You can lower your State Farm car insurance costs by taking advantage of State Farm discounts, opting for a higher deductible, and reducing your coverage, among other things. State Farm considers a variety of factors when calculating your premium, though some – like your age and location – are out of your control. Fortunately, you can take steps to influence other factors in order to lower your rate.
How to Lower the Cost of Car Insurance from State Farm
Use State Farm’s auto insurance discounts
State Farm offers a wide variety of discounts that can help you lower your overall car insurance bill. For example, drivers can get a discount of up to 25% if they've been insured with State Farm for at least three continuous years without an accident . Or you can save up to 25% on your premium if a high school or college student listed on your policy maintains at least a 3.0 GPA.
Raise your car insurance deductible
Opting for a higher deductible on any of your insurance policies from State Farm can lower your premium. But if you decide to go this route, it’s important that you choose a deductible amount that you can still afford if you suddenly need to file a claim. Otherwise, you might not be able to use the coverage that you have.
Reduce your car insurance coverage
Most states require a certain amount of bodily injury liability and property damage liability coverage. But there are other coverage options (like comprehensive, collision, personal injury protection, and uninsured motorist) that you may not have to purchase, depending on your state.
Less coverage usually means lower premiums, but it could also lead to higher costs in the long run, so it’s important to approach coverage decisions with caution.
Improve your driving record
Practicing safe driving habits and avoiding moving violations can help you qualify for lower State Farm insurance rates long-term. You may also be able to attend traffic school in order to remove a violation or points from your record, depending on your state. State Farm even offers a 10-15% discount to drivers who take an approved defensive driving course.
Build and improve your credit
Because your credit history is correlated with your likelihood of filing an insurance claim, State Farm uses your credit data to calculate your premium in states where it is legal. As a result, having good credit makes you less of an insurance risk, which will reduce your rates over time.
Whether you can shorten your commute to work, use more public transportation, or even ride a bicycle more, driving fewer miles each year could lower your State Farm premium.
Drive an insurance-friendly car
Expensive cars, sports cars, and cars with high rates of theft are considered to be riskier to insure than cheaper, more practical vehicles. Before you buy a new car, get a new quote from State Farm to see how it will affect your rate. If the cost is out of your budget, then you should probably choose a different car.
Sign up for Drive Safe & Save
Drive Safe & Save, the State Farm telematics program, rewards you for good driving with a discounted premium. Specifically, Drive Safe & Save tracks miles driven, acceleration, braking, turns, speed, and distracted driving. By using Drive Safe & Save, drivers can save up to 50% on their rate.
Finally, if you’re still struggling to afford your State Farm policy, you should consider switching insurers. Even if you’re not actively looking for a new policy, it’s generally a good idea to compare quotes from three different companies every 6-12 months. To learn more, check out WalletHub’s guide to switching car insurance companies.
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