How I Cut My Car Insurance In Half (Without Losing Coverage)
Last year I was paying $187 a month for car insurance. Same car, same driving record, same everything. Now I pay $94. Thats not a typo – I literally cut my bill in half.
And no, I didnt switch to some sketchy company or drop all my coverage. Let me tell you what I did.
Step 1: I Actually Read My Policy (First Time Ever)
Embarrassing confession – Id been auto-renewing the same policy for FIVE YEARS without looking at it. When I finally pulled it up, I found some weird stuff.
I had rental car coverage. I dont rent cars. I had roadside assistance, but I also pay for AAA. I was paying for new car replacement on a 10-year-old car. Just… why?
Stripping out the stuff I didnt need saved about $20/month right there.
Step 2: Raised My Deductible
My deductible was $250. Seemed smart when I picked it years ago. But think about it – how often do you actually file claims?
I raised it to $1,000. My premium dropped significantly. The math: Id have to file a claim every two years for the lower deductible to be worth it. Ive filed one claim in 15 years.
The caveat: only do this if you have $1,000 you could actually access in an emergency. Dont raise your deductible and then not be able to afford a repair.
Step 3: I Actually Got Competitive Quotes
This is the big one. I was loyal to my insurance company for no reason. They were not loyal to me.
I spent maybe 2 hours one Saturday getting quotes from 6 different companies. Same coverage, same deductibles. The spread was INSANE.
Cheapest quote: $89/month. Most expensive: $204/month. FOR THE SAME THING.
Loyalty doesnt pay in insurance. These companies bank on you being too lazy to shop around. I was that lazy person for way too long.
Step 4: Bundling Actually Helped
I had renters insurance with a different company. Moved it to my new car insurance company and got 12% off both policies.
If you own a home, the bundling discount is usually even bigger. Check the math – sometimes it makes sense even if each policy costs slightly more individually.
Step 5: Asked About Discounts I Didnt Know Existed
When I called to set up my new policy, I literally asked what discounts am I eligible for that I havent mentioned?
Turns out:
- My college degree qualified me for a discount (I had no idea)
- I could get a lower rate for paying the full 6-month premium upfront
- My car has anti-theft features that qualified for a discount
- I work from home, which means low mileage discount
Nobody volunteers this stuff. You have to ask.
Things I Tried That Didnt Work (For Me)
The driving tracker thing – Used it for six months, saved $12 total. Got annoyed that it penalized me for driving at night when I was just… driving at night. Not for me.
Reducing liability coverage – An agent suggested dropping my liability limits to save money. Hard no. If I cause an accident and someone gets seriously hurt, minimum liability could leave me bankrupt. Not worth the $15/month savings.
Local insurance companies – Got quoted by a smaller regional company. Rate was great until I asked about their claims process. Sounded like a nightmare. Stuck with a bigger company Id heard of.
What Actually Matters When Youre Comparing
Its not just about the lowest number. Check:
Whats actually covered – Some cheap policies have exclusions buried in the fine print
Customer reviews for claims – An insurance company is only as good as how they handle claims. I specifically googled [company name] claims horror stories before switching.
The app/website – This sounds dumb but if you need to file a claim at 2am after an accident, you want it to be easy. Tested the apps before committing.
AM Best rating – This measures the companys financial strength. If they go bankrupt, your policy is worthless. Stick with A-rated or better.
How Often Should You Do This?
Im now doing this every 2 years, or whenever something major changes (moving, getting married, new car, etc).
Some people do it annually. That might be overkill unless you have a lot of time. But definitely dont be like old me and just auto-renew for five years straight.
The Final Numbers
Old policy: $187/month
New policy: $94/month
Annual savings: $1,116
Thats a nice vacation. Or half a mortgage payment every month. Or just… money I get to keep instead of giving to an insurance company that was overcharging me.
It took maybe 3 hours total including phone calls. That works out to $372 per hour for my time. Worth it.
Just do it. Seriously. Go get quotes this weekend.
