When you’re in your 20s or 30s, insurance is one of those “adulting” expenses you’d rather not deal with—but it’s necessary. Whether it’s health, car, or renters insurance, premiums can seriously eat into your budget. But here’s some good news: there are legal, easy ways to lower your insurance costs without reducing your coverage or doing anything shady.
Let’s break it down.
1. Start With What You Actually Need
First off, don’t pay for coverage you don’t need. Look at your policies:
- Do you have extras like rental car reimbursement you never use?
- Do you still carry collision coverage on your old car?
Cutting optional add-ons can save you real money—just make sure you’re still protected for real risks.
2. Increase Your Deductible
Raising your deductible = lower monthly premium. Just make sure you’ve got enough in savings to cover it in an emergency.
Example: Raising your car deductible from $250 to $750 could lower your premium by 15–30%.
3. Get All the Discounts
Most insurers offer more discounts than you think. Ask about:
- Good student discount
- Driver training course discount
- Multi-policy discount (combine car + renters)
- Low mileage discount (drive less, pay less)
- Digital-only discount (go paperless!)
You may qualify and not even know it.
4. Shop Around (Yes, Even If You Already Have a Policy)
Don’t assume your current insurer is giving you the best deal. Get quotes from 3–5 companies every year. Loyalty doesn’t always pay with insurance.
Use comparison sites or apps to make it quick.
5. Improve Your Credit Score
This one takes time, but it’s worth it. In many places, insurers check your credit score when setting your rate. Better score = lower premium.
Pay your bills on time.
Keep your credit usage low.
Avoid new credit unless necessary.
6. Use Tech to Your Advantage
Many car insurance companies now offer apps that track your driving. If you drive safely—no hard brakes, no speeding—you could earn up to 30% off just by using their app.
These “usage-based” programs are great for safe, low-mileage drivers.
7. Bundle It Up
Have renters or home insurance? Bundle it with your car insurance. Most insurers give you a 10–20% discount for combining policies.
8. Ask About Employer or Group Rates
Some employers or schools offer discounted insurance rates through partnerships. Check if your job, university, or professional organization has any deals.
9. Don’t Let Your Policy Lapse
Letting your insurance lapse (even for a week) can make your next policy way more expensive. Keep it current—even if it’s just the bare minimum while you shop.
10. Be Honest (But Smart)
Don’t lie on your application—it can void your coverage. But be strategic:
- Don’t list yourself as the main driver if your partner uses the car more.
- If you’ve moved to a safer area, update your address.
Final Word
You don’t need to fake info or drop coverage to pay less for insurance. From safe driving to bundling and using tech, there are tons of legal hacks to get your premium down. Take 30 minutes to review your current policy—and start saving money today.