We cannot know precisely what the future holds for us. That’s why it’s important to do everything we can to anticipate and prepare for the unexpected. It’s the only way to ensure our own financial security. One way to do this is by carrying enough coverage on your auto insurance policy. While having the proper amount of protection is necessary, have you ever pondered ways to reduce the costs of your insurance? There are ways you can save.

Take Advantage of offered discounts

Depending on what insurance carrier you have, you may be offered certain discounts on your auto insurance. For example, Erie Insurance offers a number of possible discounts you could consider.

Multi-policy Discount

Erie offers a number of different insurance policies. Whether you have a home policy with Erie or an auto policy, combining your coverages may make you eligible for a discount. If you have a current home insurance policy with Erie and add auto insurance, for example, you may see your costs reduced. Erie offers discounts that range from 16%-25%, depending on the state in which you live.

Other Ways to Save

If you child’s school grades are a B average or higher, or if they rank in the top 20% of their class, you may be eligible for a good student discount. This discount generally lasts until the driver reaches the age of 25.

Being a safe driver can help reduce your insurance costs. Think about it this way; before an insurance company takes on a new client, they usually review their driving record. If you are deemed a safe driver with no claims on your auto insurance, you will likely be quoted with a much lower rate than someone who has a history of multiple claims. This is because the insurance company sees that the driver with more claims is more of a risk to insure. The higher the risk, the more expensive the cost. The lower the risk, the lower the cost. Make sense?

Take a Defensive Driving Course

There are advantages to taking a defensive driving course. For instance, you can reduce the number of points on your license if you take a course in defensive driving or accident prevention. If you are looking for auto insurance, provide us proof that you took a defensive driving course and we can help you obtain a discount. Only drivers who are under the age of 21 are eligible for this discount. Please note that this discount does expire after a time, but it can be renewed if you take another course.

Should I Downsize My Vehicle?

You may think that downsizing your vehicle will greatly reduce your insurance costs. This is not necessarily true. For example, while hybrid vehicles may be better for the environment, these types of vehicles are worth more money and therefore, cost more to insure. Hybrid vehicles are built with more advanced technology. This means they are more expensive to produce. If you own a hybrid and it gets stolen or totaled, your insurance would need to cover a higher cost to replace it.

Increase Your Deductibles

Your deductible is the amount of money you agree to pay out of pocket before your insurance coverage kicks in. These amounts typically range between $250 to $1,000. Generally, the less you pay in your deductible, the higher your annual insurance premium will be. With a higher deductible, your annual insurance premium will be lower. Depending on your comfort level and your driving confidence, you choose the best option that best fits your needs.

Review Your Coverage

Are you currently carrying something on your insurance policy you do not need? For example, if you are driving an old car that is on the verge of dying on you, it may make more sense to drop collision or comprehensive coverage. Why? Because the insurance company may choose to deem the car a total loss since the value of the vehicle at the time of the accident is less than what it would actually cost to repair it.


Typically speaking, you will pay less for your auto insurance if you agree to pay for the full sum of the policy upfront rather than paying in installments i.e. monthly.