Who doesn’t want to save money on car insurance? While billions are spent on advertising campaigns to convince you to switch providers, the truth is, you can likely lower your premiums no matter which company you’re with. According to the Insurance Information Institute and other experts, here are some practical ways to reduce your auto insurance costs.

Smart Ways to Lower Your Insurance Cost

1. Drive Safely and Maintain a Clean Record

Your driving habits play a crucial role in determining your insurance rates. Accidents, speeding tickets, and other violations can cause your premiums to increase significantly. On the flip side, insurers reward safe drivers. Many companies offer discounts to those who have remained accident-free or violation-free for a set period.

Statistic: According to the Insurance Information Institute, even a single speeding ticket can raise your insurance rate by as much as 20%. Meanwhile, maintaining a clean driving record for three years or more can qualify you for discounts of up to 25%.

2. Adjust Your Coverage and Deductibles

Making sure your coverage aligns with your needs is essential. If you can afford a higher deductible—the amount you pay out of pocket before your insurance kicks in—you can significantly lower your premium.

Statistic: Raising your deductible from $200 to $500 could reduce your premium by up to 30%. Increasing it to $1,000 can lead to even greater savings.

Also, if your car is older and not worth much, you might consider dropping comprehensive and collision coverage to further lower costs.

3. Maintain a Good Credit Score

Many insurance companies use credit scores as a factor in determining rates. A strong credit history signals to insurers that you’re responsible, reducing your perceived risk.

Statistic: Studies show that drivers with poor credit can pay up to 71% more for auto insurance than those with excellent credit.

To maintain or improve your credit score:

  • Pay bills on time
  • Reduce outstanding balances
  • Avoid opening unnecessary new credit accounts

4. Take Advantage of Discounts

Many people overlook discounts that could help them save. Some of the most common discounts include:

  • Bundling Policies – Insuring your home and car with the same company can save you up to 25%.
  • Low Mileage – If you drive fewer miles than the average person, you could qualify for a low-mileage discount.
  • Good Student Discount – If you or a family member on your policy is a student with a high GPA, you may qualify for lower rates.
  • Defensive Driving Course – Completing an approved course can lower your premium by 5-10%.

Always ask your insurance agent about available discounts to ensure you’re getting the best rate possible.

5. Shop Around for the Best Rates

Auto insurance rates can vary widely between providers. Even if you’re happy with your current insurer, it doesn’t hurt to compare quotes from multiple companies to see if you can get a better deal.

Statistic: According to a 2023 study, shopping around and switching insurers could save the average driver up to $560 per year.

An independent insurance agent can help you compare multiple quotes and find the right balance between coverage and cost.

6. Opt for Usage-Based or Pay-Per-Mile Insurance

If you don’t drive often, consider a usage-based or pay-per-mile insurance policy. Many insurers offer telematics programs that track your driving habits through a mobile app or device installed in your car. Safe and infrequent drivers can see substantial savings.

Statistic: Some drivers save as much as 30% with usage-based insurance programs.

7. Remove Unnecessary Coverage

Review your policy to ensure you’re not paying for coverage you don’t need. For example, if you already have roadside assistance through AAA or your car manufacturer, you might not need to pay extra for it in your insurance policy. Similarly, rental car reimbursement may not be necessary if you have another vehicle available.

8. Choose the Right Vehicle

Before purchasing a new car, research how its make and model will affect your insurance premiums. Cars that are expensive to repair, have a high theft rate, or are considered high-performance vehicles tend to have higher insurance costs.

Statistic: According to a 2023 study, SUVs and family sedans generally have the lowest insurance costs, while sports cars and luxury vehicles carry the highest premiums.

Final Thoughts: Take Control of Your Auto Insurance Costs

Lowering your auto insurance costs doesn’t have to be complicated. By maintaining a good driving record, optimizing your coverage, and taking advantage of available discounts, you can significantly reduce your premiums. Shopping around and considering alternative insurance programs can also lead to big savings.

If you’re looking for the best insurance rates and expert guidance, Stocker Insurance is here to help. Contact us today for a free quote and let us help you find the perfect policy to fit your needs and budget!