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Written byBen Luthi
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Ben LuthiInsurance and Personal Finance Writer
12+ years in personal finance and insurance writing
Former financial analyst
Ben Luthi has been making insurance and personal finance easy to understand for over a decade. Dedicated to helping readers make informed insurance decisions, Ben’s covered just about every personal finance topic under the sun.
His work has appeared in the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
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Edited byAshley Cox
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Ashley CoxSenior Managing Editor
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Reviewed byKatie Powers
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Table of contents
Car insurance rates keep climbing across the U.S., putting pressure on household budgets nationwide. In fact, Insurify’s latest American Driver car insurance report projects premiums to increase by another 2% in some states by the end of 2026.
But finding cheap car insurance doesn’t mean settling for inadequate protection. By comparing quotes, adjusting coverage limits wisely, and taking advantage of available discounts, you can significantly reduce your premiums.
Here are nine proven strategies to lower your car insurance rates without compromising on coverage.
Quick Facts
Regularly comparing quotes is the most effective way to maintain cheap car insurance rates.
Bundling your auto insurance with home or renters coverage can save you as much as 35% on both policies.
The most effective long-term methods for reducing rates include maintaining a clean driving record and improving your credit history.
Prefer to watch or listen instead? Check out this episode of our “No Dumb Questions” podcast to see tips and tricks on getting cheaper car insurance:
9 ways to get cheaper car insurance
Follow these nine steps to find cheaper car insurance rates or reduce your premium and maintain the coverage levels you need:
1. Compare quotes from multiple insurance companies
Insurers each weigh risk factors like your age, location, and driving history differently, meaning you could pay hundreds more or less depending on where you buy your policy. You should get car insurance quotes from at least three different auto insurance companies to find the cheapest option.[1]
Online comparison tools make this process simple and quick. Typically, you can see potential savings opportunities in just a few minutes. The table below shows average quotes from several major insurance companies. Use this as a starting point for your research.
The below national rates are estimated rates current as of: Sunday, March 1 at 11:00 AM PST.
Insurance Company  | Average Monthly Quote: Liability Only | Average Monthly Quote: Full Coverage |
|---|---|---|
| COUNTRY Financial | $45 | $85 |
| Auto-Owners | $47 | $83 |
| USAA | $53 | $100 |
| State Farm | $55 | $107 |
| NJM | $57 | $93 |
| Mile Auto | $70 | $119 |
| Erie | $74 | $122 |
| Allstate | $75 | $143 |
| Commonwealth Casualty | $81 | $188 |
| American Family | $82 | $153 |
| Safeco | $85 | $139 |
| GEICO | $86 | $142 |
| National General | $88 | $170 |
| Root | $90 | $151 |
| Dairyland | $91 | $226 |
| The General | $92 | $180 |
| Direct Auto | $95 | $146 |
| Mercury | $95 | $160 |
| Nationwide | $96 | $183 |
| Progressive | $96 | $160 |
| Travelers | $99 | $187 |
| Bristol West | $101 | $203 |
| GAINSCO | $101 | $214 |
| Farmers | $109 | $211 |
| Elephant | $109 | $169 |
| Anchor | $114 | $179 |
| Chubb | $119 | $216 |
| AssuranceAmerica | $122 | $221 |
| 21st Century | $133 | $242 |
| CSAA | $140 | $195 |
| Plymouth Rock | $140 | $211 |
| Shelter | $140 | $231 |
| Clearcover | $141 | $197 |
| The Hartford | $148 | $243 |
| Liberty Mutual | $150 | $207 |
| State Auto | $153 | $273 |
| Amica | $263 | $432 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
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2. Bundle your auto and home (or renters) insurance
Bundling insurance coverage is a reliable way to save money on all your insurance policies. Auto insurers offer significant savings when you buy more than one policy, like auto and home or renters insurance. If you purchase two or more coverages from one insurer, the company will often provide a sizable discount on both policies, bringing down your overall insurance costs.
For example, State Farm customers can save up to $1,429 per year by bundling their home (or condo) and auto insurance. And USAA offers savings of up to 10% when active military members, veterans, and their families bundle home and auto insurance.
3. Increase your deductible
A deductible is how much you need to pay when filing a claim for certain types of coverage, like collision and comprehensive insurance, before your auto insurance kicks in. Deductibles don’t apply to liability claims.
When you set a higher deductible for collision and comprehensive coverage, you reduce the insurer’s risk. In exchange for a higher deductible, your insurer will typically lower your premiums. But don’t increase your deductible unless you can pay it in the event of vehicle damage or loss.
4. Ask about car insurance discounts
Taking advantage of every available discount is one of the simplest ways to reduce your car insurance premium. Many drivers overlook savings they’re already eligible for simply because they don’t ask.
Contact your insurer to review which discounts apply to your situation and confirm you’re receiving every reduction you qualify for. Common car insurance discounts include:
Safe driver discount for maintaining a clean driving record
Good student discount for students with strong grades
Low-mileage discount for people who drive fewer miles annually
Anti-theft device discount for vehicles with security systems
Multi-car discount when insuring multiple vehicles
Bundling discount when getting different coverages from the same insurer
Defensive driving course discount
Paid-in-full discount
Military or veterans discount
Professional association or group membership discount
Early quote or advance purchase discount
5. Adjust your coverage limits wisely
Finding the right coverage amount can help you balance protection with affordability. Consider liability-only coverage for older vehicles worth less than 10 times your annual premium, but keep full coverage on newer or high-value cars to avoid paying thousands out of pocket after an accident.
Adding or dropping optional coverages, like rental reimbursement or roadside assistance, affects your costs. Just avoid setting liability limits too low — insufficient coverage puts your assets at risk in serious accidents.
6. Maintain a clean driving record
A clean driving record is like a gold star in the insurance world. Insurers will view you as a low-risk driver if you don’t have any moving violations on your record, like speeding tickets, at-fault accidents, and DUIs. The lower the risk you pose, the lower the rates insurers can offer you. Drivers with a clean history typically pay the lowest car insurance rates.[2]
The table below shows average monthly liability-only and full-coverage rates for drivers with different incidents on their record.
Insurance Company | Average Monthly Quote: Liability Only | Average Monthly Quote: Full Coverage |
|---|---|---|
| Clean driving record | $99 | $173 |
| Speeding ticket | $128 | $224 |
| At-fault accident | $133 | $232 |
| DUI | $145 | $254 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
7. Improve your credit history
In most states, insurers use credit-based insurance scores when calculating your car insurance rates. This means your credit history directly affects what you pay for coverage. Improving your credit can lead to lower premiums over time.
Even small improvements in your credit can translate to meaningful savings on your auto insurance policy. Here are a few ways to work on your credit health:
Always pay your bills on time.
Keep credit card balances low relative to your limits.
Avoid opening multiple new accounts at once.
Check your credit reports regularly for errors and dispute any inaccuracies you find.
8. Use telematics or usage-based insurance programs
Telematics and usage-based insurance programs reward safe driving habits with lower premiums. Many major insurers offer these programs, like Allstate’s Drivewise, Progressive’s Snapshot, and State Farm’s Drive Safe & Save.
When you’re enrolled, a mobile app or device plugged into your car monitors your driving behavior, tracking factors like speed, braking, and mileage. If you show safe driving habits, you can save 10%–30% on your premiums.
These programs work best for careful drivers who don’t travel long distances, avoid hard braking, and drive primarily during daylight hours. But if you frequently drive at night, travel in heavy traffic, or have occasional hard stops, the program might not yield significant savings and could even increase your rate.[3]
9. Compare car insurance quotes every six months
Car insurance rates change frequently. Staying with the same insurer year after year could mean missing out on better deals elsewhere. Most policies renew every six months or annually, making these natural checkpoints to shop around for cheaper rates.
Set a reminder to compare insurance quotes before each renewal period. Life changes may also warrant a fresh comparison. Buying a new car, moving to a different ZIP code, getting married, or entering a new age bracket can all affect your insurance rates.
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Average cost of car insurance
The national average cost of car insurance is $99 per month for liability coverage and $173 per month for full coverage. These figures represent what typical drivers pay, but your premium will differ based on your unique driver profile, vehicle, and location.
While savings opportunities vary by individual circumstances, even small adjustments may reduce your costs. Regardless of where you live, shopping around, maintaining a clean driving record, and leveraging discounts are generally the best ways to save.
For example, drivers in one of the most expensive states for car insurance, New Jersey, pay an average of $254 per month. On the other end of the spectrum, the average Iowa driver pays just $91 per month for roughly the same coverage.
Here’s how average rates vary across all 50 U.S. states and Washington, D.C.
The below national rates are estimated rates current as of: Sunday, March 1 at 11:00 AM PST.
State | Liability Only | Full Coverage |
|---|---|---|
| Iowa | $52 | $91 |
| New Hampshire | $52 | $78 |
| Wyoming | $55 | $97 |
| Hawaii | $58 | $120 |
| Wisconsin | $58 | $109 |
| South Dakota | $60 | $133 |
| Montana | $62 | $121 |
| Vermont | $62 | $127 |
| Idaho | $62 | $98 |
| New Mexico | $65 | $123 |
| North Dakota | $65 | $104 |
| Tennessee | $66 | $128 |
| North Carolina | $66 | $90 |
| Indiana | $67 | $123 |
| Nebraska | $68 | $127 |
| Alabama | $68 | $128 |
| Ohio | $69 | $116 |
| Mississippi | $69 | $133 |
| Alaska | $70 | $113 |
| Kansas | $74 | $134 |
| Arkansas | $77 | $144 |
| Maine | $79 | $130 |
| Oklahoma | $80 | $155 |
| West Virginia | $80 | $136 |
| Illinois | $82 | $148 |
| Minnesota | $88 | $152 |
| Colorado | $90 | $190 |
| Missouri | $90 | $169 |
| Oregon | $90 | $140 |
| California | $92 | $190 |
| Washington | $93 | $161 |
| Utah | $93 | $137 |
| Pennsylvania | $93 | $146 |
| Arizona | $94 | $158 |
| United States | $99 | $173 |
| Louisiana | $101 | $179 |
| Massachusetts | $108 | $153 |
| Virginia | $108 | $173 |
| Kentucky | $117 | $182 |
| Texas | $118 | $208 |
| Michigan | $135 | $211 |
| Delaware | $150 | $207 |
| New York | $151 | $170 |
| Rhode Island | $152 | $210 |
| Nevada | $156 | $235 |
| South Carolina | $157 | $227 |
| Connecticut | $158 | $224 |
| Georgia | $158 | $240 |
| Florida | $164 | $203 |
| Maryland | $177 | $260 |
| New Jersey | $183 | $254 |
| Washington D.C. | $206 | $301 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
What affects the cost of car insurance?
Understanding what drives your car insurance costs helps you identify opportunities to save. Insurance companies evaluate multiple risk factors when setting your premium. Knowing how these elements work gives you more control over what you pay.[4]
These are some key factors insurers consider when determining rates:
Age and experience
Your experience behind the wheel plays a major role in what you pay for car insurance. Younger drivers typically pay more due to their higher accident risk. On the flip side, seniors tend to see the lowest rates of any age group.
Driving record
Showing a history of accident-prone driving makes you much riskier to insure. Violations like speeding tickets, at-fault accidents, and DUIs dramatically increase premiums compared to someone with a clean driving record.
Credit history
Insurance companies may not look at your FICO credit score, but most consider your overall credit history when determining your car insurance rates. In most states, a better credit history earns you lower insurance rates.
Vehicle type
The car you drive has a substantial influence on how much you pay for coverage. Expensive and high-theft vehicles cost more to insure, while older or safer vehicles often lead to lower rates.
Location
Insurers also look at where you park your car when calculating rates. Your ZIP code affects rates through local accident rates, crime statistics, and weather patterns. But some states prohibit insurers from using your ZIP code.
Coverage limits and deductibles
This one may seem obvious, but the types and amount of coverage you buy affect your rates dramatically. Higher limits and lower deductibles result in higher premiums, while a higher deductible and lower limits make coverage more affordable.
Claims history
Insurance premiums are based largely on overall risk, and nothing indicates a driver is high risk quite like frequent claims. Safe drivers with no recent claims pay the least, but multiple past claims tend to lead to higher rates.
Understanding these rating factors can help you take strategic steps to earn cheaper car insurance over time.
Common mistakes that keep car insurance expensive
Many drivers unknowingly pay more than necessary for car insurance by making avoidable mistakes. Here are the most common errors that inflate auto insurance premiums:
Not comparing rates every six months: Rates change frequently, and what was competitive last year might be overpriced today. Shop around at each renewal.
Forgetting to remove outdated drivers or vehicles: If your teenager moved away or you sold a vehicle, keeping them listed on your policy inflates costs. Review your policy annually to update listed drivers and vehicles.
Having more coverage than necessary on older cars: Once your vehicle’s value drops, comprehensive and collision coverages may cost more than they’re worth. Consider liability-only coverage for older vehicles.
Ignoring credit score or late payments: Poor credit substantially increases rates in most states. Improving your credit through on-time payments reduces insurance costs over time.
When cheap car insurance isn’t the best deal
Finding affordable car insurance is important, but the cheapest policy isn’t always the best choice. Cutting coverage too drastically can backfire when you need it most. You might be able to save by choosing minimum coverage or skipping comprehensive and collision insurance. But skimping on coverage could cost you thousands after an accident.
If you cause a crash injuring multiple people, state-minimum liability limits often won’t cover the full cost, leaving you personally liable. And if your vehicle is totaled or stolen, you may have to pay for replacement.
The goal is to balance affordability with adequate protection. Consider your vehicle’s value, your assets, and your budget. If you have significant savings or own property, carry enough liability coverage to protect those assets. One serious accident could wipe out years of insurance savings.
How to get cheap car insurance FAQs
Here are some common questions people have while trying to get cheap car insurance.
What is the best way to get cheap car insurance?
Some of the best ways to maximize your savings include comparing quotes from at least three insurance companies, bundling policies, maintaining a clean driving record, and asking about available discounts.
Is $200 per month a lot for car insurance?
A $200 monthly bill for car insurance is high compared to the national average for full coverage of $173. Possible reasons for a high premium may include a young driver on your policy, a more expensive insurer, a spotty driving record, or having poor credit.
What’s the cheapest type of car insurance?
Liability-only coverage is the cheapest type of car insurance, and it’s a requirement in most states. It covers damage you cause to others, but if you carry only the state-minimum liability limits, it may not offer adequate financial protection.
How much does the average driver pay for car insurance?
The average driver pays approximately $2,080 annually for a full-coverage policy. Rates vary widely by coverage level, location, driving record, credit, and vehicle type.
When should you shop for cheaper car insurance?
Shop at least twice yearly, when your policy renews, and after major life changes like moving, buying a vehicle, getting married, or reaching a new age milestone.
Does your credit affect your car insurance rate?
Yes. In most states, your credit affects car insurance rates. Insurers use credit-based insurance scores to predict risk. Stronger credit means lower premiums. But California, Hawaii, Maryland, Massachusetts, and Michigan have either banned or limited credit use.[5]
Which company has the cheapest car insurance?
COUNTRY Financial tends to have the cheapest car insurance rates of any major insurer, with average premiums around $45 per month. But Auto-Owners and USAA also boast some of the cheapest average rates around.
Is liability-only car insurance always the cheapest option?
Generally, yes. But it largely depends on the liability limits you choose. In certain scenarios, a full-coverage policy with state-minimum limits could be cheaper than a liability-only policy with six-figure limits. But keep in mind that most insurance experts recommend choosing limits well above your state’s requirements.
Can you still get cheap car insurance with a bad driving record?
Relatively speaking, yes. Not all insurance companies weigh tickets or accidents the same way, which means some insurers will be cheaper for drivers with spotty records than others. Some companies even specialize in “non-standard” policies specifically tailored to people with bad driving records.
At the end of the day, comparing quotes from as many companies as possible all but guarantees the best possible rates for your specific situation.
How can you lower your car insurance immediately?
Shopping around and comparing quotes from multiple companies is the single most effective way to lower your rates overnight. We recommend getting at least three personalized quotes, but the more you can get, the better.
Insurance-comparison sites like Insurify and Compare.com make it easy to compare several quotes at once.
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- Insurance Information Institute. "Nine ways to lower your auto insurance costs."
- Insurance Information Institute. "Do auto insurance premiums go up after a claim?."
- Insurance Information Institute. "Background on: Pay-as-you drive auto insurance (telematics)."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- National Association of Insurance Commissioners. "Credit-Based Insurance Scores."
)
Ben LuthiInsurance and Personal Finance Writer
12+ years in personal finance and insurance writing
Former financial analyst
Ben Luthi has been making insurance and personal finance easy to understand for over a decade. Dedicated to helping readers make informed insurance decisions, Ben’s covered just about every personal finance topic under the sun.
His work has appeared in the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
Ashley CoxSenior Managing Editor
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in