Money-Saving Tips on Auto Insurance

December 21, 2017

father and son playing with cars on the ground

*Updated October 30th, 2025

You shouldn’t own a car if you refuse to carry auto insurance. It’s something you need but hope you never have to use—yet it’s far worse to be without it when you really need protection. Car insurance is peace of mind on the road, and there are plenty of ways to save without sacrificing the right coverage.

What to Know Before You Buy Car Insurance

Finding the perfect policy can feel overwhelming. State laws, different pricing models, and add-ons all impact your auto insurance premium. Too often, drivers focus on the monthly premium and overlook what the policy actually covers.

Equip yourself with the basics:

  • Each insurer uses its own formula to price a car insurance premium based on factors like driving history, location, mileage, and selected coverage.

  • Know your state’s minimums and what you personally need beyond them to be sure you have enough protection in the event of an accident.

  • Always shop around—request a car insurance quote from multiple insurance companies to compare insurance costs, options, and service.

Review Your Coverage (Start Here)

Start by reviewing your current auto policy. Make sure the liability limits meet your needs, and verify that optional protections like uninsured/underinsured motorist and medical payments fit your situation. A quick annual checkup can save you money and ensure you’re not over- or under-insured.

  • Confirm you have full coverage only where it makes sense.

  • Remove duplicate or outdated coverage you no longer need (e.g., roadside if your automaker already provides it).

  • Review your coverage anytime you move, add a driver, or buy a car.

Raise Your Deductible to Lower Your Premium

Your deductible is the amount you pay out of pocket on a claim. Choosing a higher deductible can lower premium costs because you agree to absorb a larger portion of your loss in the event of an accident. Make sure you can afford to pay the deductible if something happens, and balance savings with your financial comfort level.

Bundle Your Auto Coverage for a Multi-Policy Discount

Many insurers offer sizable car insurance discounts when you combine automobile insurance with renters insurance or a homeowners policy. If you’re a homeowner, bundling can unlock the lowest rates and a single bill. Ask your agent to quote bundle options and confirm which discounts apply.

Take a Defensive Driving Course

Completing a state-approved education course can help you get a discount—especially if you have a young driver in your family. Courses refresh skills like following distance and proper use of the anti-lock brake system, which can reduce the risk of collisions. Check your state insurance department for approved programs; many auto insurers recognize them.

Watch Your Mileage (Working From Home Helps)

Drivers who drive less often qualify for lower rates. If you’ve been working from home or put fewer miles per year on your vehicle, tell your insurer—usage-based or low-mileage programs may be discounts that may apply and may save you money.

Consider When to Drop Collision and Comprehensive Insurance on Older Vehicles

If your car is worth less than the cost of the coverage plus your deductible, it may be time to adjust or drop collision and comprehensive insurance. For coverages on older vehicles, weigh the possible loss payout against premiums. A car that’s paid off and has a low market value may not need collision and comprehensive coverage.

Leverage Popular Car Insurance Discounts (GEICO and Others)

From safe-driver to good-student savings, companies offer discounts that many customers miss. Ask your insurer to see which you qualify for:

  • Safe driver / clean driving record (fewer moving violations and no at-fault accidents)

  • Good student / young driver

  • Multi-car / multi-policy

  • Paid-in-full, auto-pay, or paperless billing
    Major brands like GEICO and others offer a discount for many of these. It pays to ask your agent to make sure you’re getting all the discounts you’re entitled to.

Buy a Car with Safety Features for Lower Car Insurance Costs

Vehicles with modern safety tech often qualify for better pricing. The Insurance Institute for Highway Safety frequently highlights features that help prevent crashes. Ask if your model’s factory-installed anti-lock braking system, airbags, and anti-theft devices qualify you for a discount on your premiums.

Maintain a Clean Driving Record

Tickets and crashes lead to higher premiums. Drive attentively, leave space, and avoid distractions. Many insurer telematics programs reward consistent, safe habits and may be offered to help you save on car insurance over time.

Always Shop Around—Especially at Renewal

Rates change. Compare at each renewal to be sure you’re getting the best rate for your profile. Different carriers weigh factors differently, so a quick check can help you save money on car insurance without changing your coverage needs.

Quick Checklist to Help You Save Even More

  • Re-quote your car insurance before each renewal

  • Verify all eligible discount categories with your agent

  • Adjust coverage on aging vehicles

  • Enroll in telematics if comfortable sharing driving data

  • Raise your deductible if you can afford to pay it

  • Take a defensive driving course or refresher education course

Bottom Line

Smart tweaks to your auto insurance—from policy coverage to shopping and discount strategies—can meaningfully reduce your car insurance costs. Use the steps above to target the biggest savings first, and revisit them whenever your life changes (new job, new address, new driver) to keep your policy aligned with your needs and budget.