Drivers Who Don't Do These 3 Things Could Be Paying Way Too Much for Car Insurance

The cost of car insurance has gone up 16.5% over the last year, according to the Bureau of Labor Statistics. That's a pretty painful increase, especially for drivers who may have less-than-perfect driving records. But to legally get behind the wheel, we all need some coverage.

Insurance companies ultimately get to decide how much you need to pay for your policy. But there are three steps drivers can take to reduce their costs while still getting the coverage they need.

1. Shop around at least once or twice per year

The only way to know which insurer's algorithm favors you the most is to get quotes to see who offers the cheapest car insurance. It's generally best to compare rates from three to five companies before deciding upon one.

Premium costs are the biggest concern for most people, but they're not the only factor to consider. You also want to look at the deductible, available coverage options, and the insurer's customer service ratings to determine which is the best fit for you.

It's best to compare rates at least once or twice per year. Shopping around can also be beneficial if you experience a life change, like turning 25 or getting married, that could translate to lower rates. And you might decide after looking around that your current insurer offers the best policy for now. That's OK, too.

2. Bundle home and auto insurance

Drivers who also own homes can earn pretty substantial discounts on both their auto and home insurance policies by purchasing them through the same insurance company. This is known as bundling.

Some companies offer savings of 20% to 25% to those who bundle their policies. There's also the added convenience of having one insurance company to work with rather than two. This is especially helpful if both your home and your car are damaged in a single claim.

Renters may be able to bundle their auto and renters insurance to earn discounts. Check with the insurer to learn whether it offers this type of savings.

3. Look for easy discounts

A lot of car insurance discounts are based on factors that aren't easily changed, like age, home ownership, or marital status. Others are changeable, but they can take time, like discounts related to your driving record. Most insurers automatically apply these to your premium if you qualify for them.

There's also a group of discounts you can earn with a little extra effort. For example, most companies reward you if you're able to pay your policy in full. It's not always financially feasible, but if you can, it's usually worth it.

Some companies also offer discounts for drivers who complete defensive driving courses. These are usually in-person courses, though some states may count online programs. They have a small fee, and you can usually complete them in a weekend or less. Finishing one could earn you a discount for several years with some insurers.

Keep an eye out for opportunities like these, as well as other savings opportunities not discussed here. If you have any questions about how an auto insurance discount works or what it could save you, reach out to the insurer for clarification.