How to save money on insurance as rates keep rising

If your insurance premiums have continued to climb in recent years, you’re not alone. Rising costs, climate-driven claims and other factors have made it more expensive for insurance carriers to pay claims. And anything that raises these costs will likely increase your insurance rates.

In fact, the average auto insurance cost per year in 2024 was 33% higher than in 2021, according to a Forbes analysis.

While many of these factors are out of your control, you can take steps to reduce the cost of insurance without skimping on coverage.

|1| Don’t let coverage lapse (even temporarily)

With prices on everything on the rise, it might be tempting to drop or pause your coverage when money’s tight.

But a gap in coverage can hurt you in the long run:

• Rate penalties: An insurer may view a lapse as higher risk, pushing future premiums higher.
• Legal risks: In many states, driving without required coverage can incur fines, driver’s license consequences or being uninsured while at fault.
• Loss of discounts: Some loyalty or continuous-coverage discounts vanish if you have a gap.

|2| Review what coverage you really need

Just because you should keep insurance coverage in place doesn’t mean you have to keep the same coverage.

It can pay off—literally—to review your coverage periodically.

Here are some questions you can ask yourself:

• Has my home’s value changed (up or down)?
• Do I have new assets that need coverage or exclusions?
• Has my commute or driving pattern changed?
• Are there parts of my policy that I can safely reduce or remove?

Just because you bought a policy years ago doesn’t mean it still fits your life.

And you don’t have to figure this out alone. A Dupaco Insurance Services agent can help you make sure you have the best coverage for your lifestyle, budget and needs. As independent insurance agents, DIS can help you compare competitive quotes from multiple insurance companies at the same time.

They can also leverage Dupaco’s membership to offer members additional insurance discounts.

|3| Bundle your home and auto insurance smartly

Combining insurance policies, like your car and homeowner’s policies, remains one of the more dependable ways to save on insurance.  Many insurers offer multi-policy discounts, so it’s worth asking.

But don’t assume bundle means cheapest.

If one of the policies is overpriced with that carrier, the combo could still cost more than two separate insurers. Always ask for a “split-quote” (bundle vs. separate) to see which costs less in your case.

|4| Ask for every discount you qualify for

Insurance discounts can be underutilized. Here are some categories worth exploring:

• Home safety systems like security alarm systems or deadbolts
• Auto safety systems like anti-theft devices, collision-avoidance or lane-assist systems
• Low mileage or telematics-based discounts (where your insurer monitors your driving)
• Military or veteran status
• Good student discounts
• Excellent driving record
• Drive significantly less than you used to
• Completed a defensive driving or safety course

When you talk with your agent, let them know if any of these circumstances apply to you and ask if you’re eligible for additional discounts.

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|5| Drive safely

This isn’t just about avoiding tickets. Insurers increasingly use data-driven scoring (sometimes via telematics) to tailor your pricing based on actual driving behavior.

• More speeding tickets, at-fault accidents or violations could mean steeper premium penalties.
• Safe-driving apps or programs could reward you over time.
• Avoid short-term risky behavior if you know your insurer tracks claims history.

The cumulative effect of small infractions can outweigh what you “saved” earlier.

|6| Consider adjusting your deductible 

One lever you can control is your deductible (the amount you pay before insurance kicks in). Raising your deductible usually lowers your premium, but:

• Don’t set it so high that you can’t afford it in a claim event.
• Make sure your savings outweigh the increased out-of-pocket risk.
• Keep funds on hand (emergency savings) to cover higher deductibles.

You’ll want to run scenarios: “If I raise deductible from $500 to $1,000, how much do I save annually? Is that worth the risk?”

|7| Shop around

It’s tempting to stay put out of convenience or loyalty. But insurance markets shift often. It can pay off to:

• Look at quotes annually or at renewals
• Ask your existing insurer if they will “match” or beat a competitor
• Be mindful of cancellation fees or overlapping coverage gaps

Switching just to the lowest quote isn’t always worth it. But doing the legwork to see what you could pay can be powerful.

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