10 Ways to Save Money on Auto Insurance

If you’re driving, you need auto insurance. If you’re like most people, lowering auto insurance costs sounds like a great idea. After all, who wants to spend more money than necessary?

Personally, I’m trying to take a closer look at reducing regular expenses, and the costs of driving a car can really add up. Along those lines, the insurance part of it is an area that I’m revisiting.  Since we have to get car insurance, and those costs aren’t insignificant, we might as well look for ways to reduce those expenses.

Here are 10 ways to to lower auto insurance costs:

  1. Actively shop for the best rates.  The quotes that you might get for auto insurance can actually vary depending on who you talk to, and where you’re looking. Take the time to do your homework, and show a little persistence in looking for the best possible rates. A little bit of money saved with each payment can add up to a pretty decent amount over the course of time.
  2. Raise your deductibles. A deductible is the amount of money that you will be responsible to pay, out of your own pocket, before the insurer responsibility kicks in. If you raise the deductible threshold amount, your payments will decrease as well.  If you end up driving without accidents, this will save you money. Just be careful, as with an accident you would have to pay more out of pocket with a higher deductible.
  3. Drive a low-premium vehicle. Some cars can better than others for premiums. You might pay more if you drive a sports car, a luxury car, a large SUV, a very small car, or others. It really depends on how your car can handle damage, how expensive it might be to repair, and how much damage it could inflict on other cars.
  4. Utilize multi-car discounts.  Do you have multiple cars in your household? You might be able to save money with a multi-car discount, covering those cars with the same insurer.
  5. Drive safely. This was already noted in #2 above with respect to raising deductibles, but accidents can also raise your rates. Drive safely, and you can keep your rates low.
  6. Shorten your commute.  The distance you drive back and forth to work each day can matter in determining your rates.  You might be able to get lower rates if you have a short commute to work. I know someone who’s had a 2 mile commute to work for some years now (must be nice!), who’s talked this up. Hard to choose a job based on lowering insurance costs, of course, but it’s still something to keep in mind in terms of your mileage.
  7. Take advantage of multi-line discounts.  Bundling auto insurance with home or renter’s insurance is another potential way to save money.
  8. Take a defensive or safe driving course. Such a driver improvement type of class might lower your insurance premiums. It’s worth inquiring about such potential savings before making the investment in a class.
  9. Consider dropping collision coverage on older cars. If you believe in car longevity, and drive a car until it has a sky high mileage number, you may be in a position to consider dropping collision coverage.  It’s good to take a step back and determine exactly what coverage you’ll really need.
  10. Invest in an approved anti-theft device.  Sometimes, depending on the device, you might be able to obtain extra savings by installing an alarm system/anti-theft device. Protect your car and potentially save money in the process!

My Questions for You

Do you take advantage of any of these measures?

Do you have any additional tips to share?

What do you think is the best advice to give someone trying to successfully reduce car insurance costs?


  1. says

    Great tips! I take advantage of most of them, but haven’t invested in an improved anti-theft devise or taken a defensive driver course. Still, it is nice to read that I am doing several things right. :)

  2. says

    Good points. I would add consider your choice of car when you replace it by checking with the insurance company. My cars (Hondas) are great in every respect except it is a popular stolen car. The good news is it is generally the new models that are stolen. I am sure it affects the rates.

    • Squirrelers says

      Krantcents – you’re inferring that you have an older Honda, which I like to read in that it shows that you’re getting the most out of your vehicle. Drive ’em until they’re old!

  3. says

    Haven’t done 4, 8, 9 or 10, but did shop around and managed to lower my premiums considerably! For once, premiums have been going down every six months.

  4. says

    Those are good tips. Since I had my first at fault accident last year I’m worried that my premium will go up when my insurance renews. Maybe these tips can offset that.

    • Squirrelers says

      Andy – hopefully that doesn’t happen for you, after what I assume is a long record of no accidents that were your fault. Best of luck.

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