10 Essential Car Insurance Hacks (and How Much They Could Actually Save You)
Car insurance is more expensive than ever. Here’s how to save money without losing essential protections.
Written by R.E. Fulton
Reviewed by Kathleen Flear
Table of Contents
- 1. Track your driving: up to 40%
- 2. Buy a (safe) used car: 3.4% per year
- 3. Raise your deductible: 7–28%
- 4. Bundle car and home insurance: 6–26%
- 5. Pay in full and go digital: 9–22%
- 6. Improve your credit: 14–17%
- 7. Keep continuous coverage: 10–15%
- 8. Take a defensive driving course: 5–10%
- 9. Park in a garage: 5%
- 10. Compare quotes online: 30% or more
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Tracking your driving, buying a used car with solid safety ratings, or raising your deductible could save you from 25% to 40% or more on your car insurance premiums this year.
The cost of car insurance is on the rise. In fact, experts predict that the average cost of auto insurance will rise by 8.4% in 2023. Finding
cheap car insurance
is about to be harder than ever—but if you know the best car insurance hacks, you’ll be able to find the rates you want without giving up the protection you need. Compare insurance quotes from 50+ carriers with Jerry in under 45 seconds (Title in payload)
4.7/5 rating on the App Store | Trusted by 5+ million customers and 7 million cars4.7/5 app rating | Trusted by 5M+ drivers1. Track your driving: up to 40%
The best way to save money on car insurance is to prove to your insurance provider that you’re a safe driver.
Thanks to the magic of modern tech, many car insurance companies now allow drivers to install a telematics device that will track safe driving habits in real time and report the results to the insurance company. While that kind of surveillance might make you nervous, the average savings—as much as 30 to 40% off the cost of your policy, according to Consumer Reports—might put you at ease.
MORE: What is a safe driver discount?
"Super cheap!Jerrysaved me over $4500 during the entire year. The money really adds up.” —D’Shawn G.
2. Buy a (safe) used car: 3.4% per year
Research shows that the cost of car insurance drops by 3.4% with every year a vehicle ages. If you’re in the market for a new vehicle, buying used could significantly lower your insurance costs.
But don’t just buy the cheapest car you can find. That would be the
Mitsubishi Mirage ES
—and its average insurance rates tend to be higher than more expensive vehicles due to poor safety ratings. Instead, look for a used vehicle with strong safety ratings
and anti-theft features
. Insurance companies will discount your policy if they know you’re driving a vehicle that’s less likely to generate claims. MORE: Car insurance for used cars
3. Raise your deductible: 7–28%
If you have
collision
or comprehensive coverage
on your car insurance policy, raising your deductible is an easy way to cut down on your monthly costs. Your car insurance deductible is a set amount you agree to pay before insurance kicks in on a comprehensive or collision claim. The lower it is, the more you’ll pay to maintain the policy. Raising a $500 deductible to $1,000 or more could save you money without sacrificing coverage—but make sure not to
choose a higher deductible
than you could realistically pay in the event of an accident. MORE: Diminishing deductibles
4. Bundle car and home insurance: 6–26%
You’ve heard it from Flo; you’ve heard it from the gecko—and it’s true. Bundling
homeowners
or renters insurance
with your auto policy could save you a ton of money. The exact savings varies, but Forbes estimates that
bundling home and auto insurance
saves drivers between 6 and 26%. If you only have renters insurance, you won’t be able to save as much by bundling, but a 2–9% discount isn’t nothing. MORE: 10 best companies for home and car insurance
5. Pay in full and go digital: 9–22%
Here’s another easy one: if you’ve got the necessary funds, pay your annual premium in a one-time lump sum instead of monthly payments. A paid-in-full discount could save you as much as 10 to 20% on your policy, and opting for electronic payments instead of a written check could add an extra discount of about 3 to 6%.
6. Improve your credit: 14–17%
Now for a harder “hack.” Your credit score can have a major impact on your auto insurance rates, and raising it by even a single tier could save you around 15%.
Of course, that’s a lot easier said than done, but there are a few simple tricks that can help you raise your score quickly—even
without a credit card
! For instance, paying utility bills—and getting those bills added to your credit report—could make the difference between “fair” credit and “good” credit.MORE: Does refinancing a car hurt your credit score?
“Jerryis a great service made easy for a newbie. It was my first time buying car insurance and everything was quickly taken care of. Everything was done in the app, so that was incredibly satisfying.” —August M.
7. Keep continuous coverage: 10–15%
Sometimes all you need to do to save money on car insurance is—nothing! Most insurance companies offer discounts to drivers who maintain continuous insurance coverage for a certain period.
If you’ve had continuous coverage for almost six months, one year, three years, or five years, you might see cheaper rates coming your way soon. And if you’re planning to sell your car and stick to public transportation for a while, look into
non-owner car insurance
to avoid a lapse in coverage that could cost you more in the long run. 8. Take a defensive driving course: 5–10%
If you have traffic violations on your driving record, you’re probably paying higher car insurance rates than drivers with
clean records
. In some cases, a defensive driving course could wipe those points off your record and get you better rates again. Look into your state’s regulations and check with your insurance company before you enroll in a defensive driving course.
“Jerrywas spot on. I’m young with one rear end on my record. Still, they dropped my monthly insurance rate from $468 to $250. This really saved me money.” —Jason M.
9. Park in a garage: 5%
One more modest hack is to park your car in a garage rather than on the street. Insurance companies love to see the added security of a garage, which protects your vehicle from the elements as well as would-be thieves.
10. Compare quotes online: 30% or more
We’ve saved the best for last. No, comparing car insurance quotes isn’t fun, but it’s the quickest—and sometimes the very best—way to find the lowest rates on the coverage you need.
That’s because auto insurance premiums aren’t the same across the insurance industry. Every provider uses their own method to calculate your rates. While one company might give you a high rate for even basic liability coverage due to past accidents, another might look past that car accident and offer you a lower rate.
You should always compare quotes when you buy
a new car
, move to a new ZIP code
, or make any changes to your household (e.g. marriage, divorce, or adding or removing a teen driver). But you don’t need to wait for those big life events to switch car insurance companies—in fact, you don’t even need to wait for your renewal date! And with comparison apps like Jerry
that pull real-time quotes from multiple insurance agencies, finding a new low rate can take less than five minutes and save you an average of $800 a year!“I’m a young adult in college. I paid overpriced insurance regularly, untilJerryfound me a fast and easy quote. It reduced my costs by 60%.” —Niveah M.
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