image 9 Ways to Reduce Your Car Insurance Rate

9 Ways to Reduce Your Car Insurance Rate

If spending less on your auto insurance premiums sounds appealing, there’s good news: There are steps you can take to find lower rates. Here are nine tips to reduce your car insurance rate:

1. Maintain a Good Driving Record

Hands down, this is the most important thing you can do to lower your auto insurance rates. Traffic violations, speeding tickets, DUIs, and other infractions can quickly cause your premiums to soar (“Nine Ways”).

2. Shop a Variety of Different Insurers

Getting quotes from multiple companies is the best way to see where you stand in terms of your likely premium costs. You should get at least three quotes by calling the companies or using their online forms. Note that it is important not to base your decision on price alone — take recommendations based on the integrity of the company as well. AM Best provides ratings of insurers.

3. Choose Your Car Wisely

That sport coupe or massive SUV might look attractive, but consider that insurance premiums are significantly higher for such vehicles (Curtis). Use the Insurance Institute for Highway Safety’s guidelines on buying a car that won’t rack up your auto insurance premiums (“HLDI”).

4. Choose a Higher Deductible

If you can manage to set aside the money you would otherwise use for your deductible, you can pay significantly less each month in premiums. For instance, a deductible of $500 can lead to up to 30% lower premiums than a $200 deductible, while a $1000 deductible can save at least 40% (“Nine Ways”).

5. Decrease Collision and Comprehensive Coverage on Older Vehicles

A good rule of thumb to follow is this: Your car should be worth at least 10 times the premium. Older vehicles that are less valuable should have lower collision and comprehensive coverage.

6. Bundle, Bundle, Bundle

Whenever possible, get your auto and homeowners’ coverage from the same insurer.

7. Keep Good Credit

A good credit score can reduce your insurance costs, as it indicates a lower risk. Pay bills on time and do not take on more credit than you can pay off.

8. Inquire About Group Insurance

You may be able to find cheaper insurance through a group plan for professional groups or other associations. Be sure to ask your employer if there are any such member clubs you could be part of.

9. Ask for Discounts

If you are in good standing, have not had any tickets or accidents, or have taken a defensive driving course, you may qualify for discounts. Other reasons for discounts include:

  • Being a good student
  • Carpooling to work
  • Driving a below-average number of miles each year
  • Being away for travel
  • Work-from-home changes due to COVID-19

Works Cited:

1. “Nine Ways to Lower Your Auto Insurance Costs.”

2. “A.M. Best Company, Inc.” AM

3. Curtis, Glenn. “Learn 15 Tips and Ideas for Cutting Car Insurance Costs.” Investopedia, 28 Aug. 2020,

4. “HLDI.”