12 Tips for Reducing the Cost of Your Auto Insurance 


There’s no getting around it – auto insurance is a necessary expense if you want to own and operate a vehicle. But that doesn’t mean it has to be expensive.

Here are 12 tips for reducing the cost of your auto insurance.

1. Shop around

The first and most obvious way to save on auto insurance is to shop around. Get quotes from multiple insurers and compare their rates. You may be surprised at how much prices can vary from one company to the next.

2. Consider dropping collision and/or comprehensive coverage

If your car is paid off, you may want to consider dropping collision and/or comprehensive coverage from your insurance policy. These coverages protect your car in the event of an accident or other damage, but they can add to the cost of your policy. If you have an older car, it may not be worth paying for these coverages.

3. Raise your deductible

Raising your deductible is one of the easiest ways to save on auto insurance. By increasing your deductible from $250 to $500, you could save as much as 30% on your premium. Of course, this means that you’ll have to pay more out-of-pocket if you do have an accident, so make sure you’re comfortable with the higher deductible before making the change.

4. Bundle your policies

If you insure your home and vehicle with the same company, you may be able to get a discount on both policies. This is called bundling, and it can save you a significant amount on your premiums.

5. Get rid of unnecessary coverage

If you have coverage that you don’t need, get rid of it. For example, if you have an older car, you may not need collision or comprehensive coverage. If you’re not planning to drive much, you may not need to insure your vehicle for full coverage. Review your policy periodically and make sure you’re only paying for the coverage you need.

6. Drive safely

Your driving record is one of the most important factors in determining your auto insurance rates. If you have a clean record, you’re likely to pay less than someone with accidents or traffic violations on their record. So drive carefully and avoid accidents to keep your rates low.

7. Take advantage of discounts

Most insurers offer a variety of discounts that can save you money on your premium. If you’re a safe driver, a good student, or have a car with safety features, you may be eligible for a discount. Be sure to ask about any discounts that may apply to you.

8. Join an affinity group

If you belong to certain organizations, such as AAA or AARP, you may be able to get a discount on your auto insurance through an affinity group. Ask your insurer if they offer any such discounts.

9. Compare rates every year

Even if you’re happy with your current insurer, it’s important to compare rates on a regular basis. Auto insurance rates can change from year to year, so it’s a good idea to get quotes from multiple companies every year. This way, you can be sure you’re always getting the best rate possible.

10. Pay your premium in full

If you can afford to do so, pay your auto insurance premium in full each year. This will save you money on interest charges and may even qualify you for a discount.

11. Raise your credit score

Your credit score is one of the factors that insurers use to determine your rates. If you have a good credit score, you’re likely to pay less than someone with a lower score. So if you’re not happy with your current rate, work on improving your credit score and then shop around for a better rate.

12. Use public transportation

If you live in a city, you may be able to save on auto insurance by using public transportation. Many insurers offer discounts to customers who don’t use their cars often. If you can take the bus or train to work, you may be able to get a discount on your premium.


There are a number of things you can do to save money on your auto insurance. Some of the best ways to save include shopping around for a better rate, bundling your policies, and taking advantage of discounts. By following these tips, you can be sure you’re getting the best possible rate on your auto insurance.