Finance: Smart Ways to Save Big on Car Insurance in 2025—Cut the Costs, Not the Coverage

How to Save on Car Insurance Without Getting Burned

Car insurance is essential—no argument there. But overpaying? That’s a choice. With rates skyrocketing past $1,600 a year on average, it’s time to take control. Here’s how to lower your premium like a pro. I'm your local, friendly web architect and editor-in-chief here at Main Event News, but I'm also a licensed insurance agent in over 20 states. Some of these tips & tricks I provide in this article might sound basic, but they are often overlooked by even the most finance and insurance savvy shoppers that I speak to. In this quick guide I will break down some key areas to concentrate on when shopping for new insurance, no insurance man lingo—just the facts explaining it to you like a human.

1. 💬 Ask for Discounts You Already Deserve

Insurers offer discounts for everything from being a safe driver to simply signing up for paperless billing. Ask about:

• Good student discounts
• Military or professional affiliations
• Anti-theft features on your vehicle
• Driver safety courses
• Bundling with renters or homeowners insurance
• Paying in full or early

You’d be surprised how many savings are sitting there, waiting for you to ask.

2. 🧭 Shop Around and Compare

Rates vary wildly between companies. Use online tools or better yet connect with a local independent insurance agent. These pros work with multiple carriers to get you the best deal tailored to your situation. Be careful if getting quotes on the internet and ensure you check your browser and take a look at the URL you landed on! Many shady third party companies will use like "GEICO-BEST-RATES1.com" etc. while using the official company graphics of large insurance companies, once you enter your phone number and other information you will have 50+ "insurance agents" calling your phone all at once. Don't get me wrong, using a lead generator tool is great just use reputable ones like QuoteWizard, EverQuote, Smart Financial, etc. 

Some agents will say this is a “horrible" idea to use lead aggregators (companies that gather the info you input on their website and connect it with fast responding licensed insurance agents in your area) but that is because they don't want you to see every option available to you, they want to present the "best" option they see fit to win your business while getting them the highest annual premium = highest commission earnings in their pocket. 

Also, don't ever feel like you owe them (the agent you’re speaking with) anything. You are bringing business to them, and you are valuable remember that—no matter how desperate you may need new coverage. And, if you feel uncomfortable or want to be on the safe side ask the agent for their state insurance license number along with all of their contact details: company they represent, phone number, email, etc.

3. 🧾 Raise Your Deductible (If You’ve Got an Emergency Fund)

The higher your deductible, the lower your monthly premium. If you have emergency savings, consider bumping it up to $1,000 or more for serious savings. Remember this if taking this route: Have the funds readily available either in savings, or credit lines. You don't want to be sidelined without a ride for a savings of $15-30 dollars per month. However if you have a few minor dings on your insurance history, bumping your deductible up on collision and comprehensive can be a huge savings, I've saved some clients of mine $150-300 dollars per month, yes per month. So check into this if you carry the old "$500 deductible" or some people have even lower deductibles and many didn't even know again this could have been crept on your policy to get the agent the highest commission dollars. 

4. 🧹 Trim the Fat

Still carrying full coverage on that 10, 15 or even 20 year old car? Probably time to let it go. Collision and comprehensive coverage aren't always worth it on older vehicles. Keep solid liability coverage—ideally $100,000 per person / $300,000 per accident. This protects you financially if you hurt someone and they try to sue you. May sound silly right? I've heard people say, I haven't been in an accident in 30 years. But when it happens, because anything can happen out on the road - the point of auto insurance, then your house, or even retirement can be on the line and you could lose everything with the wrong coverage not properly protecting you, not all coverage is one-size-fits-all. A lot of clients will carry state minimum liability, but full coverage on a 2007 Toyota Camry, not wise, drop the full coverage if you own the vehicle outright,and bump up the liability protection. Or like the above paragraph, raise deductibles, and bump up your liability coverage if your heart is set on fully covering your "baby".

5. 🚗 Choose a Car That’s Cheap to Insure

Buying that flashy new SUV, or v8 sports car? Insurance companies are already rubbing their hands together. Opt for a reliable, used sedan or smaller SUV—vehicles like the Honda CR-V or Mazda CX-3 consistently have lower premiums. Shop before you buy, again, shop before you buy—I can't stress this enough. A lot of my clients will call me at the dealership signing the paperwork for that 72 month loan and not even realize their insurance costs have increased by hundreds or sometimes thousands over their premium period. Plan smart. Find the car you like, after you decided on a few start getting insurance quotes. Do what's in your best interest financially, not what's best to look the coolest because being in a cool car, but flat broke, isn't cool. 

6. 💳 Change How You Pay

You can save just by paying smarter:

• Pay the entire policy upfront (6 or 12 months)
• Set up auto-pay
• Go paperless
• Pay a little early

Each method can earn small discounts that add up over time.

7. 🧠 Be a Smarter Driver

Avoid tickets and accidents, and your insurer will reward you. It’s the easiest long-term strategy for lower premiums. Bonus: take a defensive driving course to cut even more. This one is pretty self explanatory. But sometimes it isn't. I tell my clients that have some blemishes on their driving record to remember when getting into the drivers seat: being a few minutes late is better than paying thousands of dollars more per year because of a few speeding tickets. Paying attention to simple things: breaking softer, using your turn signals every time you turn even when there isn't cars around, these can prevent accidents as silly as it sounds. 

8. 🧺 Bundle Up

Combining home and auto policies with one provider can save you 10–25%. Even bundling multiple vehicles helps—if you have a motorcycle or boat, you might save more than you expect. Simple one here: the more you bring to the table on what the insurance company can insure, you will save big time and see a huge discount on your auto insurance. Plus, it makes everything much simpler on your side: easier to pay your bill, easier to input a claim if needed. Also some companies still value loyalty, for example here in California many insurance companies are continuing to insure homes and auto in high fire risk zones just because the client has been with them for 20 or 30 years. Sticking around does have its rewards, but not always. Do your homework. 

Also if you own a home, have a retirement of some kind, and are doing pretty good financially talk about an Umbrella policy, this type of policy is a blanket liability coverage policy, but keep in mind many companies have minimum underlying liability coverage requirements, usually $250,000 per person/$500,000 per accident, with $250,000 in property damage, however surprisingly 9 times out 10 going from 100/300/100 to 250/500/250 plays an unnoticeable difference in your premium. After bumping your underlying liability you can then start protecting with usually a $1 million dollar umbrella policy. This works very simple so I will use this analogy: you're driving, you hit a CEO crossing the crosswalk, hurt but will live but now he can't work for 6 months, this costs him $780,000 in losses, well your regular liability policy won't protect you, but with a basic umbrella policy you can be protected up to $1.5 million dollars in payouts, and lawyer coverage, protecting your home and retirement.

9. 🔍 Review Your Coverage Annually

Your teen driver now has their own policy? Sold your second car? Moved neighborhoods? If your insurer doesn’t know, you're likely overpaying. Update your info at least once a year. This is a big one. Don't cover your family members that don't live in your house anymore! As long as they are a licensed driver and do not drive your vehicle on a regular basis, and do not live in your home, they are fully covered under your insurance policy without being listed (confirm with your agent some companies have exclusions). Also, review your mileage. Are you working more from home, or possibly full time work from home? Discuss how mileage is effecting your rates with your insurance agent. Every dollar counts. I've had clients go from driving 200 miles per day to 20 miles per week and just changing that can knock 60-100 dollars a month of your premium. 

If you're comfortable with it, ask about usage-based insurance (UBI): installing an app on your phone to track if you break safely, accelerate safely and don't drive between 12-4am on a regular basis (every insurance company has different things they track). In some states there are a few insurance companies that offer mileage based insurance which can save you hundreds, sometimes thousands of dollars per year. If you work from home, make sure you maximize your savings on your lower mileage usage, this means you are super low risk and barely on the road. Take advantage. Don't skip this if you are a hybrid or a full time work from home employee.

10. 🧠 Forget the Credit Score Obsession

Some companies factor in credit—but that doesn't mean you should obsess over it. Focus on staying out of debt and using your cash wisely. Clean finances mean more flexibility when it’s time to pay. Remember its not just your "credit score" you also have an "insurance score" which combines together into a risk factor. So if you have really bad credit like for example let's just say a 480 fico, but don't have one accident, speeding ticket, or any minor violations like seat belt, texting, etc. You can see get a really competitive rate. Ensure you have your agent really dig deep for savings: bundle, occupation, credit union member, student/military, look for every potential savings you can.

11. 🤝 Work With an Independent Insurance Agent Near You

Car insurance is complicated. A licensed, independent agent in your ZIP code can help you sort through options, explain your coverage, and find savings you didn’t even know existed. Also, if they sound too pushy, just move onto another agent. If the agent is skilled not only in their trade but can talk professionally, show a true initiative to help you, your family stay protected and wants to put money back in your pocket, then you found the right agent. If you have questions, comments or need further help feel free to reach out, you can email me directly at Randy@MainEventNews.com.

Bottom Line:
Don’t overpay for peace of mind. Whether it’s cutting back coverage you don’t need or just switching how you pay, there are tons of ways to drive down your premium. Your best move? Connect with a local expert who can help tailor your policy without the upsell.

 ⚠️ These tips + tricks might help you save — but they’re not one-size-fits-all. We’re not giving financial advice here, just sharing insights. Always do your own homework and talk with a licensed insurance agent in your zip code. See our Terms of Service for the fine print.