How to Lower Your Auto Insurance Premiums

Whether you need to lower your auto insurance premiums or just want to find the lowest auto insurance cost to save, you've come to the right place. You can get your lowest car insurance premiums by comparison shopping, taking advantage of promotions, and reducing your coverage. You could also raise your deductible to lower your car insurance payment. Cheap car insurance isn't difficult to find when you know how to lower your insurance rates and compare quotes. You can learn more about low cost auto insurance and use our FREE search tool to compare rates below.

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Chris Tepedino is a feature writer that has written extensively about auto insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, researching investigative pieces, and crafting detailed, data-driven features. His works have been featured on CB Blog Nation, Flow Words, Healing Law, WIBW Kansas, and ...

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health in...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Jul 19, 2021

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If you need to know how to lower your auto insurance premiums, you’ve come to the right place. There are a few tried and true methods that can help you reduce your car insurance rates.

Taking advantage of discounts offered by insurance companies is one great way to lower your rates. Cheap car insurance rates are sometimes offered as an incentive to get new customers. You can see how to switch auto insurance providers here.

Other ways to save are to reduce coverage or to reduce the amount that you drive. You could also consider changing the car that you drive as certain vehicles are more expensive to insure. Another thing that makes auto insurance rates cheaper you’re already doing: getting older. Young drivers are often the most expensive.

If you want to save on your auto insurance, you can compare rates with our FREE tool.

Savings after Coverage: How to Lower Auto Insurance Premiums

Getting approved for coverage is only half the battle. If you aren’t careful, your insurance provider might not give you the best deal on a monthly rate. But there are tips, tricks, and strategies you can use in order to lower your monthly payments down to a manageable level.

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What factors raise or lower my premium?

You probably know about some factors that can raise your rates: age, accidents, and moving violations. We’re going to cover not just these things that can cause your auto insurance rates to rise but several ways you can lower your premiums as well.

How does my driving record affect my auto insurance premium?

The fewer accidents you have on your record within the last few years, the better. And if your record is squeaky-clean and accident-free, then you’ll receive some of the lowest rates around. This is because insurance companies love covering safe drivers who are the least likely to file a claim. The more money they can make off of you by not paying out claims, the more they will thank you with lower rates.

But don’t panic if you have some blemishes on your driving record. Most companies are only legally allowed to calculate your risk based on your driving history over the past 3 years. Anything older than that – whether it’s a minor speeding ticket or a serious accident – will not be considered when your provider calculates your monthly rate.

Insurance Rates and Your Driving HistoryLegend: Minor Speeding Ticket Reckless Driving/DUI Conviction At-Fault Accident Several Citations on Your Record A Clean Driving Record FloridaTexasIllinoisCaliforniaNew York 255075100125150175200225250275300325350375$159$225$199$320$126$114$160$136$276$105$42$49$52$75$34$91$164$101$170$64$107$153$95$381$93

Does the type of car I drive affect my insurance rates?

Yes, the car you drive has a very significant impact on your monthly rate. After all, your insurance policy follows your vehicle, and not specifically you, the driver. There are many factors – such as how expensive your car is, how fast it can go, how likely it is to get stolen, or even its color – which can raise your rates substantially. But if you haven’t purchased a vehicle yet, you can compare cheap auto insurance by make and model to see which vehicles will get you the best deal.

Car Insurance by Make/ModelLegend: An Expensive Sports Car An Affordable Sedan CaliforniaFloridaIllinoisNew YorkTexas 255075100125150175200225250275300325$198$64$226$126$130$34$340$93$145$105

How does where I live affect my auto premium?

Whether you’re moving across the country or a few blocks down the road, changing zip codes can and will influence your monthly insurance payment. Insurance companies use statistical data, based on particular zip codes, to calculate how likely their customers are to get into an accident or otherwise need to file a claim near where they live. So if your zip code has a high population, high rates of accidents, high rates of theft/vandalism, lots of severe weather, or a combination of those factors, prepare for a rate increase (or a rate decrease if the opposite is true in your new zip code).

How Rates Vary By Zip CodeLegend: Typical Insurance Coverage Illinois AverageCalifornia AverageFlorida AverageNew York AverageTexas Average 255075100125$34$64$126$93$105

Can I decrease my auto insurance coverage?

If you consider yourself to be a safe and responsible driver and doubt you will get into any serious accidents in the near future, you can check your state laws to see what the bare minimum insurance coverage requirements are.

Then you can call your insurance agent and ask that your policy reflect these minimum amounts. However, this can be a risky move; sure, you’ll save money on your monthly premiums, but if the worst happens and you get into an accident that a bare minimum policy doesn’t cover, you could face some seriously expensive out-of-pocket costs.

Another way to lower your monthly premium is to raise your deductible on your Comprehensive or Collision coverages. This will make your coverage less expensive each month – however, you run the risk of having to pay that higher deductible in the event that you need to file a Collision or Comprehensive claim. Additionally, many automotive insurance experts recommend dropping comprehensive and collision altogether if your vehicle is worth less than $1,000.

Different Levels of CoverageLegend: Comprehensive Coverage Simple Coverage TexasFloridaCaliforniaIllinoisNew York 255075100125150175200225250275$105$105$216$126$172$64$88$34$285$93

Does my age affect my premiums?

Yes, age is a big factor in determining your premium if you fall into a specific age group. Younger drivers under the age of 25, for example, get hit with some pretty expensive rates. Older drivers between the ages of 50-65, however, can leverage their many years of driving experience to get substantially lower rates.

How Insurance Rates Vary By AgeLegend: 31 Year Old Driver 64 Year Old Driver 75 Year Old Driver 18 Year Old Driver CaliforniaFloridaIllinoisNew YorkTexas 255075100125150175200225250275300325350375400425450475$64$57$76$181$126$72$191$275$34$28$45$88$93$79$223$482$105$85$140$310

A special note for parents with young drivers: if you have a child under the age of 25, and if your insurance company permits it, you both could save money by putting your child on a family auto policy with you. Yes, your rates will go up; however, they are not going to be nearly as expensive as they would with your young driver on their own policy. Not to mention that your provider might offer more discounts for insuring more drivers on the same policy.

Can I pay my premium in advance to lower my rate?

Most insurance companies give their customers two different payment options: either pay your premium monthly or pay in advance every 6 months. If you choose to pay in advance, your provider usually offers a discount of 10% or more off of the 6-month lump sum price.

What are three things you can do to reduce your auto insurance premiums?

You can lower your rates by:

  • increasing your auto insurance deductible,
  • taking advantage of car insurance rate discounts for new customers by changing insurance companies, or
  • bundling homeowners and auto insurance for a discount.

Of course, comparing rates between companies in your area could save you even more than that! To find the lowest automotive insurance quotes in your area, simply enter your zip code below to begin comparing prices and providers.

Free Auto Insurance Comparison

Enter your ZIP code below to compare auto insurance rates.

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