Insurance can be expensive, and in some cases it can actually work against you. Here are some things to be aware of, to make sure you’re taking full advantage of the benefits without paying more than you need to.

1. Shop around like your wallet depends on it (spoiler alert: it does!)

If you’re renewing your insurance with the same company year after year without shopping around for rates, you might as well be just giving away money. Insurance companies love loyal customers, but they love overcharging them even more. Always compare quotes from at least three different providers before renewing—there’s a good chance you’ll find a better deal elsewhere. There are lots of insurance sites, like Simplifi and Insurify, that will compare prices from all the top companies with one search!

2. Raise your deductible (if you can)

A higher deductible (the amount you pay out of pocket before insurance kicks in) usually means lower premiums (the monthly costs you pay for coverage). If you rarely file claims, this can be an easy way to reduce your monthly costs. Just make sure you have enough in your emergency fund to cover the deductible if you ever do need to make a claim.

3. Bundle up!

Most insurance companies offer sweet discounts if you bundle multiple policies—like home and auto insurance—together. The more you combine, the better the discount. If you’re not a homeowner, you can usually bundle renter’s insurance for better pricing.

4. Ask for discounts

Insurance companies have more discounts than they advertise, and they’re often available for things you wouldn’t expect. Some common ones include:
✅ Safe driver discount
✅ Good student discount (if you’re under 25)
✅ Low-mileage discount (if you don’t drive much)
✅ Paperless billing discount
✅ Military or professional organization discounts

You can just call your insurance company, tell them you’re looking to cut costs, and ask which discounts you may qualify for. Even though they will give you any of these discounts you qualify for, they won’t offer them or automatically apply them. So it’s always worth asking!

5. Improve your credit Score—yes, It affects your insurance rate!

A lot of people don’t realize this, but many insurance companies use your credit score to determine your rates. The better your credit, the lower your premiums. So, paying your bills on time and keeping your credit utilization low can actually help you save money on insurance.

6. Don’t over-insure

One of the most common ways people pay for more courage than they need is over-insurance. For example, if you’re driving a 15-year-old car, paying for comprehensive coverage might not make sense—it could cost you more than the car is worth.

7. Review your policy every year

Like just about everything in life, your insurance needs can change over time. Maybe you moved to a safer neighborhood, started working remotely (driving less), or improved your credit score. These are all things that could lower your rates. But your insurance company won’t adjust your pricing unless you ask—so be proactive and save yourself that money!

8. Be Strategic About Claims

Filing small claims can sometimes hurt you more than help, and can cost you more over time. Too many claims can lead to higher premiums or even non-renewal of your policy. If the damage is minor and affordable to fix yourself, it might be smarter to pay out of pocket instead of filing a claim. Here’s more info on what to consider before you file a claim.

Brigit is not affiliated or partnered with any brands or companies mentioned in this article.