Insurance companies constantly adjust their pricing algorithms. The company that gave you the best rate two years ago might not be the cheapest today. Studies show that drivers who compare annually save an average of $400 to $700 per year compared to those who auto-renew without shopping.
Most carriers offer a multi-policy discount of 10% to 25% when you bundle auto and home (or renters) insurance. On a combined premium of $3,000 per year, that's $300 to $750 in savings — just for having both policies with the same company.
Increasing your deductible from $500 to $1,000 can lower your premium by 15% to 30%. If you're a safe driver who rarely files claims, the higher deductible saves you money every month while only costing more in the unlikely event of a claim.
Most carriers offer discounts that they don't automatically apply. Common ones include safe driver discounts, low mileage discounts, good student discounts, military discounts, professional organization discounts, and paperless billing discounts. Ask your agent to run through every available discount.
In most states, insurance companies use credit-based insurance scores to set premiums. Improving your credit score from "fair" to "good" can reduce your premium by 15% to 25%. Pay bills on time, reduce debt, and check your credit report for errors.
If you work from home or have a short commute, make sure your insurer knows. Low-mileage discounts can save 5% to 15%. Some carriers offer pay-per-mile programs that can save even more for very low mileage drivers.
If your car is worth less than $5,000, consider dropping collision and comprehensive coverage. The premium you pay may exceed what the insurer would pay out in a total loss. Keep liability coverage — that protects you financially if you cause an accident.
Many states allow insurers to offer a 5% to 10% discount for completing an approved defensive driving course. These courses are typically available online for $25 to $50 and take a few hours. The discount usually lasts for three years.