5+ years writing insurance, travel, and personal finance content
Founder of FamilyMoney Adventure blog
Kevin is a seasoned writer who leverages his love of budgeting and all things personal finance to create informative, thoroughly researched insurance and money content.
Más de 3 años produciendo contenidos sobre seguros y finanzas personales
Principal artífice de la puntuación de calidad de Insurify
Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.
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Owning or leasing a car can be a costly venture. Between fuel and ongoing maintenance, a vehicle’s cost extends beyond its sticker price. And before you can drive your car, you need to insure it.
The average cost of car insurance is $105 monthly for liability-only coverage and $202 monthly for full coverage in the U.S., according to Insurify data. Insurance costs can vary depending on where you live, your car, your age, your driving history, and more.[1]
Understanding what affects your insurance costs can help you make adjustments to lower your monthly insurance premiums.
How to lower your car insurance
Insurance companies rely on data to set insurance premium rates. But the cost you’re paying now doesn’t have to be what you’ll always pay. Here’s what can help lower your car insurance costs.
1. Attend a safe driving course
Some insurance companies offer a discount on insurance premiums if you attend a safe driving course. These courses are also known as defensive driving courses and are different from a driver’s education course taken before getting a license. Safe driving courses are designed to improve your driving skills and prepare you for various driving scenarios.
Courses may be available through your insurance provider or an approved third-party organization. For example, AARP offers online and in-person versions of its Smart Driver course. Ask your insurance agent for a list of qualifying courses and requirements.
2. Bundle insurance policies
Another way to cut costs is by bundling multiple insurance policies through the same insurer.
Insurance companies may offer a discount if you carry two or more types of insurance with them, like auto and homeowners insurance.[2] Bundling your insurance also means you have only one payment to manage and one account login.
3. Increase your deductible
A deductible is your out-of-pocket cost before your insurance kicks in. By requesting a higher deductible, you can lower your monthly premiums. Raising your deductible from $200 to $500 could reduce your monthly insurance costs by 15% to 30%.[2]
Boosting your deductible increases your out-of-pocket cost when filing insurance claims. Before increasing your deductible, make sure you have money set aside to cover potential insurance claims.
If you don’t drive very often, switching to a pay-per-mile car insurance program could help you save money. These programs are geared toward low-mileage drivers and are available through some insurance providers.
With pay-per-mile programs, you pay a base monthly rate, plus a per-mile rate. A pay-per-mile program could save you significantly if you work from home, rely on rideshares, use public transportation, or have a short commute. Check with an insurance agent to see if pay-per-mile car insurance is available where you live.
5. Shop around for lower rates
One of the best ways to save money is to shop around for the best rates.[2] Even if you’re satisfied with your insurance company, it’s worth looking at competitors to see whether you can save money.
Compare multiple insurancequotes to find out whether you’re getting a good deal or whether you can save money by switching insurance providers.
6. Build a good driving record
Maintaining a good driving record can also lead to additional discounts from your insurance provider. As a safe driver, you not only qualify for discounts, but you also better protect yourself and others.
A history of driving the speed limit, avoiding accidents, and no driving infractions can help show your insurance company that you’re a responsible driver. Many insurance companies offer discounts for staying claim-free or traffic violation-free for a specific time.
7. Invest in safety features
Adding safety equipment to your vehicle can also help you score valuable discounts to reduce your monthly auto insurance premiums. By purchasing a vehicle with specific safety features, like airbags, antilock brakes, and daytime running lights, you may qualify for additional discounts.
Adding safety features after purchasing your car can also net discounts to lower insurance costs. Installing an anti-theft device can also earn you a discount with many insurance companies.
8. Earn multi-car discounts
Insuring more than one vehicle through the same insurance company could earn you an additional discount to lower your costs. Multi-car insurance requires having two or more vehicles at the same address on one policy. Generally, every vehicle on the policy has the same coverage, but some coverages may be customizable for individual cars.
9. Look for other discounts
Insurance providers offer discounts for various reasons. Beyond the common discounts, you may be able to score other discounts like:
Some insurance companies may offer discounts for customers who drive a hybrid or electric car. Check rates to ensure you’re saving money by driving an electric car. Some insurance companies may charge more to insure an electric car, depending on where you live.
11. Talk to an insurance agent
Call an insurance agent if you’re looking for ways to reduce your car insurance monthly premiums. They can look over your policy to see whether you can make any changes to save money. Insurance agents may also advise you on what discounts are available and what you need to do to qualify for them.
Why your car insurance premium is so high in the first place
Several factors can affect the insurance rates you receive from your provider from the start. While you may have control over some of these, most may not be something you can immediately change to lower your premiums.
Insurance company: Auto insurance rates vary among insurers. Shopping around can help you find the best rates for the coverage you need.
Age: Younger drivers with less experience often pay more for auto insurance than older, more experienced drivers.
Location: Insurance requirements vary between states. Where you live significantly affects the type of coverage required and the cost. Living in areas with higher crime rates can also mean paying more to insure your car.
Driving record: Drivers with multiple accidents or moving violations typically pay more for auto insurance than those with clean driving records.
Vehicle: The type of vehicle you drive can also affect insurance premiums. Insurance companies consider the vehicle’s cost, the likelihood of theft, repair costs, safety records, and even how much potential damage it can inflict if it’s involved in an accident.
Insurance score: Insurance companies often look at your insurance score to determine the likelihood of future claims. This score is largely based on your credit history, and a low score could mean paying more for auto insurance.
Gender: Women statistically get in fewer accidents than men, making them less of a risk for companies to insure. Women typically pay less for car insurance than men.[1]
Comparing quotes online from multiple providers ensures you know where you stand and can help you find the lowest premiums. Insurance-comparison websites help drivers get quotes from hundreds of insurance companies quickly and easily.
Generally, you’ll need to enter some basic personal information and details about your vehicle and driving habits. You’ll have quotes from multiple companies in minutes.
Cheapest car insurance companies
Some insurance companies have lower premiums than others. COUNTRY Financial, NJM, and Auto-Owners offer the lowest liability-only car insurance quotes on average, starting at $16 a month.
The below rates are estimated rates current as of: Sunday, December 1 at 11:00 AM PST.
Insurance Company
▲▼
Average Monthly Quote
▲▼
COUNTRY Financial
$16
NJM
$28
Auto-Owners
$34
USAA
$45
Erie
$49
State Farm
$54
GEICO
$54
Mile Auto
$56
Root
$60
Allstate
$61
Metromile
$61
American Family
$72
Mercury
$83
Safeco
$84
Nationwide
$84
CSAA
$85
National General
$88
Travelers
$89
Dairyland
$92
The Hartford
$93
State Auto
$95
Progressive
$97
Direct Auto
$97
Clearcover
$106
Commonwealth Casualty
$107
Farmers
$109
Shelter
$110
Chubb
$111
The General
$111
21st Century
$112
Foremost
$117
Bristol West
$117
GAINSCO
$125
Elephant
$128
Amica
$148
Liberty Mutual
$162
AssuranceAmerica
$164
Infinity
$181
Hugo
$222
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.
Cheapest car insurance by state
Where you live plays a significant role in how much you’ll pay for car insurance. States like North Carolina, Iowa, and Alabama have some of the cheapest average rates compared to other states.
Here’s a look at average monthly liability-only quotes from the cheapest car insurance company in each state, based on Insurify data.
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. Alaska, Hawaii, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota, Vermont, and Wyoming omitted due to insufficient data.
How to lower car insurance costs FAQs
Here are answers to some commonly asked questions about how insurance works and how to save money on car insurance.
Why is your car insurance so expensive?
Several factors affect insurance premiums, including age, gender, driving record, credit-based insurance score, vehicle, and coverage type. Shopping around can help you find the best rates for the type of coverage you need.
When does car insurance usually go down?
Insurance companies typically charge higher premiums for younger, less experienced drivers under 25. You may see a drop in insurance costs in your mid-20s, but your premiums may decrease before or after this time, depending on your insurance company. Once you reach age 75, insurance rates begin to increase again.
Can you negotiate car insurance rates?
Negotiating lower rates with your insurance company is impossible, but you can take steps to qualify for discounts that could lead to paying less each month. Many insurance companies offer discounts, including multi-car, multi-policy, safe driver, good student, paperless, auto payment, anti-theft, and defensive driving course discounts.
How can you lower car insurance after an accident?
If your auto coverage includes accident forgiveness, you may not see your premiums increase. If not, and you’ve been in an accident, some insurance companies may lower your rates after you complete a safe driving course. Other ways to lower your cost are to increase your deductible, change your coverage type, and look for other available discounts.
How can you lower car insurance after a DUI?
DUI violations cause your rates to increase. You can sometimes lower your rates by completing a safe driving course, increasing your deductible, installing safety features in your vehicle, and keeping a clean driving record for several years following the incident.
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.
III. "What determines the price of an auto insurance policy?."
III. "Nine ways to lower your auto insurance costs."
Kevin Payne
Kevin Payne is a freelance writer and family travel and budget enthusiast behind FamilyMoneyAdventure.com. His work has been featured in Forbes Advisor, CreditCards.com, Bankrate, SlickDeals, Finance Buzz, The Ascent, Student Loan Planner, and more. Kevin lives in Cleveland, Ohio with his wife and four teenagers.
Más de 3 años produciendo contenidos sobre seguros y finanzas personales
Principal artífice de la puntuación de calidad de Insurify
Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.
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