How to Lower Your Car Insurance Rate and Save Money

Car insurance rates keep increasing, but you don't have to accept whatever price your insurer quotes. We analyzed discount programs and rate data from 15 major insurers and found drivers who use multiple savings strategies cut their premiums by 10% to 40%. Here's what works.

Comparing quotes from at least three insurers saves drivers $200 to $800 annually. Insurers weigh your risk factors differently, creating rate variations of hundreds of dollars for identical coverage. Use tools like MoneyGeek's car insurance calculator to compare options. Get all your quotes on the same day for accurate comparisons, and shop annually since rates change constantly.

Bundling your car and home insurance policies with the same company saves $330 to $900 per year. State Farm offers the largest discount at 25%, saving customers about $847 annually compared to buying separate policies. Farmers follows at 17% and Nationwide at 15%.

Increasing your deductible from $500 to $1,000 reduces premiums by 15% to 20%. Your deductible is the amount you pay out of pocket before insurance covers the rest. Just make sure you have enough savings to cover the higher deductible if you need to file a claim.

Deductibles apply only to comprehensive and collision coverage, not liability coverage. Comprehensive coverage usually has a lower deductible than collision. Collision deductibles are often waived if you're not at fault. In some states, PIP and uninsured motorist coverage may include deductibles depending on your policy.

Don't settle for one discount when you can combine several and save $50 to $400 annually. Common discounts that stack include:

1. Safe driving discounts for keeping a clean record multiple years
2. Good student discounts for teens and college students with strong grades
3. Anti-theft device discounts worth $50 to $150
4. Defensive driving course completion
5. Occupation-based discounts for teachers, military members and other professionals ($100 to $500 savings)
6. Senior discounts for drivers 55 and older ($100 to $400 savings)
7. Pay-in-full discounts for paying your annual premium at once ($50 to $200 savings)

Telematics programs track your driving habits and reward safe behavior, cutting premiums by $150 to $600 or up to 40% off your rates. Programs like State Farm's Drive Safe and Save™  and Progressive's Snapshot monitor factors like hard braking, rapid acceleration and nighttime driving. If you drive carefully, these programs are money in your pocket.

A clean driving record and good credit can save you $300 to $1,000 annually. Violations like speeding, DUI or distracted driving raise your insurance costs for years. You can't erase past mistakes, but avoiding new violations prevents further rate increases. Minor violations like speeding tickets affect your record for three to five years. Major violations like DUI or reckless driving can impact rates for up to 10 years. At-fault accidents stay on your record for three to five years.

Poor credit history also raises your car insurance rates, while good credit scores reduce them. Improve your credit by making on-time payments, paying down debt, requesting higher credit limits and becoming an authorized user on a trusted account. A stronger credit-based insurance score signals lower risk to insurers and leads to cheaper premiums.

*California, Hawaii, Massachusetts and Michigan prohibit or limit credit score use in insurance pricing.

Dropping comprehensive and collision coverage on older, paid-off vehicles can save you $100 to $500 per year. If your car's value is low and you've paid off the loan, you're paying to protect an asset that's losing value every year. Use our coverage calculator to determine how much coverage you need based on your car's current value.

Families with multiple vehicles save $300 to $1,361 annually by insuring all cars under one policy. Farmers offers the industry's highest multi-car discount at 48%, potentially saving families over $1,361 per year. The average household saves about $500 annually by bundling coverage for multiple vehicles instead of buying separate policies.

You may pay for coverage you no longer need. For example, full coverage may be required when financing a car. But once it’s paid off, you can 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 location, driving history and credit score all influence how much you'll pay for car insurance. Knowing which companies consistently offer affordable rates helps you find the best deal.

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

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

State regulations determine minimum insurance requirements, which vary across the country. Insurers also price coverage differently based on your location.

The table shows the cheapest rates for full coverage and minimum coverage policies by state.

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

Answers to common questions about lowering car insurance rates:

Finding ways to lower car insurance feels overwhelming when every insurer claims to offer the best rates. We analyzed 529,578 insurance quotes from 67 companies across 897 ZIP codes to cut through the marketing noise and identify which cost-reduction strategies actually save money. Our research reveals the concrete dollar amounts you can expect to save through each tactic.