How to Save Money on Your Auto Insurance?

January 8, 2024

Car insurance can be expensive, but it is possible to save on it if you know what affects the premium. The main pricing factors are annual mileage, driving record, history of claims, credit history, the make and model of the vehicle, its age, whether the driver is married, has children, and more.

Here are the most common ways that can help you save on auto insurance:

Change Your Deductible and Policy Limits

Decreasing your deductible can help you save on the premium. Increasing your deductible, on the other hand, will inevitably lead to an increase in your premium.

Practice Safe Driving

Collisions, breaking the speed limit, DUI, and other traffic offenses raise car insurance rates. If you get a ticket, you may be given the option of attending traffic school to have it dismissed or to reduce the number of violation points on your driving history. Maintaining a clean driving record can save you time spent in class. On top of that, it could save you up to $413 annually on auto insurance.

Ask for Discounts

Bundling your car insurance with homeowners insurance can grant you a discount on both plans. Likewise, you can look for other deals, such as discounts for claim-free driving, automatic payments, and more.

Shop Around

Different insurers price their insurance plans differently, so make sure to get quotes from at least three different companies.

Consider a Less Expensive Car

If you’re looking to purchase a new or used car, compare the insurance costs of various models. It’s no secret that premiums are calculated using several factors, some of which are based on the vehicle’s price, repair costs, and overall safety record.

Improve Your Credit History

It’s no secret that car insurers often provide better rates to drivers with a good credit history. When calculating how much to charge, car insurance companies will pay attention to your credit score, and in some cases, it may be even more important than your driving record. 

However, this differs in California, Hawaii, Massachusetts, and Michigan. In these states, insurers are not permitted to take credit history into account when setting rates.

If you’re looking to improve your credit history, consider following these three simple steps:

  • Pay all of your loans and credit cards on time.
  • Maintain credit card balances below the set credit limits.
  • Only open new credit accounts when necessary. Too many applications can harm your credit history.
How to Save Money on Your Auto Insurance? 1

Oleksandr Rohovnin is a Content Marketer at and an expert contributor to CoverExplore. His passion is digital marketing, innovative technologies, tech industries, and – above all – distilling vast amounts of complex information into engrossing narratives anyone can relate to. At CoverExplore, Oleksandr stokes passion for auto insurance and the automotive industry in general in every story he curates.