How to Reduce Your Car Insurance

1st November 2015

Most car owners pay little attention to their car insurance and just pay the premiums year after year.  This is likely because they don’t know that there many ways that average drivers can save on their insurance – and some of it is pretty easy to implement.  Read on and see how you can save money on this necessary expense.

  1. Shop around. According to JD Power, only 40% of Americans looked around for new auto insurance last year. This one is simple; the next time you need to renew, get quotes from a few other companies.  Be sure you look at local companies, too, not just the ones on the internet advertising “low rates” says the staff at  
  2. Eliminate coverage on older vehicles. Once your car is 10 years old or so, consider scaling back to just “injury and property damage” coverage.  This can save you a great deal of money per car.
  3. Bundle insurance policies. Insuring your home and auto with a single insurance company could bring your rates down by more than 10% a year. This is another easy one.  Your local insurance agent will likely be glad to talk to you about this option.
  4. Consider being monitored. Many insurance companies now offer drivers a discount if you install a device that plugs into your OBDII port in your car and monitors your driving habits. Progressive, for example, gives discounts of up to 30% for drivers with good driving profiles.
  5. You don’t always have to file a claim. Filing a claim following an accident can raise your premium by an average of 30-40%, if you are at fault. So if you’re involved in a minor collision, carefully consider whether the money you’ll get back will exceed the premium hike.
  6. Get a mileage discount. Some companies will offer you a discount if you drive less than the average number of miles per year.
  7. Got a good credit score? Your credit score could be factoring into your insurance rate.  A recent study found that there is a 50% difference in the cost of auto insurance premiums for someone with great credit and someone with no credit history.
  8. Got a teenager?  Make sure your insurer knows if your kiddo gets good grades.  Students with good grades pay an average of 5%-20% less than their fellow teens did on car insurance.

Thanks to Reedman Toll Subaru


Corey is an all round tech guru who has worked at some major blue chip companies. He started Poweronemedia to share his views and knowledge with the rest of the blogging world.