Five Reasons You Might Qualify For Lower Car Insurance Premiums

Like homeowners insurance, auto insurance is getting significantly more expensive: Data show that policy costs rose 11% last year, likely due to factors like climate change, rising accident rates, and higher repair costs. Under certain circumstances, you may be able to offset or at least keep your car insurance premium stable, if not reduce it.

If you go through any of the following life changes, it may be time to call your insurance company about lowering your policy premium.

You've moved

A move is a major life transition—and one that could impact your auto insurance policy for the better in a few ways. First, insurers factor where you park your car into your rate, so living in a lower density or safer neighborhood can potentially save you some money. Moving also gives you the chance to bundle your renters or homeowners insurance policy with your auto policy if you haven't already, which typically reduces the cost of both. Finally, moving can change your driving habits, which we'll get into next.

You're driving less

Let's say your move has put your closer to work, or you've changed jobs or begun working remotely more frequently, or another shift in your routine has cut the number of miles you drive on a regular basis. Insurance companies consider annual mileage when calculating premiums, so a significant drop could save you some money.

Your family size has changed

If you've had a teenager on your policy who now has their own vehicle or own policy and no longer lives at home, removing them from yours can save you a significant amount of money on your premiums (potentially cutting the cost by half). On the flip side, combining your policy with a new spouse's could reduce the cost per person.

You've taken a defensive driving course

One of the many discounts available on auto insurance is for taking a defensive driving course—in fact, some states require insurers to offer this discount. Typically, these discounts are good for several years before you need to retake the class. Discounts range from 5% to 20% off your premium.

Your coverage is about to renew (or expire)

Re-upping your policy won't save you money specifically, but it is a good time to call your current insurer about options for reducing your premium as well as to shop around for cheaper options.

Other ways to lower your car insurance premium

Even if you don't have a life change that could qualify you for a lower insurance premium, there are other ways to reduce the cost of your policy:

• Increase your deductible: Raising your deductible (the amount you'll pay out of pocket before your policy kicks in) can lower your premium. Most policies have a $500 deductible, but bumping that up to $1,000 can potentially save you 25% on your policy cost, according to Consumer Reports. However, you'll want to consider whether you have an emergency fund to cover the added potential cost.

• Decrease certain types of coverage: Collision and comprehensive coverage may be optional in your state, and dropping one or both can reduce your policy premium. Collision may be an unnecessary expense if your car's value is especially low (and if your premium is more than 10% of that value).

• Ask about discounts: Many insurers offer policy discounts for things like setting up autopay or paperless statements, paying your premium upfront, maintaining a clean driving record, and bundling with other policies.

• Drive a cheaper car: This may not be a change you can make immediately, but when you're in the market for a vehicle, consider a make and model that's cheaper to insure.

• Look for usage-based policies: Usage-based insurance calibrates your policy to your real-life driving habits, so low-risk drivers pay less. However, this typically requires you to have a tracking app that sends data to your insurance company, which raises privacy concerns, and risky driving can actually increase your policy cost.