It is easy to renew car insurance without a second look, even though prices, discounts and your needs change over time. The car you insure today may be worth far less than when you first chose your coverage, and the household behind the policy may look different too. The good news is that many ways to save do not take anything away from your protection. Below are ten of them, grouped from the quickest to the ones that take a little more thought. Not every step fits every driver, and results depend on your insurer and your state, but working through the list can help you find savings.
Pay less for the same protection
1. Shop around at every renewal
Each insurer weighs the same facts about you in its own way, which is why two companies can price identical coverage very differently. Loyalty does not always pay either: a renewal offer can go up even in a year with no claims or tickets. Put a note on your calendar four to six weeks before the renewal date, and compare again whenever your situation changes, for example after moving, getting married or buying a car. Starting early means you can switch on the renewal date with no lapse in between. The Rate Checklist lists everything to have ready.
2. Compare quotes line by line
A lower price only counts if it buys the same protection. Before you look at the total, check that each quote has the same liability limits, uninsured motorist coverage, deductibles and add-ons. A quote that looks cheaper may simply cover less. For a walkthrough of what to line up, read our Compare Policies guide, then enter your offers in Compare Quotes to see them next to each other.
3. Ask for every discount you qualify for
Some discounts are added automatically, but others only show up on your bill after you ask for them. Common examples reward a clean driving record, good grades, safety and anti-theft features, low mileage, completed driving courses and membership in certain groups. Check your declarations page for the discounts you already have, then ask your insurer or agent about the rest. Available Discounts has the full list.
4. Bundle policies and cars, then check the math
Placing your auto coverage with the same company as your home or renters insurance, or listing every household car on one policy, frequently comes with a discount. Still, a bundle is not automatically the lowest total. Ask for a bundled price and for separate policies, and compare what you would pay for everything combined.
5. Pay in full, or at least set up autopay
Splitting the premium into monthly payments can come with a small fee on each bill, while paying the six- or twelve-month total at once may earn a discount. Signing up for automatic payments or electronic documents can bring a modest discount as well. If a lump sum is hard to manage right now, use the Budget Calculator to set aside a little each month so you can pay in full next time.
Adjust how your policy is built
6. Choose deductibles you could actually pay
A deductible is the share of a collision or comprehensive claim that comes out of your pocket, so taking on a bigger share tends to bring the premium down. The trade only works if you could pay that bigger amount on a bad day without a loan or a credit card balance. To see whether the savings are worth it, try the Deductible Calculator, which shows how many years of lower premiums it takes to cover the difference. Comprehensive vs. Collision explains why many drivers set the two deductibles differently.
7. Rethink collision and comprehensive on an older car
If your car is totaled or stolen, these coverages pay what it was worth just before the loss, less your deductible, and cars lose value every year. On an older, paid-off car, the yearly cost of the coverage can become large compared with what it could ever pay. Dropping it means you would pay for your own repairs or replacement after a crash, theft or storm, so only consider it if you could handle that from savings. How Car Depreciation Affects Your Coverage and the Coverage Calculator help you weigh it.
8. Trim add-ons you do not use
Look at each optional coverage on your declarations page and ask whether you still need it. Roadside assistance may duplicate what you already get through an auto club, a credit card or your car's warranty. Rental reimbursement matters less if your household has a second car you could use. Keep what fills a real gap and drop only true duplicates.
Change the factors behind your rate
9. Consider usage-based or pay-per-mile insurance
Telematics programs track your driving through an app on your phone or a small device in the car, looking at things like hard braking, time of day and total miles. Smooth, low-mileage drivers are often the ones who benefit, and pay-per-mile plans, where offered, charge partly by the mile. Before you enroll, find out what data is collected, how it is used and whether a poor score could increase your premium, since that depends on the program and your state.
10. Keep your record clean and your details current
A speeding ticket or an at-fault crash can follow your premium for years, which makes safe driving a saving that keeps paying off. Tell your insurer when something changes in your favor, such as a shorter commute, fewer miles, a move or a driver leaving the household. Where state law allows insurers to use credit-based insurance scores, paying bills on time can also help over time. And before you buy your next car, get quotes on the models you are considering, since repair costs, safety features and theft risk all affect the price.
Protect the essentials: the savings from cutting liability to your state's minimum, or from removing uninsured motorist coverage, are usually small next to the bills you could face after a serious crash. Keep those coverages strong and trim elsewhere. The Coverage Levels Guide explains why.
Where to start
If you only have an hour, start with the first three steps: gather your details, ask about discounts and compare quotes for the same coverage before your next renewal. None of them reduces your protection, and they are often where the easiest savings are. Then review your deductibles and add-ons once a year. For a deeper look at each idea, read our guide on how to lower premiums. To get help lining up your quotes, you can compare the monthly plans on Start Your Coverage.
This article is general information to help you understand auto insurance. It is not insurance, legal or financial advice, and AutoAssures.com is not an insurance company. Coverage, prices and rules vary by insurer and state; confirm details with a licensed agent or insurer.
