How Reviewing My Auto Insurance Coverage Saved Me Almost $20 per Month

Full disclosure: I am the type of senselessly loyal insurance customer that articles like these warn you about. OK, maybe "senseless" isn't a totally fair description, as I have my reasons for remaining with the same car insurance provider my entire adult life. I feel my premium is fair. I have a local agent who has always been friendly and helpful over the years. And back in my teens and early 20s when I was getting a lot more use out of my policy (i.e. actually having to file claims), the company was always speedy and professional.

But when it comes to saving a buck, let's just say my grandma (who was the type to unapologetically hold up a grocery checkout line over a $0.15 coupon she felt she was due) would not be proud. Why, you ask? Well, it's pretty common knowledge that one of the best ways to save money on car insurance is to shop around and compare rates, as insurers often charge customers higher premiums when they feel like there is little chance they will stray.

Instead of shopping around for a new carrier, however, I recently found another way to significantly cut my car insurance premiums -- by almost $20 a month.

A policy in review

I decided to ring in the year by doing my due diligence toward my personal finances and seeing where I might be able to make some easy cuts to save in 2024. I downgraded a streaming service, started using a coupon app for my weekly grocery trips, and downloaded a browser extension to help me find the best prices when shopping online. Next on my list was to check in on my auto insurance premiums.

Consumers are feeling the pinch when paying for auto insurance lately. According to Forbes, the Consumer Price Index shows the cost of premiums went up 19.1% from August of 2022 to August 2023. So it's no surprise that drivers are looking for ways to save. Since I'm not interested in changing insurers now, my only option was to see what could be done with my current policy.

I logged into my insurance account with a plan: First, I would add my fiance as a second driver on my policy (something I had been meaning to do, as we both drive my car about an equal amount these days), and second, I would closely review my policy details for any money-saving changes I could make.

Stay with me here, because there's a bit of rollercoaster math involved with how I reached my final premium amount and savings.

• My auto insurance premium started at $506 every six months, with only myself as a covered driver.
• I added my fiance as a second driver to my policy, bumping my premium up to $576 every six months -- an increase I was more or less expecting.
• Upon review of my policy, I discovered that the "ownership status" of my car was listed as being under lien. Only one problem with that -- I paid it off years ago!
• After updating my ownership status to reflect that I in fact own my car, my premium fell back down to just $462 every six months (even with my additional driver).
• Going from an updated premium of $576 down to $462 saved me $114 every six months, or $19 monthly. And it only took me a few minutes!

Nearly $20 a month in savings is nothing to sneeze at. But looking at these savings over the long term paints an even rosier picture, as I'm now saving $228 on my auto insurance premiums over the course of a year.

What to look for in your own policy review

When it comes to reviewing your policy, you'll want to be careful not to make drastic changes to your coverage limits, as you don't want to find yourself underinsured in the event of an accident. But there are a few things you can easily look for and adjust if you find discrepancies.

Drivers on your policy

In my case, I added a driver and increased my premium. But say you had a teen driver listed on your policy at one point, and that teen is now off to college with their own vehicle. It's probably safe to remove them. Removing extra drivers from your policy is an easy way to find a premium reduction.

Ownership status

Auto loans are a popular way to finance a car purchase. But once you pay off that loan, make sure your insurer knows so your policy can be updated. Like me, you might find this saves you substantially.

Coverage options

I know I said to be careful with these, but there are things you can change without issue. One is roadside assistance. If your policy includes this, but you also have a AAA membership, for example, then you're probably safe to remove the extra roadside coverage on your policy.

Or if you were at the start of your career when you took out your policy and didn't have much in savings, then you probably opted for a pretty low deductible. If you have a more established career now, and a more flush emergency fund, then you can probably afford to increase your deductible, at least a little bit.

All of these small changes to your policy can help you save on your auto insurance premiums. If, unlike me, you aren't attached to your current auto insurance carrier, then by all means, do shop around, compare prices, and see what kind of deal some of the best auto insurers are willing to offer you.