Car insurance is one of those recurring bills that feels set-in-stone—until you know where to look. Here are ten field-tested tactics that can shave 15-40% off the average premium, without exposing you to extra risk.
1. Shop rates at least once a year
Insurers constantly tweak their pricing models. A competitor may be hungry for your profile and undercut your current rate by hundreds. Grab three quotes (NAIC recommends this minimum) every renewal cycle.
2. Bundle policies for a multi-line discount
Combining auto with home—or even renters—can unlock up to 25% in savings at major carriers. Make sure the net price (bundle vs. separate) actually pencils out.
3. Raise your deductible (carefully)
Pushing a $500 deductible to $1,000 can drop collision and comprehensive premiums by 10-20%. Just keep an emergency fund large enough to cover that higher out-of-pocket cost.
4. Trim coverage on older cars
If the vehicle is worth less than 10× your annual premium, consider dropping collision or comprehensive to avoid “over-insuring” a depreciated asset.
5. Opt into a telematics or usage-based program
Safe-driver apps or dongles track acceleration, braking, and mileage. Good habits can earn 5-30% off at renewal—instantly if you drive less than 8,000 miles a year.
6. Maintain (or improve) your credit
In most states, insurers factor credit-based insurance scores. Moving from “Good” to “Excellent” can translate to double-digit savings on premiums.
7. Keep your record clean
One speeding ticket can hike rates by up to 20%. Use a navigation app that warns of speed changes, and consider a defensive-driving course to wipe a first offense where allowed.
8. Ask about overlooked discounts
- Good student
- Military / federal employee
- Low-mileage commuter
- Affinity groups (alumni, professional associations)
9. Review coverages whenever life changes
Marriage, moving, or even changing jobs (different commute length) can alter risk ratings. Notify your carrier promptly and request a re-rate.
10. Choose cars that are cheaper to insure
Before you buy, price insurance on the VIN. Family SUVs and sedans often cost less to insure than sporty trims with high theft or repair stats.
Pro tip: Set a calendar reminder for 30 days before your renewal date—shopping early can qualify you for an “advance quote” discount.