8 Ways to Lower Your Car Insurance Fast

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Written by Rayna Opoku Edited by Quiana Darden Reviewed by Amanda Clear

Updated November 14, 2022

We’ve all been there. You’ve come home to yet another bill showing an expensive car insurance bill – one that’s much more than your budget allows. You’re wondering how to make your car insurance cheaper once and for all. 

Thankfully, there are practical and efficient ways to lower car insurance quickly. 

Key Takeaways:

• You don’t have to accept that high monthly bill from your current auto insurance carrier. Instead, find ways to lower your policy or find a new insurance carrier that will charge less for your coverage.
• There’s no harm in asking your insurance agent or carrier about the discounts that may be available to you.
• Being a responsible driver helps to keep your auto insurance premiums low.

How Much Does Car Insurance Cost?

Auto insurance companies take multiple factors into account when calculating your insurance premiums. While these will vary from insurer to insurer, most companies will consider these factors: 

• Age
• Gender
• Marital status
• Zip code
• Driving record
• Annual mileage 
• Car make and model
• Credit history

How To Lower Your Car Insurance Costs

You’re not alone if your monthly insurance rates are getting out of control. Many people feel they currently overpay for auto insurance. Don’t pull out your hair just yet if you’re at your wit’s end. We’ve got you covered regarding the best ways to save. 

Here are 8 easy ways to lower your car insurance 

Bundle Home and Auto Insurance

Buying multiple policies from one company can significantly lower your insurance rates. Most companies offer special discounts when you bundle your home and auto insurance. 

There are other types of insurance that you can bundle to achieve lower rates. For example, try bundling your auto insurance with renters, health, and life insurance. 

Reduce/Remove Coverage On Older Cars 

You may consider reducing certain insurance coverage or removing it as your car ages. When your car decreases in value, you don’t want to pay for unnecessary coverage. 

For example, let’s say you’ve owned a vehicle for over 10 years and the value has depreciated greatly. You may decide that since it doesn’t hold as much value, it’s time to reduce your coverage limits. In doing so, you’ll save money on your premium.

Many insurers will not pay claims exceeding your car’s value, so dropping comprehensive insurance or collision coverage on an older vehicle may be wise. It will reduce your rates and prevent you from paying for insurance that may not even cover you. 

Ask Your Insurer About Discounts 

Knowing about car insurance discounts will help you get the best deal with your insurer. Keep in mind that not every discount is advertised. There may be discounts that you are eligible for but unaware of. Be sure to ask your insurance agent about discounts that may not have been publicized but can save you much on your coverage. 

While every major insurer has varying policies, here are some discounts you might want to consider to get cheap auto insurance.

• Multi-Vehicle Discount: Save up to 25% on your car insurance quotes when you insure more than one vehicle on the same policy. 
• Bundle Your Policies: Bundling your insurance policies can get you a discount of up to 25%. Consider bundling your home and auto, life and health, or renters and homeowners insurance to enjoy cheaper monthly premiums. 
• Paperless Billing: Most companies will reward you by simply choosing to go with paperless billing or enrolling in their automatic payment program. You’ll save trees and save on your rates. 
• Good Student Discount: Most insurers allow those maintaining a “B” average or 3.0 GPA to be eligible for a good student discount. This can save you up to 10% or more on your insurance premiums. This typically applies for drivers under 21 years old. 
• Vehicle Safety Discount: Your car’s safety features can save you up to 40% on your yearly insurance premiums. The safety features that qualify vary by insurer but generally include factory-installed airbags, daytime running lights, electronic stability control, and anti-lock brakes. 
• Anti-Theft Discount: If you have features like a car alarm or vehicle tracking system, your insurer will award you a discount — saving you 15% to 20%.
• Safe Drivers Discount: If you have a history of driving safely, you might qualify for a safe driving discounts with your insurance company

Increase Your Deductible 

Your deductible is what you pay out of your pocket when filing a claim before your insurance covers the rest. The amount you pay depends on your circumstances and preference. Paying a higher deductible will lower your monthly rate, whereas paying the minimum deductible will raise your rate but lower out-of-pocket costs in the case of a claim. 

It’s essential to consider the value of your car, as it’s usually the limit to the coverage you’ll get from your insurer. So if you pay your vehicle off or it’s an older model, having a lower deductible might not be worth it. 

Switch to Usage Based/Pay-Per-Mile Car Insurance 

Usage-based auto insurance tracks the quality of your driving, such as speeding and harsh braking. Your insurance company will use telematics to observe your driving behaviors. This data is reported to your insurance company and tracks behaviors like speeding and braking. 

This helps your insurers accurately analyze your driving data and accident damages. Your car insurance company will adjust your car insurance premiums based on your driving behaviors. So if you’re confident in your skills, this may help to lower your rates. 

Pay-per-mile car insurance lets you pay based on how many miles you drive. This insurance coverage charges you a monthly base rate plus a per-mile fee. 

You can estimate how much you might save by using this calculation:

{Monthly base rate + (Per-mile rate x Estimated number of miles you drive per month)}

The actual costs will vary based on how many miles you drive. However, if you work from home, like biking and taking walks, or are a college student who tends to use public transportation — this may be the perfect way to get the cheapest car insurance.

Shop for Insurance Before Buying a Car 

Before purchasing your car, take time to see how much you would pay in insurance before you buy. Many auto insurance comparison companies allow you to compare specific makes and models to estimate monthly payments. 

Insurance companies collect information about car models to determine how much to charge drivers. If a certain car model has expensive parts or is challenging to repair, you’ll notice higher auto insurance rates. You’ll see the opposite with a car with cheaper, easy-to-source parts.

While you may think that buying a newer car with safety features can help you enjoy savings, think again. Newer cars come with complex electronics that are expensive and complicated to repair. This could have you paying more for car insurance than if you chose a cheaper car without all the bells and whistles. 

Shop at different insurance companies to find what works best for you. Decide what type of coverage you need, request quotes from insurance agents, and which discounts you may qualify for to get the best rates.

Pay for Your Entire Premium Upfront 

Rather than paying monthly for your insurance, making an upfront payment may reduce your premium. When you pay in full, you pay for the months ahead, which results in spending less over the year — avoiding late and interest fees. 

Shop for Car Insurance Regularly 

Car insurance rates fluctuate for various reasons. Comparing rates from different insurance companies, usually every 6 to 12 months, might be a good idea. 

You may also consider getting new insurance quotes if you marry, move states, graduate, or buy a new car. Additionally, as you become a more reliable driver with a better record, you may be eligible for a lower rate at a different insurance company.

Other Ways You Can Save Money on Car Insurance 

While everyone loves a good discount, there are some primary guidelines for saving money on car insurance. Here are 3 general tips that everyone should know to reduce their car insurance costs. 

Don’t Let Your Car Insurance Lapse 

A car insurance lapse is when you own a registered car but it doesn’t have insurance coverage. Even a car insurance lapse of a day can hurt your car insurance rates. 

A lapse in car insurance can happen when you:

• Were a few days late paying your monthly premium 
• Have missed several payments
• Canceled your auto insurance premium without securing a new policy
• Forgot to renew your policy 

A lapse in car insurance will affect your car insurance rates for about six months, but some drivers may feel its effects for much longer. The time it hangs around on your record depends entirely on your insurance company. 

Depending on how long you let your car insurance lapse, you might find it difficult to secure insurance in the future. Insurers will view you as a high-risk driver, and you’ll have higher insurance rates for some time. 

Improve Your Credit Score 

Many states allow insurance companies to look at your credit history when calculating your insurance rates. While comparing multiple insurance companies won’t negatively affect your credit score, low credit ratings can affect the cost of your auto insurance rates.

Insurance companies believe that your credit rating directly correlates to the likelihood of you filing an auto insurance claim. While a low credit score won’t prevent you from getting auto insurance, drivers with low scores will pay more for insurance than drivers with good scores. 

You can improve your credit score by paying your bills on time, keeping your credit utilization low, and not applying for new accounts. Avoid engaging in financial actions that deem you a high-risk driver to insurers. 

Maintain a Good Driving Record 

Having a good driving record is essential if you want a cheap insurance rate. A good driving record is one without any accidents, violations, or convictions. Drivers with good driving records are considered low-risk drivers by insurance companies. Avoiding tickets and accidents on your record is key to keeping car insurance costs low.

Use Compare.com to Find Cheap Car Insurance 

Comparing car insurance companies rates is the perfect start to obtaining auto insurance. Save time and money by using Compare.com to find the best auto insurance rate for you — it’s easy and free. Just enter your zip code to find the cheapest car insurance rates and coverage options.

Rayna Opoku Auto Insurance Writer

Rayna Opoku is an expert content writer who has spent the last two years creating in-depth guides and articles for the auto insurance industry. With over four years of experience writing for various companies, she's able to make even the most complicated of concepts sound simple and straightforward. When she's not writing about car insurance, you can find her exploring the next Fintech trend, smashing birdies down the badminton court, or sipping a mocha at her favorite cafe.