How to Save Big on Car Insurance?

On February 25, 2026 By newsroom Topic: Automotive

With insurance premiums rising sharply due to increased crashes, repair costs, and litigation, it's more important than ever to find ways to save. Here's a detailed guide to help reduce your car insurance costs while maintaining the right coverage.

1. Increase Your Deductible

Savings: $400–$500 annually.
How It Works: Raising your deductible from $500 to $1,000 can lower premiums by 20–25%.
Tip: Ensure you have enough savings to cover the deductible if needed.

2. Drop Collision and Comprehensive Insurance

Savings: ~$1,000 annually.
When to Drop:
If premiums exceed 10% of the car’s value.
Consider keeping comprehensive longer for glass coverage.
Caution: Ensure adequate liability coverage to protect against out-of-pocket costs.

3. Take a Defensive Driving Course

Savings: $200 annually.
Details: Many insurers offer discounts after completing state-approved courses, especially in high-cost states like New York.

4. Report Low Annual Mileage

Savings: ~$100 annually.
Criteria: Drive less than 10,000 miles a year.
Tip: Participate in verified mileage programs for additional savings.

5. Bundle Auto and Home Insurance

Savings: $300 annually.
How It Works: Insure your home and car with the same company for discounts.
Note: Bundling doesn’t always guarantee savings, so compare rates separately.

6. Pay Out of Pocket for Minor Damage

Savings: $300 or more.
When to Consider:
Minor incidents (e.g., bumper scrapes) not involving other vehicles or injuries.
Avoids potential premium hikes.
Caution: Get an estimate before deciding to cover costs yourself.

7. Work With an Independent Insurance Agent

Savings: Potentially hundreds.
Benefit: Independent agents can compare rates across multiple insurers to find the best deal.

8. Consider Dividend Policies

Savings: $100 or more annually.
Details: Available from mutual insurers like Amica and NJM, dividend policies pay back a portion of premiums (5–20%).

9. Sign Up for Driver Monitoring Programs

Savings: Up to $800 annually.
How It Works: Use apps or devices that track driving habits for discounts.
Tip: Ask insurers about data usage and potential rate increases for poor driving behavior.

How Much Liability Coverage Is Enough?

Minimum Recommendation: $100,000/$300,000/$100,000 (per person/incident/property damage).
For Additional Protection:
Add an umbrella policy for $1 million+ liability coverage ($250–$300 annually).
Other Coverages to Consider:
Uninsured/underinsured motorist coverage.
Personal injury protection or medical payment coverage.

Life Events That Affect Insurance Rates

Getting Married or Divorced:
- Adding/removing a driver can impact premiums based on their driving record.

Changing Jobs:
- Shorter commutes or remote work may lower premiums.

Moving to a New Area:
- Rates vary by location; urban areas and regions prone to severe weather often have higher premiums.

Adding a Teen Driver:
- Expect an increase of $1,000–$2,000 annually for drivers aged 16–17.

Tips for Older Drivers (70+):

Reassess Rates:
- Shop around if premiums rise despite a clean driving record.

Upgrade to Safer Cars:
- Look for vehicles with advanced safety features like automatic emergency braking (AEB).

Take a Driver Education Course:
- Organizations like AAA and AARP offer courses to help older drivers improve skills and earn discounts.

Maximize Your Savings Now

Regularly review your policy and compare quotes.
Stay informed about life changes that may affect premiums.
Prioritize safety and responsible driving to maintain lower rates.