How New Auto Insurance Rates Can Be Lowered

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Nov 5, 2021

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Here's what you need to know...

  • There are several ways to lower your monthly auto insurance rate
  • Comparing companies, rates and car insurance discounts is always a smart place to start saving
  • The type of vehicle you drive and its features have a huge impact on the amount you pay for auto insurance
  • Since insurance companies give better rates to drivers who have less accidents and moving violations, safe driving is another way to save money on car insurance

Once you get new auto insurance, you can sometimes go through a period of buyer’s remorse where you wonder if you got the best rate possible. The good news is that there are ways to lower your auto insurance rates, even if you have a new policy.

Sometimes you can qualify for a discount by changes that you make for yourself and sometimes you can get discounts by working with the insurance provider.

For yourself, you can sometimes reduce your car insurance rates by making changes to your vehicle, your driving habits, or your lifestyle. With your insurance agent, you can make changes to your insurance policy, and check to see if you qualify for special discounts. +

When all else fails, you can also shop around for a new policy with a different company.

If you want to get the best deal you can on new car insurance, enter your ZIP code into the FREE search box above!

Vehicle Changes


The type of vehicle you drive and its features have a huge impact on the amount you pay for auto insurance. First, cars that are more expensive will cost more to replace, so insurance companies charge more to insure them.

This means that if you’re planning to get a different car anyway, you can save money in two ways by getting a cheaper car, which will also lower your car insurance cost. Some types of cars, like sports cars and trucks, tend to be more expensive to insure than a family sedan.

Keep in mind that having more safety features on your car also lowers the insurance cost, so if you’re buying a new car anyway, it would also be a good idea to look for one with a lot of good safety features.

Features like anti-lock brakes, side curtain airbags, and traction control could all lower your rates. Another feature that can lower rates is one that you could actually add to your vehicle later if it doesn’t have it already is an anti-theft device, like an alarm or a tracking system.


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Driving Habit Changes

There are certain changes you can make to your driving habits that will help you to lower the cost of your new auto insurance policy.

Often, your auto insurance rate will be partially based on how much you drive so by making a decision to drive fewer miles, perhaps by walking or carpooling more, you will save gas, vehicle wear and tear, and insurance money.

According to, some car insurance companies are even looking into ways to track actual miles driven so that they can implement a pay per mill system.

Since insurance companies give better rates to drivers who have less accidents and moving violations, safe driving is another way to save money on car insurance.

It takes time to improve your driving record, so if you want to immediately improve the rate on your new insurance policy, you will need to find some way to prove your commitment to safe driving.

One way to do this would be to take a safe driving course, which will usually give you an immediate rate reduction on your insurance.

If you get a speeding ticket, it might be wise to try to get court supervision or complete a court-ordered driver safety course so that the ticket doesn’t go on your record, if your state allows that sort of thing.

Lifestyle Changes

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The biggest lifestyle change you can make to lower your auto insurance rates is to move to a more insurance-friendly area.

According to, your insurance rates are affected by how populated your area is, what the weather is like, how well the roads are maintained and how high the crime rate is.

Other lifestyle changes that can lower insurance rates are even harder to implement immediately when you get new insurance, but they are effective. Aging has a major effect on insurance rate because, in general, people become better drivers as they get older.

Marriage can also improve your insurance rates because married people apparently are less likely to have serious accidents than unmarried drivers are.

Another lifestyle change that affects the cost of insurance is changing jobs. Some jobs naturally involve a lot of driving or higher risk driving, so these would naturally lead to higher auto insurance premiums. Graduating from school or even maintaining a high-grade point average can get you a reduction in auto insurance premiums, too.

Changes to Your Policy

Sometimes you don’t have the right level of insurance for your vehicle and situation; in this case, you can save money on your insurance premiums immediately my making changes to the policy.

An article on Today Money from MSNBC suggests that you might consider dropping collision or comprehensive insurance on older cars. The idea is that the value of the vehicle will actually be less than the combined cost of the insurance premiums and deductible.

The aforementioned article also suggests that you could drop personal injury protection insurance if you have life and disability insurance.

You need to think this over carefully because personal injury protection does provide some extra coverage, such as coverage for lost wages and other expenses, that other insurance may not provide.

Personal injury protection insurance is also required by law in some states, so you may have the option to reduce the amount to the state minimum, but not drop the insurance altogether.

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Deductible Changes


The most common type of money-saving adjustment to insurance policies is raising the deductible. The deductible is the amount of money you will pay before the insurance starts to pay after an accident.

It is a good idea to set the deductible close to the amount than you would be able to afford in an emergency.

If the deductible is too high, the insurance will do you no good because you can’t afford to pay your share in an accident.

Some people make the mistake of making the deductible too low, taking the lowest possible deductible they can. The problem with that approach is that they end up paying a much higher premium, so in order for this policy to be worthwhile, they would need to be in accidents frequently.

Special Discounts from the Insurance Company

Insurance companies will offer discounts for a variety of reasons and some discounts will even apply to people with new policies. While most companies will try to give you every discount you qualify for when you apply, it never hurts to do your own homework and make sure you’re getting every discount you deserve.

Insurance companies will sometimes offer discounts based on partnerships with employers or clubs to which you may belong.

They might offer a discount for being a good student or for being a loyal customer. Some companies are now even offering a discount for you being a loyal long-term customer of a different insurance company.

You can usually get a discount from an insurance company for having multiple policies, such as car insurance, home insurance, and life insurance with the same carrier. You can also get a discount for having multiple cars insured with the same company.

The important thing is to check on the specific offers of your insurance company. An article from the Franklin Free Press advises you to be sure to search for specific discounts available from your insurer because the discounts allowed actually vary between states.

Shopping Around


Any smart shopper knows that you get the best deals by shopping around, and the same principle applies to car insurance.

If you only paid for a month, three months, or even six months of insurance premiums up front, you could move on fairly quickly if you find a better deal. You need to check your specific policy, but most companies would even allow you to terminate the policy early for a partial refund if you so choose.

If you find a better deal on the type and amount of car insurance that you need, you might want to go back to your current insurer rather than jumping to the new company.

Sometimes your current company will be willing to offer you a comparable deal, or even a better one, rather than risk losing you as a customer.

The great thing is that comparing rates has become very easy now. If you have access to a computer, you can look up dozens of different rates, sometimes with just a few clicks.

Use our FREE quote tool on this page to compare car insurance rates when you enter your ZIP code below!



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Enter your ZIP code below to view companies that have cheap auto insurance rates.

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