4 Ways to Lower Your Auto Insurance Premium

Unless you are lucky enough to live somewhere with excellent public transportation with no need for a car, auto insurance is something most of us deal with. Auto insurance is required by law for drivers and is something that drivers will always need. If you were to get into an accident, whether your fault or someone else’s, your insurance will help cover the cost.

You may never get into an accident, but protecting yourself against the risk of one is a very financially savvy move! Since most of us can’t get away from auto insurance, we can get the best coverage for the least amount of money. The CGS Team is sharing 4 ways to lower your auto insurance payment, so you can start saving and stop worrying!

Combine Your Insurance

If you have home or life insurance, in addition to your auto insurance, consider combining all of your insurances with the same company. Most insurance companies offer discounts for people who keep all of their insurance with that company. The discount is often pretty hefty. If you only have auto insurance, consider jumping on the same plan as your family members or significant others. Multiple car discounts are also popular with most car insurance companies.

Go For Higher Deductibles

Deductibles are the amount you pay before your insurance kicks in. If you are a good driver with minimal accidents, consider raising your deductible. Since the deductible is higher, you are paying more out of pocket (should anything happen), which lowers the risk for the insurance company. Simply increasing your deductible from $250 to $500 can reduce your premium costs by 15 to 30 percent. For someone who doesn’t get into accidents, that savings can certainly add up.

Compare Prices

The funny thing about insurance companies is that they all offer different rates. There is no “standard” amount insurance companies are required to charge their customers. Each company prices their insurance differently, which means it pays to shop around. If you already have other coverage, then refer to the first section. If not, then don’t be afraid to shop around. It may be time consuming, but if it can help save you money in the long run, who cares! Consider using an insurance search engine like www.carinsurance.com which provides easy comparison shopping.

Lower Coverage on Older Vehicles

If your car is only worth $2500, is it worth paying a $1200 premium? Of course not, that’s nearly half the value of the car! Insurance professionals state that if your car is less than 10 times the premium, the coverage you have isn’t cost effective. Consider dropping your coverage terms. You may not need comprehensive or collision coverage on a car that isn’t worth much. The insurance alone will exceed the value of the car after a few years. Check out the value of your car at Kelley’s Blue Book and review your coverage accordingly.

Related: 5 Ways to Cut Your Car Costs.


Since auto insurance is one of the things we can’t really get away from, it makes sense to get the most bang for your buck! You may have built a good relationship with your insurance agent, but don’t let that stop you from switching if the price is right! How did you choose your current insurance coverage provider? Are you happy with your current auto insurance premium? Share your tips with the CGS community! Not everyone has experience in this area, so it’s nice to hear from the group! Post a comment below!

-The CGS Team



5 thoughts on “4 Ways to Lower Your Auto Insurance Premium”

  1. Such an informative article! My insurance went up because my brother switched to his own company. I definitely need to implement these tips to help get the most savings for my auto insurance.

  2. I don’t know if I like my insurance company i feel like its extremely high for a person with a good driving record. This definitely a must read!!! But every insurance company here pretty much is higher because of the accident rate of young drivers in MS.

  3. Also check for discounts, I get a great rate due to my employer. If not through your employer, it may be from affiliates, schools and etc.

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