Reduce Auto Insurance Premiums with the Right Research

Reduce your auto insurance rates by showing your carrier a good credit history and clean driving record. Compare quotes below to find affordable coverage.

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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 18, 2021

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • There are many ways to reduce your monthly premiums
  • People with god driving records usually pay less
  • Your credit score can also influence your rates

It is very easy to reduce auto insurance premiums with the right research. You just need to make a few adjustments to your schedule to allow yourself a couple of hours to dedicate to the task.

In order to be successful at reducing your premiums, you first need to know how the car insurance industry operates. Find out what they look for and what types of consumers they really want.

Under normal circumstances, they strive to gain new customers who have really good driving records. However, the search does not end there.

To find car insurance rates fast, enter your zip code into the FREE tool on this page and watch the results unfold!

Reducing Your Auto Insurance Premiums with Your Current Provider

In researching some of the major marketing firms across America, the vast majority agree that one of the most important aspects of retention is providing incentives.

Customers want to know what is in it for them if they remain loyal to your company. This means the auto insurance companies are starting to consider their customer’s interests, especially when it comes to saving money.

If you play your cards right, you can save a lot of money as long as you meet their expectations.

Do not try to ask for a reduction in your premium if you have a spotty payment record, you should be in good standing, which includes paying your premium on time.

You might also think about reviewing your previous policy to see how much you have paid over the past year or two.

Find out if you have already been given a reduction and complete the calculations. Most likely, your annual premium has decreased, but only slightly.

Your current provider will not want to lose your business to one of the many competitors in the market and they will be more open to negotiating.

You will need to prepare in advance before you reach out to them to discuss lowering your rates, so make sure you have a few key items in hand.


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Look at Your Driving Record

If you have anywhere between $10 and $25, you can either go online or in person to your regional Motor Vehicle Commission to request a copy of your driving abstract record.

If you live in a large state, like California or Texas, there may be several regional offices to choose, but if you simply log onto their website and you can obtain a copy of your abstract in just a few minutes.

After you pay the fee and print the document, review the information extremely carefully. This will give you an added advantage automatically.

Remember, although your auto insurance provider has access to your driving record, chances are they are not looking at it on a regular basis.

They need to know you are a safe driver. If you can provide them with a copy, by faxing or scanning it over while you are speaking with them, you increase your odds exponentially.

Obtain a Copy of your Credit Report

Since the automobile insurance industry is beginning to include credit scores in their calculations, it will definitely help you if you know where you stand in this area.

You can receive an annual credit report absolutely free of charge each year and this will give you access to your personal credit information.

This is the exact same information that the car insurance companies review. Just as your driving abstract shows how well you drive, the data contained in this report shows how well you manage your finances.

Take a good look at the way your credit report looks and if there are any red flags, make sure you address them before you contact your car insurance provider.

You want to provide them with the most accurate report and with positive data only.

You May Not Need the Same Level of Coverage

Over time, you may decide you do not need the same level of coverage you had when you first acquired your car insurance policy, especially if your car is much older now or you do not drive as many miles as you used to.

Maybe you changed jobs and do not need to drive to work anymore.

Many reasons can cause you to change the level of coverage. Reviewing your policy before you contact your car insurance company is a great way to lower your premium in just one- step.

By law, everyone is required to have a minimum of bodily liability and property liability; the amounts differ from state to state.

If you are unsure about your state requirements, check with the National Association of Insurance Commissioners.

Find your state on the map and spend some time reviewing the data.

After you read the facts, you can make up your mind and decide if it is worth it to drop some of your coverage to the minimum.

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

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Think About Increasing Your Deductible

Increasing your deductible, even by $100 can make a world of a difference with your annual auto insurance rates. However, if you really want to see the premium drop, consider raising the amount by $500.

This is a great move for those who lease or finance their vehicles since the banks often require a minimum deductible of $1,000.

For some, this may seem too drastic because the amount of out-of-pocket expenses can affect their finances.

However, if you are consistent behind the wheel by following all of the laws and drive defensively, you stand a good chance of avoiding collisions.

In fact, if your driving record is free from fender benders and auto insurance claims, you probably do not need a low deductible anyway.

Instead of worrying about an accident that may never happen, save the money on your annual premium and put a little away in the event that you do collide with someone.

Since your rates will be lower, you will have the opportunity to take the amount you used to pay and place it in a bank account. Once you reach the amount that equals your deductible, you are covered.

Find Out the National Average

The national average for car insurance rates changes on a consistent basis and if you want to receive the proper reduction, you will need to find the average state car insurance premium for the most populated states in the nation.

Some states have much higher costs than others do, but they all fit into the national average.

If you reside in a large state with multiple metropolitan cities or the crime rate is exceedingly high, you should already know that you might be in for a battle.

Your car insurance provider can only reduce your rates by so much to maintain balance.

The reality is you can always take your business to the competition.

Comparison-shopping is always a good way to keep your current auto insurance provider on their toes.

Educated consumers, who stay current and abreast of the way these businesses operate are virtually guaranteed to come out ahead. Make sure your loyalty to your insurance company never overrides your decision to leave them behind.

Because the auto insurance industry as a whole wants excellent drivers, you should be able to haggle your way into a good price.

Remain steadfast and stick to your plan, by completing simple steps, you can find a positive answer awaits you at the end of the phone call.

If you are ready to find great car insurance rates, click here to place your zip code into the FREE tool!

Free Auto Insurance Comparison

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

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