How to Get Cheap Car Insurance

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

Amy Beardsley
Written byAmy Beardsley
Photo of an Insurify author
Amy BeardsleyInsurance Writer
  • 3+ years writing about auto, home, and life insurance

  • 7+ years in personal finance and technology

Amy specializes in insurance and technology writing and has a talent for transforming complex topics into easy-to-understand stories.

Featured in

media logomedia logo
Katie Powers
Edited byKatie Powers
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

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

media logomedia logo
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 July 11, 2024

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

If you’re currently paying expensive car insurance rates, you’re not alone. Car insurance rates have risen 17% since 2022, according to Insurify data, and are likely to continue increasing. 

But there are still many ways that drivers can find cheap car insurance, including maintaining a good driving record, comparing car insurance quotes, and getting 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 $35/mo for liability only and $41/mo for full coverage.

*Quotes generated for Insurify users within the last 10 days. Last updated on July 11, 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 July 11, 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 July 11, 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 July 11, 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.

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 a least three quotes from different auto insurers.[1] Companies like State Farm, GEICO, and Progressive advertise savings of up to $650 for drivers who switch from a different insurer.

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.

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 actually 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]

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 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 $160 per month, or $1,918 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 more responsible 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 many 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 score can suggest responsibility, so drivers with good credit tend to earn lower rates than people with poor credit.

However, 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. More on that below.

Why look for cheap car insurance?

How much you pay for car insurance can vary widely between insurers, even for nearly identical coverage. Shopping around isn’t just a good idea — it’s financially rewarding. But you need to know what you’re looking at when comparing policies to find a cheap car insurance company.

Find Cheap Car Insurance

Insurify partners with 100+ top insurers for real-time quotes

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

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 to buy.[8]

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

CoverageWhat 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 coverage

Liability insurance provides the basic protection that most states require. It pays for damage you cause to others — whether that’s bodily injury or property damage. However, it doesn’t cover damages to your vehicle or injuries you might have after an accident. While it meets your state’s minimum coverage levels, you may want to consider increasing your policy limits for a greater level of financial protection.

Comprehensive coverage

Comprehensive insurance is one part of a full-coverage car insurance package. It covers your vehicle against non-collision incidents, like theft, fire, vandalism, cracked windshields, and severe weather. For instance, comprehensive coverage kicks in if a tree falls on your car, your car sustains flood damage, or someone steals your vehicle. Though states don’t require this coverage, lenders often do if you have a car loan or lease.

Collision coverage

Drivers often buy collision insurance alongside comprehensive insurance to round out a full-coverage policy. It covers vehicle repairs or replacement after an accident with another vehicle or a collision with an object like a tree, fence, or light pole. It also covers rollover accidents and pothole damage. It isn’t a state-required purchase. However, like comprehensive, lenders typically require it if you’re financing or leasing your car.

Personal injury protection coverage

Expenses after an accident can add up. Personal injury protection (PIP) can help pay for medical bills for you and your passengers, even if you cause the wreck. It can also cover some non-medical expenses stemming from your injuries, including lost wages, child care costs, and funeral costs. Drivers in no-fault states typically need to buy this coverage.

Uninsured/underinsured motorist coverage

Uninsured/underinsured motorist coverage provides a safety net that protects you from another driver’s insufficient insurance coverage. It can fill in the gaps if you’re in an accident with a driver who doesn’t have any or sufficient insurance to cover the damages or injuries they cause you. The coverage also pays for damage from hit-and-run accidents.

How Much Car Insurance Do You Need? (2024)

How Much Car Insurance Do You Need? (2024)

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.

  • 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 more affordable premiums since insurers want to avoid hefty claims payouts.

  • What are the key factors that determine the cost of car insurance?

    One of the biggest factors determining car insurance premiums is your choice of vehicle and its cost, likelihood of theft, repair costs, and safety rating. Your driving record, occupation, credit history, location, age, gender, and state laws also affect how much you pay for coverage.

  • 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. However, 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."
Amy Beardsley
Amy BeardsleyInsurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

Katie Powers
Edited byKatie PowersAuto and Life Insurance Editor
Photo of an Insurify author
Katie PowersAuto and Life Insurance Editor
  • Licensed auto and home insurance agent

  • 3+ years experience in insurance and personal finance editing

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

media logomedia logo
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.

Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
4.8/5
Shopper Approved
ProgressiveLiberty MutualAllstate

Latest Articles

View all