How to Lower Your Auto Insurance Premiums [2024]

While most U.S. states require drivers to carry auto insurance, knowing how to buy auto insurance can help you avoid spending an arm and a leg on coverage.. In fact, there are various ways to save money on car insurance while still ensuring you and your car are adequately protected.

Still, companies naturally charge higher premiums on auto insurance for high-risk drivers and drivers with bad credit. Wondering how to lower your car insurance rate? If you’re shopping for the top auto insurance discounts, this guide will help you understand what factors affect your premiums and how to shop for a policy that best fits your needs.

How to Get Lower Car Insurance Rates by Shopping Around

The first step in finding the best auto insurance rates is shopping around. By comparing quotes from different insurers, you’ll better understand the coverage types and prices available to you.

Make sure to factor in any discounts or deals that may be offered by each insurer when getting quotes. For example, some companies offer reduced premiums if you bundle your auto policy with other insurance products like homeowners’ or renters’ insurance.

Additionally, many insurers offer discounts for maintaining a good driving record or signing up for automatic payments.

When evaluating rates, make sure to look at more than just price. You’ll want to ensure that each insurer provides adequate coverage for your vehicle and meets your needs. Read through policies carefully and pay attention to any exclusions or limitations on coverage.

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How to Lower Your Auto Insurance Premiums With a Higher Auto Insurance Deductible

Another way to save on car insurance is by choosing a higher deductible. A deductible is the amount of money you have to pay out of pocket before your insurer will cover the remaining cost of repairs or replacements in the event of an accident.

The higher your deductible, the lower your premium payment. However, be aware that if you get into an accident and file a claim, you’ll have to pay the deductible before receiving any reimbursement.

When selecting a deductible, make sure it’s an amount you can comfortably afford. If you opt for too high a rate, you may struggle to come up with funds when filing a claim.

How to Lower Your Car Insurance Rate With Car Safety Features

Another way you can save on car insurance is by taking advantage of any available safety discounts. Insurers often offer reduced rates for vehicles with certain safety features, such as anti-lock brakes or airbags.

Installing additional security measures like an alarm system or tracking device may also qualify you for a discount from some insurers.

Finally, if you’re purchasing a brand-new vehicle, consider those that come equipped with advanced driver assistance systems (ADAS). Many car manufacturers now offer models with automatic emergency braking systems and lane departure warnings, among other safety technologies.

Save Money on Car Insurance With Auto Insurance Discounts

Fortunately, vehicle safety features may help you qualify for even larger discounts on your auto insurance premiums, so don’t forget to inquire about any additional savings that may be available. 

Many insurers offer a variety of ways to save on auto insurance, including good driver and safe driving discounts, multi-car policies, loyalty programs, and more. Learn more about the best auto insurance companies if you have multiple cars.

For example, some insurers offer discounts for signing up electronically or setting up automatic payments. Others will provide discounts if you complete a defensive driving course or install safety features in your car, such as anti-lock brakes or airbags. (For more information, read our “Defensive Driver Auto Insurance Discount“).

Additionally, many companies also offer discounts to individuals associated with certain organizations or professions. For example, military members, students, and seniors may be eligible for unique savings opportunities.

By exploring all these discounts, you can save money on your auto insurance and get more bang for your buck.

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How to Get Lower Auto Insurance Rates on Older Vehicles

If you have an older car that’s not worth a lot of money, you may want to reduce its coverage. Many insurers will allow you to reduce your coverage limits and lower your premiums if your vehicle has depreciated in value.

For example, if your car is more than 10 years old or not worth more than $2,000, you may want to consider dropping comprehensive or collision coverage altogether. However, some states may require minimum liability limits, even for older vehicles. Learn more about the top liability insurance coverage in your state.

You can also opt for non-standard policies such as named driver-only or pay-per-mile auto insurance. These policies provide basic coverage but are often much cheaper than traditional auto insurance plans.

Read more: Mile Auto Insurance Review

Bundle Your Home and Auto Insurance Policies

In addition, you may be able to save money by bundling affordable home and auto insurance policies with the same company. Many insurers will offer a multi-policy discount if you purchase both auto and homeowners’ or renters’ insurance from them.

This can help reduce overall premiums, as having multiple policies with the same insurer allows them to spread their risk and offer more competitive prices. Additionally, it’s easier for you to manage since all of your coverage is in one place.

When considering a bundle policy, make sure that each product meets your needs and provides adequate coverage levels at an affordable price. You should also consider any additional discounts that may be offered when bundling multiple policies together.

For example, some insurers may offer additional discounts for having a good driving record or being a homeowner.

Get Your Credit Score Under Control

If you want to save money on car insurance, it pays to get your credit score under control. Your credit score is one of the biggest factors that can affect your insurance premiums, so taking steps to improve it could help you qualify for discounts and lower rates.

First, check your current credit score and take steps to correct any errors or inaccuracies. If you have a good payment history but are still having trouble raising your score, consider using one of the many credit repair services available today. These services can help rebuild your credit by disputing errors and helping you manage accounts more efficiently.

Once you’ve taken these steps, request auto insurance quotes from an insurer that takes into account your improved credit rating.

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How to Lower Your Auto Insurance Premiums With Low-Mileage Discounts

The best auto insurance companies for people who don’t drive often will offer low-mileage discounts that can help reduce your car insurance premiums. Many insurers offer a reduced rate for drivers who typically cover fewer than 12,000 miles annually.

To qualify for this type of discount, you may have to provide proof of your yearly mileage by submitting odometer readings or using a tracking device installed in the vehicle. Some insurers will also require you to keep your driving record clean to receive discounted rates.

To maximize savings even further, consider forgoing an annual policy and opting instead for monthly payments or pay-as-you-go coverage. This way, you will only pay for the coverage you need when you need it.

How a Defensive Driving Program Can Save Money on Auto Insurance

Participating in a defensive driving program is one of the best ways to save on auto insurance. These courses are designed to help drivers improve their skills and reduce their risk of accidents or violations.

Depending on your state, taking an approved defensive driving course may entitle you to discounts on car insurance premiums.

In addition to potential savings on car insurance, participating in a defensive driving program can also help you become a safer driver overall. You’ll learn about safe driving techniques, such as avoiding distractions while behind the wheel, using proper lane-changing procedures, and more.

You can find defensive driving programs through several different sources. Many states offer them through local community colleges or adult education centers. In some cases, you may even be able to complete the course online.

Explore Different Payment Options

Many insurers offer a variety of ways to pay for coverage, such as monthly payments or pay-as-you-go coverage. Taking advantage of these options can reduce your total premium and spread out the cost over time.

For example, opting for monthly payments rather than an annual policy can be beneficial if you have limited funds or prefer more manageable payments each month. Additionally, some companies may offer discounts for signing up electronically or setting up automatic payments.

Pay-as-you-go or pay-per-mile auto insurance coverage is also a great option if you drive infrequently and want to save money on car insurance without sacrificing protection. With this type of policy, you’ll only pay for the coverage you need when you need it.

You can reduce car insurance costs by exploring different payment options and discounts without sacrificing protection.

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Review Your Current Policy Every Year

Reviewing your car insurance policy at least once a year is important to ensure you’re still getting the best deal. Insurance companies may offer different discounts over time or alter their coverage options, so it pays to stay up-to-date on the latest offers.

Additionally, as your lifestyle changes, so should your coverage. If you move to a new city or get married or divorced, these changes can affect your car insurance rates and coverage options. It’s essential to inform your insurer of any life changes so they can adjust your policy accordingly.

You should also re-evaluate the limits and auto insurance deductibles each year to ensure they reflect your current needs. As you age and gain more experience, you may be able to reduce your coverage while still protecting yourself in the event of an accident.

Research Auto Insurance Costs Before Buying a New Car

When shopping for a new car, it’s also essential to factor in auto insurance costs. The type of car you decide to purchase can impact your premiums and coverage options, so it pays to do some research beforehand.

Start by getting quotes from several different insurers. Make sure to get multiple quotes for the same type of car and compare them against one another. This will give you an idea of how much you can expect to pay for coverage. It’ll also help you decide which insurer offers your vehicle’s best deal.

You should also consider any added fees associated with owning a specific make or model of car. For example, sports cars tend to be more expensive to insure due to the increased risk of theft, while cars with better safety ratings can often qualify for discounts. Overall, researching before purchasing can save you money in the long run.

Read more: How to Buy Vehicles Directly From Insurance Companies

Find Ways to Save Money on Auto Insurance With Teen Drivers

It can be challenging to find affordable car insurance if you have a teen driver in the household because most companies consider them high-risk. Fortunately, there are a few ways you can get affordable auto insurance for high-risk drivers.

First, consider adding them as a driver on your existing policy. This usually costs less than buying an individual teen policy. Additionally, many insurers offer discounts for good students and safe driving habits. 

For example, if your teen is enrolled in school and maintains good grades, they could qualify for a discount on their coverage.

Another way to save money is by enrolling your teen in a defensive driving course. Along with potentially lowering car insurance premiums and deductibles, these courses teach teens valuable lessons about safety behind the wheel that can help prevent accidents.

Read more: Top Auto Insurance Providers for Teens

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Consider Downsizing Your Vehicle for Cheaper Auto Insurance

Downsizing your vehicle can be a great way to save money on car insurance. Smaller cars tend to cost less to insure due to their lower risk of theft and damage.

Furthermore, newer vehicles often come with built-in safety features such as blind spot monitoring, lane departure warning systems, and adaptive cruise control, which can help reduce premiums.

If you’re considering downsizing your vehicle, make sure to research the coverage options available for different makes and models. Some insurers may offer discounts for specific brands or types of vehicles.

Additionally, if you decide to switch from a sedan to an SUV or truck, you may need additional coverage in case something happens while off-roading or hauling cargo.

How To Lower Auto Insurance Premiums: The Bottom Line

Saving money on auto insurance doesn’t have to be a hassle. With a bit of research and planning, you can get the coverage you need at a price that fits your budget.

If your current car insurance provider doesn’t offer the best deal, shop around and compare quotes before you switch.

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