Increase Your Deductible

Your deductible is the amount you pay out-of-pocket before insurance kicks in. The higher your deductible, the lower your premium — because you’re taking on more of the initial risk yourself.

→ Learn more: Insurance Deductibles Explained

Bundle Multiple Insurance Policies

This is one of the highest-impact moves you can make. Bundling means buying multiple insurance products from the same company — and insurers reward loyalty with significant discounts.
Common bundles that generate savings:

Shop for Insurance Every Year — Without Exception

Here’s something most people don’t know: insurance companies offer their best rates to new customers.
Staying with the same insurer for years rarely rewards you. In fact, a phenomenon called “loyalty tax” or “price optimization” means some insurers gradually raise rates for customers they believe are unlikely to leave.
A 2023 study by the Consumer Federation of America found that long-term customers of some insurers paid substantially more than new customers for identical coverage.
The solution? Compare quotes every single year before renewal. Set a reminder in your calendar 30 days before your policy expires.

→ See the Cheapest Car Insurance Companies in the U.S.

Improve Your Credit Score

In 46 states, insurance companies use your credit score to set your rates. This is called an insurance-based credit score or insurance score, and it’s separate from your regular FICO score — though both are based on similar data.
Why does credit matter to insurers? Studies by the Federal Trade Commission (FTC) show that people with lower credit scores file more insurance claims — so insurers price accordingly.
The potential savings here are enormous:

Steps to improve your insurance score:

→ How Credit Scores Affect Insurance Rates  |  Check Your Credit Score Free

Ask About Every Available Discount — Don’t Wait to Be Offered

This is the most underused strategy on this list. Insurance companies typically don’t advertise every discount they offer. They’re available — but you have to ask.

Auto Insurance Discounts:

Home Insurance Discounts:

Affinity & Membership Discounts:

→ Insurance Discounts Most People Don’t Know About

Drive Less — Take Advantage of Low Mileage and Usage-Based Programs

If you work from home, use public transit, or simply don’t drive much, you could be significantly overpaying for auto insurance that’s priced for average-mileage drivers.

Low Mileage Discounts:

If you drive fewer than 7,500–10,000 miles per year, ask your insurer for a low mileage discount. Many offer this without any tracking requirements — just a self-reported or annually verified mileage figure.

Telematics / Usage-Based Insurance (UBI):

Programs like Progressive Snapshot, Allstate Drivewise, and State Farm Drive Safe & Save use an app or plug-in device to track your driving habits.
What telematics programs typically monitor:

Safe, low-mileage drivers regularly save 10–30% through UBI programs. However, aggressive drivers may see their rates increase — so be honest with yourself before enrolling.

Install Safety Devices at Home and in Your Car

Reducing the risk you represent to an insurer is one of the surest ways to lower your premium. Safety devices do exactly that.

For Home Insurance:

For Auto Insurance:

Improve Your Home’s Safety and Condition

Home insurance premiums are heavily influenced by how risky your home is to insure. Older or poorly maintained homes cost more to insure — but targeted improvements can meaningfully reduce rates.
High-impact home improvements for lower premiums:

Stop Filing Small Claims — Use Insurance for Major Losses Only

This is counterintuitive advice that most people don’t follow — but it’s one of the most important strategies for keeping your premium low over time.
Every claim you file is recorded in your CLUE report (Comprehensive Loss Underwriting Exchange) — a database that insurers check when pricing your policy. Multiple claims in a short period signal high risk, triggering rate increases.

General rule of thumb: If the repair cost is less than 2x your deductible, pay out of pocket. Reserve your insurance for genuinely large losses — major accidents, fires, significant water damage, theft, and similar events.

Maintain a Clean Driving Record — Your Single Biggest Auto Insurance Factor

Your driving history is the most powerful factor in your auto insurance rate. A single violation can stay on your record for 3–5 years and affect every renewal during that time.
How violations typically impact your premium:

Strategies for maintaining or recovering a clean record:

Choose the Right Vehicle — Before You Buy

If you’re in the market for a new car, insurance cost should be part of your buying decision — not an afterthought. The vehicle you choose can dramatically affect what you pay for coverage.

Pay Your Premium Annually Instead of Monthly

This is the simplest strategy on the list — and one of the most overlooked.
When you pay monthly, most insurance companies charge installment fees — either explicitly as a per-payment fee, or implicitly by pricing the annual total higher for monthly payers.

If paying the full annual amount upfront strains your budget, ask about quarterly payment options — many insurers offer a middle-ground that still reduces fees.