How To Lower Your Auto Insurance Rates in 2024

After reviewing your driving record, credit score, location, age, and a few other things, your car insurance company will crunch some numbers to come up with your premium. 

When you see the initial cost of your car insurance, it may seem unaffordable. However, you have more control over your rates than you think. Keep reading to learn how to get lower car insurance rates.

Ways to Save Money on Car Insurance

Here are some ways to save on car insurance. 

Increase Your Deductible

When you purchase comprehensive insurance or collision insurance coverage, a deductible is attached. This means if you get into a car accident, you’ll pay a fee before insurance covers the cost of repairs or replacement. 

Typically, auto insurance deductibles range from $200 to $1,000, with a lower deductible coming at a higher cost. Increasing your deductible can help you shave some dollars off your insurance premium. 

You just want to make sure you can cover this deductible in the event of an accident. 

Look Into Discounts

All car insurance companies offer drivers various car insurance discounts. Of course, drivers must meet certain qualifications to access these savings. 

For example, if you have a teen driver, which can cause your insurance to increase, with Geico auto insurance, a discount of up to $200 is available for high school and college drivers. 

Visit your insurance company’s website or contact an agent or customer service to determine what discounts are available to you.

Compare Quotes From Different Insurance Companies

Insurance companies use different rating systems when calculating insurance premiums, so the cost will vary between companies. To avoid paying too much, you can switch car insurance companies. 

Drivers should get quotes from various insurance companies and compare the costs. If you are considering going with the cheapest option, double-check that the policy will include at least the minimum auto insurance required in your state. 

Here is a chart comparing the top insurance companies and the average annual minimum coverage rates.

You should also consider any additional coverage you would like. 

Maintain a Good Driving Record

Accidents, speeding tickets, and other incidents can damage your driving record. Because this information is used to calculate your insurance premium, it can result in a higher premium. 

Here’s a look at how having a DUI, accident, or ticket on your record can affect your insurance rates.

Fortunately, improving your driving record can decrease your insurance premium because you’ll be getting insurance as a safe driver rather than high-risk auto insurance. Changes in your premium won’t happen overnight, but you’ll likely see your rates drop when it comes time to renew. 

Enroll in a Safe Driving Program

Many insurance companies offer a safe driving program, also called usage-based insurance. Basically, drivers earn a discount for their safe driving habits. Using a plug-in device and/or mobile app, your insurance company can track your driving trips and gather data about your driving habits, including braking, acceleration, and speed. 

Liberty Mutual auto insurance and Progressive auto insurance both offer a safe driving program for drivers interested in earning a discount for their good driving. 

Take a Defensive Driving Course

Driving courses can keep drivers knowledgeable of the laws of the road and encourage them to maintain safe driving habits. 

Of course, you’ll have to confirm with your insurance company if they offer a discount for drivers who take a defensive driving course, but if it does offer this discount, this is a quick and easy way to save some cash on your insurance premium.

Review Payment Options

Lowering your car insurance can be as easy as changing your payment method. Drivers often have a number of payment options available to them, and depending on their choice, they can save. 

For example, if you pay your premium in one, two, or three payments rather than in six monthly installments, your premium will be less. American Family Insurance offers a Full Payment Discount to customers when their policy is paid for in full at the time of purchase. 

Improve and Maintain Your Credit Score

Insurance companies in certain states run a driver’s credit to assess risk. Auto insurance for drivers with bad credit is more expensive. The higher the credit score, the less you tend to pay, so improving your credit score can get you a lower premium. 

You can start by getting a credit report and confirming your credit score. From there, do what you can to pay your bills on time, lower your debt, and watch your spending to keep your credit utilization down. 

Update Your Annual Mileage

Not everyone drives thousands of miles every year. Between biking, public transportation, and carpooling, you have lots of ways to get to where you want to go.

Low-mileage auto insurance discounts are available for those who drive below a certain number of miles per year. 

Review Your Current Policy

Your insurance coverage needs can change over the years. Graduation, marriage, or another major life event can require updating or changing your coverage. 

For example, you might have paid off your auto loan, meaning you’ll no longer require full coverage or GAP insurance. 

Depending on the vehicle’s age and value, you may feel comfortable only carrying liability auto insurance, so dropping collision and comprehensive coverage is a change that leads to savings. In fact, with any small or big change potentially impacting your premium, taking a look at your policy can help you ensure it reflects your current circumstances. 

Compare Insurance Rates for the Vehicle You Plan to Purchase

The type of vehicle you drive will affect your insurance premium. If you plan to buy a new car, shop around for rates to know how much insurance will cost for that vehicle. Choosing one of the cheapest cars to insure can save you a lot of money.

If you haven’t quite narrowed down what type of vehicle you want to purchase, you can get quotes for different vehicles to help you decide which would be the ideal fit for your budget.  

Bundle Your Policies

A lot of drivers find a need for additional insurance policies. For example, if you own your home or rent, you can save on insurance by bundling insurance policies such as your auto insurance with homeowners or renters insurance. 

Plus, having two insurance policies with the same insurance company makes managing the payments, policies, and more easier.