimum amount of required liability insurance to save on premiums. 

Reducing your auto insurance coverage – either by raising your deductible, dropping full coverage, can save you hundreds of dollars a year. Also, getting rid of some perks of your policy, such as roadside assistance, could be a way to lower car insurance.

But remember, if you reduce some of these coverage options, you might have to pay more money out of pocket if you’re involved in a motor vehicle accident.

2. Earn a Good Driving Reputation

No one is saying you have to be perfect, but safe drivers are often rewarded with lower car insurance premiums for their efforts. 

This includes avoiding accidents (whether or not they’re technically your fault) and not getting speeding tickets. Your insurance provider may even go as far as reducing the amount of money you pay for your premium every three years you go without earning a traffic violation.

3. Bundle Your Insurance Policies 

Many people buy more than one type of insurance in their lives. There’s a chance you might even have three or four active insurance policies in your name right now.

Asking your provider about bundling your policies may be a relatively easy and quick way to lower car insurance rates. For example, many insurers offer a discount for bundling your home insurance with your auto insurance.

Just remember, if you ever cancel one aspect of your policy, or decide to change providers for just one aspect of your coverage, you may end up paying more altogether. 

4. Ask Your Insurance Provider About Discounts 

Speaking of discounts, there’s a chance your insurance provider offers one that can instantly reduce your car insurance costs that you may not be taking advantage of. You don’t know if you don’t ask. 

From good student discounts — where high school and college-level drivers earn reduced rates for good grades — to active military discounts or discounts related to your employer. You may also have just recently qualified for a discount that you couldn’t have gotten initially, such as a senior, veteran, safe driving discount or for having safety features equipped in your vehicle.

Call your insurer and ask them to look over your policy for any missing discounts that can help lower your monthly car insurance premiums.

5. Don’t Overpay for Unnecessary Coverage 

Just like buying your car, auto insurance policies may sometimes come preloaded with bells and whistles you simply don’t need. 

If your car insurance policy includes add-ons like roadside assistance or car rental coverage, you might be overpaying. Reducing these unnecessary aspects of your insurance policy can immediately help lower the amount you’re paying every month.

It’s always better to be over-insured than underinsured, but if you’re looking for tricks to reduce car insurance rates, you may want to trim unnecessary coverage from your plan.

6. Putting Low Mileage on Your Car 

If you’re not a heavy driver, you may want to let your insurance company know that your daily travels are shorter than the average commuter’s.

Ultimately, the less time you spend behind the wheel, the lower your chances are of being involved in a costly accident. Whether you simply don’t drive as often, or you carpool with your coworkers to and from the office, or you’ve just moved closer to where you work, let your insurance provider know and you could reduce your car insurance premiums.

7. Raise Your Deductible 

Your deductible is the amount of money you’re required to pay out-of-pocket when you file a claim before the insurance company will pay the rest of the expenses. Having a lower deductible means you won’t be required to pay as much of the costs yourself. 

For example, let’s say you got into a car accident that caused $5,000 worth of damage to your vehicle. If you filed a claim with your insurer, and you had a $500 deductible, you’d pay the $500 and your insurance company would pay the remaining $4,500. 

In this scenario, if you had a deductible of $1,000, your insurer would only have to pay $4,000. With higher individual deductibles, insurance companies have to pay out less, which is why they charge a lower rate to cover you when you choose a higher deductible.

If you’re a relatively safe driver, or if your car is already older, you may want to consider raising your deductible. The less money the insurance company is responsible for paying towards your repair or injury costs, the lower your car insurance will be.

8. Buy a Safe Car 

If you’re in the market for a new car, you might want to shop around for vehicles that offer upgraded safety features, as these features may result in a lower car insurance premium

Airbags and anti-lock brakes are one place to start, but you may even want to consider vehicles that offer collision detection, automatic braking, or blind-spot protection for even lower car insurance rates. 

9. Protect from Car Theft 

If you have an anti-theft alarm in your car, or if you park in a garage every night instead of on the street or in an open driveway, you may already qualify for a safety discount from your insurance provider. 

The less likely your car is to be stolen, the less likely your insurance provider will have to pay to help you replace it as a part of your policy. Let the insurance company know if any special circumstances might be protecting your car from theft, and you might discover you’re eligible for lower car insurance rates! 

10. Shop Around for Better Insurance Options 

Lastly, you may want to consider that your current insurance provider doesn’t offer the best rates. If you’ve had the same insurance company for a while, you might not even know how many more options exist today for specialized or low-cost auto insurance premiums. 

Before your policy renews again, considering shopping around for a new provider altogether. Getting quotes on auto insurance rates isn’t hard, and you may discover that another provider offers a much more competitive coverage rate than your current carrier.

How to Get Lower Car Insurance

The best tips to lower car insurance premiums include shopping around to see what’s out there. Our in-house agents at Clovered can do all the legwork for you. Simply fill in a few details about your vehicle in our online quote form and they’ll reach out to you as soon as possible with some options that are best for your needs and your budget.

Auto
Ready to Save Money on Auto Insurance?

Rethink your auto insurance premium with a free quote from the nation's top companies.

The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.