The do’s and don’ts of switching auto insurance policies to save money

  • September 3, 2022

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Lots of people take an in-depth look at their budget at the beginning of the new year. The holiday season may have in more spending than usual. But with the new year, it’s an opportunity to rein in those expenses a bit.

Cutting things like dining out and wardrobe upgrades are obvious ways to spend less each month. But you may be looking for even more substantial savings. With fixed expenses, like rent or your car payment, there isn’t much you can do. But what about your auto insurance? Of course, having insurance is mandatory if you have a car — but could changing your policy add a few extra dollars to your bank account each month?

Thinking about switching? Check out the top offers on Bankrate.

To help explore the do’s and don’ts of adjusting your auto insurance policy, we talked to Cate Deventer, an insurance writer and editor at Here’s what you should know.


  • Don’t scale back your coverage to save money. “If your monthly budget is really stretched, it might seem like a good idea to lower your car insurance coverage or limits to save money. This is not something insurance professionals recommend doing,” Deventer says. “While it may lower your monthly bill, you’ll actually be at a greater financial risk if you get into an accident.”

  • Don’t change providers frequently. “You probably don’t want to switch insurance providers too often because you might be missing out on things like loyalty discounts. If you’re changing providers every year, you’re never really building up that track

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