You Are Probably Overpaying
Most people set up car insurance once and never look at it again. Meanwhile, rates change, discounts appear, and competitors offer better deals. The average American can save $400-$800/year just by shopping around and optimizing their coverage. Here are 9 proven ways to lower your premium.
9 Money-Saving Strategies
- 1. Shop around every 12-18 months — Get quotes from 5+ companies. Same coverage can vary by 50% between insurers. Use comparison sites like The Zebra, Policygenius, or call directly
- 2. Bundle home and auto — Most insurers offer 10-25% discount for bundling home/renters + auto insurance. One of the easiest savings available
- 3. Raise your deductible — Going from $500 to $1,000 deductible can reduce premiums 15-25%. Just make sure you can afford the deductible if needed
- 4. Ask about all discounts — Good driver, good student, low mileage, defensive driving course, paperless billing, autopay, professional association. Most people qualify for 3-5 discounts they never claim
- 5. Drive less — Under 7,500 miles/year qualifies for low-mileage discount at many insurers (10-15% savings). Work from home? Tell your insurer
- 6. Improve your credit score — In most states, credit score affects insurance rates. Improving from fair to good credit can save 20-30% on premiums
- 7. Drop comprehensive/collision on old cars — If your car is worth less than $5,000, the premiums may exceed potential payout. Keep liability but consider dropping comp/collision
- 8. Pay annually instead of monthly — Monthly payments often include a 5-10% installment fee. Paying the full year upfront saves $50-$150
- 9. Take a defensive driving course — Many states mandate 5-10% discount for completing an approved course. Often available online for $25-$50