You have to buy auto insurance, but you don't have to overpay for it. Consider these 13 tips that can cut your auto insurance costs without compromising your coverage.
If you work with specialty vehicle businesses, you may also find resources such as Auto Restoration Insurance helpful.
13 ways to lower your auto insurance costs
- Maintain a clean driving record. Claims, moving violations, and at-fault accidents can all increase your insurance costs. Enjoy competitive rates and stay eligible for discounts by practicing safe driving.
- Increase your deductible. Premiums typically decrease as your deductible increases. If you can afford the higher deductible after a loss, this can be an effective way to save money.
- Drop collision and comprehensive coverage when appropriate. Check your car's estimated value (for example, using NADA Guides). If the likely payout for a total loss is very low—often under $1,000—consider removing collision and comprehensive coverage.
- Drive less. Some insurers offer discounts for low annual mileage. Contact your agent to find out mileage thresholds for lower premiums.
- Ask about car safety discounts. Safety features such as antilock brakes, airbags, and alarm systems can qualify you for discounts.
- Get an insurance quote before you buy a new car. Some vehicles cost less to insure due to safety ratings, repair costs, and theft risk.
- Be loyal. Insurers sometimes reward long-term customers with lower rates or retention discounts after several years with the same company.
- Check your credit. In many states insurers use credit-based insurance scores when setting premiums, so monitoring and improving your credit can help lower costs.
- Join a club or association. Membership in professional groups, large employers, or civic organizations may make you eligible for discounted programs.
- Monitor your teen drivers. Teens are costly to insure; use monitoring programs, driver training, or graduated privileges to reduce risk and premiums.
- Purchase usage-based insurance (UBI). A telematics device tracks when and how you drive; safe driving habits recorded by the device can lower your premiums.
- Bundle coverages. Buying auto and homeowners or renters insurance from the same company usually earns a multi-policy discount.
- Shop around. Other insurers may offer better rates—get quotes using the same coverage limits as your current policy to compare accurately.
Commercial drivers and specialty carriers may want to compare tailored coverages such as Auto Transportation Insurance.
Auto insurance is essential, but it doesn't have to break your budget. Use these tips to save money and talk to your agent for more money-saving ideas.
Frequently Asked Questions
How much can raising my deductible save me?
Increasing your deductible usually lowers your premium, but the exact savings vary by insurer and your driving profile; balance premiums with what you can afford to pay after a claim.
When is it safe to drop collision and comprehensive coverage?
If the vehicle's market value is low and replacement would cost significantly more than your annual premium, dropping these coverages can make sense.
What is usage-based insurance and how does it work?
Usage-based insurance uses a telematics device or app to monitor driving habits like speed and braking; safer driving recorded by the program can lead to lower premiums.
Can I get discounts for safety features on an older car?
Yes, many insurers will apply discounts for safety features regardless of vehicle age, though eligibility depends on the insurer and specific equipment.