Most drivers are under the assumption that they can’t do anything to lower their auto insurance premiums except for changing their policy or their insurance carrier. That isn’t true because drivers can do several things that impact the rates they will pay for their auto insurance. Some are easier than others, but not everyone will apply to every car insurance company.

According to a recent report, it costs more than $9,000 a year to own and operate an automobile, and given that auto insurance rates are also high, most drivers choose not to get auto insurance. However, it’s mandatory in most states, and you can’t drive on the roads without auto insurance. Therefore, it is worth your time to look at steps you can take to lower your auto insurance premiums. Here are some of the things that you can do:

1. Take Defensive Driving Courses

If you become a safer driver on the road and have taken a defensive driving course, it will significantly impact your auto insurance premiums. Even if you’re not a new driver, enrolling in a defensive driving course and successfully completing it will only benefit you.

The courses are available online and even at community colleges. The classes are easy and affordable, while you will learn to become a better and safer driver on the road. Insurance companies will look at that, and they tend to provide more favorable rates to safer drivers.

2. Buy a Car that Is “Insurance-Friendly”

Your car makes a massive difference in the auto insurance premiums you will pay. You should avoid buying excessively expensive or sports cars if you don’t want to pay high premiums. The higher the value of the vehicle, the more your collision coverage costs will increase as well.

You need to understand that some vehicles come with higher auto insurance charges. For instance, any car used for racing or one that could be deemed a sports car will have higher insurance costs. You should buy cars with a good safety rating and record and are considered “family cars” since they cost less money to repair if they are damaged in an accident.

3. Improve Your Credit Score

Your overall credit score will impact your monthly auto insurance premiums. The lower your credit score, the higher the premiums you will need to pay. You should pay down any loans you have taken and pay all your bills on time. Insurance companies look at the credit scores of drivers before they quote insurance premiums to them.

If you have a good credit score, you can benefit from lower auto insurance premiums. Even though improving your credit score will take time, you will reap the benefits in the end. A driver with a credit score of 600 will be paying higher auto insurance premiums than a driver with a score of 700.

4. Reduce Your Work Commute Distance

When you apply for auto insurance, the first thing you are asked is, “how many miles will you be driving in your daily commute from and to work?”. If you have a shorter commute, you will have to pay lower auto insurance premiums because you will spend less time on the road. That reduces the risk of getting into an accident when you’re going to or coming from work.

You can look for a job that is closer to your home, or you can start carpooling or taking public transportation to work. Driving your car less will not only save you money on auto insurance premiums, but you will be spending less on car maintenance and fuel as well.

5. Maintain a Good and Clean Driving Record

Drivers with excellent and clean driving records receive favorable rates for auto insurance premiums from insurance companies. Traffic tickets and violations will negatively impact your driving record, and your insurers may determine that you’re at a higher risk of being involved in an accident. If you have many points on your driving license, you will have a hard time finding low auto insurance premiums.

The easiest way to get a clean driving record is to obey all traffic rules and ensure that you don’t cause problems for other drivers on the road. Most insurance companies reward drivers with good and clean records with discounts on their auto insurance premiums.

6. Raise Your Deductible

One of the most common ways to lower your auto insurance premiums is to raise your deductible. The deductible will be the sum of money you’re paying out-of-pocket before the coverage begins. For instance, if you have a $400 deductible and you get into an accident that requires $1,800 in repairs, your insurance company will only pay you $1,400 ($1,800 – your $400 deductible).

If you have taken defensive driving classes and have maintained a clean driving record over the past couple of years, you can increase your deductible from $400 to $800. That will have a significant impact on your overall auto insurance premiums. You’ll be increasing your exposure if you do get in an accident. Still, since the risk of being involved in an accident has been reduced, your insurance company will offer you favorable rates for auto insurance premiums.


There are several other strategies you can use to lower your auto insurance premiums easily. However, you should consider your circumstances and determine which step makes sense for you. In the end, your goal is not to pay high premiums on your auto insurance, and the steps we have mentioned are all designed to help you achieve that. If you know of any other methods for lowering auto insurance premiums, please share them with us.