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Affordable Insurance Made Easy: A Life-Long Expense to Help You Save? Short & Long Term Tips, How Much Will You Spend on Auto Insurance over 3, 5, & 10 Years?

Buying car insurance can seem like one of the great paradoxes of life: you have to spend a bunch of money on something you pray you’ll never use.

You still have to have it, though – but that doesn’t mean that you have to pay through the nose for it. Since you’re going to be paying an insurance bill for the rest of your life, you might as well save some money on it, right?

Below are a few tips (and illustrative tables/charts) to help keep your insurance costs down, so that you can use more of your money on something fun (like a new car, perhaps?).

How Much is the Average Cost of Insurance by Age?

Driver's AgeNational Average per YearCost Over 3 Years
16$7,653$22,959
18$6,311$18,933
21$2,495$7,485
25$2,379$7,137
30$2,072$6,216
35$1,964$5,892
40$1,837$5,511
45$1,802$5,406
50$1,638$4,914
55$1,499$4,497
60$1,582$4,746

Note: This is the national average for auto insurance rates. Young (Teen) drivers should have their auto insurance rates decrease with age, as shown in the chart below, as long as they maintain a good driving record.

Chart showing how auto insurance rates decrease with age

Note: As illustrated by the chart, it appears you save on auto insurance as you age. This can be misleading since you are able to save more with a few adjustments to your policy and driving habits.

Short-Term Tips

Some money-saving tricks only really pay off over the life of your car – and we’ll get to those in a minute. 

For now, though, let’s examine a few things you can do to start saving money right away.

Bundle your insurance:

If you’re already paying for home, health, life, or renter’s insurance, don’t have a bunch of policies with separate companies. Offer one company your business on all of your policies – in exchange for a sweetheart of a deal. You can save a ton on each policy cost by doing this. This tip also dovetails nicely with our next one, which is…

Showing states with highest discounts by bundling an auto insurance policy. All of them are over 20 percent in savings.Note: These are the States which have higher percentage discount by bundling. If you have multiple policies you should be able to get at least a 10 percent or more discount. Although this is typical, many families have policies with different insurers making it impossible to bundle.

Compare prices before you buy:

Comparing insurance prices online can help you find the best insurance (and rate) for you. Don’t just accept the first quote – you could end up paying dramatically more than you need to. Also, don’t be afraid to haggle – especially if you’re offering to bring them more business by bundling your policies.

Importance of comparing auto insurance quotes since the same insurer gives you a different rate. Two sampled quotes from GEICO, Allstate, Progressive, Farmers, and USAA.

Increase your deductible:

If you’re a safe driver, you can bet on yourself by increasing your deductible. This means you’ll have to pay more out of pocket if you ever actually need the insurance, but in the meantime you could save anywhere from 15-40% a month by raising your deductible.

Showing percentage rate drop by raising a drivers deductible at 40 percent or more.

Drive less:

Many people don’t realize it, but the amount of miles you put on your car is factored into your rate. If you can carpool, walk, or take public transportation more often, do it – it’ll add up (and keep your car’s value high as well).

These are all things you can do immediately to put more money in your pocket. They might take an hour or two of legwork, but the payoff can be massive.

How Much Could You Spend on Auto Insurance Over 3 or 5 years?

StateAverage Cost for a PremiumOver 3 YearsOver 5 Years
Alabama$659 $1,977$3,295
Alaska $873$2,619$4,365
Arizona $781$2,343$3,905
Arkansas $679$2,037$3,395
California $749$2,247$3,745
Colorado$737$2,211$3,685
Connecticut $986 $2,958$4,930
Delaware $1,065$3,195$5,325
Florida $1,127$3,381$5,635
Georgia $768 $2,304$3,840
Hawaii $735$2,205$3,675
Idaho $534$1,602$2,670
Illinois$731$2,193$3,655
Indiana $637$1,911$3,185
Iowa $561$1,683$2,805
Kansas $632$1,896$3,160
Kentucky$759$2,277$3,795
Louisiana $1,112$3,336$5,560
Maine $582$1,746$2,910
Maryland $966$2,898$4,830
Massachusetts $976 $2,928$4,880
Michigan $1,048$3,144$5,240
Minnesota $718$2,154$3,590
Mississippi $748 $2,244$3,740
Missouri $683 $2,049$3,415
Montana$658$1,974$3,290
Nebraska $616$1,848$3,080
Nevada $906$2,718$4,530
New Hampshire $716$2,148$3,580
New Jersey $1,129 $3,387$5,645
New Mexico $695$2,085$3,475
New York $1,152$3,456$5,760
North Carolina $611$1,833$3,055
North Dakota $576$1,728$2,880
Ohio $634$1,902$3,170
Oklahoma $737 $2,211$3,685
Oregon $741 $2,223$3,705
Pennsylvania$827 $2,481$4,135
Rhode Island $1,034$3,102$5,170
South Carolina $772$2,316$3,860
South Dakota $556 $1,668$2,780
Tennessee $673 $2,019$3,365
Texas $858$2,574$4,290
Utah $713$2,139$3,565
Vermont $642 $1,926$3,210
Virginia $691 $2,073$3,455
Washington $809$2,427$4,045
West Virginia $846$2,538$4,230
Wisconsin $598 $1,794$2,990
Wyoming$618$1,854$3,090

Illustration of Insurance Expense Over Ten Years

Cost of auto insurance for 1, 3, 5, and 10 yearsNote: In the State of Florida, the average cost of auto insurance over 10 years is $11,270 which makes it a substantial expense.

Long-Term Tips

These tips are the big money-savers. However, many of them can’t be immediately applied, or won’t have instant results.

Still, if you’re trying to make saving on auto insurance a life-long strategy, you need to take actions that will keep paying off, even if the returns aren’t immediate. These are the tricks that can save you thousands of dollars – and many have some great side benefits as well.

Comparison of Savings Against Original Cost

Cost of auto insurance over 1, 3, 5, and 10 years, then applying the savings showing huge savings over 3, 5, and 10 years if a driver keeps a clean driving record.Note: Compared with the average cost of an insured driver, the savings over 3 years is $508. Please see table below.

Cost Today (Savings)3 years (Savings)5 Years (Savings)10 Years (Savings)
$1,127$3,381$5,635$11,270
$1,003$2,873$4,113$7,325
($124)($508)($1,522)($3,945)

Note: Savings over 10 years is nearly $4,000.

Drive safe:

It may seem obvious, but the best way to keep insurance costs down is to never use it. While you might not be able to control whether you’re in an accident, you can keep the likelihood down by practicing safe driving techniques like obeying speed limits, following at safe distances, and stopping completely at stop signs. As an added bonus, being a safe driver will also keep you from getting tickets, which costs hundreds of dollars and drive up your rates!

Maintain good credit:

Having good credit makes everything in life easier, and finding cheap car insurance is no exception. Insurance companies believe people with better credit have fewer accidents, and as a result they pay less. Try to keep a healthy credit score – it’s a gift that keeps on giving.

Monitor your Kelley Blue Book values:

It’s cheaper to insure older cars, because they have a lower value. Check the KBB value of your car periodically; if your annual premium is more than 10% of the car’s value, drop your coverage down or find something cheaper. If you don’t, you’ll end up paying more in protection than you’d ever get in a claim.

These tips form the backbone of a budget-conscious insurance strategy backbone of a budget-conscious insurance strategy. Don’t get in the habit of just auto-paying or auto-renewing your policy; be vigilant about finding ways to save.

25 Tips For Cheaper Insurance
Advantage to Comparing Quotes
What You Can Do Now to Save on Your Premium
More Tips
Ten Best Auto Insurance Firms
What Every DUI Offender Should Know

Start Saving Now

If you want to make sure you never overpay for auto insurance, start implementing these strategies today. Not only will you be able to lower your monthly payments, but you’ll see your long-term coverage costs drop dramatically – and that’s like finding free money.

Shaun Fyffe
Hi, I am Shaun Fyffe and writing is my passion. In my spare time I enjoy the outdoors, spending time with my family, sometimes I might go hiking or riding a bike, plus doing the regular hanging out - New York Style!

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