How to Reduce Your Bills
The surest way to pay less is to compare what other insurers would charge you and ask your current one about discounts you may not be getting.
Compare quotes and ask about discounts
The most reliable way to lower your bill is to get quotes from other insurers and see what they'd charge for the same coverage. Insurers price older drivers differently from each other, so the gap between what you're paying and what you could pay is often larger than people expect.
Alongside that, ask your current insurer directly what discounts apply to you. Some require you to ask. A defensive driving course, low mileage, bundling your home and auto, or being retired can all matter, but which ones your insurer honors and how much they're worth is something only they can tell you.
Your coverage may no longer match your situation
Many drivers keep the same coverage they had decades ago without ever revisiting it. If your car is older and worth less, carrying comprehensive and collision coverage may cost more each year than the car is worth if it were totaled. Check your car's current value and compare it against what you're paying for that coverage.
If you drive fewer miles than you used to, say you're retired and no longer commuting, tell your insurer. Several insurers offer lower rates for low annual mileage, but they generally only apply it if you report your actual driving.
Raising your deductible is another way to lower the premium, since you're agreeing to pay more out of pocket before coverage kicks in. That only makes sense if you have the savings to cover the higher deductible if you need to.
Dropping coverage you're not required to carry is a choice, not a shortcut. Know what you're giving up before you give it up.
A completed driving course can lower your rate, but only if you send in the certificate
Many states and insurers reduce rates for drivers who complete an approved defensive driving or mature driver course. The discount isn't automatic. You typically have to send your insurer the completion certificate yourself after finishing the course.
Which courses qualify and how long the discount lasts varies by state and by insurer, so check with yours before you sign up for one, not after.
Your driving record also plays into this. If you have a recent ticket or claim, the discount from a course may be smaller than the increase from that record. Ask your insurer how the two interact before assuming the course alone will bring your bill down.
If it's been a while since you shopped around, a clean record from a completed course is also a good moment to get fresh quotes, since you may now qualify for rates you didn't before.
Questions people ask about this
Will switching insurers affect my coverage if I have a long claims history with one company?
Your claims history follows you, not your insurer, so switching doesn't erase or hide it. A new insurer will ask about past claims and price accordingly. The benefit of switching is finding an insurer whose pricing works better for your specific record, not escaping the record itself.
Does my credit score affect my car insurance bill?
In many states, insurers use credit-based insurance scores as one factor in pricing, though a handful of states prohibit this practice entirely. Check with your state's insurance department or your insurer to find out whether it applies to you and whether improving your credit could lower your rate.
Should I drop collision coverage on an older car to save money?
It depends on what your car is worth and what you could afford to replace it with if it were totaled. Ask your insurer or check a valuation guide for your car's current worth, then compare that to what you're paying annually for collision coverage.
Will my bill go up automatically as I get older, regardless of what I do?
Age is one factor insurers weigh, but it isn't the only one, and insurers don't all weigh it the same way. Your driving record, the car you drive, and where you live also factor in, which is why comparing quotes across insurers can turn up real differences even as you age.
Can I lower my bill by bundling my auto and home insurance with the same company?
Many insurers offer a discount for carrying both policies with them, but the size of that discount and whether it actually beats separate policies from two different insurers varies. Ask for a bundled quote and a separate quote so you can compare the actual totals rather than assuming the bundle is cheaper.
See what other insurers would charge you before you renew at the same rate.
Pull out your current policy and your most recent renewal notice so you have your coverage limits and deductible in front of you. Call your insurer and ask directly which discounts you qualify for, since some won't apply them unless you ask. If you've taken a driving course recently, check that you actually sent in the completion certificate. Then get quotes from a few other insurers using the same coverage limits so you're comparing like for like. If one comes in lower, call your current insurer and ask if they'll match it before you switch.
