How to Get Cheap Car Insurance (2024)

Maintaining a good driving record, comparing car insurance rates, and looking for discounts are a few ways to get cheap car insurance.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Ashley Cox
Edited byAshley Cox
Headshot of Managing Editor Ashley Cox
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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Mark Friedlander
Reviewed byMark Friedlander
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

Updated October 10, 2024

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If you’re currently paying expensive car insurance rates, you’re not alone. Car insurance rates will increase by 7% in 2024 — nearly double the median year-over-year hike — according to Insurify data, and are likely to continue increasing.

But you still have ways to find cheap car insurance, including maintaining a good driving record, comparing car insurance quotes, and opting for high-deductible car insurance. 

Here’s what you need to know about finding cheap coverage and the best ways to go about doing so.

Cheapest recent rates

Drivers using Insurify have found quotes as cheap as $34/mo for liability only and $43/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on October 10, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 10, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

*Quotes generated for Insurify users within the last 10 days. Last updated on October 10, 2024

Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from October 10, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.

How to get cheap car insurance

Finding the cheapest car insurance rates requires strategy, not luck. Learn the best ways to secure affordable rates without compromising quality coverage below.

  1. Maintain a good driving record

  2. Compare car insurance quotes

  3. Bundle your insurance

  4. Increase your deductible

  5. Select a car with a low insurance cost

  6. Research pay-as-you-drive insurance

  7. Consider discounts

1. Maintain a good 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.

The table below shows average monthly liability-only rates for drivers with different incidents on their record.

Driving History
Average Monthly Quote: Liability Only
Clean driving record$104
Speeding ticket$145
A-fault accident$151
DUI/DWI$172
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

2. Compare car insurance quotes

Comparing car insurance quotes is a top strategy used to save on premiums because it works. The Insurance Information Institute recommends drivers get at least three free car insurance quotes from different auto insurers to find the cheapest companies.[1]

Companies like State Farm, GEICO, and Progressive advertise savings of up to $650 for drivers who switch from a different insurer.

The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT
Insurance Company
Average Quote: Full Coverage
Average Quote: Liability Only
COUNTRY Financial$40$17
NJM$54$30
Auto-Owners$76$35
Erie$93$50
USAA$100$46
Mile Auto$101$56
Root$110$64
Metromile$115$65
GEICO$121$55
State Farm$121$55
CSAA$130$83
Allstate$137$62
Progressive$138$79
Safeco$142$79
Mercury$161$81
National General$166$80
American Family$167$75
The Hartford$174$98
Clearcover$179$94
Nationwide$185$84
Direct Auto$191$98
Travelers$194$89
State Auto$194$91
Elephant$195$111
Shelter$206$106
Dairyland$231$87
The General$237$112
Chubb$238$111
21st Century$247$115
AssuranceAmerica$247$144
Farmers$248$112
Infinity$254$181
Liberty Mutual$254$138
Bristol West$267$122
Amica$280$152
GAINSCO$283$124
Foremost$292$137
Commonwealth Casualty$308$116

On Insurify's secure site

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Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

3. Bundle your 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 that brings down your overall insurance costs.

For example, State Farm customers can save $1,273 per year if they bundle 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.

4. 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 for 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.

5. Select a car with a low insurance cost

Insurance companies consider the type of car you drive when determining your premium. Driving a vehicle recognized for safety, with lower repair costs and a low theft rate, can lead to lower premiums.

If you’re in the market for a new car, consider selecting a car from the Insurance Institute for Highway Safety’s 2023 Top Safety Picks.[2] You can also explore vehicle safety ratings from the National Highway Traffic Safety Administration.[3]

Here’s a closer look at some of the cheapest vehicle makes and models to insure:

Vehicle Make/Model
Average Monthly Quote: Full Coverage
Subaru Forester$147
Subaru Outback$151
Honda Odyssey$155
Dodge Grand Caravan$158
Toyota Sienna$160
Honda CR-V$160
Ford Ranger$163
Chevrolet Trailblazer$164
Jeep Liberty$164
Hyundai Santa Fe$166
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

6. Research pay-as-you-drive insurance

If you’re a low-mileage driver, you shouldn’t have to pay the same car insurance rates as more frequent drivers. With pay-as-you-drive car insurance, you can unlock long-term savings. Companies like Metromile, Allstate, Hugo, and Nationwide offer usage-based insurance for people who drive less. It’s a great option to save money if you drive fewer miles than most.

7. Consider discounts

Insurance discounts come in many forms, and they can help reduce your premium by 25% or more. Depending on your situation, you may earn savings for safe driving, installing anti-theft devices, and paying for coverage in full.

Students can benefit from good student and away-at-college discounts, and many insurers offer discounts for military members and senior citizens. It’s worth asking your insurance agent or company about savings opportunities when shopping for coverage.

Good Student Discount: What It Is and How It Works (2024)

Good Student Discount: What It Is and How It Works (2024)

Factors affecting the cost of car insurance

The national average cost of car insurance is $158 per month, or $1,892 per year. Insurance costs can vary by driver, but how much you ultimately pay for coverage isn’t random. Insurers consider several factors when assessing your risk level as a driver.[4]

Here’s a look at the factors that influence insurance costs.

Your personal information

Auto insurance companies typically look at your marital status, gender, age, credit history, and driving history before offering you an insurance quote. Young drivers have some of the highest rates.

If you have a spouse, are older than 30, and have fewer traffic violations, insurers see you as a safer driver and often offer lower rates. Driving frequency is another factor insurers consider. Daily commuters might pay higher rates than occasional drivers.

Your car model

Every car is different, so rates can vary by vehicle type and model. New luxury models or sports cars have a higher value, which typically means more expensive repair costs and higher premiums.

Vehicle models equipped with safety features suggest a reduced risk of accidents and injuries, potentially leading to more affordable car insurance policies and extra discounts for policyholders.

Keep in Mind

Not only does the type of car you drive affect your rates, so does who in the family drives it. Generally, it’s a good idea to assign high-risk drivers like teenagers to the safest vehicle on your policy. That way the lower cost of a vehicle with a good safety rating can offset the higher cost of a teen driver.

Location and parking

Like real estate, car insurance costs vary based on location. Living in a city with a high cost of living, population density, or crime rate — especially car theft — can increase base premiums in the area.

Parking on busy city streets can also increase expenses because leaving your vehicle out in the open exposes you to more risk of theft and vandalism than keeping it in a locked garage. Drivers in rural and suburban areas typically pay less for coverage than people in highly populated urban areas.

Your credit history

Though it may seem unrelated, your financial stability influences auto insurance rates. In most states, insurers can use a driver’s credit history to generate a credit-based insurance score. Most insurance companies view that score as a good indicator of risk, according to the National Conference of State Legislatures.[5]

A good credit history can suggest that you’re less likely to file a claim, so drivers with good credit pay lower rates than people with poor credit. But some states prohibit or restrict how insurers can consider credit. Insurers can’t use credit history to set rates in California, Hawaii, Massachusetts, and Michigan. And Oregon and Utah limit how insurers can use it.[6]

Your state’s car accident laws

Whether you live in a no-fault or at-fault state can affect your car insurance costs. Drivers in no-fault states typically pay higher average rates because, in the event of an accident, each involved party needs to file a claim for any medical costs with their own auto insurer. In at-fault states, the responsible driver must cover the other driver’s vehicle damage and bodily injury.[7]

Your policy type and coverage limits

The type of car insurance policy and coverage limits you choose can affect your overall insurance cost. For instance, liability coverage that meets state-minimum auto insurance requirements tends to be more affordable, but full-coverage policies come at a higher price because they offer more financial protection.

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Understanding different types of car insurance

Your choice of coverage is one of the most significant factors that affect your cost. Generally, the more coverage you buy, the more you’ll pay for premiums. For example, a minimum-coverage auto policy doesn’t include the same amount of vehicle protection that full coverage does, which is why it’s cheaper.[8]

Here’s what to know about your different coverage options.

Coverage
What it Covers
Liability coverageCovers damage you cause to others, satisfies state requirements for mandatory coverage
Comprehensive coverageCovers your vehicle against non-collision incidents, like severe weather or theft
Collision coverageCovers vehicle repairs/replacement after an accident 
Personal injury protectionCovers medical bills for you and your passengers
Uninsured/underinsured motorist coverageCovers damage caused by a driver who either doesn’t have insurance or doesn’t have enough insurance

Liability vs. full coverage: How much coverage do you need?

Liability insurance pays for damage you cause to others during an accident — like bodily injury or property damage. Full-coverage insurance, on the other hand, includes liability insurance, comprehensive coverage, and collision coverage. 

Most states typically only require a liability-only policy, which covers damage and injuries you cause to other people or property. Opting for full coverage is typically more expensive, but you’ll get more robust financial protection, like coverage for non-collision incidents such as fire, theft, or severe weather. Full coverage also helps pay for vehicle repairs and replacement. 

If you finance or lease your vehicle, your lender will probably require you to carry full coverage.

How Much Car Insurance Do You Need?

How Much Car Insurance Do You Need?

How to get cheap car insurance FAQs

The information below should answer any of your remaining questions about finding cheap insurance coverage that meets your insurance needs.

  • Which company normally has the cheapest car insurance?

    COUNTRY Financial, NJM, and Auto-Owners have the cheapest liability-only car insurance. They have respective monthly rates of $17, $30, and $35.

  • What makes a car cheaper for insurance?

    Certain cars cost less to insure, including vehicles with good safety features, low rates of theft, and solid industry rankings. Less expensive cars that require less money to repair can also lead to cheaper auto insurance premiums since insurers want to avoid hefty insurance claims payouts.

  • How can you lower your car insurance premiums without reducing coverage?

    You can potentially get cheaper car insurance premiums by increasing your deductible, bundling multiple insurance policies together with the same company, or taking advantage of various discounts your insurance company may offer.

  • Are there any discounts that can help you save on car insurance?

    Yes. Car insurance companies typically provide a number of discount opportunities that can help you get the cheapest rates. Savings vary by company, but most insurers offer good driver, good student, pay in full, and safety feature discounts.

  • Is it cheaper to buy car insurance online or through an agent?

    Buying car insurance online might be quicker. Buying coverage through an agent can take longer, but agents can give you personalized advice on coverage and policy limits. But whether you purchase a policy online or through an agent, the best way to find the cheapest car insurance company for you is by shopping around and comparing rates.

Methodology

Insurify data scientists analyzed more than 90 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 50+ 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. Insurance Information Institute. "How to save money on car insurance."
  2. Insurance Institute of Highway Safety. "2023 Top Safety Picks."
  3. National Highway Traffic Safety Administration. "Vehicle Ratings."
  4. Insurance Information Institute. "What determines the price of an auto insurance policy?."
  5. National Conference of State Legislatures. "Use of Credit Information in 2022 Insurance Legislation."
  6. Experian. "Which States Restrict the Use of Credit Scores in Determining Insurance Rates?."
  7. NOLO. "What Is No-Fault Car Insurance and How Does a Claim Work?."
  8. Insurance Information Institute. "Auto insurance basics—understanding your coverage."
Sarah Archambault
Sarah Archambault

Sarah Archambault enjoys helping people figure out how to manage their finances and credit. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans. Her work has been featured on Credit Karma, Experian, LendingClub, Sound Dollar and USA Today Blueprint. She also writes for national insurers, banks and financial institutions like Aetna, MassMutual, Stripe, and UnitedHealthcare. 

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
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

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Mark Friedlander
Reviewed byMark FriedlanderDirector, Corporate Communications, Triple-I
Mark Friedlander
Mark FriedlanderDirector, Corporate Communications, Triple-I
  • Corporate communications director for Insurance Information Institute

  • 20+ years in insurance and communications

As Director, Corporate Communications for Triple-I, Mark serves as the non-profit’s national spokesperson, sharing information and education on a wide array of insurance issues.

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