How to Lower Your Car Insurance
July 1, 2025 • 4 mins
Article Contents
If your car insurance premiums have gone up, you’re not alone. Various factors — more accidents, higher repair costs, more lawsuits — have driven up rates.
Here’s the good news: there are various ways to lower your monthly auto insurance bill.
Review your coverage
Look over your auto insurance policy to make sure it fits your needs. If you have an older car whose value has decreased, it might make sense to drop your collision and comprehensive coverage, which are optional. (Collision pays for repairs to your vehicle if you hit another car or an object, while comprehensive pays for car damage caused by severe weather, falling objects, vandalism, or theft.)
When a car depreciates, keeping collision and comprehensive insurance might not be worth the expense. If your annual auto insurance premium exceeds 10% of your car’s current value, which you can find on Kelley Blue Book, you might want to drop those optional coverages. This could lower your annual insurance costs by several hundred dollars a year.
Some drivers will want to hold onto their comprehensive and collision insurance. If you have a car loan or lease, lenders generally require that you keep those coverages. And if your car is old but classic — and holding its value — your best option is classic car insurance, which includes comprehensive and collision.
Raise your deductible
When you file an insurance claim, your deductible is the amount you pay out-of-pocket, before your insurance company starts to pay.
Let’s say you crash into a lamppost, causing $1,500 worth of damage to your car, and your auto insurance policy has a standard $500 deductible. You’d pay the first $500, and your insurance company would pay the remaining $1,000 for the repairs.
Raising your auto policy’s deductible can lower your monthly insurance premiums, sometimes by 20% to 25%, according to Consumer Reports. Just remember that if you do have an accident, you’ll pay more out-of-pocket when you file a claim. Not all types of auto insurance have a deductible. Deductibles usually apply to collision, comprehensive, personal injury, and uninsured/underinsured coverages.
Ask about auto insurance discounts
Most insurance companies offer discounts, so take advantage.
Do you drive 10,000 miles a year or less? If so, your accident risk is lower, so you may qualify for a low-mileage discount. Have you had a clean driving record for the last few years? Ask about a good driver discount. You may also qualify for a discount if you take a defensive driving course or agree to track your driving habits via a smartphone app or a monitor that plugs into your vehicle.
If your car has anti-theft technology, ask about an anti-theft discount. If it has anti-lock brakes or other safety equipment, you may qualify for a vehicle safety discount.
If you renew with your auto insurance company year after year, your insurer may reward you with a loyalty discount. You could get a bundling discount if you purchase your auto and home insurance through the same company, or if you insure more than one vehicle through the same insurer. Drivers who pay their entire annual premium upfront, rather than in monthly payments, may get a pay-in-full discount.
Younger drivers pay more for auto insurance, but there are discounts for them, too. Students who maintain top grades may qualify for a good student discount. There are also discounts for college students living away from home if they keep their vehicle at home during the school year.
To learn about available discounts, visit the insurance company’s website or call an agent.
Should you steer clear of buying a red car?
You may have heard that red cars get pulled over more often than other cars and have higher insurance rates. That’s a myth. So if you drive a cherry-red car, enjoy it without worry.
If you have multiple vehicles, reconsider your coverage
People generally pay more than $1,000 a year to insure a second vehicle — which they may not use regularly — so review your policies.
Do you work from home and no longer commute? Ask for a reduction on your insurance premium.
Do you have a daily driver as well as a ragtop convertible that stays garaged in winter? Consider suspending your insurance coverage for the convertible during the colder months. (Keep in mind that if the car is stolen, you won’t be able to file a claim.)
You can change your auto policy at any time, so there’s no need to wait until renewal.
Improve your credit score
Drivers with higher credit scores tend to get better auto insurance rates. Take steps to boost your credit score and, once you’ve done it, let your insurance company know.
Shop around from time to time
It’s a good idea to comparison shop periodically. There could easily be a half dozen or more auto insurers serving your area.
You can change auto insurance companies whenever you like, even mid-contract. (Just know that if you switch before renewal time, you may pay a cancellation fee.
If you find a policy that has a lower rate than your current auto insurance, make sure that it doesn’t have a much bigger deductible or smaller coverage limits. Read the policy details and ask questions to make sure you fully understand the policy before you buy.
Before switching insurers, also check the company’s financial health rating from companies like AM Best and Standard & Poor’s.
Patelco can help you explore auto insurance options that fit your needs — and your budget.
Sources:
Consumer Reports, “How to Save Big on Your Car Insurance,” December 30, 2024.
ValuePenguin, “State of Auto Insurance in 2025,” January 6, 2025.
Kelley Blue Book, “How to Choose Your Car Insurance Deductible in 2025,” December 9, 2024.
Forbes Advisor, “When To Drop Collision and Comprehensive Insurance on a Car,” March 12, 2024.
MoneyGeek, “When Should You Drop Collision and Comprehensive Coverage?” June 12, 2025.
Car and Driver, “A Classic Car Owner’s Guide to Insurance: Everything You Need to Know,” accessed June 19, 2025.
Nasdaq, “3 Signs You’re Overpaying on Car Insurance,” November 14, 2024.
Insurance Information Institute, “Nine ways to lower your insurance costs,” accessed June 19, 2025.
Forbes Advisor, “10 Ways to Lower Your Car Insurance Costs,” April 16, 2025.
Car and Driver, “Car Insurance for College Students: All You Need to Know,” July 13, 2023.
PolicyGenius, “How does adding a second car affect insurance rates?” June 29, 2022.
Consumer Federation of America, “Tips for Saving Money on Your Auto Insurance,” July 26, 2023.
Experian, “Do I Need Insurance on a Stored Car?” April 12, 2024.
Institute for Transportation, Iowa State University, “One car, two car, red car, blue car,” November 2, 2017.
This article was created in accordance with the Patelco editorial policy.
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