Car insurance is one of those necessary expenses that protects your wallet from the unexpected. But with premiums on the rise, it can sometimes feel like your policy is draining your bank account faster than a long road trip. Here’s the good news—even though you can’t skip car insurance, there are plenty of ways to make it more affordable. With a little effort and some strategy, you can reduce your premiums without sacrificing coverage.

Here are seven smart ways to lower your car insurance premiums and keep more money in your pocket.

1. Bundle Your Policies

If you’re already using one insurance provider for other policies, such as homeowner’s or renter’s insurance, bundling them with your car insurance can lead to big savings. Most insurers offer a multi-policy discount to encourage you to keep all your coverage under one roof.

How It Works:

Think of bundling as an insurance package deal. By combining policies, you’re showing loyalty to the company, and they reward you with lower rates on both or all of your policies.

Example:

Let’s say you’re paying $1,200 annually for car insurance and $500 for renter’s insurance. By bundling, you might pay only $1,500 total annually across both policies, saving you $200 per year. That’s an extra coffee habit or weekend getaway right there!

2. Raise Your Deductible

The deductible is the amount you’ll pay out-of-pocket before your insurance coverage kicks in after a claim. Generally, the higher your deductible, the lower your monthly premium.

Why It Helps:

Insurance companies charge less when they know you’re willing to take on a bigger portion of the risk. It’s a trade-off that works well if you drive safely and don’t anticipate filing frequent claims.

Caution:

Before raising your deductible, make sure you have enough savings set aside to cover it in case of an accident. If you choose a $1,000 deductible but only have $500 in your emergency fund, you could run into trouble.

3. Take a Defensive Driving Course

Many insurers offer discounts to drivers who complete a defensive driving class. These courses teach techniques for safer driving, like avoiding collisions, reacting appropriately in emergencies, and managing adverse road conditions.

The Savings Add Up:

By showing proof of course completion, you could see a discount anywhere from 5% to 10% on your premiums, depending on your insurer. Some companies also offer these classes online, making them easy to fit into a busy schedule.

Example:

Imagine your annual car insurance premium is $1,800. A defensive driving course discount of 8% slices that cost down to $1,656, saving you $144 a year. Not bad for a couple of hours’ worth of effort!

4. Improve Your Credit Score

Did you know your credit score can impact what you pay for car insurance? It’s true—in most states, insurance companies look at your credit history to determine how risky you are as a customer. A higher score often translates to better rates.

Why Credit Matters:

Insurers use credit information to predict the likelihood of you filing a claim. Drivers with good or excellent credit are often considered less risky, which means they’re rewarded with lower premiums.

Tips for Boosting Your Credit:

  • Pay bills on time.
  • Keep your credit card balances low.
  • Regularly check your credit report for errors.

Even small improvements can make a difference. A 20-point boost in your score might lower your monthly premium by 5% or more.

5. Shop Around for Quotes

Loyalty can be a great quality, but when it comes to car insurance, it doesn’t always pay off. Rates vary significantly between companies, so shopping around for quotes from multiple insurers is one of the easiest ways to save money.

How to Do It:

Start by using online comparison tools or reaching out directly to insurers for quotes. Make sure you’re comparing apples to apples by matching coverage limits and deductibles between policies.

Pro Tip:

Some companies offer price comparisons as part of their own pitch. For example, Progressive’s rate comparison tool lets you see their offer alongside competitors’. Use that information to your advantage.

6. Review Your Coverage Needs

If your car is older and paid off, you might be able to save by scaling back on certain coverages like collision or comprehensive insurance. These coverages are typically tied to your car’s value, so for a vehicle worth less than $2,000, the cost of coverage may not be worth it.

Scenario:

If you drive a 2008 sedan with a market value of $1,500, paying $400 annually for collision coverage might not add up. Dropping that coverage could save you hundreds without dramatically increasing your financial risk.

Important Note:

This doesn’t mean skimping on liability coverage, which is often required by law and protects you from significant financial consequences in an accident. Always make sure you’re meeting (or exceeding) your state’s minimum requirements.

7. Ask About Discounts

Insurance companies offer a surprising variety of discounts, and many drivers forget to take advantage of them. Some common discounts for reducing your premiums include:

  • Good Student Discount: Available to high school and college students who maintain a B average or better.
  • Low Mileage Discount: Works for people who don’t drive their car frequently.
  • Safety Device Discounts: Cars equipped with anti-theft devices, airbags, or advanced safety features often qualify for reduced rates.
  • Affinity Discounts: Some insurers offer discounts to members of certain organizations, professional groups, or alumni associations.

How to Find Discounts:

Don’t hesitate to call your provider and ask what discounts you might be missing. It’s often as simple as reporting your car’s safety features or providing proof of good grades.

Example:

One driver called their provider only to find they were eligible for a low mileage discount because they drove fewer than 7,500 miles annually. Just like that, they shaved $120 off their yearly premium.

Car insurance is a must, but that doesn’t mean you have to overpay. By bundling policies, raising your deductible, or even just asking about discounts, you can lower your premiums while staying fully protected. Improving your credit score and shopping around for quotes are also quick ways to keep more money in your pocket.

Take some time to review your current policy and see where you can make adjustments. With these seven strategies, you’ve got plenty of options to customize your coverage and save.