Car insurance literally sounds like a swear word to me, and it’s beyond offensive. There’s nothing I want to think about less than paying for car insurance — yet here I am, writing an entire article about it. But this is a sacrifice I’m willing to make because I’m hoping to save me and you some money this year.

Dealing with car insurance companies isn’t always easy or straightforward. But there are some things you can do to make your policy a bit less torturous to pay every year if you’re armed with the right information. From discovering discounts to changing policies to finding new companies altogether, here are some of the best ways to instantly see a change to your car insurance payments.

How We Selected the Advice

It can be tricky to deal with car insurance companies if you don’t know the ins and outs of the business, so I checked with all of the major insurance companies to find out what they had to say about cutting costs. Most of these tips are from Progressive, Allstate, Liberty Mutual, and more, as well as other financially-focused websites that know a thing or two about insurance-related issues.

Some of these tips I’ve implemented myself and have had some success cutting down costs. And as someone with three cars, trust me — I need all the help I can get. So here are some of the things I’ve done to help.

Shop Around

This is probably one of the oldest tricks in the book, but it must be mentioned — always shop around. If your insurance rates went up, start looking at competitors. According to Mass.gov, you can do this whenever you want. Take advantage of this since rates are always changing.

Insurance companies will all use factors like age, location, car model and year, as well as your driving history to calculate your rate. Insurance companies weigh these factors very differently, so you’ll likely have different estimates from each brand. Find out which is the best for you and stick with it (for six to 12 months, then look again!).

Ask About Discounts

Every car insurance company has its own list of discounts that can be applied to your rate. According to Ryan Brady at Nerd Wallet, these often include customer loyalty, driver history, affiliations, and vehicle features. For example, most major companies will provide discounts for being a good driver, a good student, having multiple cars, installing anti-theft devices, being in the military, and remaining a customer for a certain amount of time. Paying in full up front can also result in a discount.

However, you’ll need to ask about these discounts when talking to your insurance agent. So, check out your company’s discount page and ask about the ones you think apply to you.

Raise Your Deductible

I’d only advise doing this one if you are a really good driver or don’t really care about your car. You can raise your deductible to lower your monthly car insurance payments, but this can be a bit of a risk. As explained by Progressive insurance, the deductible is the amount you pay out-of-pocket when you get in an accident before insurance kicks in to cover the rest.

The most common deductible drivers choose at Progressive is $500, which means paying that much whenever they get in an accident. However, you can choose to pay $1,000 out-of-pocket or even $2,000. Your monthly payment will be lowered, but make sure you have some emergency savings in case you get in an accident.

Drive a Cheaper, Used Car

There isn’t actually “new car insurance” and “used car insurance,” but according to Tim Maxwell at Experian, the age and value of your car play a factor in how much your insurance coverage is. Insurance companies will factor in your car’s value when getting your rate because they often pay less when a cheaper car is in an accident. That makes sense, because the repair costs and replacement parts are usually not as pricey.

For example, CarEdge reports that a 2024 Toyota Corolla will cost you an average of $2,536 a year, while a 2025 McLaren 720s can cost $5,000 to $10,000 a year. I was hoping to buy a 720s next month, but after hearing this, I think I should wait.

Get Specialized Insurance

Okay, I’m a little mad about this one. I recently called around to get my 2006 Lotus Elise on classic car insurance but found that all the big companies require me to have a private garage that’s not shared with anybody else. And, well, I live in a condo in the city.

Moral of the story: Sell the Elise. I’m just kidding. What’s not a joke is that specialized car insurance plans can save you a lot of money — as long as you meet the requirements.

According to Progressive, there are a few things to keep in mind. First is the year of the car (some told me my Elise wasn’t old enough yet), second is the amount you plan to use the car (some plans are very restrictive — never use your classic car to get groceries), third is storage (as explained above), and fourth is you usually have to have a daily driver as well. However, those who meet these requirements can save a substantial amount on insurance — hence why I called so many places so desperately. Maybe next year.

Discuss Mileage

How many miles you drive on average per year can impact your insurance rate. If you have a shorter commute to work or work from home, you should definitely let your insurance company know. Some companies, like Allstate, offer pay-per-mile policies that could save you money. In my experience, you may need to prove how many miles you drive per year for some companies, so start keeping track now or finding records.

Here’s how it works: Choose between Pay-Per-Mile vehicle or Unlimited vehicle. Pay-Per-Mile puts you on a low daily rate, and you also pay a set amount per mile when you drive (the average is six cents per mile). Unlimited drivers pay a daily rate regardless of the miles driven. You’ll need to install a device in your car that helps track certain data and install an app.

Take Off Collision Insurance

This is another one I can’t fully recommend — save money at your own risk. Basically, there are two types of auto insurance: Collision and comprehensive. According to Lacie Glover at Nerd Wallet, collision insurance will pay to repair damage to your car after an accident, while comprehensive pays if your car is stolen, vandalized, or damaged during a natural disaster.

The best option is to have both, of course, but there are some instances where it might make sense to drop them. One example is if your car is just super beat up and not really worth anything — if your car is worth less than your deductible, it really isn’t helpful to have these extra payments. But again, have some money saved to the side in case you want to make some repairs.

In most states, credit can play a factor in your car insurance rate — maybe even more than your driving record. If you don’t live in California, Hawaii, Massachusetts, or Michigan, it’s time to get your credit score up.

According to Allstate, research shows that people with worse credit scores are often more likely to file a claim, while those with better credit scores get in fewer accidents. Basically, people with lower credit scores are seen as riskier.

Bundle Your Insurances

Most car insurance companies will offer a discount when you bundle multiple insurance policies together. For example, Liberty Mutual will provide a discount when you bundle auto insurance with home, renters, condo, motorcycle, or any other insurance they have.

Of course, don’t do this if you don’t need any other insurance. But if you do, you might as well bundle them up and save.

Get the Upper Hand on Insurance

As you can see, there are plenty of ways to reduce your insurance quote if you spend some time researching. This can include something as simple as applying for discounts to something a bit more extensive like installing a device in your car to track your miles and speed.

But hey, some of us are willing to do just about anything to save a few pennies these days. Just don’t ask me to sell any of my cars.