Car insurance is one of those expenses we all have to deal with, but let’s be real—it’s not fun, and no one wants to feel like they’re overpaying for it. And no one should be! There are plenty of ways to lower your car insurance bill without getting shoddy coverage, and a few small tweaks could save you a real chunk of change in the long run. Here are some tips to make sure you’re not overpaying on car insurance, so you can keep more cash in your wallet, where it belongs!

1. Shop around for quotes

One of the easiest ways to stop overpaying on car insurance is to shop around. Lots of people stick with the same insurance provider for years, but prices can vary wildly from one company to another. Insurers use different algorithms to calculate premiums, so what you’re paying with one company could be way more (or less) than what you’d pay with another.

Don’t be afraid to get quotes from several different companies. You can compare rates online, or if you want to save time, use a comparison tool that gets quotes from multiple insurers for you.

Brigit tip: Try to shop around for quotes at least once a year or whenever your policy is up for renewal. You might find a much better deal!

2. Review your coverage

Another common reason people overpay on car insurance is that they’re paying for coverage they don’t actually need. For example, if you’re driving an older car, it might not make sense to pay for comprehensive and collision coverage. These coverages help pay for repairs to your car in case of an accident, but if the cost to repair your car is more than what the car is worth, you might be wasting money.

Take a look at your policy and see if there’s anything you can cut back on. Do make sure to keep liability coverage (which is the law in most states) and maybe keep uninsured motorist coverage as well.

Brigit tip: If your car is worth less than 10 times the amount you’re paying annually for comprehensive and collision coverage, it might be time to drop those coverages.

3. Increase your deductible

Raising your deductible—the amount you pay out of pocket before your insurance kicks in—can lower your monthly premium. If you’re a safe driver and haven’t had an accident in years, increasing your deductible might be a good way to save. 

For example, if you raise your deductible from $500 to $1,000, your premium will likely go down. Just make sure you have enough savings to cover the higher deductible in case you need to file a claim.

Brigit tip: Before increasing your deductible, check to see how much it would actually lower your premium. If the savings aren’t significant, it may not be worth it.

4. Bundle your insurance policies

If you have other types of insurance, like homeowner’s or renter’s insurance, look into bundling them with the same provider. Many insurers offer discounts when you have multiple policies with them. That can save you a fair amount on both your car insurance and your other policies.

Just be sure to compare the bundled rate with what you would pay if you had separate policies. Sometimes, bundling isn’t the cheapest option, so double-check before you switch.

Brigit tip: Ask your current provider if they offer bundling discounts, and don’t hesitate to shop around for quotes from other companies to see who can offer the best bundle deal.

5. Ask about discounts

Car insurance companies offer all sorts of discounts, but they don’t always advertise them. There’s a good chance you might qualify for one or more discounts without even knowing it. For example, a lot of insurers offer discounts for:

  • Good drivers with spotless records
  • People who don’t drive many miles each month
  • Students with good grades
  • Vehicles with safety features like anti-lock brakes or anti-theft/tracking systems
  • Paying your premium in full up front instead of monthly

Give your insurance company a call and ask about any discounts you might qualify for. You’d be surprised how much you could save just by asking.

Brigit tip: Be upfront with your insurer about any life changes, like moving to a safer neighborhood or getting married (somehow they think that makes you a better driver)—both of which could lead to lower premiums.

6. Improve your credit score

Believe it or not, your credit score can impact how much you pay for car insurance. In many states, insurers use something called a credit-based insurance score to help figure out your premium. A higher credit score can mean lower rates, while a low credit score might mean you’re paying more than you should.

If your credit isn’t great, work on improving it by paying your bills on time, reducing your debt, and checking your credit report for errors. Brigit’s Credit Builder1 can be a big help in getting you on the right track, too.

Brigit tip: If your credit score has improved recently, ask your insurer to reassess your rate. You might qualify for a lower premium.

1The Brigit Credit Builder is a service provided by Brigit and its bank partner, Coastal Community Bank, Member FDIC. The Brigit Credit Builder product is separate from the Brigit Instant Cash Advance service. Brigit Credit Builder installment loans are issued by Coastal Community Bank, Member FDIC, subject to approved underwriting practices.