By William Cao. Edited by Arjun Chandrasekar.


If not attended to properly, car insurance can compound up annually and cost more to pay off annually. Research from the NAIC shows that an average person spends about $1,100 in 2018 and these rates are most likely to have risen over the years. This article will go over multiple ways on reducing these car insurance costs.

Be a Safer Driver

Paying attention to the road these days is hard given the rise in-car distractions such as phones and more. Keeping your track report healthy is a must in avoiding accidents or violations. This is because points are typically assessed to a driver for violations and the more points received the higher the insurance premium costs. 

Some insurance companies provide a defensive driving course. Once completed, drivers can reduce the number of points they have on their license leading to a discount. This is all about researching and taking advantage of the potential discounts that the insurance company provides.

Choosing a Better Vehicle

Buying large SUVs can fit the need for one person but to another, it may not always be the case. While the temptation can be high, there can be better deals out there for a smaller and more compact vehicle. Some insurance companies also provide discounts on purchasing alternative fuel vehicles. Protecting the environment all while saving money on insurance sounds like a good deal to me. 

Deductible Payments and Agent Usages

Before choosing car insurance, you should opt to purchase deductibles first. Deductibles are the amount of money needed for payment before an event is done to your vehicles like an accident or theft. Deductibles typically range from $250 to $1000, meaning that paying a lower deductible amount results in a higher annual premium cost while a higher deductible means a lower premium cost. More on how this affects your premium can be discussed with your agent as well.  There are also other cost-saving ways and to find this, you should ask your agent if there are any other special discounts the insurance company provides.


Being a better and safer driver on the road is the bare minimum to reduce the total annual costs of car insurance. Depending on the insurance company, some might offer a defensive driving course to further reduce the number of points a driver has to their license. Utilizing an agent to find other deals also works and purchasing a deductible ranging from $250 to $1000 to further lower your annual cost would work as well.

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