25 Great Ways to Save on Insurance

8. Maximize discounts

Many insurance companies offer a variety of discounts, but “the insurer won’t know the customer qualifies for them unless the customer tells the insurer,” says Stephen Crewdson, managing director of the insurance intelligence group at J.D. Power.

Insurers often offer lower rates to active military or veterans; members of certain credit unions, professional or college associations; or members of groups like Costco, the American Bar Association or AARP. People 55 or older who are retired may qualify for up to a 10 percent discount on home insurance rates with some carriers, according to the III. Auto insurers may lower your rates if you have teenage drivers with excellent grades.

Shopping ahead by getting an insurance quote at least 10 days before your policy’s start date, buying your policy online, or opting to receive all policy documents via email may also lower your rate.

HOME INSURANCE

9. Skip small claims

As tempting as it may be to file a claim when something happens to your home, reserve your insurance for worst-case scenarios, recommends Emily Rogan, senior program officer for United Policyholders, an insurance consumer advocacy organization. “It’s really hard to tell people not to use the thing they’re paying for,” but claims will raise your rates and could result in an insurer seeing you as too risky going forward and dropping your policy, Rogan cautions. 

10. Fortify your home and make it more secure

Adding storm shutters, a reinforced roof, impact-resistant windows and doors, or other improvements that make your home more impervious to damage from storms, wildfires and other natural disasters could reduce your premium, DeLong says. Some states even require insurers to reward such efforts with lower rates if the homeowner provides proof. Grants or other financial assistance may also be available from your state insurance department to assist with select upgrades, DeLong adds. Homeowners in certain counties in Alabama, for example, may be eligible for $10,000 grants for roof fortification.

Measures that reduce everyday risk from water or fire can also cut costs. Many insurers offer discounts for installing a leak-detection system or an automatic gas shutoff. Updating your home’s plumbing, cooling or electrical systems could earn you a break as well. Check with your insurer before making upgrades to ensure that the project meets their requirements for a discount.

Furthermore, “things that can help monitor or protect the home, like smoke alarms, security systems and smart home devices, are often a way to get a lower price,” Martin says. Specifically, dead bolt locks, smoke detectors and burglar alarms often lower premiums by 5 percent or more, according to the III. Adding a security system could save you between 2 and 15 percent, with the average homeowner paying $100 less annually, Policygenius found.

Live in a gated community? Some insurance companies offer a discount when all vehicle entrances are protected by security guards, residence swipe cards or keylock devices.

For more home insurance tips, read our article on how to save money on home insurance amid rising rates.

AUTO INSURANCE

11. Pay by how you drive

If you don’t drive often or your habits have changed recently — perhaps because you’re doing more remote work, got a job closer to home or recently retired — tell your insurer. Driving fewer than 10,000 miles a year could entitle you to a low-mileage discount. Switching to a pay-per-mile insurance plan might make sense, too. This type of auto coverage charges a daily base rate plus a couple of cents per mile driven, and it could knock as much as 40 percent off an infrequent motorist’s insurance rate, according to pay-per-mile insurance carrier Milo Auto.

Alternatively, careful drivers may want to consider usage-based insurance (UBI), says Crewdson. In exchange for allowing your insurer to use special diagnostic tools to track your driving behavior, insurers will often apply a small sign-up or initial participation discount and then adjust your rate — possibly raising or lowering it — based on how you act behind the wheel. A July 2025 report from the Maryland Insurance Administration found that about a third of those who enrolled saw their premiums drop as a result.

12. Consider ditching comprehensive and collision coverage

If you’re driving an older vehicle, it might make sense to drop your comprehensive and collision coverage, says DeLong. These protections, which cover car accident damage, storm damage, theft and fire, often aren’t worth maintaining if your annual premium costs more than 10 percent of your vehicle’s value, the CFA advises.

Getting rid of both coverages saves drivers about $1,165 a year, on average, according to Consumer Reports.

13. Take a defensive-driving course

Brushing up on your road knowledge with a defensive-driving or accident-prevention course could cut your insurance costs by 5 to 15 percent for about three years. More than two-thirds of states require insurers to provide a policy discount to “mature drivers” — typically ages 55-plus — for completing an approved class. Some carriers apply this discount to all eligible older drivers regardless of which state they live in.

Most courses take only a few hours and can be completed online or at a local driver’s education school. (AARP offers an online Smart Driver course for both members and nonmembers, with members receiving a 10 percent discount.) Confirm the course is approved by your insurer and that you meet all the requirements before taking it.

14. Tighten your car’s security

Naturally, insurers prefer to provide coverage for cars with safety features like antilock braking systems or anti-theft devices. If your vehicle has these, you could be eligible for a discount on your premium. Insurance comparison website The Zebra tracks annual insurance savings for various safety technologies, such as audible alarms and vehicle-tracking devices.

For more car insurance tips, read our article on how to lower your auto insurance premium.

LIFE INSURANCE

15. Agree to a medical exam

Healthier adults may qualify for lower life insurance rates if they take a medical exam or provide detailed health information to an insurer, Martin says. That’s because this more in-depth underwriting and approval process gives the insurer specific data about you, allowing for a more tailored quote.  

Depending on your health and whether you’re a smoker, skipping the medical exam when purchasing a 20-year term life insurance policy, with $250,000 of coverage, results in average premium hikes of between 4 and 18 percent, according to an analysis by SimpleLifeInsure.com. 

A medical exam could also help you save money on permanent, or “whole,” life insurance, a life insurance product that offers a savings component that increases in value over time, in addition to a death benefit. A 65-year-old man buying a $30,000 traditional whole life insurance policy can expect to pay about $142 a month in premiums with a medical exam. However, if he purchases a guaranteed issue whole life insurance policy, which doesn’t require an exam, he’ll be out $163, on average, for only $25,000 in coverage, according to AAA data. 

16. Look into a joint policy

If you’re a couple, it may be less expensive to purchase a life insurance policy that covers both of you instead of buying two individual policies, especially if one person is significantly healthier than the other, says Karen Terry, head of insurance research at LIMRA. Why? Because a joint policy pays out only once — either after one partner dies or after both die. 

But there are trade-offs. You’ll lose some flexibility in choosing a joint policy, as the amount and length of coverage must be the same for both people. And if you split up and want to terminate the policy, it could be more expensive for you to buy an individual policy later.

17. Consider letting it go

Many people acquire life insurance in their 20s or 30s, when they get married, start a family or buy a home. But when you reach your 50s, 60s or beyond, you may no longer need a life insurance policy, especially if you have self-supporting adult children, says Bill Shafransky, a financial planner in New Canaan, Connecticut. “I always look at what the purpose of the coverage is for and if a person still has the need for it,” he says. “If not, why continue paying a premium? That’s money that could be saved.” 

Also, consider your assets. If you’ve paid off your debts and have a large nest egg, you may be able to support your heirs without a death benefit from a life insurance policy. “Once someone has saved enough to retire, you typically don’t need the coverage anymore, and it could make sense to drop the policy at that point,” says Lake Oswego, Oregon, financial planner Marc Kadomatsu.

For more life insurance tips, read our article on the lesser-known benefits of permanent life insurance.

18. Avoid the Affordable Care Act subsidy cliff

With the end of the Affordable Care Act’s (ACA) enhanced premium tax credits, people who buy health care coverage through state marketplaces should pay close attention to the new income limits if they still want financial help offsetting their premiums.

Now, enrollees who earn more than four times the federal poverty rate (currently $62,600 for an individual or $84,600 for a couple) receive no subsidies. If you’re close to crossing that income threshold, slightly reducing your earnings may enable you to qualify for financial assistance and potentially save thousands of dollars on your insurance, according to an analysis by KFF, a nonprofit focused on health policy research and polling. KFF’s research found that a 60-year-old earning $64,000 would pay about $14,900 in premiums, but if they made just $2,000 less, they’d receive the tax credit and pay only $6,200 in premiums.

To keep your income below the subsidy limit, consider increasing your contributions to a pretax account, such as an IRA, 401(k) or a health savings account (HSA).

19. Look into government programs

If you’re having trouble affording health insurance, several federal programs offer assistance to those who qualify.  

State-administered Medicaid covers many different medical costs for low-income households. The Children’s Health Insurance Program (CHIP) also provides care to uninsured, low-income children. Some states, like Minnesota and Oregon, offer a Basic Health Program (BHP) that provides health care coverage for residents who do not qualify for Medicaid or CHIP but have lower incomes, typically between 138 and 200 percent of the federal poverty level. Those with low income and a disability, or who are over 65, may qualify for Supplemental Security Income, which provides a monthly payment of up to $994 for an individual or $1,491 for a couple.

Older Americans who are already enrolled in Medicare have several financial assistance options available to them. State-operated Medicare savings plans help cover Medicare Part A and Part B premiums, and they can also pay deductibles, coinsurance and copayments. Meanwhile, the “Extra Help” program focuses on assisting with Medicare drug coverage or Part D costs.

For more health insurance tips, read our article on what to do if you can’t afford health insurance.

PET INSURANCE

20. Enroll early

Shopping for insurance when your pet is young and healthy will help you secure lower premiums. It can also help you avoid being denied coverage, as many providers won’t insure older pets or ones with pre-existing conditions. 

For more pet insurance tips, read our article on how to save on pet costs.

LONG-TERM CARE INSURANCE

21. Start looking in your 50s

Don’t wait until your 60s or later to purchase long-term care insurance. “By the time many Americans begin to explore long-term care insurance, it may already be too late for them to qualify,” says Charles Sachs, a financial planner in Coral Gables, Florida. “Ideally, individuals should start evaluating their options as early as age 50 to understand what coverage is available and whether they are insurable.”

In addition to avoiding coverage denials because of age or certain pre-existing conditions, getting a policy when you’re younger — and, presumably, healthier — can help you qualify for a lower premium. A 55-year-old man looking to buy a long-term care policy today with $165,000 of coverage will pay about $950 a year, but that same coverage jumps to $1,750 for a 65-year-old man, according to a 2025 report from the American Association for Long-Term Care Insurance.

22. Consider hybrid insurance

If you don’t qualify for traditional long-term care insurance, or the premiums are too high for your budget, a hybrid policy that combines long-term care benefits with life insurance or an annuity may be a good option, Sachs says. With these plans, if you don’t end up needing long-term care, your heirs will receive a death benefit or annuity. The drawback? “The benefit it pays could be much less” than a traditional life insurance policy’s death benefit, Shafransky says.

23. Tap your HSA

You can withdraw money tax-free from an HSA to pay long-term care insurance premiums. The maximum amount you can take out depends on your age. In 2026, people age 51 to 60 can withdraw up to $1,860 tax-free; those age 61 to 70 can withdraw up to $4,960; and those 71 or older can withdraw up to $6,200.

Check with your insurer to make sure your policy qualifies for this perk; not all do.  

For more long-term care insurance tips, read our article on the best age to take out a long-term care insurance policy.

TRAVEL INSURANCE

24. Check your credit cards for coverage

Before buying a travel insurance policy for your next getaway, see if your credit card already offers coverage, or consider signing up for a card with travel insurance benefits. Many travel rewards credit cards provide basic vacation protections, like trip cancellation and lost luggage coverage, when you use the card to pay for flights, hotels and other travel expenses. 

For example, the Chase Sapphire Preferred credit card will reimburse up to $10,000 per traveler, or $20,000 per trip, for prepaid, nonrefundable travel expenses like tours and hotels if the trip is canceled due to sickness, severe weather or other covered events. The Capital One Venture X card offers up to $2,000 per traveler for nonrefundable airline or other transport tickets when a vacation is canceled for an eligible reason. And the United Explorer card will pay up to $1,500 per traveler, or $6,000 for nonrefundable fares, if you cancel your trip for a covered event.

25. Don’t wait until the last minute to buy a policy

While some travel insurance providers let you purchase a policy up until the day before you leave, buying travel insurance within 15 days of booking your flights, hotels, tours or other big-ticket expenses may help you qualify for a lower rate. Another reason to buy early is if you have a pre-existing medical condition. Many insurers require you to add a pre-existing condition waiver within three weeks of making your initial travel payment to obtain that extra coverage, according to Squaremouth, a travel insurance comparison website.

For more travel insurance tips, read our article on how to pick the right travel insurance policy.