Insurance rates vary widely from one company to another, even for the same driver and the same car. A few smart moves can bring your premium down.
Shop around every year or two
Rates change, and the company that was cheapest a few years ago may not be the cheapest today. Get quotes from at least three insurers with the same coverage limits so you are comparing like for like.
Bundle your policies
Many insurers offer a discount when you combine auto insurance with home, renters or other policies. Ask for the bundled price and compare it with separate policies.
Raise your deductible
Your deductible is what you pay before insurance covers a claim. A higher deductible usually means a lower premium. Make sure you have enough savings to cover the deductible if you need to.
Ask about discounts
Insurers offer many discounts that drivers never ask about. Common ones include:
- Safe driver or claim-free discounts
- Good student discounts for young drivers
- Multi-car discounts
- Discounts for anti-theft devices and safety features
- Paying in full or setting up automatic payments
- Completing a defensive driving course
Consider usage-based insurance
Some insurers offer programs that track your driving through an app or a plug-in device. Safe, low-mileage drivers can earn significant savings. Read the details so you understand what data is collected.
Review your coverage
If your car is older and worth little, collision and comprehensive coverage may cost more than it is worth. Compare the car’s value with what you pay for that coverage each year. Never drop below your state’s required liability limits.
Keep a clean record
Accidents and tickets can raise rates for years. Driving safely is the most reliable way to keep premiums low over time.
Check your credit
In many states, insurers use a credit-based score when setting rates. Paying bills on time and keeping balances low can help.
Keep reading: Car maintenance schedule and the tire buying guide. See current automotive deals.
