How to Get Cheap Car Insurance: 11 Ways to Lower Your Premium

The average American pays $1,674 per year for car insurance — but millions of drivers pay far more than they need to. Insurance companies don’t automatically give you their best rate. You have to know how to ask for it.

Here are 11 proven strategies to lower your car insurance premium starting today.

1. Shop and Compare Quotes (Most Effective)

This single step saves more money than anything else. Rates for identical coverage can vary by $500–$1,500 per year between insurers for the same driver. Insurance companies use different algorithms, so the “cheapest” insurer varies by person, ZIP code, and driving history.

You should compare quotes every 12 months — and definitely when you move, buy a new car, or add a driver to your policy.

2. Bundle Your Policies

Most insurers offer a 5–25% discount when you bundle auto with homeowners, renters, or life insurance. If you currently use separate companies for each, ask your auto insurer about bundling — or get bundle quotes from competitors.

3. Increase Your Deductible

Raising your collision and comprehensive deductible from $500 to $1,000 typically reduces your premium by 10–20%. The math works if you’re a safe driver who rarely files claims — just make sure you have the higher deductible amount in savings before making the switch.

4. Drop Unnecessary Coverage on Older Cars

Collision and comprehensive coverage on a car worth less than $3,000–$4,000 often doesn’t make financial sense. If your annual premium for those coverages approaches 10% of your car’s value, dropping them is usually smart.

5. Maintain a Clean Driving Record

A single at-fault accident can raise your rates 30–50% for 3–5 years. A DUI can double or triple your premium. Safe driving is the single most powerful long-term cost reduction strategy.

6. Ask About Every Available Discount

Most people never ask — which means they never get. Common discounts include:

• Good driver discount (3+ years clean record)
• Good student discount (GPA 3.0+)
• Low mileage discount (under 7,500–10,000 miles/year)
• Defensive driving course discount
• Anti-theft device discount
• Pay-in-full discount (vs. monthly payments)
• Paperless/autopay discount
• Loyalty discount (though switching often beats it)

7. Try Usage-Based or Pay-Per-Mile Insurance

If you drive fewer than 10,000 miles per year, usage-based programs (Progressive Snapshot, State Farm Drive Safe & Save, Allstate Drivewise) can save you 10–40%. Telematics tracks your actual driving behavior — safe drivers get rewarded.

8. Improve Your Credit Score

In most states, insurers use credit scores to determine rates (not allowed in California, Hawaii, and Massachusetts). Moving from “fair” credit to “good” credit can reduce premiums $200–$500 per year with the same insurer.

9. Choose Your Car Wisely

Before buying a car, check insurance costs. Sports cars, luxury vehicles, and cars with high theft rates cost more to insure. Sedans and minivans with high safety ratings cost less. The Honda CR-V, Subaru Outback, and Toyota RAV4 consistently rank among the cheapest to insure.

10. Remove Young Drivers When Away at School

If your college student is away at school more than 100 miles from home and doesn’t take the car, ask about the “student away at school” discount. Some insurers drop the surcharge entirely; others offer a significant reduction.

11. Consider Your Address

ZIP code is one of the biggest rate factors. Urban areas with high theft and accident rates cost significantly more than suburban or rural areas. Moving even a few miles can sometimes change your rate meaningfully — something to consider if you’re already planning a move.

The Bottom Line

The fastest path to cheaper car insurance is comparison shopping. Most drivers who compare quotes from 3+ insurers find a better rate immediately. The strategies above compound over time — a clean record, good credit, and smart coverage choices add up to thousands saved over your driving lifetime.

Car Insurance by State

• Texas car insurance
• Florida car insurance
• California car insurance
• Ohio car insurance
• New York car insurance
• Pennsylvania car insurance
• Illinois car insurance
• Georgia car insurance
• North Carolina car insurance
• Michigan car insurance
• New Jersey car insurance
• Virginia car insurance
• Washington car insurance