1. Compare Quotes From Multiple Carriers
This is the #1 most effective way to get cheap car insurance. Premiums vary dramatically by carrier—even for the exact same driver and vehicle.
Why it works: Each insurance company uses its own underwriting model. One might rate you as high-risk while another sees you as low-risk. The same coverage can vary by hundreds of dollars per year.
Data point: Consumer Reports found that drivers who compared quotes saved a median of $461/year. Some saved over $1,000.
How to do it: Get quotes from at least 3–5 carriers. Use a comparison tool to see multiple rates at once without repeating your information.
For more, see our guide on how to compare car insurance quotes.
2. Raise Your Deductible
Your deductible is what you pay out of pocket before insurance covers a claim. Higher deductibles mean lower premiums.
Typical savings:
- $500 → $1,000 deductible: Save 10–15%
- $500 → $2,000 deductible: Save 20–30%
Important: Only raise your deductible to an amount you could comfortably pay tomorrow if you had a claim. Don't set it higher than your emergency savings.
For more on deductibles, see our guide on car insurance deductibles.
3. Bundle Policies
Most insurance companies offer multi-policy discounts when you combine auto + home, auto + renters, or multiple types of coverage.
Typical savings: 15–25% on your auto premium.
How it works: Contact your home or renters insurance provider and ask for a bundled quote. Compare the total cost to what you're paying now.
Pro tip: Sometimes bundling with one carrier isn't cheaper than separating policies with different carriers. Always compare both options.
4. Ask About Discounts
Insurance companies offer dozens of discounts—but they don't always apply them automatically. You need to ask.
Common discounts:
- Safe driver: No accidents or violations in 3–5 years (5–30% off)
- Low mileage: Drive <7,500 miles/year (5–15% off)
- Good student: For drivers under 25 with strong grades (5–25% off)
- Defensive driving course: Complete an approved course (5–15% off)
- Multi-car: Insure multiple vehicles with the same carrier (10–25% off)
- Paid-in-full: Pay your premium upfront (5–10% off)
- Anti-theft devices: Alarms, immobilizers, GPS tracking (5–10% off)
- Automatic payments: Enroll in autopay (3–5% off)
- Paperless billing: Opt for electronic documents (1–5% off)
Stacking multiple discounts can reduce your premium by 20–40% or more.
For more, see our guide on car insurance discounts.
5. Improve Your Credit Score
In most states, insurance companies use credit-based insurance scores to calculate premiums. Better credit = lower rates.
Impact: Drivers with poor credit can pay 70–100% more than those with excellent credit.
How to improve your credit:
- Pay all bills on time
- Reduce credit card balances
- Don't open unnecessary new accounts
- Check your credit report for errors and dispute them
Note: California, Hawaii, Massachusetts, and Michigan prohibit or restrict the use of credit in insurance pricing.
6. Drive Less (Low-Mileage Discounts)
Many carriers offer low-mileage discounts if you drive fewer than 7,500–10,000 miles per year.
Typical savings: 5–15%.
How to qualify: Tell your insurer your estimated annual mileage. Some carriers use telematics devices or apps to verify.
If you work from home, use public transit, or carpool, you may qualify.
7. Drop Unnecessary Coverage
If your car is old and low-value, comprehensive and collision coverage may cost more than the vehicle is worth.
Rule of thumb: Consider dropping full coverage if your car's value is less than 10Ă— your annual collision/comprehensive premium.
Example: If your car is worth $2,000 and full coverage costs $500/year, switching to liability-only could save you $500 annually.
Before dropping coverage, make sure you have savings to replace the car if it's totaled.
For more, see our guide on full coverage vs liability.
8. Choose a Cheaper Car to Insure
Your vehicle is one of the biggest factors in your premium. Safe, reliable sedans and crossovers cost significantly less to insure than sports cars, luxury vehicles, or high-theft models.
Before buying a car: Get insurance quotes for the specific make/model you're considering. Factor the annual premium into your total cost of ownership.
For recommendations, see our guides on cheapest cars to insure and most expensive cars to insure.
9. Maintain a Clean Driving Record
Accidents and violations increase premiums significantly:
- Speeding ticket: +15–30%
- At-fault accident: +30–50%
- DUI: +80–150% (or policy cancellation)
How to avoid tickets and accidents:
- Obey speed limits and traffic laws
- Avoid distracted driving (texting, phone use)
- Leave adequate following distance
- Don't drive impaired
Most violations stay on your record for 3–5 years. After they drop off, your rates should decrease.
10. Pay Your Premium in Full
Many insurers charge installment fees ($3–$10/month) if you pay monthly instead of upfront.
Savings: $20–$100+/year by paying in full at the start of your policy term (6 or 12 months).
Some carriers also offer a paid-in-full discount of 5–10%.
For more, see our guide on is car insurance cheaper if you pay in full.
11. Use Telematics or Usage-Based Programs
Telematics programs track your driving behavior (speed, braking, mileage, time of day) via a mobile app or plug-in device.
Examples: Progressive Snapshot, State Farm Drive Safe & Save, Allstate Drivewise, GEICO DriveEasy.
Potential savings: 10–30% for safe drivers.
Important: If you drive aggressively, brake hard frequently, or drive late at night, telematics could increase your rate.
12. Shop Around Annually
Your premium can increase at renewal—even if nothing about your situation changed. Carriers adjust pricing models regularly.
Best practice: Compare quotes every year at renewal time. Switching carriers when a better rate is available is common and smart.
Loyalty doesn't pay in car insurance—carriers often raise rates on existing customers while offering lower rates to new ones.
Mistakes That Raise Premiums
Avoid these common mistakes that unnecessarily increase costs:
- Not comparing quotes: The biggest mistake—missing out on $400+/year in savings
- Letting coverage lapse: Gaps in coverage raise future rates significantly
- Filing small claims: Claims under $1,000–$1,500 often cost more in rate increases than the payout
- Not asking about discounts: Carriers don't always apply them automatically
- Ignoring credit: Poor credit can double your premium in many states
Frequently Asked Questions
Compare quotes from multiple carriers. Drivers who shop around save $461/year on average. Combine this with raising your deductible, bundling policies, and asking about discounts.
Possibly, if you qualify for minimum liability-only coverage, have a clean driving record, good credit, and live in a low-cost state. Full coverage rarely drops below $100/month.
Safe driver, bundling, low mileage, good student, defensive driving, multi-car, paid-in-full, anti-theft devices, and more. Stacking discounts can save 20–40%.
Yes, in most states. Better credit can reduce premiums 20–50%. Focus on paying bills on time, reducing debt, and correcting credit report errors.