Most drivers are paying more for car insurance than they need to. The good news is that there are concrete, actionable steps you can take to lower your premium — some of which can save you hundreds per year.
1. Compare Quotes from Multiple Carriers
This is the single most effective way to lower your premium. Insurance companies use different pricing models, and the cheapest carrier for your neighbor might not be the cheapest for you. Drivers who compare quotes save an average of $500 to $700/year.
You should re-compare at least once a year, ideally 30 to 45 days before your renewal date.
2. Raise Your Deductible
Your deductible is the amount you pay out of pocket before insurance kicks in. Increasing it reduces your premium:
- $250 → $500 deductible: saves approximately 8% to 12%
- $500 → $1,000 deductible: saves approximately 10% to 15%
Only raise your deductible to an amount you can comfortably pay in an emergency. Saving $200/year on premiums isn't worth it if a $1,000 deductible would put you in a difficult spot.
3. Bundle Your Policies
Insuring your car and home (or renter's policy) with the same carrier typically earns a 5% to 20% discount on both policies. Even if you rent, a renters insurance policy costs $15 to $30/month and the bundling discount often offsets most of that cost.
4. Ask About Every Available Discount
Most carriers offer discounts that they won't apply unless you ask. Common ones include:
- Good driver — No accidents or violations for 3-5 years (10-25% off)
- Good student — B average or higher (5-15% off)
- Low mileage — Under 7,500-10,000 miles/year (5-15% off)
- Defensive driving course — Complete an approved course (5-10% off)
- Paid in full — Pay the annual premium upfront (5-10% off)
- Autopay and paperless billing — (3-5% off)
- Professional or alumni associations — Some carriers offer group rates
- Military/veteran — Active duty and veteran discounts
Ask your agent for a complete list of available discounts. You might be surprised at what you qualify for.
5. Improve Your Credit Score
In most states, insurance companies use a credit-based insurance score as a pricing factor. Drivers with excellent credit pay significantly less than those with poor credit — sometimes 30% to 50% less.
Steps that improve your credit also lower your insurance cost:
- Pay bills on time
- Reduce credit card balances
- Avoid opening unnecessary new accounts
- Check your credit report for errors
6. Drive Less
Many carriers offer low-mileage discounts for drivers who stay under a certain annual mileage threshold. If you work from home, take public transit, or have a short commute, ask about:
- Low-mileage discount — For driving under 7,500-10,000 miles/year
- Pay-per-mile insurance — Some carriers charge a per-mile rate, which can be much cheaper for low-mileage drivers
- Usage-based programs — Telematics programs that track your actual driving and reward safe, low-mileage habits
7. Choose Your Vehicle Wisely
If you're shopping for a car, insurance cost should factor into your decision. Vehicles that are cheaper to insure tend to be:
- Mid-size sedans and SUVs (not sports cars or luxury vehicles)
- Equipped with safety features (automatic braking, lane departure warning)
- Common makes and models (parts are cheaper and more available)
- Moderate engine size
Before buying a car, get an insurance quote for it. The difference between vehicles can be $500 to $1,000+/year.
8. Drop Coverage You Don't Need
As your car ages, certain coverages become less cost-effective:
- Collision and comprehensive — If your car is worth less than $4,000, the annual premium for these coverages may exceed what you'd receive in a payout.
- Rental car reimbursement — If you have a second vehicle or can borrow one, you might not need this.
- Roadside assistance — If you already have it through AAA or your car manufacturer, remove it from your insurance.
9. Maintain Continuous Coverage
A gap in insurance history is a red flag to carriers. Drivers with lapses pay 15% to 30% more than those with continuous coverage. Even if you sell your car, maintaining a low-cost liability policy can prevent this penalty.
10. Review Your Policy Annually
Your life changes — and so do insurance rates. Review your coverage every year and ask yourself:
- Am I paying for coverage I no longer need?
- Have I qualified for new discounts (marriage, home purchase, mileage drop)?
- Has my car depreciated enough to drop comprehensive/collision?
- Is my carrier still competitive?
Start Saving Today
The easiest way to find out if you're overpaying is to compare quotes from multiple carriers. Get your free quotes on Quorrio — it takes about two minutes and could save you hundreds per year.