How to Lower Your Car Insurance Rate

Lowering your car insurance bill is possible with the right steps. Below, we highlight practical strategies—some can save you money right away, while others offer bigger savings over time.

Compare quotes from at least three insurers using tools like MoneyGeek's car insurance calculator. Because insurers weigh risk factors differently, your rate can vary widely. Get quotes on the same day for accurate comparisons and shop for car insurance annually for the best rates.

Most insurers offer a range of discounts that can significantly reduce your premium. These perks are often tied to how you drive, the type of coverage you bundle and even your personal habits or life stage.

Here are some of the most common discount opportunities:

• Bundling: Lower your rate by bundling your car and home insurance.
• Safe driving: Maintain a clean driving record for multiple years.
• Good student: Earn discounts for good academic performance.
• Anti-theft: Install qualifying anti-theft devices in your vehicle.
• Defensive driving: Complete a state-approved course to qualify.

Raising your car insurance deductible, or the amount you pay out of pocket before insurance kicks in, is a straightforward way to lower your premium. If you’re confident you can cover a larger expense in the event of a claim, opting for a higher deductible can lead to significant savings. Deductibles may apply to these coverages:

• Comprehensive coverage: Usually has a lower deductible than collision.
• Collision coverage: Typically carries the highest deductible; often waived if you're not at fault.
• PIP and uninsured motorist coverage: May or may not include a deductible, depending on your policy.

Before increasing your deductible, make sure you have enough savings to cover it in case of an accident.

As your situation changes, your coverage should too. If you've paid off your car, consider dropping full coverage, or use tools to find cheap full coverage if you want to keep it.

Reviewing how much coverage you need can help you avoid overpaying. Talk to your provider first to make sure your policy still gives you the right protection.

Some insurance companies offer telematics programs that track your driving habits and reward you with lower rates for safe behavior. These programs use a mobile app or a plug-in device to monitor things like braking, acceleration and mileage. Examples include State Farm’s Drive Safe and Save™ and Progressive’s Snapshot.

Violations like speeding, DUI or distracted driving can raise your insurance costs, and they stay on your record for years. While you can’t erase past mistakes, avoiding new violations helps prevent further increases in your rates.

A poor credit history can raise your car insurance rates, while a good credit score can help lower them. Check your credit report for errors that could be hurting your score.

Improve your credit by making on-time payments, paying down debt, requesting higher credit limits or becoming an authorized user on a trusted account. A stronger credit-based insurance score signals lower risk to insurers and may lead to cheaper premiums.

Your car’s make and model can significantly impact your insurance rates. Insurers consider safety ratings, repair costs and theft risk. This is why sedans and minivans often cost less to insure than sports or luxury vehicles. For instance, a 2020 Honda CR-V is among the cheapest cars to insure, averaging just $1,172 per year.

Factors such as your location, driving history and credit score all influence how much you’ll pay for car insurance. Knowing which companies consistently offer affordable rates can help you find the best deal for your needs.

State Farm offers the lowest average rates nationwide: $883 for full coverage and $409 for minimum liability.

The table below shows national average rates for full coverage (100/300/100 limits) and liability-only policies across different age groups.

States have specific regulations on car insurance. Thus, minimum insurance requirements may vary. The companies offering different coverage types and insurance premiums also differ per location.

Find your state in the table below to see the cheapest rates for full and minimum coverage policies in your area.

Several personal and behavioral factors can help bring down your car insurance costs over time:

Even with these factors, you could be paying for coverage you no longer need. For example, full coverage may be required when financing a car — but once it’s paid off, you might choose to reduce coverage, especially if your car has depreciated. Use our quote tool to get a personalized estimate based on your location, driving history and more.

Your driving history is one of the most important factors determining your rates. Clean records get the lowest premiums, while violations like accidents, speeding tickets or DUIs result in much higher costs.

Some insurers offer accident forgiveness to prevent premium increases after your first at-fault accident. If you have past violations, maintain a clean record and shop around to reduce rates over time. The table below shows how your driving record affects average costs.

Your credit history impacts how much you pay for car insurance. Insurers use credit-based insurance scores to assess financial responsibility, and drivers with poor credit face higher premiums. A strong credit score helps you qualify for lower rates. The table below shows how credit affects your car insurance costs by age and coverage level.

Car insurance rates are rising nationwide, making it important to shop around annually, improve your credit and compare providers carefully to save money, even with bad credit. Here are five steps to lower your rate:

Multiple factors affect car insurance costs, including age, location and vehicle type. You can save money by improving your driver profile, taking advantage of discounts, adjusting coverage and maintaining a clean driving record.

We answered some common questions about lowering car insurance rates below to help you get started:

MoneyGeek compared premiums from car insurance companies across the U.S., using data from state insurance departments and Quadrant Information Services to show what you can expect to pay for coverage.

Study Overview

We analyzed 529,578 insurance quotes from 67 companies across 897 ZIP codes to identify the most affordable providers nationally and by state, plus strategies for reducing costs.

Driver Profile

We collected data for single male drivers aged 40, analyzing plans for drivers with clean records and those with accident history involving $1,000 to $1,999 in property damage.

Coverage Levels and Deductibles Explained

Most drivers carry liability coverage (required in almost every state) plus comprehensive and collision for "full coverage."

Comprehensive covers events beyond your control like theft, fire or weather damage. Collision pays for damage when your vehicle hits another vehicle, object or rolls over. Both have deductibles, typically $500 or $1,000  —the amount you pay before insurance covers the rest.

For example, 100/300/100 liability coverage means:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

When we reference state minimum coverage, we used the minimum required in each state. National state minimum averages combine all state requirements.