Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 18, 2020

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Key takeaways...

  • Get quotes from numerous different companies to compare the best rate for the coverage you need
  • When shopping around, make sure you have your current insurance declaration page close and available
  • The benefit of discounts is that, if you are eligible for any of them, you can save a percentage on your premium
  • The kind of vehicle you drive on the road can affect how much you pay for your insurance premiums

The goal of most drivers is to find lower car insurance premiums. Car insurance may be a necessity for most drivers, but that doesn’t mean that it has to cost a lot.

There are many ways that you can lower the rates you pay. Some things can result in an immediate reduction while others take some time to see results.

It is quick and easy to find low car insurance premiums right now by entering your ZIP code into the FREE quote tool above!

Some ways to lower insurance premiums are directly related to the types of coverage you carry. Others have to do with discounts for which you are eligible, the company you use, and things you can do to change your insurance rate factors.

Table of Contents

Compare Different Rates

There are numerous car insurance companies that offer insurance policies. This results in competition to earn your business, which can result in lower premiums.

If you are insuring your vehicles with a current provider and feel like you are paying more than you should, it is worth it to at least do a price comparison of a few other companies.

When shopping around, make sure you have your current insurance declaration page close and available. This will ensure that the price quotes you are getting are for the same coverage you currently have.

The easiest way to shop for better rates quickly is via the Internet. There are many places where you can get quotes for more than one company by entering your information only once. If you don’t find a cheaper rate, at least you know you tried.

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Types of Coverage

The coverage that you carry on your insurance policy will make a big difference in your premiums. There are at least six different types of coverage that you can carry on your policy and each one is priced separately. Obviously, the more types you carry the more you will pay.

Each state insurance department outlines the minimum types of coverage that you need to carry on your policy. This would be the cheapest premium possible.

For most drivers, however, it is worth paying a bit more in order to have more coverage for you and your vehicle.

Property damage liability and bodily injury liability are usually always required. Other types to consider are uninsured motorist coverage, comprehensive, collision coverage, and some type of medical coverage.

These are more thoroughly explained by the Insurance Information Institute in this article.

Look for Discounts

One way to lower your current auto insurance premiums is through the use of discounts. These are offered by many insurance companies, so you will need to inquire if your provider has this as a perk.

The benefit of discounts is that, if you are eligible for any of them, you can save a percentage on your premium. This percentage can be as low as 5 percent and often as high as 20 percent.

One discount that many drivers are eligible for is the multi-policy discount. This is for drivers who either own or rent a house, apartment, condo, etc.

If you have a homeowner’s or renter’s policy and combine it with your auto policy, you can save quite a bit of money.

Some companies will give you a 10 percent discount, some a 15 percent, and others as much as a 20 percent discount. This discount will often apply if you are insuring multiple vehicles under the same policy.

If you are a parent of a teenage driver, you are probably very interested in finding out a way to lower your insurance premiums. Drivers between the ages of 15 and 20 get into the most accidents, as reported by the National Highway Traffic Safety Administration. This causes their insurance rates to be the highest out of any age group.

One discount offered by some insurance companies for teen drivers is the good student discount. If your son or daughter studies and does well in school, you may be rewarded with lower rates.

A good student usually refers to someone who gets an average of B or better on his or her report card.

Some insurance companies will give you a discount on your premiums if you go a certain amount of time without any accidents.

With some providers, the time period is three years, while for others it may be five. Some providers will give you a discount if you have taken some type of safety course or defensive driving class.

Some companies will give you a discount for being loyal and staying with the company for a long time, while others will reward you for switching over to a new customer.

If you rarely drive your vehicle, you may be eligible for a low mileage discount. This may also apply to vehicles such as classic cars that stay undercover or garaged for most of the year.

Ask about any discounts offered for having additional features on your vehicle such as a tracking device or anti-theft alarm.

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Driving History

Your driving history greatly affects your premiums. Some providers will forgive your first accident, while others will increase your rates immediately.

Your traffic violations will usually remain on your driving record for three years. This is true for speeding tickets, minor accidents, and other minor traffic violations.

More major ones, such as reckless driving or a DUI, may stay on your record anywhere from seven years to indefinitely.

Every time you cause an accident that results in a claim filed with your insurance company, it costs them money.

Your past driving record is an indication to your provider of how your driving habits will continue, and you will be charged a higher rate than someone with a clean record.

Although it is something that will take more time to decrease your premiums, focusing your attention on staying safe on the road will eventually pay off.

Each year that you are accident-free your premiums should decrease a little bit. Once the three years has passed and your record is clean, you should notice even more of a decrease.

While you are waiting for your record to be cleared, ask your agent if you can save any money by taking a driving safety class. Even if your insurance company won’t give you a discount, if you feel that your driving skills could improve with a class, it may be worth taking it anyway.

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Credit History

Believe it or not, your credit history has an effect on your insurance premiums. When you apply for car insurance, most insurance companies will do a credit check. Drivers who have good to great credit will pay lower rates than those who have poor credit.

This being said, it makes sense to work on increasing your credit score if you would like to lower your premiums.

As with improving your driving history, changing your credit score takes time. In fact, it takes more time to improve it than it does to decrease it.

There are quite a few things you can do to start improving your credit rating. Some are as simple and straightforward as paying your bills on time, while others may be more complicated such as requesting your credit history and fixing any mistakes.

The Federal Reserve has a number of tips to help you work on raising your credit score and, as a result, lowering your insurance rate.

Type of Vehicle You Drive

The kind of vehicle you drive on the road can affect how much you pay for your insurance premiums. Contrary to popular belief, red cars do not necessarily get more tickets than ones of other colors.

There are certain types of cars, however, that will cost less to insure. One of the factors considered by insurance companies is how much a vehicle will cost to replace or repair.

An imported luxury car will probably cost more in terms of parts and labor than a domestic one will. Also, a new car will be more to insure than one that is a few years older.

The chances of the car getting into an accident, as well as how safe the car is in a collision, are both factors. A sports car is seen as being a higher risk because of the speeds that it can reach. This will cause insurance rates to rise. If you are looking to have lower premiums, look for a different type of car, such as one that is less flashy.

A car with numerous safety features will help lower your premiums. Airbags come standard on most vehicles these days but there are some that have additional ones, such as side-curtain airbags.

Anti-lock brakes are good, as are vehicles with traction control and other devices to help stabilize the vehicle in certain weather conditions.

If you are in the market for a new car, look at the Safer Car website. This lists the cars and sedans that have received the highest safety rating possible. Most insurance companies will reward you with lower premiums if you own and insure one of these vehicles.

If you are focused on saving money, there are multiple ways to lower your premiums for car insurance. Take advantage of as many of them as possible to get your best rate.

Start shopping around for great car insurance rates by filling your ZIP code into the FREE quote tool below!