2026-04-01 · personal, shopping, guide, rates

How to Lower Your Insurance Premiums

Key Takeaways

Shopping around and comparing at least three quotes is the single most effective way to lower your premiums.
Bundling multiple policies with one carrier often saves 5% to 25%.
Raising your deductible lowers your premium, but make sure you can afford the higher out-of-pocket cost if you file a claim.
Many discounts go unclaimed simply because policyholders never ask about them.
Reviewing your coverage annually helps you avoid paying for protection you no longer need.

Introduction

Insurance premiums are one of the largest recurring expenses for most households, and cost is consistently the top concern for insurance shoppers. The good news is that there are proven strategies to reduce what you pay without leaving yourself underinsured. This guide covers practical steps that apply across auto, home, renters, health, and life insurance.

For a deeper look at what determines your rates in the first place, see our guide on insurance cost drivers.

Shop Around and Compare Quotes

Getting quotes from multiple carriers is the most reliable way to find a lower rate. Insurers use different pricing models, so the same person with the same coverage needs can see prices vary by hundreds of dollars per year between companies.

Get at least three quotes before renewing or buying a new policy.
Compare the same coverage limits and deductibles across each quote so you are making an apples-to-apples comparison.
Check both large national carriers and smaller regional insurers.
Re-shop every one to two years, since pricing changes frequently.

Our guide to comparing insurance quotes walks through what to look for side by side. You can also learn more about when to shop for insurance to time your search for the best rates.

Bundle Your Policies

Most insurers offer a multi-policy discount when you carry more than one type of coverage with them. Common bundles include:

Auto and homeowners insurance
Auto and renters insurance
Home and umbrella insurance

Bundling typically saves 5% to 25%, depending on the carrier and the policies involved. Even if one carrier is not the cheapest for each policy individually, the combined bundled price may beat buying separate policies from different companies.

Raise Your Deductible

Your deductible is the amount you pay out of pocket before your insurance kicks in. Choosing a higher deductible lowers your premium because you are taking on more of the financial risk yourself.

Moving from a $500 deductible to a $1,000 deductible on auto or home insurance can reduce your premium noticeably.
Only raise your deductible to an amount you can comfortably pay if you need to file a claim.
Consider setting aside the premium savings in an emergency fund to cover the higher deductible if a loss occurs.

For more on how deductibles affect your overall costs, see our deductible explainer.

Ask About Discounts

Insurance companies offer a wide range of discounts, but many policyholders never ask about them. Common discounts include:

Safe driver discount for a clean driving record with no accidents or violations
Good student discount for young drivers maintaining a B average or higher
Home security discount for alarm systems, deadbolts, or smart home monitoring
Claims-free discount for going several years without filing a claim
Loyalty discount for staying with the same carrier over time
Military and veteran discounts
Professional association or alumni discounts
Paperless billing or autopay discounts

Ask your insurer for a full list of available discounts every time you renew. You may qualify for discounts you did not know existed.

Improve Your Credit Score

In most states, insurers use credit-based insurance scores as one factor in setting premiums. A higher credit score generally leads to lower rates. Steps that help your insurance score include:

Paying bills on time
Keeping credit card balances low relative to your limits
Avoiding unnecessary new credit applications
Checking your credit report for errors and disputing any inaccuracies

Credit-based insurance scoring is not allowed in all states (California, Hawaii, Massachusetts, and Maryland restrict or prohibit it for certain policy types), but in most of the country it is a meaningful factor.

Review Your Coverage Annually

Your insurance needs change over time, and coverage that made sense a few years ago may no longer be necessary. An annual review can uncover savings opportunities:

Drop comprehensive and collision coverage on older vehicles where the car’s value no longer justifies the premium.
Adjust coverage limits if your circumstances have changed (for example, if you have paid off your mortgage).
Remove riders or endorsements you no longer need.
Update your insurer on life changes that may qualify you for new discounts, such as a shorter commute, retirement, or home renovations.

Learn how to choose the right coverage levels for your current situation.

Auto-Specific Tips

If you are looking to lower your auto insurance costs specifically, consider these additional strategies:

Take a defensive driving course. Many states and insurers offer a discount for completing an approved course.
Ask about low-mileage discounts. If you drive fewer than a certain number of miles per year (often 7,500 to 10,000), you may qualify.
Try a telematics or usage-based program. These programs track your driving habits through an app or plug-in device and can reward safe driving with lower rates.
Maintain continuous coverage. A gap in coverage can raise your rates when you re-insure. Learn about switching carriers without a gap.

Home-Specific Tips

For homeowners insurance savings:

Install security and safety systems. Burglar alarms, smoke detectors, water leak sensors, and deadbolt locks can all qualify for discounts.
Upgrade your roof. A newer, impact-resistant roof can significantly reduce premiums in areas prone to wind or hail damage.
Ask about claims-free discounts. Some insurers reward policyholders who go three to five years without filing a claim.
Mitigate known risks. Adding storm shutters, upgrading electrical or plumbing, or installing a sump pump can reduce both your risk and your premium.

Health Insurance Tips

Health insurance premiums work differently from property and casualty insurance, but there are still ways to reduce costs:

Use marketplace subsidies. If you buy coverage through HealthCare.gov or a state marketplace, you may qualify for premium tax credits that significantly lower your monthly cost.
Choose the right metal tier. Bronze plans have the lowest premiums (but highest out-of-pocket costs), while Gold and Platinum plans have higher premiums but lower cost-sharing. Pick the tier that matches your expected healthcare usage.
Consider an HSA-eligible high-deductible plan. If you are generally healthy, a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA) lets you pay lower premiums and save pre-tax dollars for medical expenses.
Review your plan during open enrollment each year. Plan networks, formularies, and prices change annually, so last year’s best deal may not be this year’s.

FAQs

Does switching insurance companies hurt my coverage?

No. As long as you start your new policy before canceling the old one (so there is no gap in coverage), switching carriers does not reduce your protection. Compare coverage details carefully to make sure the new policy matches or exceeds what you had.

How much can I really save by bundling?

Bundling discounts typically range from 5% to 25%, depending on the insurer and which policies you combine. The exact savings vary, so it is worth getting both bundled and standalone quotes to see which option costs less overall.

Will filing a claim always raise my rates?

Not always, but it can. Many insurers raise rates after at-fault claims or after multiple claims in a short period. Some offer claims-free forgiveness programs that protect your rate after a first incident. For smaller losses, weigh the claim payout against the potential rate increase.

How often should I shop for new insurance quotes?

At minimum, compare quotes at every renewal. Many experts recommend shopping every one to two years, or whenever you experience a major life change such as moving, buying a home, getting married, or adding a teen driver.

Next Steps

Get at least three quotes for your most expensive policy using our quote comparison guide.
Call your current insurer and ask for a full list of available discounts.
Review your current coverage limits and deductibles to make sure they still match your needs.
Check our guide on insurance cost drivers to understand what factors are affecting your rates.

Sources

Insurance Information Institute (iii.org), “How can I save money on car insurance?”
National Association of Insurance Commissioners (naic.org), “Shopping for Auto Insurance”
HealthCare.gov, “Save on health insurance costs”
Consumer Financial Protection Bureau (consumerfinance.gov), “What is a credit score?”