How to Lower the Cost of Car Insurance

Auto Smarts

Not all car insurance premiums are created equal. From your driving record, to how far you live from work and the type of car you drive, there are many factors that impact your car insurance costs.

Try these 5 smart tactics to reduce your car insurance rates:

1. Keep your driving record clean

When it comes to driving, it’s wise to leave racing to the pros over at NASCAR. Why? While using caution on the road may not win you any checkered flags, it could translate into substantial car insurance savings down the line.

In fact, Farmers offers a safe driver discount* if you’ve managed to avoid accidents and citations, and maintained a spotless record over a period of time.

2. Choose your car wisely

There’s a lot to consider when shopping for a new car – comfort, options, fuel economy, and (most importantly) cost. But a factor that’s often overlooked is auto insurance.

Auto insurance rates are calculated based on a host of factors such as make and model, cost of replacing parts, crash test rating, history of theft claims, price, and more. 

(Believe it or not, if the SUV you’re planning to buy is considered theft-prone, that could possibly drive up your premiums.)

Before you walk out of the dealership with a new car, consult with your insurance agent, who can help you compare insurance rates on different models.

3. Research your car’s safety reputation

Keep in mind that owning a car with a high safety rating not only makes you and your family safer on the road, but with a reduced risk of accidents, it could lead to a lower premium too. Also, cars with factory-installed safety features such as air bags, automatic seat belts, anti-lock brakes, or an anti-theft device, may help you qualify for additional savings.

View the 2015 Top Safety Picks to see if your car’s a top performer from a safety and insurability standpoint.

4. Look into teen and senior discounts

As any parent will tell you, it’s hard not to picture the worst case scenario and worry about mounting expenses when your teen gets behind the wheel for the first time.

There’s a silver lining though! Teen drivers who have good grades or live away at school may be eligible for policy discounts. So you’re usually better off adding them to the family plan rather than purchasing a separate policy.

Seniors, too, enjoy some auto insurance perks. Farmers, for example, offers discounts to residents of most states, who are 55 and older, and have completed an approved driving course.

5. Cut down on your driving

Driving less could save you a bundle not only on gas but also on your premium. If it’s an option, try moving closer to work or carpooling. Infrequent drivers are at a lower risk of being involved in an accident, and may therefore enjoy low-mileage discounts.

Remember, it’s never a good idea to let your car insurance policy collect dust. Doing a yearly check-in with your agent and reviewing your existing policy can really pay off.

Your agent can point out any discounts you may be missing out on, and help revise your policy to cut costs. For example, did you know that raising your deductible or bundling multiple policies together may help slash your monthly premium even further? Find out more with 5 Ways to Reduce Your Auto Insurance Premiums.



The information contained in this page is provided for general informational purposes only. The information is provided by Farmers and while we endeavor to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to this article or the information, products, services or related graphics, if any, contained in this article for any purpose. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.

*Not all products and discounts are available in every state.


1 Life insurance, annuities and accidental death insurance issued by Farmers New World Life Insurance Company, 3003 77th Ave. SE, Mercer Island, WA 98040.
Products & features may not be available in all states & may vary by state.
* Securities offered through Farmers Financial Solutions, LLC, 30801 Agoura Rd. Bldg. 1 Agoura Hills, CA 91301. Member FINRA & SIPC.
* Products and Services/Auto or Home/Questions you may have about Risk Assessment Indicators