How to Lower Car Insurance Premiums

In these trying economic times, you are surely wishing you could find a way to lower your car insurance premiums. You must keep in mind that you do not have to stay with your current insurance provider, nor do you have to put up with their current car insurance premiums they are charging you. As a smart consumer, you can find ways to lower your car insurance rates without too much work. It will take some time to consider your options, but it will pay off in the long run with cheaper car insurance rates. The car insurance industry has become increasingly competitive over the last decade, as such, car insurance providers have added ways to give consumers cheaper car insurance in order to stay above the competition.

Lower Car Insurance Premiums

Shop Around: Car insurance premiums vary greatly from company to company. Most of this is because of the discounts offered and the way each particular car insurance company weighs your risk factors. This means that shopping around is the easiest way to lower your car insurance premiums.

Take a Driver's Education Course: A driver's education course can give you points toward lower car insurance premiums with most car insurance providers. The course is generally just a one day course that will cost about $100, but the savings can be much more than that for a yearly premium.

Add Safety Features to your Car: Safety features such as anti-lock brakes, dual-side air bags and electronic seat belts reduce the risk of injury in a car collision. Reduced risk means reduced car insurance premiums, which means more of your money stays in your pocket.

Add Anti-Theft Devices to your Car: Car theft is another risk factor included in your car insurance premiums. If you can add a car alarm, On-Star, or any other device that reduces the risk of your car being stolen, you can negotiate a lower car insurance rate from your car insurance provider.

Build your Credit Rating: Car insurance companies use your credit score to help determine your car insurance premiums. You can improve your credit score over time, and once you do, you should let your car insurance provider know this and push for a review when your insurance comes up for renewal.

Let One Company Provide all Lines of Insurance: If you have other types of insurance, such as homeowners, renters, boat, motorcycle and even life insurance, you should see how much you can save by having one insurance company service all of your insurance needs.

Purchase a More Fuel Efficient Car: In this era of environmental consciousness, many car insurance providers are offering discounts on fuel efficient and hybrid vehicles.

Stay Away from Sports Cars: If car insurance premiums are causing problems for your budget, you should not think about buying a sports cars. Sports cars, and those cars associated with younger drivers, are subject to higher car insurance premiums. Before buying a new car, check with your insurance provider about how much that car will cost you in insurance premiums.


  • Each time your car insurance comes up for renewal, talk to your car insurance agent about what can be done to lower the premiums. A good insurance agent will help you find the discounts you may qualify for.

    The easiest way to keep your insurance premiums low is to drive carefully. Remember that a few miles per hour will not get you where you are going much quicker, but the costs of a speeding ticket are incredibly high.

    If you have an older vehicle, consider getting only liability insurance. Liability insurance is the cheapest possible car insurance and only covers others in the case you are involved in an accident.


  • Do not cancel your car insurance for any reason unless you have other car insurance in place. It is illegal for you to drive a vehicle that does not have car insurance.