How to Bring Down Car Insurance

Automobile insurance helps to protect you financially in case of an accident.

Automobile insurance helps to protect you financially in case of an accident.

Because federal law requires car owners to carry liability insurance on their vehicles, monthly car insurance premiums are a necessary expenditure for the majority of Americans of driving age. The Rocky Mountain Insurance Information Association reports that Americans paid an average of $785 per year for car insurance, as of 2009. However, there are ways that you can reduce your insurance premiums and save money each month. If you haven't revisited your automobile insurance policy for a while, now may be the time to do so.

Reduce your coverage. If you own your car outright, you may only need to comply with federal law requiring that you carry liability insurance. Dropping extra coverages such as collision, comprehensive or towing may save you a significant amount of money. If your car is financed, it's likely that your finance company requires you to carry collision coverage. However, if you are currently paying for standard or broad collision coverage, downgrading to limited collision coverage may cut down your monthly bill.

Increase your deductible. This means that in the case of an accident, you'll pay a higher amount of money before your automobile insurance kicks in. It also means less risk for your insurance company, so they will charge you less money per month for additional forms of coverage, such as collision and comprehensive.

Buy your next vehicle with insurance premiums in mind. Although a flashy sports car might seem attractive on the lot, your high insurance premiums will reflect the fact that it is expensive to repair and has a higher chance of being stolen. In contrast, a low-profile car will entail lower insurance costs. In addition, insurance companies frequently discount insurance premiums for vehicles equipped with safety features such as anti-lock brakes, daytime lights, automatic seat belts, airbags and anti-theft devices.

Coordinate insurance coverages. If your health insurance and car insurance policies both protect you in case of an accident, you may be able to forgo car insurance coverage that overlaps with your health insurance policy. In addition, many insurance companies offer discounts if you get several forms of insurance through them. Consider getting health insurance, home insurance or life insurance from your automobile insurance provider.

Shop around. Different providers offer different rates. If your current provider can't meet your needs for what you consider a fair price, look around for an insurance company that can.


  • If you have received a ticket for speeding or another traffic violation and your insurance premiums reflect this, you can eventually reduce your car insurance costs by driving safely and avoiding further violations.

About the Author

Forest Time has been writing for over a decade. During this time, he founded and edited a short-lived literary magazine, received several prizes for his poetry and published a master's thesis on Cambodian history. He received his Master of Arts in Asian history from the University of Maine at Orono in 2007.

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