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How to Lower Your Car Insurance

If you own a car, chances are you’ve purchased car insurance. Although it's essential, you don’t need to overspend on it. By learning and applying immediate and long-term strategies, you can lower your car insurance costs without sacrificing coverage. These strategies can help you effectively manage your car insurance expenses while ensuring you maintain the protection you need for peace of mind on the road. 

Key factors affecting auto insurance premiums

Car insurance rates are influenced by a variety of factors, each playing a role in determining the overall cost of your premium. Understanding these factors and how to decrease car insurance can help you make informed decisions.

  • Driving record: Your individual driving record may be one of the most significant factors in determining your insurance premiums. Drivers with a history of accidents or traffic violations are considered higher risk and may face higher rates than those with a clean driving record. You’ll want to know how much does insurance increase after an accident or how speeding tickets affect insurance when making decisions about your coverage.
  • Vehicle type: Your vehicle’s make, model, safety features and repair costs all play a role in your insurance rate. For example, a minivan with numerous safety features is generally less expensive to insure than a high-performance sports car. When purchasing a vehicle, consider its insurance costs along with other factors like fuel efficiency and maintenance costs.  
  • Location: Where you live or “garage” your car can influence your insurance premiums. Areas with high population density may have higher premiums due to increased loss frequency. Similarly, regions prone to natural disasters, like hailstorms, may also lead to higher premiums.
  • Mileage: Lower annual mileage or less time on the road reduces the likelihood of an accident and can often result in a lower car insurance premium. Conversely, high-mileage drivers may be seen as higher risk. For example, if you work from home, your premium may be lower than someone who has a long commute. 
  • Credit score: Many insurance companies use credit-based insurance scores as a risk indicator to determine rates. These scores are typically based on factors such as payment history, length of credit history, amount of outstanding debt and types of credit in use.

Seven effective strategies to save on car insurance

  1. Compare insurance quotes

    Comparison shopping can help ensure you’re getting the coverage you need within your budget. Insurance costs can vary for the same coverages, so it’s important to check multiple companies to learn how to lower car insurance.

    You’ll want to balance the cost of insurance with the service the carrier has to offer. Evaluate the reliability of the insurance company and their customer satisfaction. You can do this by checking their reviews to understand how they treat their customers. 

  2. Adjust your coverage and deductibles

    Your insurance needs may change over time. For instance, if your car is older, it may be less expensive to repair and insure than a new car. Adjusting your limits and coverages accordingly may help reduce your auto insurance premium.

    Raising your deductible may be a way to lower your car insurance premium immediately. However, make sure the deductible is an amount you can afford to pay out of pocket if you need to file a claim. 

  3. Take advantage of discounts and savings programs

    Amica offers various car insurance discounts for vehicle safety features or for how you pay.1 Here are a few easy ways to save money on your premium:

    • Passive restraints: You may qualify for a discount If your car is equipped with passive restraints.
    • Electronic stability control: Discounts may be available if your car is equipped with electronic stability control to help maintain handling when driving on icy or wet roads.2
    • Forward-collision warning: If your car has forward-collision warning, you may be eligible for a discount on your policy.
    • Paid in full: Savings for paying your policy premium upfront.
    • AutoPay: Discounts for enrolling in automatic payments.
    • Paperless: Savings for opting to receive your bill and policy documents electronically.3

  4. Maintain good driving habits

    Keeping a clean driving record by avoiding accidents and traffic violations is key to keeping your insurance premiums low. Drivers with no incidents on their record usually pay lower car insurance rates.

    Taking a defensive driving course may qualify you for discounts on your policy and improve your driving skills. Alternatively, you can use a telematics program like the StreetSmart by Amica™ mobile app, which rewards safe driving habits.

  5. Choose a car with lower insurance costs

    Researching the cost of auto insurance before purchasing a vehicle can save you from the sticker shock associated with insuring some newer vehicles. Certain parts and features in newer vehicles are more complex and can be expensive to repair, leading to higher insurance premiums.

    Choosing a car with a high safety rating and anti-theft devices can lower your insurance costs by reducing the risk of accidents and theft. 

  6. Review your policy regularly

    Reviewing your car insurance policy around the time it renews is a smart habit. You can ensure your coverage remains appropriate for your needs, and it can help you identify opportunities to save.

    Updating your car insurance policy after major life changes is important, as these changes may impact your premium. For example, you’re recently retired and no longer commute to work every day, or a member of your household who was listed on your policy has moved out. Both can potentially lower your premium. 

  7. Bundle your insurance policies for additional savings

    Choosing to bundle auto and home insurance with the same company can save you up to 30% off your policy premiums. Bundling offers the convenience of dealing with one company and the benefit of lower car insurance rates. If you don’t own a home, consider bundling with renters, condo or life insurance policies.

Managing your auto insurance rates

Learning how to decrease auto insurance rates can help you save money and keep the coverages you need. We’re here to support you every step of the way. An Amica representative can review your policy and answer any questions you have about coverages or discounts.

Get an auto insurance quote

or call 833-513-3881

1 Discounts not available in all states and may vary.
2 Discount varies based on type of electronic stability control.
3 Must be enrolled in both E-policy and E-bill in order to receive this discount.
4 Ages can vary by state.
 

Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts.

This inclusion of non-Amica companies, products, services or statement herein (“Third-Party Content”) is for general informational purposes only and does not constitute a recommendation or endorsement by Amica Insurance. Policies, views, opinions or positions of Third-Party Content expressed herein are those of the authors and do not necessarily reflect the policies, views, opinions or positions of Amica Insurance. Amica Insurance makes no warranties, express or implies, as to the accuracy and reliability of Third-Party Content.

This content may contain helpful tips, explanation and advice. Your use of this information is voluntary and may not be effective in every circumstance. Amica encourages you to use good judgement and put safety first.

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