10 Strategies for Lowering Your Car Insurance

Quick Answer:
To lower your car insurance, shop around for quotes, increase your deductible, maintain a clean driving record, and take advantage of discounts such as bundling or safe driver programs.

Car insurance is one of those necessary expenses that can feel like a financial burden—especially when premiums start to rise.

In this article, we’ll walk through practical strategies to try and lower your car insurance premium, whether you’re a new driver or a seasoned commuter.

1. Shop Around for Better Rates

Not all insurance companies price policies the same way. Rates can vary widely for the same driver based on the insurer’s own risk models, claims data, and customer demographics. Don’t just look at the price—compare coverage limits, deductibles, and customer reviews.

It’s smart to shop around every six to 12 months or whenever there’s a change in your driving status, such as moving, getting married, or buying a new car.

2. Raise Your Deductible

The deductible is what you pay out of pocket before your insurance kicks in after an accident. Choosing a higher deductible—say, $1,000 instead of $250—can lower your monthly premiums.

Just make sure you have enough in savings to cover the deductible in case of an accident. A higher deductible means more upfront cost if you file a claim, but less cost month to month.

3. Bundle Policies

Many insurers offer multi-policy discounts. If you have homeowners, renters, or life insurance with a different provider, ask your car insurance company if bundling everything together will save you money.

4. Ask About Discounts

You might qualify for a car insurance discount. These include:

Safe driver discounts for maintaining a clean record.
Low mileage discounts for drivers who don’t commute far.
Good student discounts for young drivers with a GPA above a certain level.
Defensive driving course discounts, especially for older drivers.
Affinity discounts through employers, professional groups, or alumni associations.

5. Maintain a Clean Driving Record

One of the most influential factors in determining your premium is your driving history. Accidents, speeding tickets, and DUIs can cause your rates to spike—sometimes for years.

Avoid aggressive driving and follow speed limits. Insurance companies usually look back three to five years for traffic violations, so a clean record will gradually work in your favor.

6. Improve Your Credit Score

In many states, insurance companies use your credit-based insurance score to help determine your premium. A higher credit score can lead to lower premiums.

To maintain good credit:

Pay bills on time.
Keep your credit utilization ratio low
Check your credit reports for errors and dispute any inaccuracies.

Even a modest increase in your score can have a positive impact on your insurance rates.

7. Choose Your Car Wisely

The kind of vehicle you drive can affect your insurance premium. Generally, cars that are cheaper to repair, have good safety ratings, or are statistically involved in fewer accidents cost less to insure.

Sports cars, luxury vehicles, or models with high theft rates will often lead to higher premiums.

Before buying a car, ask your insurer for a quote based on the vehicle’s make and model.

8. Reduce Coverage on a Second Vehicle

If you have a second car that’s rarely driven, ask your insurer about reducing coverage while it’s not in use. This is often called “storage” or “parked car” insurance and covers the vehicle only while it’s not being driven.

You can also explore pay-per-mile insurance programs if you drive fewer miles than average each year.

9. Consider Group Insurance or Employer Programs

Some employers or professional associations offer access to discounted group insurance plans. These group rates can be much lower than what you’d get on your own.

Check with your HR department or membership organization to see if you’re eligible.

10. Avoid Lapses in Coverage

Even a short lapse in coverage can cause your premiums to increase later. Insurers often see a lapse as a risk factor, even if you didn’t have a car during the gap.

Set reminders for policy renewals or opt into auto-pay to make sure your coverage stays uninterrupted.

Lowering your car insurance doesn’t require luck or sacrifice — just a little attention to detail and some proactive steps. From comparison shopping and asking about discounts to adjusting your coverage based on your needs, there are plenty of ways to cut costs without giving up peace of mind.

Start with one or two strategies and build from there. With a bit of effort, you could save hundreds of dollars each year — and those savings can add up quickly.