9 Ways to Lower Your Car Insurance Premiums

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By Rebecca Henderson, Wallet Genius

Money-saving tactics are the subject of hundreds of Google searches these days. So it’s no surprise you might be looking at your car insurance premiums and wondering, “How can I save money here too?” After all, with so many companies advertising give-backs, there might be more than just extra dimes and nickels hiding in your policy.

Insurance agents typically ask a bunch of questions about you to find discounts and earn your business. However, there might be a few details they missed. To help boost your budget (and keep you saving beyond these trying times), we’ve put together a list of ways you can lower your car insurance premiums. Check out the helpful tips below. You might be surprised by some of them. Putting a few extra dollars back in your pocket is easier than you think.

A Quick Note About Car Insurance Premiums

Before we get down into the nitty-gritty, educate yourself on what affects your monthly premium. It could help you negotiate a better rate. It will definitely work in your favor when you compare rates from multiple companies — even if you decide to not switch providers.

There are quite a few factors that insurance companies look at. Some you can’t necessarily change, like your age, gender, where you live, and what coverage is required in your state. Sure, you could move to another state with lower requirements. But car insurance is still required across the nation. Uprooting your life to save a few bucks on car insurance doesn’t really make much sense.

The good news is that you can influence the majority of factors that determine your monthly insurance rate. These factors include your driving record, credit score, type of vehicle you drive, and how many miles you drive each year.

Just remember that it’s important to shop around, even after looking at these comparison sites. They may not include the lowest price out there, since insurance companies won’t pay them a commission for signing you up. Picking up the phone is still a great way to land a low insurance premium rate.

Nine Easy Ways to Lower Your Monthly Payment

So how can you lower your monthly premium without changing too much about your life? Take a look at the list below!

Purchase a “Green” Vehicle

It’s probably common knowledge that you get a tax break for purchasing a hybrid or alternative fuel car. But did you know it can lower your monthly insurance premium as well? “Farmers, for example, offers a 5% discount,” says Investopdia.

Drive Less

Here’s some real talk straight from the Insurance Information Institute: “Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.”

It might seem like a no-brainer. If an insurance company knows you’re driving less, that means less time on the road. Statistically, that means fewer opportunities to get into an accident. Relatively speaking, of course. If you’re carpooling to work or even live close to your job, you’re cutting down on the number of drivers on the road. Insurance companies often ask questions like “how many miles do you drive to and from work every day?” and “how many days a week do you drive to work?” If you’re car pooling, biking, taking the bus or subway, let them know.

Use Behavior-Monitoring Devices

Many large companies implement behavior-tracking devices to award discounts to safe drivers. For example, Experian explains that “Progressive’s Snapshot is a usage-based program that gives you an automatic discount just for participating and additional discounts if you demonstrate good driving habits.”

Be warned, though, that these devices or apps can be a trade off. The insurance company will use them to track your driving habits, including speeds, distance, reaction time, and frequent locations. Maybe you don’t want to share those details in exchange for a discount. The decision is yours, though.

Take Driver’s Ed or Be a Good Student

Good grades in school will often bring you discounts on your monthly insurance premium. If you’re long passed your schooling days, passing a driver’s ed course will show the same dedication to becoming an educated driver. “Make sure to ask your agent/insurance company about this discount before you sign up for a class,” advises Investopedia.

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