How To Save Money On Insurance

Insurance premiums, whether for personal or business needs, have been skyrocketing in recent years. The overall inflation that's plagued the U.S. economy in recent years doesn't just impact consumer goods. The Consumer Price Index (CPI) report for January 2025 notes that motor vehicle insurance, for example, increased 11.8% in the last 12 months. This is a staggering increase, layered upon years of similar or worse price increases.

Homeowners and renters insurance increased 2.1% over the same time period. In some areas, like California and Florida, homeowners insurance has, in many cases, become entirely unaffordable or impossible to obtain from a private carrier.

Unfortunately, most of us can't just go without insurance. Whether you're a car owner, a homeowner, or a business owner, skyrocketing insurance costs are affecting everyone. But there are still a few things you can do to save some money. We've compiled some tips below.

And remember that your best bet for saving money on insurance is getting personal advice from an independent insurance agent. Independent agents work for you, not an individual insurance carrier. They can get you quotes from multiple insurance companies so you can choose the options that best fit your needs and budget.

How To Save Money On Car Insurance

The average annual cost of full coverage car insurance is $2,670. A car insurance policy with minimum coverage costs around $773 per year, on average. That equates to $223 and $64 per month, respectively. These are not easy bills to pay for many people.

Of course, car insurance rates vary significantly from person to person. Your rates are based on your age, gender, marital status, location, driving record, type of vehicle, and other factors, such as your credit score. You can't change many of these, but there are still ways to save a little on that high premium. These days, it's important to take advantage of as many of these savings opportunities as possible.

Bundle your insurance. Having the same insurer for both your car and your home or renters insurance will often result in a discount on both policies. Even if the discount only applies to your car insurance, this is still a great option to lower your car insurance payment. By using an independent insurance agent, you’ll be able to quickly compare multiple companies to find the lowest option for both policies.
Take a defensive driving course. Nearly every insurance company offers a defensive driving discount. While you may consider this to be an option only for high-risk drivers, anyone can take an online class. Learning about safe driving habits while lowering your insurance is a win-win situation.
Take advantage of low mileage. If you drive less than 8,000 miles in a year on any of your insured vehicles, you’re eligible to receive a low mileage discount with most insurers. This discount is often surprisingly big, and it can significantly reduce your premiums, but, will need to be verified each year in order to keep it.
Work towards a safe driver discount. Among the largest car insurance discounts is the safe driver discount. This can typically range between 15% and 35% and often requires no accidents or violations in the last 3 to 5 years. If you don’t currently qualify for it, it’s worth the savings to mindfully obey the law and practice safe driving habits in order to qualify in a few years.
Consider paying your policy in full. If you have the means, paying for your six- or 12-month policy in full can save you hundreds of dollars. Not every insurance company offers a pay-in-full discount, but the ones that do typically range about 20%. Saving money ahead of time to pay for your insurance premiums not only saves you money, but also reduces your monthly bills.
Increase your deductibles. If you have comprehensive and collision coverage on your vehicle, increasing your deductibles can lower your monthly premium.
Sign up for easy discounts. Nearly every insurance company offers paperless discounts, which are easy to sign up for. You could also consider signing up for a telematics program, which is when the insurance company bases your discount on how well you drive. Ask your independent insurance agent about the company-specific discounts that your insurer has and how you can take advantage of them.
Use an independent insurance agent. Buying your insurance through an independent insurance agent allows you to get expert advice on your policy, both for coverage options and saving money. An independent agent can also quote your insurance from multiple insurance companies, many of which only offer insurance through these agents. Simply put, the best way to save money on car insurance is to use an independent insurance agent.

Car insurance rates do fluctuate quite frequently, which means you may need to have your insurance agent compare different companies every couple of years or so. Or if you make changes to your policy, such as having a teenage driver or buying a brand-new vehicle, you’ll probably want your agent to shop for the most competitive company.

How To Save Money On Home Insurance

The average cost of home insurance is $2,258 per year, or $188 per month, for a policy with a $300,000 dwelling limit. The average cost in Vermont, the cheapest state for home insurance, is $830 per year. The average cost in Florida is $5,488 per year, over $3,200 more than the national average.

Homeowners insurance rates are partially determined by the age and construction quality of your house. If you live in an older home, making sure your roof, heating, electrical, and plumbing systems are properly updated can help reduce a claim and may also lower your premiums.

Your home insurance rates are also based on the location of your home. Do you live in an urban or rural area? Do you have a high crime rate in your neighborhood? Is your home susceptible to weather damage or natural disasters? Anything that creates an elevated risk for property damage will increase your home insurance premiums.

As with car insurance, you can also find some ways to save on your home insurance premiums, including:

Bundle your home and auto. Watch out for companies that only offer a bundling discount on your auto insurance, and find companies that will lower both your home and your car insurance.
Raise your deductible. If a tree branch fell on your roof, would you pay $2,000 to fix it out of pocket, or would you need to file an insurance claim? Calculate your threshold that you’ll pay out of pocket and raise your deductible to that amount. Just because $1,000 is the standard homeowners deductible doesn’t mean you have to keep it there.
Install safety devices. Insurance companies will often give discounts for safety features such as security systems, backup generators, sump pump backups, or sometimes even smoke alarms. While these systems do cost money, the discount amount often offsets the cost of these safety devices while lowering the chance that you’ll have a claim.
Sign up for easy discounts. Going paperless is one of the easiest discounts you can receive, but you may also find discounts if you’re a first-time home buyer, a member of an association, or even quoting your insurance well in advance of your effective date.
Use an independent insurance agent. Review your insurance coverage with an independent insurance agent to see if you have the right type of policy and coverage. While you don’t want to be underinsured, you also don’t want to be overinsured and overpaying. Your independent insurance agent can also get quotes from multiple companies, finding you the best deal for your home insurance.

Rates normally don’t fluctuate as much with homeowners insurance as they do with car insurance, but it still pays to have an independent insurance agent review your options and coverage once in a while. If you’re located in a small town or rural setting, having your agent look at companies that are comfortable with country houses could also save you a lot of money on your home insurance.

How To Save Money On Business Insurance

Business insurance rates are based almost entirely on your specific business profile, including things like the value of your commercial property, the type of work you do, your location(s), the number of employees you have, and more. In addition, smaller companies might only need a few types of coverage, while mid-size or large business may have much more complex coverage needs. The amount of coverage you need has a huge impact on the cost.

That makes average business insurance costs very hard to predict, but there are still a few strategies for minimizing your business insurance premiums.

Raise your deductibles. Raising your deductibles is perhaps one of the easiest ways to save on business insurance. While carrying a high deductible may seem risky, consider the point at which you would actually file a property insurance claim. If you would pay to fix things at any amount under $2,000 or even $5,000 or more, then you can raise your deductible to that amount.
Bundle your insurance. Most insurance companies offer a discount if you place your entire commercial insurance package with them. In addition to saving money, you’ll also remove potential disputes over claims, such as when your general liability insurer thinks your commercial auto insurer should pay a claim and vice versa.
Consider a business owners policy (BOP). If you have a small business, consider buying a business owners policy, or BOP. These are a type of packaged commercial insurance program specifically for small businesses, and generally enjoy more competitive pricing than separating your insurance policies.
Don’t file small claims. While you can’t foresee big claims, try not to use your insurance to pay for small claims. Pay those out of pocket, and your claims history will improve in a few years, which will help lower your insurance premiums.
Implement safety procedures. Protecting your business with fire alarms, security systems, safety training, etc., can demonstrate to your insurer that you value security and safety, making them more likely to reduce your rates.
Work toward credit. Insurance companies usually have different types of credits they can apply to certain business insurance policies, including credit for experienced business owners or safe locations. Speak with your independent insurance agent about how you can gain the maximum amount of credit that your company is willing to give. Insurers can typically offer anywhere from 5% to 50% off on commercial policies, making this a worthwhile angle to pursue.
Use an independent insurance agent. Independent insurance agents can take the confusion out of commercial insurance. They’ll get to know your business and match it with the best insurance company for you, and they will work with you to get the lowest possible insurance premiums.

Many insurance companies have programs for specific industries that come with competitive pricing, so you can also speak with your independent insurance agent about whether your business qualifies for any special programs that may have discounted premiums.

How To Save Money On Workers' Compensation Insurance

Workers' compensation insurance, which compensates workers for on-the-job injuries, is required for most employers. It also makes up a significant portion of your business insurance costs.

The industry that you're engaged in is a significant factor in determining your workers' compensation rates; employers with workers in more dangerous occupations will pay more. Roofing contractors will pay much higher workers’ compensation rates than an attorney’s office, for example. So, outside of switching industries, how can you keep your workers' compensation premiums under control?

Raise your deductible. Raising your workers’ compensation deductible not only saves money on your premium, but it also reduces the likelihood of filing small claims. Small claims can have an outsized impact on your workers’ compensation premiums by affecting your experience modifier.
Improve your mod. Your experience modifier, or mod for short, is how your workers' compensation claims numbers stack up against the industry average. If you have a higher-than-average number of claims, your mod will be higher, and you’ll pay more premiums.
Implement safety procedures. Having written safety procedures and safety training for your employees serves a dual purpose: it increases your employees' safety awareness and reduces their likelihood of getting hurt at work. It also demonstrates to your insurer that you take safety seriously, which may result in a better workers’ compensation rate.

Working with an independent insurance agent will also open up access to insurance companies that solely offer workers’ compensation insurance. These companies may offer more competitive rates than insurers offering a broader range of coverage.

How an Independent Insurance Agent Can Help You Save On Insurance

Trusting all of your personal or business insurance policies with a local independent insurance agent allows you to routinely get quotes from multiple companies, without having to go through the hassle of quoting online yourself. Their professional advice and attention to the details of your policies will ensure that you have the proper insurance coverage at the lowest price.

Speak with a local independent insurance agent today about how you can save money on all of your insurance policies.

Find an Independent Agent

Find an Insurance Company

What type of insurance do you need?

Business Type

Business Articles

Auto & Vehicle Insurance

Property Insurance

Other Insurance

Insurance Solutions & Resources