7 Clever Ways to Lower Your Car Insurance Renewal Rate

It’s tough to negotiate car insurance rates, but you still might have options for lowering your costs.
Updated May 8, 2024
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Paying for car insurance can be frustrating. Not only is it expensive, but few insurers are willing to negotiate, as rates typically are regulated by states and cannot be adjusted or changed for individual policyholders.

Fortunately, there are still ways to boost your financial fitness by lowering your car insurance costs. Here are a few ways you can save money.

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Shop around — then, negotiate

dragonstock/Adobe woman examining insurance policy

One of the best ways to save money on car insurance is to shop around when your policy comes up for renewal.

By comparing quotes from multiple insurers, you can get the car insurance policy you need at the best possible price.

If you find a better deal with another insurance company, talk to an agent who works for your current insurer and see if you can find ways to lower your costs to match what the other insurer is offering.

Raise your deductible

Summit Art Creations/Adobe costs of car loan

If you want to lower your premium costs, one option is to talk to your insurance company about raising your deductible.

However, proceed with caution before making this switch. If you later make an insurance claim, you will first have to pay the deductible before your insurer will start covering your costs. Make sure you can afford the deductible.

Reduce your insurance coverage

wutzkoh/Adobe car salesman explaining contract to male client on table with car toys

If you have an older vehicle that isn’t worth much money, you might consider dropping your collision and comprehensive coverage.

This should save you a substantial amount in premium costs. However, remember that without these coverages, you will have to pay for any repair costs to your own car out of pocket. So, this approach makes the most sense if you are prepared to replace your car if something bad happens to it.

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Ask about bundling discounts

suyujung/Adobe miniature car model

Insurance companies often offer discounts to customers who insure more than just their cars with the company.

Ask your insurer how much you can save by bundling coverage. If the savings are large, you might consider purchasing your home insurance, auto insurance, and other types of insurance all from the same provider.

See if you can get other discounts

snowing12/Adobe salesman holding calculator

Your insurance company likely offers many other types of discounts. So, it’s important to talk to your insurance agent or company representative at renewal to find out if you qualify for any of these price breaks.

For example, you might lower your costs by being a safe driver, taking driving courses, or being a loyal customer. Check with your provider about getting a better rate.

Keep in touch with your agent

REDPIXEL/Adobe couple consultations with insurance agent

If you have an insurance agent, contact that individual to learn more about how you can lower your costs. Agents are expert professionals who likely know about ways to save that you might easily overlook.

So, before your policy renews the next time, have a chat with your agent or an insurance company representative.

Compare the insurance costs for different vehicles

successphoto/Adobe man working with calculator to calculate expenses

Are you planning to buy a car around the time your policy will renew? If so, do your homework and find out how much it costs to insure the models you are considering buying.

Car insurance costs can vary from vehicle to vehicle, so you might want to get estimates from your insurance provider before you go to a dealership.

Buying a model that is cheaper to insure could save you money for years to come.

Bottom line

snowing12/Adobe customer shake hand with auto insurance agents

It can be expensive to pay for insurance for your vehicle, but there are ways to get ahead financially by saving on car insurance.

It’s also important to factor in other costs of car ownership before you buy a new car. Be sure you understand costs related to loan or lease payments, gas, and repair and maintenance before you plunk down the money on a new ride.

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.

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