8 Ways to Save on Car Insurance Even If You’re a Safe Driver
If you’re feeling frustrated with your car insurance bill, you’re definitely not the only one. Car insurance premiums have gone higher in recent years.
In the first half of 2025, the average insurance premium was over 8% higher compared to the same period in 2024, and premiums have risen by more than 30% since 2023.
According to an auto insurance survey, tariffs could increase car insurance premiums by as much as 8 percent nationally by the end of 2025. Faced with those rising insurance costs, you might wonder how to lower car insurance rates.
The average car insurance premium depends on
- Full coverage: In Alabama, the average yearly cost of full coverage car insurance is about $2,059, which breaks down to roughly $172 per month. Some reports, however, list lower estimates, averaging around $1,245 annually or $104 per month.
- For minimum coverage: The state-required liability insurance in Alabama averages about $501 per year (around $42 per month). Other sources, however, indicate a somewhat higher average of $640 annually or about $53 per month.
After all this discussion, questions arise about how to lower car insurance. Implementing these proven strategies can help you to pay low car insurance in today’s market.
1. Increase Your Car Insurance Deductible
An auto insurance deductible is the amount you must pay “out of pocket” on a claim before your insurance company pays the remaining costs. Collision, comprehensive, uninsured motorist, and personal injury protection coverages usually require a car insurance deductible, if the deductible is higher, the insurance rate is lower, and vice versa.
Raising your deductible from $500 to $1,000 can typically reduce your annual premiums by 20–25%.“Just be sure you have enough cash on hand to cover repairs if necessary.”
2. Drop Collision and Comprehensive Insurance
Collision insurance pays for damage to your vehicle if you’re involved in an accident or are the victim of a hit-and-run. On the other hand, comprehensive insurance covers damage to your car from events like storms, vandalism, theft, fire, and other non-collision incidents.
As a general guideline, if your insurance premium exceeds 10% of your car’s value, it may be worth considering dropping collision coverage, and possibly comprehensive coverage as well. You might consider keeping comprehensive coverage a little longer, since it includes glass protection, handy if a rock chips or cracks your windshield.
3 .Take a Defensive Driving Course
Some insurers offer discounts if you complete a safe-driving course, though you typically need to retake the course every few years to maintain the discount.
According to the Birmingham Times, drivers aged 55 and older who voluntarily complete a state-approved defensive driving course can qualify for a 10% discount on their auto insurance premiums, which usually lasts three years. In Alabama, similar discounts for mature drivers generally range from 5% to 10%, with 10% being the typical maximum. The course costs around $25, takes approximately 5 hours and 20 minutes to complete, and can be retaken every three years.
4. Low-Mileage Discounts
Check with your insurance provider to see if they offer a low-mileage discount, especially if you work from home or are retired. Many insurers factor annual mileage into their pricing, so driving fewer miles can reduce your premium. For example, if a change in your job reduces your driving to under 10,000 miles per year, you may qualify for a lower rate. Some companies also offer verified mileage programs, allowing you to report your odometer regularly for additional savings.
Depending on your insurer and policy type, driving under 10,000 miles per year in Alabama could save you anywhere from about $130 up to $750 per year.
5. Bundle Your Auto Coverage With Your Homeowners Insurance
Some insurers provide discounts on annual premiums when you bundle your home and auto policies. However, savings can vary, while bundling may reduce costs for one person, another might save more by keeping each policy with a different company. In short, bundling is worth considering, but it’s not a guaranteed way to lower your premiums for everyone.
6. Sign Up for Driver Monitoring
Some insurers offer a discount if you let them monitor your driving habits through a smartphone app or a device that plugs into your car’s diagnostic port. If this option is available in your state, it’s important to do some research before enrolling. Ask your insurer what data will be used to calculate discounts, whether any unsafe driving behavior could actually raise your rates, and how your data will be stored and used. Also, confirm whether your data might be sold or shared with other companies. If you frequently drive at night for work or other reasons, make sure this won’t negatively affect your discount.
7. Explore Insurance Discounts
Last insurance saving tip is that most insurance companies provide a range of discounts, but the types of deals and the savings you receive can vary depending on factors such as state laws and the insurer you choose. You may be eligible for discounts based on:
- Your insurance policy
- Your driving history
- Group or employer affiliations
- Your child’s GPA
- Features of your vehicle
8. Review your coverage
Make it a habit to review your insurance policy with your agent every year. Your agent can help identify discounts or adjust your coverage levels to save you money.
“Life changes, and so should your coverage,” they note. “If you’re driving less, have paid off your car, or moved, updating your policy to match your current situation can lower your premium.” For instance, if your adult children have moved out and no longer drive your vehicles regularly, removing them from your policy can also reduce costs.