Most drivers are wasting money on car insurance without even realizing it.
Car insurance feels like one of those annoying adult expenses you just have to accept. You pay the bill, maybe glance at the coverage once a year, and hope you never have to use it. But the truth is, many people are overpaying by hundreds—or even thousands—each year simply because they haven’t taken the time to make a few smart changes. Companies bank on your inaction. That laziness? It’s profitable for them.
The good news? Lowering your car insurance bill doesn’t have to be a complicated, hours-long ordeal. A few tweaks—like asking the right questions, shopping around, or adjusting your coverage—can lead to huge savings without sacrificing protection. You don’t need to switch companies every month or be a negotiation expert. These 11 straightforward fixes are easy to implement and could save you serious money over time.
1. Shop around every year instead of staying loyal.
Car insurance companies don’t reward loyalty—they reward new customers, as stated by Parker E. Allen at Allen & Allen. Many people stick with the same insurer for years, assuming it’s easier or cheaper. But rates slowly creep up, and before you know it, you’re overpaying compared to what new customers get for the same coverage.
Take 30 minutes once a year to get quotes from a few other providers. Use comparison tools, or call a couple of agents directly. Even if you don’t switch, having those quotes gives you leverage to ask your current company for a better deal. Most of the time, they’ll match or beat a competitor’s offer to keep your business.
2. Increase your deductible to lower monthly premiums.
Raising your deductible—the amount you pay out of pocket before your insurance kicks in—can drastically lower your monthly payments, according to Doug Sebor at Nerd Wallet. If you’re currently set at $250 or $500, moving it up to $1,000 could save you a lot over the course of a year.
Just make sure you actually have that money set aside. It doesn’t help to save on your premium if you’re left scrambling when an accident happens. If you’re a safe driver with a clean record, this change makes a lot of sense. You’re essentially betting on your own driving skills—and if you rarely file claims, it’s a smart one.
3. Bundle your home and auto insurance for multi-policy discounts.
Insurance companies love when you give them more business, and they’re willing to reward you for it. If you own a home or rent and have separate insurance policies for each, bundling them under one provider can knock 10–25% off your premiums, as stated by Sharon Wu at CBS News.
It also simplifies your life—you’ll have one bill, one point of contact, and often a better customer service experience. Just make sure the bundled rate actually saves money. Sometimes the discount looks good but ends up costing more than having separate policies with different companies.
4. Drop coverage you no longer need on older vehicles.
If your car’s worth less than a few thousand dollars, it may not make financial sense to carry full coverage anymore. Collision and comprehensive insurance are designed to protect the value of your car—but if your car isn’t worth much, the payout might not be worth the extra cost.
Instead, consider switching to liability-only coverage. This protects other people in case you cause an accident but doesn’t cover damage to your own car. It’s a risk, but for older vehicles, it’s often a reasonable trade-off that can cut your premium nearly in half.
5. Ask about discounts you might already qualify for.
Many insurers offer a laundry list of discounts, but they’re not going to apply them automatically—you have to ask. Things like safe driver discounts, good student discounts, low mileage, or having certain safety features in your car could qualify you for a rate cut.
Even being a member of certain professional groups or alumni associations can score you savings. It’s worth a quick call to your agent or a scan through your provider’s discount page to see what’s available. You might be surprised how many you already qualify for but haven’t claimed.
6. Use a mileage tracking program if you don’t drive much.
If you’re working from home or just don’t put many miles on your car, you could save big with usage-based insurance. These programs track your driving habits—how far, how often, and how safely you drive—and reward you with lower rates if you’re a low-risk driver.
Apps or plug-in devices monitor things like braking, acceleration, and time of day. If you’re a chill driver and mostly stick to daylight hours, this could knock a serious chunk off your bill. Just be sure you’re comfortable with a little digital tracking—because that’s part of the deal.
7. Keep your credit score healthy to lower your premium.
Like it or not, your credit score plays a big role in your insurance rate in many states. Insurers use it as a predictor of how likely you are to file a claim. If your score is low, your premium can be significantly higher—even with a clean driving record.
Paying down debt, making on-time payments, and monitoring your credit report for errors can all improve your score over time. Even a modest boost can lead to better rates at renewal time. It’s one of those behind-the-scenes factors most people overlook, but it makes a big difference.
8. Choose your car wisely—the type you drive matters.
Insurance isn’t just about how you drive—it’s also about what you drive. High-performance sports cars, luxury models, or vehicles with high theft rates come with expensive premiums. Meanwhile, safe, practical vehicles with good safety ratings cost less to insure.
Before buying a new or used car, get insurance quotes on a few models you’re considering. Sometimes a car that’s only slightly more expensive to buy will cost far less to insure. Over time, those monthly savings can really add up, especially if you’re financing or leasing the vehicle.
9. Maintain a clean driving record to keep rates low.
It sounds obvious, but it’s worth repeating: tickets, accidents, and claims can send your rates skyrocketing. Even a minor speeding ticket can haunt your premium for three years. Insurance companies reward careful, responsible drivers—and penalize those who aren’t.
If you do get a ticket, see if you can attend traffic school to keep it off your record. And if your record isn’t spotless now, keep it clean going forward. Many insurers offer accident forgiveness programs once you’ve gone a few years without an incident.
10. Pay your premium in full or set up auto-pay.
Paying month to month may feel easier, but it often costs more in the long run. Many insurers offer a discount if you pay your premium in full upfront. Others offer small savings if you enroll in auto-pay or go paperless.
It’s not a huge discount, but every bit counts—especially when paired with other savings. If paying in full isn’t realistic, even setting up auto-pay and avoiding late fees can help keep your rate stable. It’s a low-effort way to save a few bucks every cycle.
11. Review your policy regularly so you’re not overinsured.
Life changes—your commute might be shorter, your teen driver is now away at college, or you’ve added a safer car to the garage. If you haven’t updated your policy to reflect those changes, you might be paying for coverage you don’t need.
Set a reminder to review your policy once or twice a year. Look at your deductibles, liability limits, and the types of coverage you’re carrying. If something doesn’t make sense anymore, adjust it. The more aligned your policy is with your actual life, the more money you’ll keep in your pocket.