17 Ways to Lower Your Car Insurance

Shop annually (or at every renewal)

Insurers change rates constantly. Loyal customers pay 14-32% more than new customers—the "loyalty penalty."

Potential savings: $500-700/year

Get at least 5 quotes

Rates vary wildly. One insurer might charge $1,500 while another charges $3,000 for identical coverage.

Check regional insurers

Companies like Erie (Midwest), Wawanesa (CA), or Amica often beat national carriers.

Bundle home and auto

Average 10-25% discount. State Farm offers about 23%.

Potential savings: $300-600/year

Multi-car discount

Insuring multiple vehicles saves 10-25%.

Ask for every discount

Professional associations, alumni groups, employers—many qualify for group discounts.

Raise your deductible

$1,000 deductible vs. $500 saves 15-30%. Only do this if you have savings to cover the higher deductible.

Potential savings: $200-400/year

Drop collision on old cars

If your car is worth less than $5,000, consider liability-only. Use the 10% rule.

Review coverage limits

Make sure you're not over-insured (rare) or paying for coverage you don't need.

Use telematics programs

Progressive Snapshot, GEICO DriveEasy, State Farm Drive Safe & Save. Safe drivers save up to 30%.

Potential savings: Up to $800/year

Take defensive driving course

4-8 hour course (often online) saves 5-15% for 3 years.

Maintain clean driving record

Tickets and accidents have massive rate impact. One speeding ticket can cost $300+/year.

Improve your credit score

Poor credit can cost 115% more. Even small improvements help (unless you're in CA, HI, MA, or MI where credit can't be used).

Drive less

Low-mileage discounts for under 7,500 miles/year. Work from home? Tell your insurer.

Good student discount

Students under 25 with B average (3.0 GPA) save 10-25%.

Pay in full annually

Avoid monthly installment fees (typically 5-10% of premium).

Go paperless

Small savings for paperless billing and electronic documents.