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Owning a car comes with its fair share of expenses, such as gas, repairs, oil changes, and registration fees. Then there’s auto insurance, which can vary in cost depending on your driving record, type of car, and other factors. However, there are plenty of simple ways to lower your rate and keep your coverage affordable.
In this post, we’ll discuss practical ways to save on car insurance and show you how Mercury helps drivers find affordable protection that fits their lifestyle and budget.
What Discounts Are Available to Drivers?1
One of the easiest ways to save on car insurance is to take advantage of available discounts. Many insurers offer various savings opportunities based on your driving record, lifestyle, and your car’s features, among other factors.
These are some of the most common auto insurance discounts worth exploring:
Multi-Policy and Bundling Discounts
Combine your auto insurance with another policy, like homeowners or renters insurance, and you could enjoy big savings. Bundling also makes managing your policies simpler since one insurer handles everything.
Multi-Car Discounts
Insuring more than one vehicle on the same policy is another easy way to lower your premium. This is especially helpful for families or households with multiple drivers.
Good Driver Discounts
If you maintain a clean record with no recent accidents or violations, you can qualify for lower rates and keep those savings year after year.
Good Student Discounts
Young drivers who keep their grades up can earn a good student discount. Most insurers reward students who maintain a B average (3.0 GPA) or higher, because good academic habits typically reflect responsibility behind the wheel.
Safety and Anti-Theft Discounts
Cars with safety and anti-theft features, like anti-lock brakes and alarm systems, are less likely to be involved in accidents or stolen. That means insurers usually pass those savings on to you.
1 Discounts vary by state, check with your agent for discounts specific to your state.
How Can Your Driving Habits Affect Rates?
How you drive has a big impact on how much you pay for car insurance. The safer you are behind the wheel, the less risk you pose to your insurer. That can lead to lower rates over time.
Here are a few simple ways your driving habits can help you save:
Safe Driving Pays Off
Getting into an accident or getting a speeding ticket can cause your insurance to go up. But when you keep a clean driving record by staying alert, following speed limits, and avoiding distractions, you’re more likely to qualify for good driver discounts and keep your premium low.
Fewer Claims, Lower Costs
Every time you file a claim, it can affect your rate. The fewer accidents you have, the fewer claims you’ll need to make, which helps you keep those low rates year after year.
Drive Less, Save More
If you don’t drive often (e.g., work from home, take public transit, or carpool), you might qualify for a low-mileage discount. The less time you spend on the road, the less risk you have of getting into an accident, and that can mean more savings.
Try a Usage-Based Program
Many insurers, including Mercury, offer usage-based programs that reward safe driving. These programs, like MercuryGO, track habits like speed, braking, and mileage, and if you drive safely, you could see a nice discount on your policy. MercuryGO is not available in all states, check with your agent for availability.
Does the Type of Car You Drive Matter?
Yes, the kind of car you drive can affect how much you pay for insurance. Insurers look at various factors for your vehicle’s safety features, repair costs, and theft rates when determining your premium.
Here’s what to keep in mind:
Safety Features Can Save You Money
Cars with strong safety ratings and built-in ADAS features, such as lane-departure warnings and automatic emergency braking, are less likely to be involved in severe accidents, which usually qualify them for lower insurance rates.
Luxury and Sports Cars Cost More to Insure
High-end vehicles and sports cars usually have higher premiums. They’re more expensive to repair, have pricier parts, and are usually targeted for theft, all of which increase insurance costs.
Practical Cars Can Help Lower Your Rate
Choosing a reliable, mid-sized vehicle like a sedan or SUV is usually the most affordable option to insure. These cars are designed for everyday use and typically come with standard safety features that help reduce risk.
Can Adjusting Your Coverage Help Lower Rates?
Yes, it can. Making a few smart adjustments can help you lower your premium without sacrificing peace of mind. Consider the following to help fine-tune your coverage:
Raise Your Deductible
Your deductible is the amount you pay out of pocket before your insurance kicks in after a claim. Choosing a higher deductible (like $1,000 instead of $500) usually lowers your monthly premium. Just make sure you have enough saved to cover that amount if you ever need to file a claim.
Review Your Coverage Levels
Take a closer look at your policy to make sure you’re not paying for more coverage than you need. For example, if you drive an older car that’s worth less than your deductible and premium combined, it might make sense to scale back on comprehensive or collision coverage.
Drop Extras You Don’t Use
Add-ons like roadside assistance or rental car reimbursement can be helpful, but if you rarely use them, removing one or two could help reduce your costs.
How Does Your Credit Score Impact Insurance Costs?
You probably know your credit score affects things like loan approvals and interest rates, but did you know it can also influence how much you pay for car insurance?
In many states, insurance companies use something called a credit-based insurance score to help determine rates. Drivers with higher scores are statistically less likely to file claims, so they may qualify for lower premiums.
Here’s what that means for you:
- Good credit can lead to lower rates: Paying your bills on time, keeping credit balances low, and avoiding unnecessary new accounts can all help improve your score over time.
- Your score isn’t the only factor: Insurers also look at your driving record, claim history, location, and vehicle type when setting your premium.
- Some states don’t allow credit to affect rates: California, Massachusetts, and Hawaii, for example, prohibit using credit scores in auto insurance pricing.
When Should You Shop Around for a Better Rate?
Even if you’re happy with your current coverage, it’s smart to shop around for car insurance every year or two. Rates can change based on your driving history, location, vehicle, or broader market factors, and you might be missing out on discounts you now qualify for.
These are the times when it’s good to compare quotes and see if you can get a better deal:
At Renewal Time
Your renewal period is the perfect time to review your policy and check for savings. Ask your insurer if you qualify for new discounts or if your premium can be adjusted based on your current driving record.
After Buying a New Car
Different vehicles come with different insurance rates. If you recently purchased or plan to buy a new car, get a few quotes to see how your coverage costs might change.
When Life Changes
Major milestones, like moving, getting married, or adding a new driver to your policy, can all affect your insurance rates. Reviewing your coverage after big changes helps ensure you’re still getting the best price for your situation.
When You Want to Save More
Small adjustments, like increasing your deductible, bundling home and auto, or improving your driving habits, can lead to lower premiums. Getting a fresh quote helps you see those savings in real numbers.
Why Choose Mercury Insurance for Savings
Finding ways to make insurance cheaper shouldn’t be complicated, and with Mercury Insurance, it isn’t. We make it easy to save money and stay protected with affordable coverage, personalized support, and smart discounts that fit your lifestyle.
Take a look below, and see why so many drivers choose Mercury when it comes to saving on car insurance:
- Affordable coverage that fits your life: Mercury offers competitive rates and plenty of discounts, so you can save money without cutting corners on protection.
- Service that feels personal: Whether you like working with a local agent or prefer managing everything online, Mercury gives you options that work for you.
- Experience you can trust: With decades of proven reliability and top industry ratings, Mercury has built a reputation for putting customers first.
“There’s no universal formula to save on car insurance,” says Justin Yoshizawa, Director of Product Management, State at Mercury Insurance. “It’s about finding the right mix of coverage, discounts, and good driving habits. Our job is to make that easy and help drivers get the best value possible.”
Save on Car Insurance with Mercury
Car insurance is a necessary part of driving, but that doesn’t mean it has to strain your budget. Taking advantage of discounts, maintaining good driving habits, and reviewing your coverage regularly can all help secure the rate you want.
And if you’re looking for a new policy, Mercury makes it easy to find affordable coverage thanks to our wide range of discounts, personalized support, and reliable protection.
Contact us today for a fast, free quote!
Frequently Asked Questions About How to Lower Car Insurance Premiums
How can I lower my car insurance premiums?
You can save money on car insurance in a variety of ways, such as driving safely, bundling policies, raising your deductible, and reducing mileage. Safety features and defensive driving courses may also earn discounts. And comparing quotes (including one from Mercury Insurance) is one of the easiest ways to find savings.
What is the best way to lower my car insurance premium in California?
Californians can save on car insurance by keeping a clean driving record, driving fewer miles, and taking advantage of discounts like multi-car, good student, or bundling home and auto. Choosing a company that knows the state also makes a big difference. Mercury Insurance has been serving California drivers since 1962, so we understand local driving challenges and offer competitive rates designed with Californians in mind.
Justin Yoshizawa is Director of Product Management for Mercury Insurance, overseeing California’s personal lines, including auto, homeowners, landlord, and umbrella. He has led major initiatives such as the rollout of the aligned umbrella product across all Mercury territories and serves as a company spokesperson on auto-related topics. Yoshizawa holds dual Bachelor of Science degrees in Applied Mathematics and Applied Statistics from UC Santa Barbara.
The Mercury Marketing Team is made up of professionals in the fields of Content Creation, Public Relations, Social Media and Journalism. The team works together to deliver professionally written and researched content to provide information for consumers.