Smart Shopping
How to lower your car insurance without losing coverage
Car insurance is one of the bills people renew without looking. A yearly review can cut the premium without leaving you exposed.
The policy renews, the price goes up a little, and most people just pay it. Twenty minutes once a year can change that.
1. Shop around every year
Prices for the same driver and car can vary a lot between insurers. Get at least three quotes with the same coverage and deductible, so the comparison is fair. The Insurance Information Institute lists shopping around as the first step.
2. Consider a higher deductible
A higher deductible lowers the premium. It only makes sense if you have that amount saved, ideally in a sinking fund or emergency fund.
3. Review coverage on older cars
Collision and comprehensive coverage pay up to the car's value. On an older car, the yearly cost of that coverage can get close to what the car is worth. Compare the two numbers.
4. Ask for every discount
- Bundling home or renters insurance with auto
- Safe driver and accident-free history
- Low annual mileage
- Anti-theft devices and safety features
- Good student discounts for young drivers
- Paying the premium in full instead of monthly
5. Mind your credit
In most states insurers can use a credit-based insurance score. Paying bills on time and keeping card balances low can help at renewal. See how to read your credit report.
Frequently asked questions
How often should I shop for car insurance?
At least once a year before renewal, and after big changes like moving, a new car or a new driver in the house.
Is raising the deductible a good idea?
It lowers the premium, but only if you can pay the higher deductible from savings if something happens.
When should I drop collision coverage?
When the car's value is low compared to what the coverage costs per year. Compare the premium with the car's market value.
Do small discounts matter?
They add up. Bundling, safe driving, low mileage and paying in full can each take a slice off the premium.