How to Lower Your Car Insurance

1. Shop Around for a New Policy

Shopping around for car insurance could reveal more affordable coverage elsewhere. You can get insurance quotes online, by calling the insurance company or by working with an independent insurance agent. To save time, you can use Experian's car insurance comparison tool to get quotes from more than 40 top insurance carriers all in one place.

When requesting a quote, have your vehicle info handy, including the car's year, make, model, vehicle identification number (VIN) and odometer reading. You'll also need your current insurance policy details so you can be sure to compare the same type and amount of coverage from one insurer to another.

2. Increase Your Deductible

The deductible is how much money you have to pay out of pocket before your coverage kicks in when you file a claim. For instance, if an accident results in $2,000 worth of needed repairs and your deductible is $500, your insurer will pay $1,500 and leave you responsible for the remaining $500.

Auto insurance deductibles typically range from $0 to $2,500. Increasing your deductible usually lowers your premiums. Just don't raise your deductible so high that you'd struggle to pay it in the event you file a claim. Maintaining a flush emergency fund can help ensure you can cover your deductible if you need to.

3. Look for Discounts

There are plenty of car insurance discounts available. Are you taking advantage of all of them? You may qualify for discounts including:

• A multi-vehicle discount for insuring more than one car
• A multi-policy discount for "bundling," or buying more than one type of insurance policy from the same company
• Discounts for getting quotes online or buying your policy online
• Discounts for paying your annual premium in full, using autopay or opting for paperless billing
• Discounts for completing a defensive driving or safe driving course
• Safe driver discounts for going a certain number of years with no moving violations or accidents
• Student discounts for maintaining good grades or living at a college 100 or more miles from home without a car
• Vehicle-based discounts such as discounts for new cars or factory-installed safety and anti-theft equipment
• Discounts for owning a home (even if your home insurance is with a different company)
• Senior discounts for drivers ages 55 to 69
• Affiliation discounts for belonging to certain organizations, working at certain companies or being in the military

If your current auto insurance provider doesn't offer a discount that you think you'll qualify for, shop around to find a company that does.

Stop overpaying for insurance

1Match with new policies

Answer some questions about your current plan and get matched to personalized quotes.

2Pick the one you want

We’ll show you offers from our top insurance carriers and help you shop for better rates in the future.

3Let us do the rest

From switching your policy to canceling and requesting a partial refund on your old plan, we help you do it all.

Get started

4. Reduce Your Insurance Coverage

Downgrading your car insurance could be a way to cut your insurance premiums, but it's important to make sure you'll still be adequately protected. Here are some options:

Drop Collision and Comprehensive Coverage

Most states require drivers to carry a minimum amount of liability insurance. However, full-coverage car insurance also typically includes collision and comprehensive insurance. Collision coverage pays for damage to your vehicle due to a collision; comprehensive coverage pays for damage due to other causes such as vandalism or fire.

If your car is totaled, your collision and comprehensive coverage payout is limited to the value of your vehicle. You may consider dropping comprehensive and collision coverage if your vehicle is paid off and not worth much, and you have the funds to replace or repair it out of pocket.

Most lenders and leasing companies require minimum levels of collision and comprehensive coverage for leased or financed vehicles. If you're still making loan or lease payments, or you're just nervous about dropping collision and comprehensive coverage, see if you can reduce your premiums by raising your deductibles for these specific coverages.

Drop Extra Coverage

Does your car insurance policy include extra coverage, such as windshield and glass coverage, rental car reimbursement, roadside assistance or new car replacement coverage? Depending on your driving habits and budget, these extras may make financial sense, but if you're looking for ways to cut the cost of car insurance, eliminating them could help.

5. Bundle Your Policies

Purchasing two or more insurance policies from the same company is known as bundling and typically earns you a discount on your premiums. Bundling home and auto insurance usually generates the biggest savings. However, you might also save by bundling auto insurance with life insurance, umbrella insurance or renters insurance, as well as boat, motorcycle, RV or mobile home insurance. Bonus: If your home and car are both damaged by the same event—such as fire—some insurance carriers will only charge you one deductible, even though you'll need to file two claims.

6. Improve Your Credit Score

In many states, car insurance companies can review your credit-based insurance score when pricing your insurance premiums. These scores aren't the same as the ones lenders use, but both kinds of scores are generated using information from your consumer credit report. Checking your credit score can give you an idea of where your credit-based insurance score may fall. If your score needs improvement, paying bills on time and reducing your credit utilization could help increase your credit score—which might help you pay less for car insurance.

7. Maintain a Good Driving Record

Getting into a car accident can lead to higher car insurance premiums, even if the accident isn't your fault. A moving violation can bump up your premiums, too, especially if you're cited for risky behavior such as speeding or driving while intoxicated. Conversely, many insurance companies reduce your rates if you go a certain number of years without any tickets or accidents. If your driving skills have gotten rusty, taking a safe driving or defensive driving course could boost your confidence—and may also earn you a discount on car insurance.

8. Opt for Usage-Based Insurance

Whether you work from home, are retired or have simply committed to walking and biking more often, driving fewer than 12,000 or 10,000 miles annually could save you money on car insurance. Low-mileage drivers have several options:

• Low-mileage car insurance tracks your mileage via self-reporting, third-party odometer readings or a device installed in your vehicle.
• Usage-based car insurance monitors both your mileage and your driving habits using smartphone apps or devices installed in your car. Based on behaviors such as speeding or sudden braking, insurers can assess whether you're a risky driver and adjust your premiums accordingly.
• Pay-per-mile insurance charges a base rate for each day you drive, plus a per-mile fee (typically a few cents) for each mile driven. The insurance company tracks your mileage using a device in your vehicle and bills you each month, with premiums varying depending on how much you drive. Pay-per-mile car insurance isn't available in all states or from all insurers, but may be something to explore if you don't drive often.

Frequently Asked Questions

The Bottom Line

Regularly reviewing your current car insurance coverage and exploring the rates other insurance companies offer can help ensure you're not wasting money. You can use Experian's free auto insurance comparison tool to get quotes from more than 40 top insurance carriers. It's an easy way to uncover savings on car insurance that can free up your money for other things.