Auto insurance is one of those things you don’t think about much—until you need it. Whether you’re a new driver or have been on the road for years, there are probably some lesser-known tips that could save you money, improve your coverage, and make sure you’re fully protected. Here are some essential auto insurance tips you didn’t know you needed—and how they can save you both time and money.
1. Shop Around for Better Rates—Regularly
One of the easiest ways to save money on auto insurance is by shopping around and comparing rates from different providers. Even if you’ve been with the same insurance company for years, it’s worth checking other options periodically. Many people assume loyalty to their insurer will result in the best rates, but this isn’t always the case.
How It Saves You:
By comparing rates, you could find better coverage for less. Some insurers offer discounts to attract new customers, and shopping around can uncover those deals. Make it a habit to check rates every year or when your policy is up for renewal—you might be surprised at how much you can save.
2. Raise Your Deductible to Lower Your Premiums
Your deductible is the amount you pay out of pocket before your insurance kicks in. While a lower deductible might seem appealing, it often results in higher monthly premiums. If you’re a safe driver who doesn’t file claims often, raising your deductible can significantly lower your premium costs.
How It Saves You:
By opting for a higher deductible, you reduce your monthly or annual insurance payments. Just be sure you have enough savings set aside to cover the deductible in case of an accident.
3. Ask About Discounts You Didn’t Know Existed
Insurance companies offer a wide range of discounts that many drivers aren’t aware of. These discounts can be based on factors like your driving habits, vehicle safety features, or even your occupation. Here are a few common but lesser-known discounts you should ask about:
- Good Driver Discount: If you have a clean driving record with no accidents or violations, you may qualify for significant savings.
- Multi-Policy Discount: Bundling your auto insurance with homeowners or renters insurance can lead to discounts.
- Low Mileage Discount: If you don’t drive often or have a short commute, you might qualify for lower rates.
- Vehicle Safety Discount: Cars with modern safety features like anti-lock brakes or airbags can often qualify for reduced premiums.
How It Saves You:
Simply asking your insurer about available discounts could lead to substantial savings. Many people are eligible for discounts they don’t even know exist, so it’s always worth a phone call.
4. Consider Usage-Based Insurance Programs
If you’re not a frequent driver or consider yourself a safe one, usage-based insurance (UBI) programs might be perfect for you. These programs, offered by many insurers, track your driving habits using a mobile app or device. Safe driving behaviors—such as not speeding, driving fewer miles, or avoiding late-night trips—can earn you lower premiums.
How It Saves You:
Usage-based insurance rewards good driving habits with lower costs. If you drive less frequently or are cautious on the road, this type of policy could save you a considerable amount over traditional plans.
5. Reassess Your Coverage Levels—Do You Need Full Coverage?
If your car is older and fully paid off, you might not need full coverage (comprehensive and collision insurance). While full coverage provides extra protection, it can become less cost-effective as your vehicle depreciates in value. For older cars with low market value, it may make more sense to stick with the state-required minimum liability coverage.
How It Saves You:
Dropping comprehensive or collision coverage can reduce your premiums. However, make sure you’re comfortable with the risks of having less coverage—particularly if you rely on your car heavily or it’s still worth a fair amount.
6. Improve Your Credit Score for Lower Rates
Many insurers use your credit score as part of the calculation when determining your premium. A higher credit score indicates responsible behavior, making you less risky to insure. Conversely, a lower score can lead to higher premiums.
How It Saves You:
By improving your credit score, you can reduce your insurance premiums over time. Focus on paying off debts, reducing credit card balances, and maintaining a good payment history to see long-term savings.
7. Pay in Full for Additional Discounts
Most insurers offer a discount if you pay your annual premium in full, rather than spreading it out in monthly payments. If you can afford to do this, it’s an easy way to save a little extra money each year.
How It Saves You:
Paying in full can save you up to 10% on your premium. Plus, you avoid monthly service fees or interest, keeping more money in your pocket over the course of the year.
8. Review Your Coverage After Life Changes
Major life events—like getting married, moving to a new state, or changing jobs—can affect your insurance rates. For example, married drivers tend to receive lower rates than single drivers, and moving to an area with lower traffic can also reduce your premium.
How It Saves You:
Keeping your insurance company updated about life changes can unlock discounts and ensure you’re not overpaying. Review your policy regularly and make updates as your circumstances change.
Final Thoughts: Small Adjustments, Big Savings
Auto insurance doesn’t have to be a financial burden. By understanding how your policy works and making strategic adjustments, you can lower your premiums while maintaining great coverage. From raising your deductible to taking advantage of lesser-known discounts, these simple tips can help you save hundreds—if not thousands—on your auto insurance over time.
