While we’ve started to see inflation tame in the past 12 months, one area that’s been ripe for price increases is automotive insurance, which has spiked over 20% in the last year - the latest inflationary bite to car ownership that saw used car prices spike during the pandemic, and gas prices to pop in 2022 amid Russia’s invasion of Ukraine.

So, you may be asking yourself what steps you can take to bring those car insurance premiums down. We have a few in mind:

SHOP! Loyalty is rewarded in many places in life - commodities like automotive insurance is not one of those places. Most automotive policies are for 6-12 months and if you want to keep this cost low, shop every time it’s up for renewal. I recently switched policies during a renewal to save over 20% on my premiums - helping offset the inflationary push in premiums.
Bundle, bundle, bundle - no, I’m not talking about what you need to do to survive this winter cold in the northeast; I’m talking about your various insurances. Bundling renters' or homeowners' insurance, with auto, umbrella, and other property and casualty insurance you have, can translate to meaningful savings.
Pay in a lump sum - many insurance companies give you a better price if you pay the full premium upfront - rather than monthly and assess a fee for monthly processing. Paying your semi-annual premium upfront can translate to cost savings.
Check your payment method - credit card processing fees often result in price discrepancies based on payment methods. You may be able to save a few dollars each month or unlock an additional discount by paying via ACH.
Double-check your discounts - you may be eligible for discounts for a good credit score or car safety features. Calling up your insurance company and having them give your discounts a second look can save you money.
Review your coverage - full coverage on your brand-new Tesla or Subaru Forester is key. However, if you’re driving a 2003 Volkswagen that your friends have nicknamed Garbage Car, you might be able to reduce your coverage while still protecting your assets if there’s an accident.
Consider a monitoring “telematics” program - many insurance companies offer discounts if they can track and monitor your driving.
Look somewhere NEW for insurance - Are you a Costco Member? How about USAA? Or AAA? Many associations and memberships offer discounted car insurance rates to members. I recently got the best deal from none other than Costco’s affiliated car insurance company.
Most Importantly: Drive Safe - having an accident-free driving record is the most important factor in ensuring your premiums don’t spike even further.

How to shop for car insurance:

If you’re new to shopping around, here are some tips for actually hopping insurance options:

Pull up your current coverage with your provider as a reference point. Many companies offer lower-cost coverage for crappy coverage - you want to compare apples-to-apples.

Start by requesting quotes from a few other providers - there are lots of big-name providers out there; here are the 15 largest providers as of April 2023 (keep in mind that not all insurance companies operate in all states)

State Farm: The largest auto insurer in the U.S., known for its customer service and extensive agent network.
GEICO: A direct-to-consumer insurance company known for its low rates and memorable advertising campaigns.
Progressive: Offers a wide range of insurance products and is known for its usage-based insurance options.
Allstate: Provides a broad array of insurance products and services with a large network of agents.
USAA: Serves members of the U.S. military, veterans, and their families, known for its excellent customer service.
Liberty Mutual: Offers a wide variety of insurance products and is known for its responsibility and personal protection plans.
Farmers Insurance: Provides extensive coverage options and has a large network of agents.
Nationwide: Offers a range of insurance and financial services, known for its On Your Side review.
American Family Insurance: Known for its customizable policies and loyalty discount programs.
Travelers: Offers insurance products for personal and commercial use, known for its financial strength.
Erie Insurance: Provides auto, home, commercial, and life insurance, known for its superior customer service.
Auto-Owners Insurance: Offers a wide range of insurance products, known for its independent agent network.
The Hartford: Specializes in insurance for drivers over 50, offering special benefits through the AARP Auto Insurance Program.
Mercury Insurance: Known for its affordable insurance options and customer service.
MetLife: Offers a variety of insurance products, including auto insurance through group plans and individual policies.

Get a feel for how well your current plan compares price-wise, and include your home/renter's policy in the comparison for bundling purposes.
Consider if you need to search further - I usually check with 3-4 companies for a good price, and typically one stands out as the best deal. The goal is to save money, not turn this into a part-time job.
Some tools will shop a variety of companies at once, like Policygenius. I personally have found it easier to shop a few companies on my own, but it is a tool you may want to consider.

Ultimately, we want to make sure we have ample coverage for your vehicle and to protect you (and your assets) in the event you’re getting sued after an accident in the most economical way possible. So shop, compare, and (hopefully) save amid this pop in premiums.

Car Insurance Premiums are UP, here's how to bring them DOWN