How to Lower Your Auto Insurance Costs

Insurance rates vary dramatically based on the provider, your driving habits, and your vehicle. Here are the most effective steps you can take today to reduce your premiums.

1. Comparison Shop: Use online aggregators or independent agents to compare at least three quotes. Don't just look at the premium; check the company's financial stability and claim-service reputation.
2. Raise Your Deductibles: Increasing a deductible from $500 to $1,000 can save 15%–30% on collision and comprehensive coverage.
3. Drop Coverage on Older Cars: If a car is worth less than $2,000 or 10x your annual premium, collision and comprehensive coverage may no longer be cost-effective.
4. Review Medical Payments: If you have high-quality health insurance, you may be able to reduce your Personal Injury Protection (PIP) costs.
5. Check the Vehicle's "Profile": Before buying a car, check its safety and theft ratings at iihs.org. High-theft or expensive-to-repair cars cost more to insure.
6. Enroll in Telematics: Opt into "Pay-as-you-drive" programs. If you are a safe, low-mileage driver, these apps can save you up to 30%.
7. Improve Your Credit Score: In many states, a better credit score directly correlates to lower insurance premiums.
8. Bundle Your Policies: Combining home/renters and auto insurance with the same carrier remains one of the largest available discounts.

Discount Comparison Worksheet