Creative Methods For Lowering Your Auto Insurance Premium

Jun 30, 2023

Your auto insurance policy and the degree of security it provides depend on several things. But ideally, the only monthly component you’ll be exposed to is the premium (the price you pay to keep your coverage in place). There are a couple of creative solutions to lower auto insurance costs that best suit your lifestyle and financial situation.  


Reduce The Coverage Of Your Auto Insurance Policy   

Consider reducing or dropping some coverage, like comprehensive or collision insurance. As your car ages or after you pay it off, especially for vehicles worth less than ten times the rate you are paying.  

Collision insurance is a supplemental policy that covers vehicle replacement or repair costs after collisions. Theft, natural disasters, and vandalism are examples of non-accident damages covered by comprehensive coverage. While damages like natural disasters, theft, and vandalism that are not the result of an accident are covered under comprehensive coverage. 


Go Higher When Choosing A Deductible For Your Auto Insurance 

One approach to reducing the price of your overall premium for auto insurance is to increase the deductible. This is the sum you would be responsible for paying out of pocket in case of an accident.  

For example, you may save 15% to 30% on your collision and comprehensive coverage if you increase your deductible from $200 to $500. Depending on the automobile you drive, the quantity of protection you have, and the state you live in, this could lead to significant savings. 


Reduce Your Mileage To Reduce Your Insurance Costs 

Another option to lower auto insurance costs is to drive fewer miles per year. On average, drivers countrywide save up to 2% when they carpool with coworkers or reduce their annual mileage to under 7,000 miles. Low-mileage driving is eligible for discounts in some places, such as California, up to 20%, but not in others, such as Hawaii, where low-mileage driving is prevalent. 


Bundle Your Auto Insurance With Extra Coverage 

You’ll probably get a discount if you “stack” your insurance purchases or buy many forms of coverage from the same carrier. Insurance companies are happy to provide multi-policy discounts whenever you purchase different policies because they want to get as much of your business as possible.  

When you bundle life, car, and home insurance with Nationwide Insurance, you can save up to 25% on premiums. The discount could be calculated as a fixed sum of money instead of a percentage, depending on the provider. 


Utilize Discounts For Defensive Driving Courses 

Numerous drivers have the choice of finishing either a defensive driving course or a driver’s education course. A driver must be under 21 and complete a course that qualifies to receive the driver’s education course discount.  

Depending on how expensive or inexpensive your coverage is, you may earn a discount for taking approved driver’s education courses. Discounts range from 5% to 10% for low-cost policies and up to 20% for expensive, full-service policies.  

By taking a defensive driving course, you can reduce your insurance costs by up to 10%. You must submit to your insurance company with proof of completion in each course for the appropriate age group to be eligible for the discount. 


Final Thoughts 

Various options could quickly cut your auto insurance price by several hundred bucks annually. Consider your situation before deciding which option is best for you. 



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