Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate drivers about...

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Reviewed by Laura Walker
Licensed Agent for 10 Years

UPDATED: Apr 23, 2019

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If you are searching for a way to lower your auto insurance payments today, you are not alone. In most states, state law requires that drivers carry proof of auto insurance.

This required driving expense is a regular part of your budget, regardless of whether you pay your premium monthly or in a lump sum.

So finding a way to cut down on the cost of auto insurance can yield regular savings that can be enjoyed on an on-going basis. There are a few key things you can do today to lower the price you pay for auto insurance.

Enter your ZIP code into the FREE tool above to compare auto insurance policies now!

Adjust Your Coverage

The first thing you can do to lower your auto insurance premium is to review your existing policy with your insurance agent.

With a quick phone call in to your agent, you can learn if you have coverage that meets state minimum auto insurance requirements or if you are carrying additional coverage.

Decreasing coverage down to meet state minimum requirements is a great way to find immediate savings on your premium. However, you do want to ensure that your coverage is adequate.

Keep in mind that any costs related to an accident that are not covered by your coverage will be your responsibility to pay out-of-pocket.

Some states have higher insurance requirements in place than others. If your state has lower insurance requirements, you can get recommendations about reasonable coverage limits that protect you from liability by speaking with your auto insurance agent.

Eliminate Optional Coverage

Many insurance companies today offer a range of optional coverages, and your existing policy may have a few of these in place. Some typical optional coverages include:

  • Roadside assistance
  • Towing service
  • Rental car reimbursement

Many drivers may benefit from time to time by utilizing these coverages, and so you may find it useful to keep these in place. For instance, if you are a single adult without access to a second vehicle, rental car reimbursement may be beneficial.

However, if you work from home or live in a two-car household, you may be able to eliminate this optional coverage for savings on your premium.

Keep in mind that some insurance companies offer variations on these coverages, too. For instance, you may be able to opt for two weeks of rental car reimbursement rather than thirty days.

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Adjust Your Deductible

Your car insurance deductible is the amount of money you are required to pay out-of-pocket when you file a claim. Most insurance companies allow you to select the amount of your deductible within a certain range.

A typical range is from $250 to $1,000. When you select the highest deductible available, your insurance premium will be considerably lower.

While opting for a higher insurance deductible can save you money on your premium, you do want to ensure you keep this amount of money in a savings account so you can file a claim as needed.

Pay Your Premium in a Lump Sum

Most insurance companies provide drivers with the opportunity to pay their premium in several convenient ways. These include:

  • In a lump sum, either annually or semi-annually
  • Monthly through a billing system
  • Monthly with an auto-draft on your bank account

While paying monthly is most accommodating to many people’s budget, it also often is most costly. Some insurance companies will charge you a fee of several dollars per month for the convenience of making monthly payments.

With some small changes to your budget, you can save your premium in your own savings account regularly and then pay the premium in a lump sum for savings.

Shop For New Rates

The above steps can all be taken immediately to save you money on your monthly premium with your current insurance company. However, you may be able to find additional savings by shopping for new rates with another insurance company.

Insurance companies regularly adjust their rates as well as the discount programs they offer, and so shopping for rates today can help you to identify possible savings.

There are several different ways you can shop for rates, and these include:

  • Calling different insurance companies to get individual rate quotes
  • Visiting websites of different insurance companies to get individual rate quotes
  • Using a price comparison to quickly and easily gather rate quotes from different insurance companies

When you do get quotes, you will want to keep in mind the above tips regarding lowering coverage amounts, reducing coverage that is not worthwhile for you to have, increasing your deductible, and paying your premium in a lump sum.

These are tips that can save you money with your current insurance company as well as with any other insurance company you choose to obtain coverage with.

For the Future

While these tips can all help you to find savings today, there are some key steps you can take for future savings. These include:

  • Compare rate quotes on various makes and models of cars before you buy your next vehicle
  • Compare rate quotes for different zip codes before you relocate. Demographic information in zip codes is used to calculate rates
  • Drive safely to improve your driving record or to maintain an excellent driving record
  • Compare rates annually to ensure you always have the most competitive rate possible on your insurance

Many people today are paying more money than necessary on their auto insurance. By following these tips, you may be able to find savings on your auto insurance costs today.

Simply enter your ZIP code into the FREE auto insurance comparison tool below!