Car insurance is one expense that most of us can’t avoid, but that doesn’t mean you have to buy it. overpayment For that! Whether you’re renewing your policy or purchasing new coverage, there’s an easy way to get the coverage you need at the best price on auto insurance.
In fact, car insurance is one of the easiest things to lower your rates with a little conscious effort. Unlike utilities or rent, you actually have a lot of control over how much you pay. Many families leave hundreds (or even thousands) of dollars on the table simply because they haven’t reviewed their policy in a while.
Let’s take a closer look at practical ways to lower your insurance premiums and save money.
Tips for getting the cheapest car insurance:
1. Shop regularly (even if you like your current company)
One of the biggest mistakes people make when it comes to auto insurance is staying loyal to one company for too long. Insurance companies often reserve the best rates for new customers. So even if you’re a safe and responsible driver, the great deal you signed up for years ago may no longer be competitive.
At least once a year (or whenever your policy renews), take the time to get quotes from multiple insurance companies, compare coverage, and see how your current premiums stack up.
This doesn’t mean you have to switch, but having competing quotes gives you leverage. Simply letting your current insurance company know that you are considering leaving your job may prompt them to lower your premiums.
2. Ask about discounts and ask again
Many insurance discounts do not apply automatically. I am often asked this question.
Common discounts include:
- Safe or accident-free driver discounts
- Great student discounts for young drivers
- low mileage discount
- Paperless billing or automatic payments
- Multi-policy (housing/rental + car bundle)
- Workplace, alumni and professional group discounts
Even if you’ve asked the question before, it’s worth revisiting. Eligibility for discounts can change over time, especially if your driving habits, work, or family circumstances change.
Hint: Ask your agent to review your account to ensure all available discounts have been applied.
3. Raise your deductible and lower your monthly premium
The deductible is the amount you pay out of pocket before the rest of your claim is covered by insurance. Choosing a higher deductible usually results in lower monthly premiums.
for example:
- Increasing your deductible from $500 to $1,000 can significantly reduce your insurance costs.
- This strategy works best if you have a small emergency fund or sinking fund set aside to cover the deductible if needed.
This is a great way to save money Ongoing By adjusting your share of liability if something happens, you can pay out money without reducing your actual coverage.
4. Re-evaluate your old car coverage.
If you drive an older car that has already depreciated significantly, it may not make sense to keep paying for full collision coverage or comprehensive coverage.
Good rule of thumb:
- If your annual coverage costs are close to or exceed the value of your car, it’s time to reconsider.
- Removing certain coverages can lead to significant savings, especially on a fully paid-off car.
You still want to keep liability coverage, but customizing your policy based on your car’s current value can save you money each month.
5. Take advantage of low mileage and usage-based programs
If you’re driving less than before, whether because you’re working from home, carpooling, or running fewer errands, you may be paying too much.
Many insurance companies offer:
- low mileage discount
- Usage-based or telematics programs that track driving habits
- Pay-per-mile insurance options
If your car spends more time parked than on the road, make sure your insurance reflects that reality.
6. Keep your driving record clean
It may seem obvious, but it’s one of the most powerful long-term ways to keep insurance costs low.
By avoiding tickets, accidents, and complaints, you can keep your base fare low, qualify for safe driving discounts, and avoid toll increases associated with violations.
Even one speeding ticket can increase your insurance premiums over the years, so driving safely can really pay off.
7. Pay your insurance premium in full if possible
Many insurance companies charge an additional fee at the time of your monthly payment, essentially adding interest to your policy.
If you can afford to pay semi-annually or annually, you may be able to avoid these additional fees and reduce your total cost.
If you find it difficult to pay in full, consider putting a little aside each month into a sinking fund for when it comes time to renew.
8. Adjust coverage for rarely used vehicles
This is a tip that MoneySavingMom readers have mentioned over the years, and it’s especially helpful for families who own multiple cars.
Call your insurance company and ask about usage reduction or storage coverage options if:
- A second car that I rarely drive
- Vehicles that are left alone for months at a time
- Seasonal or spare vehicle
You may be able to save money by temporarily lowering certain coverages while still keeping your vehicle insured.
9. Don’t auto-update without checking the policy
Automatic updates are convenient, but the price of convenience can come at a cost.
Each renewal period is an opportunity to review new discounts and adjust your coverage if your circumstances change. It doesn’t take long to shop around for a better rate, and you’ll save more money in the long run.
Taking just 30 minutes to review your insurance policy once a year can lead to significant savings.
Bonus tip: How to get the cheapest car insurance for young drivers
In the case of three young drivers, I can say it firsthand. Adding a teen or young driver to your car insurance policy will increase your premiums. There is no way around this. However, if you follow these tips when insuring your young driver, you can save even more meaningfully. Be sure to shop around, encourage young drivers to keep a clean driving record, and reevaluate full coverage for older cars.
Here are other ways to get the cheapest car insurance for young drivers.
- Take advantage of “good student discounts” — If young drivers have a good track record, many insurance companies will offer discounts just for maintaining a B average or higher.
- Consider other young driver discounts — Some insurance companies offer additional discounts for driver education courses, students attending school without a car, and if you are enrolled in a family policy rather than a standalone policy.
- Choose your young driver’s car carefully — One of the biggest cost factors is which car your young driver will be assigned for insurance. Place them in the least expensive vehicle whenever possible. Ideally, something old, reliable, and boring in the best sense of the word. By pairing an affordable car with a higher deductible (if you can afford it), you can further reduce your premiums while still maintaining the coverage you need.
Turn your car insurance into annual savings
You don’t have to switch companies every few months or become an insurance expert to get the cheapest car insurance. what is it do require treats your insurance policy like any other part of your budget, something worth checking in with regularly.
A good place to start is by choosing one small action for this week.
- Request 2 or 3 new quotes
- Call your current insurance company and ask them to review your discount
- Reconsider coverage for older or rarely used vehicles
- Adjust the deduction amount according to the amount saved
Once you do that, make it a habit. Add an annual reminder to your calendar to review your car insurance before renewal. Prices vary. Discounts will change. your life will change. Policies should reflect all of that.
Saving just $30 to $50 a month can add up to hundreds of dollars a year. This is money that can be used for groceries or paying off debts. savingsor family budget goals. And the best part? Most of these changes can be completed within an hour.
Help to save even more money:
- How to save on electricity bill
- 65+ Frugal Date Night Ideas (Free Printable List!)
- 30 Creative Ways to Save on Gas as Fuel Prices Rise
- How to save money fast: Practical actionable steps for busy families
- 55+ easy tips to save money at home
- 15 ways to make money online
- How to make money using the Swagbucks app
- Ask Crystal: Saving or investing (which is more important?)
- How I Saved $50/Month on My Bill (All It took was 2 phone calls!)
- Ask Crystal a question. What savings strategies are worth your time?
- Small leaks, big impacts: Small daily spending habits can quietly eat up (or change!) your budget.
What are some tips for finding the cheapest car insurance? Please share your advice in the comments section below.
Want to reach your financial goals but don’t know where to start?
using these Free Budget Goal Planning Worksheetstart with the most important part of goal setting and then make room for tracking your steps.
Source: Money Saving Mom® – moneysavingmom.com
