Car insurance is a necessity for every driver—but that doesn’t mean it has to break the bank. At Hanford Insurance, we understand the importance of protecting your vehicle while also managing your monthly expenses. Fortunately, there are several smart and simple strategies you can use to reduce your auto insurance premium without compromising coverage.
Whether you’re a long-time policyholder or shopping around for a new policy, these practical tips can help you save money and feel confident that you’re getting the best value for your insurance dollar.
One of the most effective ways to lower your car insurance premium is to compare rates from multiple insurers. Prices can vary significantly between providers—even for the exact same coverage. At Hanford Insurance, we do the legwork for you by comparing quotes from multiple trusted carriers to find the best rate and coverage combination for your needs.
Make sure you’re comparing apples to apples. Review deductibles, coverage limits, and exclusions to ensure the policies you’re evaluating are truly comparable.
If you have homeowners, renters, or life insurance, bundling these with your auto policy can result in significant discounts. Insurance companies often offer multi-policy savings when you combine your coverages under one provider.
Combining auto and home insurance through Hanford Insurance could save you up to 25% on both policies—plus you’ll enjoy the convenience of managing everything in one place.
Your driving history plays a big role in determining your premium. Drivers with a history of accidents, speeding tickets, or DUIs are considered high risk and typically pay higher rates. On the other hand, a clean record shows insurers that you’re a responsible driver.
Most insurance companies review your record for the past three to five years. Drive safely, obey traffic laws, and avoid distracted driving to keep your record clean and your premiums low.
The deductible is the amount you pay out of pocket before your insurance kicks in. Increasing your deductible can significantly lower your monthly premium—just make sure you can comfortably afford that amount in case of an accident.
Raising your deductible from $500 to $1,000 could lower your premium by 15% to 30%. Talk with your Hanford Insurance agent to determine the best balance between savings and affordability.
Insurance companies reward drivers who spend less time on the road. If you have a short commute or work from home, you may qualify for a low-mileage discount.
Track your annual mileage and discuss it with your agent. Some companies even offer usage-based insurance programs where you install a device or use a mobile app to monitor driving habits in exchange for additional discounts.
Completing a state-approved defensive driving course can not only improve your driving skills but also reduce your insurance rate. These courses help demonstrate your commitment to safe driving and can offset past infractions on your record.
Some insurers offer discounts of up to 10% for completing a course. Ask your Hanford Insurance agent about approved providers in your area.
Life changes—so should your insurance. A yearly policy review ensures that your coverage still fits your current situation. Maybe you’re driving an older car that doesn’t need comprehensive coverage anymore, or perhaps your teen driver has left for college and no longer needs to be on your policy.
Set a reminder each year to meet with your Hanford Insurance agent. We’ll help you identify ways to save and make sure you’re not over-insured or under-protected.
In many states, including Iowa, insurers use credit-based insurance scores to help determine premiums. A higher credit score typically reflects responsible financial behavior, which insurers associate with lower risk.
Improving your score could take time, but it can lead to better rates not just for car insurance, but for other types of policies as well.
Many drivers aren’t aware of the wide variety of discounts available to them. At Hanford Insurance, we make sure our clients take advantage of every possible savings opportunity, including:
Don’t be shy—ask your agent to review all available discounts with you. Even small discounts can add up to big savings over time.
The make and model of your vehicle can significantly impact your insurance premium. Cars with high safety ratings, low repair costs, and good theft-prevention systems typically cost less to insure.
If you’re in the market for a new car, ask your Hanford Insurance agent to provide insurance quotes for the models you’re considering. This can help you make a more informed purchasing decision.
Some insurance companies offer telematics-based policies that track your driving habits using a mobile app or plug-in device. Safe drivers may be rewarded with lower premiums.
This is a great option for drivers who rarely drive or who want to prove they’re safer than the average driver.
If you drive an older vehicle with a low market value, it might make sense to drop collision or comprehensive coverage. These coverages pay for damage to your car—but if your car isn’t worth much, the premium may outweigh the benefit.
A good rule of thumb is to drop these coverages when your annual premium plus deductible equals more than the car’s value. Your Hanford Insurance agent can help calculate whether this makes financial sense.
Cars that are harder to steal or better protected in an accident are often cheaper to insure. Many insurers offer discounts for anti-theft devices, GPS tracking, and modern safety features.
Before investing in these upgrades, ask if they qualify for a discount with your insurance provider.
While it’s important to carry sufficient liability insurance to protect your finances, some drivers end up paying for coverage they don’t truly need. A careful review of your liability limits, medical coverage, rental reimbursement, and roadside assistance can help you strike a balance between protection and price.
Don’t go too low—state minimums may not provide adequate coverage if you’re in a serious accident. Your Hanford Insurance agent can help you assess your risk tolerance and determine appropriate limits.
At Hanford Insurance, we know that every driver is unique—and so is every insurance policy. Our experienced agents are here to help you understand your options, uncover hidden discounts, and customize a policy that fits your budget and lifestyle.
We work with a wide range of top-rated carriers to ensure you’re always getting the best deal without sacrificing coverage. Whether you’re insuring a family SUV, a teen’s first car, or a classic vehicle, Hanford Insurance is your trusted partner for auto coverage in Iowa and beyond.
Contact us today for a free policy review or personalized quote. Let’s put our experience to work for your peace of mind—and your wallet.