Effective Ways to Save on Auto Insurance Premiums

Top Strategies to Lower Your Auto Insurance Rates in 2024

Reducing auto insurance rates is possible with a little bit of knowledge. Learn how drivers can save on coverage. Car insurance premiums are soaring, with prices up around 26% at the start of 2024 compared with the year prior. Unfortunately, paying so much for auto insurance can be a huge financial burden. The good news is, there are ways drivers can reduce the huge costs they're paying. Following these four tips could provide some relief and leave a little extra money in a bank account to use for stuff that's a lot more fun than insurance.

1. Taking a defensive driving course

• Defensive driving courses give motorists the skills they need to reduce the chances of a crash. A lower collision risk means reduced premiums. Typically, motorists who take a defensive driving class can get around a 10% discount on premiums.

2. Earning good grades as a young driver

• Insuring young drivers is a financial nightmare because insurers know inexperienced motorists with brains that are not yet fully developed tend to present a higher risk of something going wrong. However, good students -- usually defined as those with a B average or better -- are viewed as safer. As a result, some insurers reduce premiums by as much as 20% for those who have the grades to qualify.

3. Bundling insurance coverage

• Insurers reward people who buy multiple policies. Bundling auto insurance and homeowners insurance could allow policyholders to reduce premiums for both policies by as much as 20% to 25%, depending on the company offering the coverage. The more kinds of coverage purchased, usually the lower the costs become.

4. Asking about discounts

• Finally, asking about discounts can be important, too. Insurers offer the chance to save for many reasons, including being a member of specific groups or working for a certain employer. By taking these four steps, motorists will often find they can score a notable reduction in premium cost. None of them are difficult, and with prices up so much, it's worth trying all of them to get a little bit of financial relief.