Your car insurance can cover repair costs, property damage liability, or medical treatment after an accident. It’s required to operate your vehicle legally, so consider these eight ways to save money on this valuable coverage.
Drive Safely
If you’re at fault in an accident, your insurance rates may increase when your policy renews. Practice safe driving techniques and avoid moving violation tickets or at-fault accidents to help keep your insurance costs low.
Maintain Good Credit
Many auto insurers use credit-based insurance scores as one factor when setting rates. Keeping good credit can help you qualify for lower premiums.
Change Your Deductible
The deductible is the amount you pay when you file a claim. Raising your deductible can lower your premium, but only do so if you can afford the higher out-of-pocket cost after an accident.
Drop Collision and Comprehensive Coverage
Collision and comprehensive coverage can help replace or repair a vehicle that’s damaged, lost, or stolen, but insurers typically pay only fair market value. Consider dropping this coverage if your car is older or its value is very low to avoid paying premiums that exceed the likely payout.
If you work with restored or specialty vehicles, you may want to review options like Auto Restoration Insurance before changing coverages.
Qualify for Usage-Based Insurance
Some insurers offer usage-based insurance (UBI) discounts when a telematics device or app monitors driving habits such as mileage, time of day, and braking behavior. If your driving is consistently safe and limited in miles, UBI programs can reduce your renewal premium.
If your vehicle is used for specialized work—such as towing or repossession—be sure to check commercial options like Auto Repossession Insurance that address business exposures.
Ask for Discounts
- Low-mileage if you don’t drive very often or long distances.
- Car safety if your car has antilock brakes, airbags, an alarm, or other safety features.
- Good student discounts for qualifying grades and school performance.
- Personal use discounts if you do not use the car for business.
- Membership discounts for certain professional or affinity organizations.
Comparison Shop
Get quotes from several companies to find the coverage you need at a competitive rate, and review each company’s financial strength and customer satisfaction ratings. When applicable, compare specialty products such as Auto Transportation Insurance to ensure the policy fits your use.
Get an Insurance Quote Before you Buy a Car
Certain vehicles cost more to insure than others. As you shop for a car, ask insurers for quotes on the models you’re considering so you can factor insurance costs into your purchase decision.
Save money on auto insurance with these eight strategies. For additional money-saving tips, talk to your insurance agent.
Frequently Asked Questions
Will raising my deductible always lower my premium?
Raising your deductible usually lowers your premium, but the savings depend on the insurer and your driving history; make sure you can afford the higher deductible if you need to file a claim.
How does usage-based insurance collect driving data?
UBI programs typically use a telematics device plugged into the vehicle or a mobile app to record factors like mileage, speed, braking, and time of day, which insurers use to assess risk.
When is it reasonable to drop collision and comprehensive coverage?
Dropping these coverages can make sense when the vehicle’s market value is low and the annual premium plus deductible would cost more than replacing the car.
What types of discounts should I ask about?
Ask about discounts for low mileage, safety features, good student status, personal-use policies, and any professional or association memberships you have.