Talk about a dent to your wallet: The cost of insuring a vehicle has surged by a staggering 48 percent since 2020, according to the Bureau of Labor Statistics. So we asked car insurance expert Michael DeLong, Research and Advocacy Associate at the Consumer Federation of America, to share easy strategies guaranteed to save you hundreds—even over $1,000—on car insurance.
Trick #1: Shop around for better rates
Simply switching to a different insurer can cut your premium by a median of $461, shrinking costs by nearly 33 percent, reveals a new Consumer Reports survey. Many drivers who switch fare even better: a whopping 41 percent save at least $500, and 13 percent save at least $1,000.
Why such a big difference? “Each company calculates premiums differently,” explains DeLong. One insurer might charge a certain amount while another charges far less for the same coverage. Also, if you’ve been with the same provider for several years, you could be paying more for your loyalty. “Some companies raise your renewal rates because they count on you wanting to avoid the hassle of looking for a cheaper policy elsewhere.”
Lucky for you, comparison shopping is simple! You can reach out to insurance companies individually on your own or visit insurance aggregating sites like Insurify and The Zebra for multiple quotes. Or, even easier: Contact an independent insurance broker and tell them what you need. They’ll look for the lowest rates among a group of insurance companies they work with, finding you the best one.
Best of all, their service is free since the insurer you choose pays their commission. Find a broker by searching online for “independent insurance brokers near me” or check Yelp.
Trick #2: Ask about hidden discounts
Insurers often knock 5 to 10 percent (or more!) off premiums for a wide variety of reasons, says DeLong. “You might qualify for savings if you drive less because you’re retired, pay for six months at a time or are a current or former member of the military.”
But to get the best deal, you’ll need to speak up. Most companies won’t tell you on the phone about every discount you qualify for unless you request it. If you’re working with a broker, ask which discounts apply before you choose a policy. Once you’re insured, contact your provider directly whenever your circumstances change—say, you stop commuting—to see if you’re eligible for additional rate cuts.
Trick #3: Raise your deductible
This is the amount you pay out of pocket before your insurance kicks in. “If you can set aside savings to pay a larger deductible, your premium will go down,” DeLong says. Indeed, research shows that increasing your deductible from $250 to $500 can save $100 to over $400 a year, while boosting it to $1,000 can trim $200 to more than $700, depending on your state, carrier and driving record.
The reason: A higher deductible signals you’re less likely to file small claims, such as a cracked windshield or fender-bender, so insurers reward you with lower rates.
Trick #4: Boost your credit score
Paying all your household bills on time and checking your credit report for errors every year helps you whittle down car insurance costs. How? These tried-and-true money habits increase your credit score, which can then lower your annual premium by hundreds of dollars, says DeLong.
Insurers view strong credit as a sign that you’re a responsible driver and will likely make fewer claims. Get your free credit report at AnnualCreditReport.com and track your credit score for free at Credit Karma. Whenever it rises by 25 to 50 points, call your insurance provider to see if you qualify for a lower rate.
Pro tip: You may be able to lift your credit score immediately with Experian Boost. This free program adds on-time monthly payments you’ve made to services like your wireless plan and utilities to your credit history. Visit Experian.com/credit/score-boost to sign up. Most users see a bump of 13 to 19 points on average instantly!
This article originally appeared in the December 1, 2025, issue of Woman’s World magazine
