How to Lower Your Car Insurance Premium
Shopping, adjusting deductibles, dropping coverage you don't need on an older car, and using discounts usually help most. Here's what to try and what not to cut.
Quick answer
Usually the biggest savings come from comparing quotes, raising deductibles you can afford, dropping collision and comprehensive on older cars when the math supports it, and claiming every discount you qualify for. Keep liability and uninsured motorist limits strong; they protect your finances.
Levers to try
| Lever | Notes |
|---|---|
| Shop every year or two | Insurers weigh factors differently |
| Raise collision and comprehensive deductibles | See choosing a deductible |
| Drop physical damage on an older car | See when to drop collision and comprehensive |
| Bundle with home or renters | Compare the total |
| Telematics or usage-based programs | Can reward safe or low-mileage driving; see telematics |
| Pay in full | Avoids installment fees; see monthly vs. annual |
| Discounts | Good student, defensive driving, multi-car, safety features, affiliations |
| Update your mileage | Less driving can lower the price |
Don't cut these to save money
- Liability limits; see liability limits and umbrella.
- Uninsured/underinsured motorist coverage; see UM/UIM.
- Coverage a lender requires on a financed car.
The takeaway
Lower the premium by taking on small, affordable risks and claiming discounts, not by shrinking the coverage that protects you from a lawsuit or a serious injury.
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