Lowering Auto Insurance Premium Costs

Lowering aut insurance premiums doesn't have to be difficult. If you need to know how to lower car insurance rates you've come to the right place. Increasing your auto insurance deductible is one way you might reduce premium rates for vehicle insurance. Taking advantage of promotions and discounts will also keep automobile insurance premium costs down. Comparing rates is another tip to reduce car insurance costs, and you can use our FREE tool to do just that. You can keep car insurance rates low by maintaining a clean driving record, reducing how many miles you drive, and continuing to be vigilant for lower rates with other companies. For more tips on lowering auto insurance premium costs, read on.

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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 Cinncinati.com. ...

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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 Rachael Brennan

UPDATED: Jul 19, 2021

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Nobody wants to pay more than they absolutely have to for a mandatory expense like car insurance. But since we all have to bite the bullet and deal with auto insurance bills, we have to get creative and find new, innovative ways for lowering auto insurance premium costs.

Below, we’ll suggest some simple strategies you can use in order to get the best possible price quote on your auto insurance coverage options. So if you’re ready to save money, read on!

Use our FREE quote tool to compare insurance rates now!

Strategy #1: Adjust the Type and the Amount of Coverage You Own

For starters, if you want to lower your auto insurance costs, then you might want to think about adjusting the amount of coverage you purchase. One of the easiest ways to accomplish this task is to lower the amount of liability coverage that is on your policy.

Just be careful of how you go about this. Obviously, carrying the bare minimum amount that is legally required in your state will get you some of the lowest possible premiums around.

Mandatory Minimum vs. Recommended Liability LimitsLegend: Mandatory State Minimum Recommended Liability Limits MinnesotaIowaNew JerseyCaliforniaWyoming 153045607590105120135150165180$30$60$12$41$72$125$84$194$27$83

But there can be serious financial consequences for you if you make this gamble and the coin does not flip in your favor.

If you get into a serious accident, and you are deemed to be mostly or completely at fault, paying out the medical and property damage costs of the accident will come directly from your liability coverage limits.

If it is a serious accident, there’s a very real chance that you may not have enough coverage to pay the costs.

In such an event, anyone involved in the accident who you owe money to can come after you and sue you for both civil and punitive damages. The courts can seize and liquidate your assets in order to fulfill your financial obligations.

A safer way to adjust your premiums is to either raise or lower your deductible on your comprehensive and collision coverage.

If you have a newer vehicle, or if you believe that repairs or replacement of your car be prohibitively expensive in the event of an accident, then you’ll probably be better off adjusting your deductible rather than eliminating the coverage altogether.

Yes, you will have to pay a little bit more money to get your car back if you do get into an accident, but it could still save you a ton of money as opposed to paying 100 percent out of pocket. And if you never get into an accident, then you’ll save even more money on top of that.

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Raising vs. Lowering Your DedictubleLegend: Lowest Deductible Highest Deductible FloridaKansasCalifornia 255075100125150175200225250275$137$62$94$25$284$85

Then again, there may be some situations in which you could save a decent amount of money getting rid of your comprehensive and collision coverage entirely. Older cars, cars with cheaper parts, or cars that have an extremely low trade-in value may not benefit very much from comprehensive and collision coverage.

Really, the only way that it would cost less to file a claim and pay a deductible for damage to an older vehicle would be if your deductible was set very low – but as you can see in this chart, lowering your deductible will significantly raise your monthly premium.

Over time, and especially if nothing ever happens to your car, you’ll end up wasting more money than you save.

Eliminating Comprehensive and Collision CoverageLegend: Without Comprehensive Coverage With Comprehensive Coverage WyomingCaliforniaNew JerseyIowaMinnesota 20406080100120140160180200220$83$114$194$239$125$164$41$57$60$75

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Strategy #2: Sniff Out the Discounts

When it comes to car insurance discounts, some companies are wise enough to be upfront and offer you every single discount they can find, based on your profile.

This helps engender customer loyalty and benefits their business in the long run, even if they aren’t making as big of a profit off of you.

But not all auto insurance providers are so forthcoming. If you suspect that you aren’t getting the discounts you deserve, then you have to channel your inner bloodhound and find them for yourself.

Standard Discounts vs. Extra DiscountsLegend: Extra Discounts Standard Discounts NationwideMercuryState Farm21st CenturyALFA 153045607590105120135150165180195210$139$206$138$215$124$149$121$186$93$157

There are lots of hidden discounts out there that most drivers don’t even know exist. But if you start asking around, you’ll discover that you can save some serious cash.

For example, did you know that there’s an advanced renewal discount if you contact your car insurance company two weeks before your next policy renewal and ask for it in advance?

There are also discounts for drivers with higher education, drivers who own (rather than lease) their vehicle, and even drivers who can prove that they have a very short work commute.

And no, this is not the same as a low-mileage discount – but it’ll be very easy to pair the two together and save even more!

Strategy #3: Compare Price Quotes from Different Companies

There’s a reason that comparing quotes among auto insurance providers is number one on our penny-pinching list. This is basically the Golden Rule when it comes to saving money on your auto insurance premiums.

Comparing Quotes Between CompaniesLegend: Average Quote State FarmElectricEsuranceSafe AutoThe General 102030405060708090100110120130$84$77$78$76$138

Of course, the more quotes you compare at the same time, the better. And you can compare as many quotes as you want with our help.

Our website is designed and optimized to help you get fast, free quotes from dozens of different auto insurance companies in a matter of minutes.

When you’re ready to start saving money, just type your ZIP code into the box and start searching for affordable providers.

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