10 Ways to Save Money on Your Auto Insurance in 2026

• Why price-only shopping fails: If you don’t match coverage, you can’t tell whether a “cheaper” quote is real savings or just less protection.
  “Cheap” insurance is easy to find, but it often becomes the most expensive mistake of your life when a claim is filed.
• The trade-off: As mentioned before, insurance is like a credit card—there for you (hopefully) when you need it, with the costs often showing up later.
  Lower monthly payments usually mean higher cost liabilities later, when you get underpaid on a claim.
• The strategy shift: Saving money while maintaining high-quality coverage requires moving from passive consumerism to strategic management.
  The goal: lower the monthly premium without sacrificing coverage and leaving assets vulnerable.

Pay more now or pay a lot more later. The way to save responsibly is to optimize—not to blindly reduce coverage.

Use a “Control” Quote
To save money effectively, you must compare apples to apples. Before you start shopping, pull your current Declarations Page. This document lists your exact limits (e.g., $100k/$300k/$100k).

• Match exact numbers: Use the same limits and coverages when requesting quotes from other carriers.
  If a new company is cheaper with identical coverage, you know the savings are real—not hidden reductions.
• How often to shop: Shop your rate every 12–24 months.
  Loyalty discounts rarely outweigh “new customer” incentives offered by competitors.
• Don’t shop too frequently: When insurance companies see you shopping every six to twelve months, they consider you a “flight risk” and may increase premiums significantly on the front-end.

• Is it right for you? If you avoid hard braking, late-night driving, and speeding, telematics can save you between 10% and 40%.
• The “Low Mileage” bonus: With remote work still common, telematics is a strong way to show you’re not on the road during peak accident hours.
• Privacy tip: In 2026, many states have introduced stricter data-sharing regulations. Check whether your insurer “sells” your data or keeps it strictly for internal rating.
  For the record: we do NOT sell your data for marketing purposes.

If you’re a genuinely cautious driver, telematics can be one of the biggest low-risk savings levers available.

• When higher deductibles make sense: If you don’t drive much, are a safe driver, live in a more rural area, or can comfortably absorb a larger out-of-pocket bill, raise your deductible and see how much you save.
• Build the “emergency account”: Take the premium saved and put it in a separate emergency fund.
  If you ever need to cover the deductible difference during a claim, the money is already set aside.

Do the math first—then let the savings fund the risk.

The Payback Period

• Break-even example: If raising your deductible from $500 to $1,000 saves you $250 a year, it takes two years of accident-free driving to “break even.”
• Quality tip: With an emergency fund, $1,000 is often the “sweet spot” for maximizing savings while keeping costs manageable.
• Avoid extremes: A $2,500 deductible might save more, but if that bill would ruin your finances, the risk isn’t worth it.

Right-Sizing Coverage for Older Vehicles

• When to reconsider “full coverage”: If your car is paid off and more than 10 years old, you may be over-insuring the vehicle itself.
  Note: older automobiles may crash more often and cause more damage due to lack of modern safety systems and hazard sensors.
• Rebalance coverage: This can be an opportunity to reduce physical damage coverage but increase liability coverage (often far less expensive comparatively).

The 10% Rule

• Check ACV: Look up Actual Cash Value (ACV) on sources like Kelley Blue Book.
• Drop condition: If the annual cost of Collision + Comprehensive exceeds 10% of the car’s value, consider dropping those coverages.
• Example: If a 2014 sedan is worth $4,000 and you pay $600/year for full coverage with a $1,000 deductible, the insurer would only pay $3,000 if totaled. You’re paying $600 to protect $3,000—poor ROI.

Cutting the wrong coverage is dangerous; optimizing the right coverage is where savings become sustainable.

Modern Discount Stacking

Modern insurers offer “stacks” of small discounts that, combined, can trim 20% or more off a bill. In 2026, look for:

• Bundling (Multi-Policy): Still the king of discounts. Combining auto with home or renters insurance and/or life insurance can save an average 15%–25% across both policies.
• Paperless & Full Payment: Electronic documents and paying 6 months in full can eliminate administrative fees and unlock a “Paid in Full” discount of 5%–10%.
• Professional & Academic: Discounts for certain occupations (teachers, engineers, military) or students with a B-average or higher.
• Advanced Safety Features: Vehicles with ADAS (automatic emergency braking, lane-keep assist, etc.) often qualify for specific safety discounts.

Credit Score: The Hidden Rating Factor

In almost every state (except CA, HI, MA, and MI), your Credit-Based Insurance Score is a major factor in your premium. Insurers cite a statistical correlation between financial responsibility and driving responsibility.

• The impact: A driver with “Excellent” credit can pay up to 50% less than a driver with “Poor” credit for the exact same policy.
• The action: If you’ve improved your credit score, call your agent and ask them to re-rate your policy.
  They won’t always do this automatically, and it can result in an immediate premium drop.

What Not to Cut

• High Liability Limits: State minimums (often 25/50/25) are dangerously low for 2026.
  A single accident involving a modern EV can exceed $50,000 in property damage alone. Liability is extremely important and also among the least expensive coverages on a policy.
  People often say they have “full coverage” but have no idea what their limits actually are. We help clients understand the differences in coverages and what fits their financial scenario.
• Recommendation: Stick to at least 100/300/100 limits.
  The cost difference between state minimums and higher limits is often less than $10/month, but protection for savings and future wages is exponential.
• Uninsured Motorist (UM) Coverage: As rates rise, more drivers go uninsured; 1 in 5 drivers in Colorado is underinsured or uninsured.
  UM protects you if one of those drivers hits you—it specifically protects you and your passengers.

Summary of Action Steps

1.) Adjust your coverages
You may be paying for coverages on your policy that you don’t actually need. If you’ve got multiple vehicles in your household, you may not need additional coverages like rental reimbursement, so ask your agent if you’re able to trim the fat on your policy.

2.) Ask about available discounts
Call your agent to see whether you’re getting all of the discounts that you’re eligible for. For example, consolidating two policies into one may earn you a multi-vehicle discount, and you may get a discount just for what you do for work, even if you’re retired.

3.) Increase your deductibles
Insurance companies look at a higher deductible—the amount that you pay out of pocket in the event of a claim—as a deterrent to making a claim, so they’re generally rated as lower financial risks. If you carry good coverage, you can likely save just by raising your deductibles.

4.) Look at different payment plans
Most people pay for their insurance monthly, but monthly payments often contain processing fees that can add hundreds to your annual premium. If you’re able to pay for the entire policy term at once, that’s usually one of the easiest ways to save.

5.) Bundle and save
Most auto insurance companies offer substantial discounts for bundling your auto and home insurance. As an added bonus, having both policies with the same company can make your claims process easier as well.

6.) Shop around, but not too often
If your insurance company can’t make your rate affordable, it may be worthwhile looking around at different carriers. Fortunately we write through many different carriers in order to give you options. In Colorado specifically, it’s been found that switching to a local agency has been able to save people up to 43% on their auto insurance.

7.) Don’t let your policy lapse
It can be tempting to go without insurance to save a quick buck, but this can actually end up costing you more in the long run. Tickets, court fees, and license suspension aside, you will also likely be rated for a higher premium than the amount that you saved by just not having insurance.

8.) Keep insurance in mind when car-shopping
It can be easy to forget, when you’re caught up in the excitement of that awesome car you just bought, that you’re going to need to get insurance for it. Before you purchase a vehicle, get your agent to quote what it’ll do to your insurance rates first.

9.) Improve your credit score
In Colorado, insurance companies can use your credit score to rate for auto insurance. If you’ve got a good credit score, or you’ve been working on getting it up, and you’re still paying too much, you might benefit from shopping around.

10.) Drive safe
Obviously, the easiest way to get your rates down is just to stay out of accidents, but if your rates are still going up, see if your insurance company offers a safe driving app, diminishing deductible, or any other way to reward you directly for your driving habits.