I love car insurance. Not because it’s exciting (it’s not), but because it’s what stands between you and a financial disaster on the road. What I don’t love? The price tag.
If you’ve ever opened your renewal and thought, “Well, there goes my vacation fund,” you’re not alone. Let’s talk about why it’s so expensive and how to knock that cost down without sacrificing good coverage.
The Reality Check: What Car Insurance Really Costs
The average driver in the U.S. is paying about $1,682 a year for “full coverage.” That’s not pocket change…it’s more like “there goes my vacation fund….again.”
Some details that impact your rate high are out of your control…like state laws, your age, or whether a deer decides to play chicken with your bumper. But there’s a lot you can control.
Here’s how.
- Ask for the Discounts You Deserve
You’d be shocked how many discounts are out there that no one tells you about.
You might save money for:
- Being in groups like AAA or your alumni association
- Having certain jobs (teachers, nurses, military service members)
- Being a good student
- Installing safety features
- Parking your car in a garage
- Completing a safe driving course
- Going paperless
Bottom line…don’t be shy. Ask your insurance advisor, “What discounts am I missing?” You might be leaving lots of dollars on the table.
- Shop Around
You are not married to your insurance company. If your rate stinks, see what else is out there. Sometimes just getting recommendations from other companies will make your current carrier magically “find” a lower price to keep you.
Pro tip: If you hate shopping for insurance, work with an independent agent like Glidewell. We do the work, and you just reap the savings.
- Raise Your Deductible (If You Can Handle It)
The lower your deductible, the higher your monthly premium…because the insurance company knows they’ll be on the hook for more. If you can increase your deductible from $500 to $1,000, you can often save serious money. Just make sure you have an emergency fund in place so the higher deductible doesn’t wreck your vacation fund if you have a claim.
- Drop Coverage You Don’t Need
If you’re paying extra for fancy add-ons like GAP or “premium” coverage you’ll never use…stop.
And if your car is older and paid off, you might not need comprehensive or collision coverage anymore. Just don’t skimp on liability. That’s the one coverage that can save you from financial ruin after a serious accident. I recommend carrying at least $500,000 in liability protection.
- Drive a Car That’s Cheap to Insure
A flashy new sports car may impress the neighbors, but it will also drain your wallet every month in insurance costs.
Used vehicles (4–10 years old) are cheaper to insure. Smaller SUVs and sedans tend to get you the best rates. Always check with your insurance advisor before buying to see how the vehicle will impact your premium.
- Change How You Pay
Insurance companies love it when you make their life easier. You can often save money by:
- Paying in full (every 6 or 12 months instead of monthly)
- Setting up autopay
- Paying early
- Be a Better Driver
Shocking news: Tickets, accidents, and bad driving make your insurance more expensive. Avoid them. Drive safe, and if you want to speed up your savings, take a defensive driving course.
- Bundle Up
If you have multiple insurance policies (home, auto, boat, etc.), keeping them with the same company can save you 20–25% or more. Just make sure you’re still getting the best rate overall…bundle savings don’t help if the base price is inflated.
- Review Your Policy Annually
Life changes…your insurance should too.
If your “teen driver” is now 30, if you sold a car, or if you moved, update your policy. Sometimes you’re overpaying simply because your policy is rated with outdated information.
- Ignore the “Build Your Credit Score” Advice
Some insurers use credit scores when setting rates, but chasing a better score often means taking on debt you don’t need. Pay off your debt instead. You’ll free up cash, stress less, and your credit score won’t even matter.
- Get Help from a Pro
Sometimes the best way to save is to let an expert handle it. A good independent insurance advisor can shop multiple of companies for you, explain your options in plain English, and find the best deal for the coverage you actually need.
Bottom Line
You can’t control everything about car insurance costs, but you can control a lot. Ask for discounts. Shop around. Adjust your deductible. Drive a cheaper-to-insure car. Pay smarter. Review your policy. And when in doubt, bring in an independent advisor who knows the industry.
The goal isn’t just to have car insurance, it’s to have the right car insurance at the right price.
Take a look at how you can save HERE
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