Updated: June 25, 2025
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Most drivers can save $200-1,500 annually by combining multiple cost-reduction strategies, with higher potential savings for those who maximize all available options.
Shopping around annually can save $200-800, while bundling home and auto insurance provides discounts of 15-25%, potentially saving up to $900 per year. Simple changes like raising your deductible from $500 to $1,000 reduce premiums by 15-20%, and maintaining a clean driving record plus good credit score can save hundreds annually on your car insurance costs.
State Farm offers the cheapest car insurance for most drivers, with an average annual cost of $883 for a full coverage policy and $409 for a state minimum-liability only policy. Your cost will depend on your driver profile, so we recommend getting 3-5 quotes.
You can lower insurance rates through several proven strategies. Seeking discounts like bundling policies and maintaining a clean driving record can reduce premiums by 10-40%. Raising your deductible from $500 to $1,000 typically cuts costs by 15-20%. Shopping around remains one of the most effective tactics, with drivers saving an average of $300-800 annually by switching insurers. Combining multiple approaches delivers the best results.
Estimated Annual Savings: $200-800
Compare quotes from at least three insurers using tools like MoneyGeek's car insurance calculator. Since 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. 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.
Estimated Annual Savings: $330-900
Bundling your car and home insurance policies provides substantial discounts. State Farm offers the largest discount at 25%, followed by Farmers at 17% and Nationwide at 15%. State Farm's bundle saves customers about $847 per year compared to buying separate policies.
Estimated Annual Savings: $50-400
Most insurers offer discounts that can reduce your premium by up to 30%. Common discount opportunities include:
Not every insurer offers the same discounts, so check with your provider or agent to see what you can qualify for.
Estimated Annual Savings: $150-400
Raising your car insurance deductible (the amount you pay out of pocket before insurance kicks in) is a straightforward way to reduce your premium. Increasing deductibles from $500 to $1,000 can reduce premiums by 15-20%. Before increasing your deductible, make sure you have enough savings to cover it in case of an accident.
Deductibles may apply to these coverages:
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Estimated Annual Savings: $300-1,361
Families with multiple vehicles can save by insuring all cars under one policy. Farmers offers the industry's highest discount at 48%, potentially saving families over $1,361 annually. The average household saves about $500 annually by bundling coverage.
Estimated Annual Savings: $100-500
As your situation changes, your coverage should too. If you've paid off your car, consider dropping comprehensive and collision coverage, especially if your car's value is low. Use our coverage calculator to determine how much coverage you need.. Also see our guides to the cheapest full coverage and cheapest liability-only car insurance.
Estimated Annual Savings: $300-1,000
Violations like speeding, DUI or distracted driving can raise your insurance costs for years. While you can't erase past mistakes, avoiding new violations helps prevent further increases in your rates.
How long violations affect your record:
The length of time a violation affects your record depends on your state. In New York, infractions typically stay for up to four years. In California, a collision or DUI can remain for three years or even permanently, depending on the offense.
A poor credit history can raise your car insurance rates, while a good credit score helps reduce your rates. Check your credit report for errors that could hurt your score.
Improve your credit by:
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.
A stronger credit-based insurance score signals lower risk to insurers and may lead to cheaper premiums.
Estimated Annual Savings: $150-600
Some insurance companies offer telematics programs that track your driving habits and reward you with lower rates for safe behavior. These programs can save up to 40% on your premiums. Examples include State Farm's Drive Safe and Save™ and Progressive's Snapshot.
Estimated Annual Savings: $200-600
If you drive less than 12,000 miles per year, pay-per-mile insurance could save you money. This option works well for people who work from home, use public transportation or don't drive often.
Estimated Annual Savings: $50-1,000+
Your car’s make and model choice will impact your insurance rates. Sedans and minivans often cost less to insure than sports or luxury vehicles. A 2020 Honda CR-V averages just $1,172 per year to insure. 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.
The higher the value of your car, the higher the cost of repairs. Car insurance companies increase premiums to make up for the potential cost of repairing a luxury vehicle.
Several personal and behavioral factors can help bring down your car insurance costs over time:
Middle-aged drivers typically pay less for car insurance. Teens and new drivers face higher rates, but adding a young driver to a family policy can help reduce costs.
A clean driving record leads to lower premiums. If you’ve had a ticket, accident or DUI, your rates may spike, especially in the first year, but can improve over time. Shop annually to find the best insurance with a bad driving record.
Cars such as sedans are seen as lower risk than a vehicle like a sports car.
The higher your credit score, the better your rates tend to be. In many states, car insurance companies use credit-based insurance scores to determine a driver's likelihood of paying premiums and filing a claim.
Where you live affects your risk profile. Areas with high accident rates, theft or hazardous intersections tend to have higher premiums.
Higher coverage limits increase premiums but provide better financial protection. Full coverage with comprehensive and collision costs more than liability-only policies but protects your vehicle's value. Higher deductibles lower your monthly premium. Choosing a $1,000 deductible instead of $500 can reduce costs by 15-20%, but you'll pay more out-of-pocket if you file a claim.
Low-mileage drivers often qualify for reduced rates. If you drive less than 12,000 miles per year, you may benefit from usage-based or pay-per-mile insurance programs.
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.
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:
Compare quotes from at least three insurers annually, after major life events like buying a new car or moving. Even if your rates haven’t gone up, you might find a better deal elsewhere.
Make sure each quote you compare uses the same limits and deductibles. For example, a full coverage policy with 100/300/100 limits and a $1,000 deductible should be matched across all providers.
You could save up to 30% or more with discounts for bundling home and auto, safe driving, multi-car policies or completing a defensive driving course. Some companies also offer savings through telematics programs like State Farm’s Drive Safe & Save™ or Progressive’s Snapshot.
Raising your deductible is a simple way to lower your monthly premium. Just make sure you can afford to pay it out of pocket in case of a claim.
Insurance rates can change frequently. Request all quotes within the same week to ensure a fair comparison, and confirm how long each quote is valid (typically 30 days).
Teen drivers cost the most to insure, but these strategies can reduce rates. Here's how to get the best and cheapest car insurance for teen drivers:
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.
| State Farm | $883 | $74 |
| Nationwide | $930 | $78 |
| GEICO | $936 | $78 |
| Travelers | $1,037 | $86 |
| Progressive | $1,120 | $93 |
| Allstate | $1,124 | $94 |
| Farmers | $1,192 | $99 |
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.
| Alabama | Nationwide | $709 | $59 |
| Alaska | State Farm | $699 | $58 |
| Arizona | Root Insurance Company | $682 | $57 |
| Arkansas | State Farm | $629 | $52 |
| California | AAA California | $1,001 | $83 |
| Colorado | American National P&C | $541 | $45 |
| Connecticut | GEICO | $693 | $58 |
| Delaware | State Farm | $881 | $73 |
| District of Columbia | GEICO | $662 | $55 |
| Florida | State Farm | $1,058 | $88 |
| Georgia | Country Financial | $665 | $55 |
| Hawaii | GEICO | $565 | $47 |
| Idaho | American National P&C | $299 | $25 |
| Illinois | Country Financial | $663 | $55 |
| Indiana | American Family | $555 | $46 |
| Iowa | State Farm | $509 | $42 |
| Kansas | Nationwide | $670 | $56 |
| Kentucky | Nationwide | $790 | $66 |
| Louisiana | Louisiana Farm Bureau | $1,048 | $87 |
| Maine | Concord Group | $521 | $43 |
| Maryland | Progressive | $938 | $78 |
| Massachusetts | State Farm | $483 | $40 |
| Michigan | GEICO | $898 | $75 |
| Minnesota | State Farm | $797 | $66 |
| Mississippi | Direct General Insurance | $723 | $60 |
| Missouri | Nationwide | $909 | $76 |
| Montana | Progressive | $437 | $36 |
| Nebraska | American National P&C | $405 | $34 |
| Nevada | CSAA | $940 | $78 |
| New Hampshire | State Farm | $540 | $45 |
| New Jersey | Plymouth Rock Assurance | $895 | $75 |
| New Mexico | State Farm | $644 | $54 |
| New York | Kemper | $781 | $65 |
| North Carolina | Erie | $630 | $52 |
| North Dakota | American Family | $616 | $51 |
| Ohio | Nationwide | $485 | $40 |
| Oklahoma | State Farm | $662 | $55 |
| Oregon | State Farm | $706 | $59 |
| Pennsylvania | Nationwide | $580 | $48 |
| Rhode Island | State Farm | $700 | $58 |
| South Carolina | American National P&C | $463 | $39 |
| South Dakota | Allstate | $746 | $62 |
| Tennessee | State Farm | $579 | $48 |
| Texas | State Farm | $699 | $58 |
| Utah | Nationwide | $725 | $60 |
| Vermont | State Farm | $493 | $41 |
| Virginia | American Family | $601 | $50 |
| Washington | PEMCO | $534 | $44 |
| West Virginia | Erie | $784 | $65 |
| Wisconsin | GEICO | $556 | $46 |
| Wyoming | State Farm | $745 | $62 |
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.
| USAA | $814 | $1,631 | $1,138 | $916 |
| State Farm | $980 | $1,824 | $1,300 | $1,210 |
| GEICO | $990 | $2,436 | $1,615 | $1,372 |
| Nationwide | $1,098 | $2,508 | $1,701 | $1,526 |
| Progressive | $1,185 | $1,755 | $2,017 | $1,672 |
| Allstate | $1,185 | $2,261 | $1,840 | $1,452 |
| Travelers | $1,224 | $2,240 | $1,891 | $1,744 |
| Farmers | $1,421 | $2,018 | $2,282 | $1,830 |
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.
| USAA | $679 | $1,218 |
| State Farm | $883 | $2,420 |
| Nationwide | $930 | $1,249 |
| GEICO | $936 | $1,568 |
| Travelers | $1,037 | $1,755 |
| Progressive | $1,120 | $1,988 |
| Allstate | $1,124 | $1,729 |
| Farmers | $1,192 | $1,853 |
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:
Multiple factors affect car insurance costs. Some, like age, are out of your control. But there are ways to make car insurance less expensive, including switching companies, changing coverage levels, improving your credit score and maintaining a clean driving record.
You can reduce car insurance costs by asking about discounts, raising your deductible or adjusting coverage levels. Maintaining good credit and a clean driving record, taking defensive driving courses, bundling auto and home insurance, choosing a different car and shopping around for quotes also help.
Factors that affect car insurance costs include age, location, credit history, driving record, vehicle type, insurance provider and coverage level.
Shopping around and comparing quotes from at least three insurers can save you $300-800 annually and often provides immediate results. You can also raise your deductible right away to reduce your premium by 15-20%.
Most drivers can save $200-1,500 annually by combining strategies like bundling policies, maximizing discounts and shopping around. Drivers who use multiple cost-reduction strategies can potentially save more.
Yes, discounts can reduce your premium by 10-40% depending on which ones you qualify for. Common discounts like bundling home and auto insurance alone can save $330-900 annually.
Raising your deductible from $500 to $1,000 typically reduces premiums by 15-20%, saving $150-400 annually. Only increase your deductible if you have enough savings to cover the higher out-of-pocket cost if you file a claim.
You should compare quotes from multiple insurers at least once per year, especially after major life changes like moving, getting married or buying a new car. Insurance rates change frequently, so annual shopping ensures you're getting the best available rate.
MoneyGeek analyzed car insurance rates and cost-reduction strategies across the U.S., using data from state insurance departments and Quadrant Information Services to identify the most effective ways to lower your premiums.
Study Overview
We analyzed 529,578 insurance quotes from 67 companies across 897 ZIP codes to determine average savings potential for each cost-reduction strategy. Our research included contacting insurance companies directly to verify discount availability and savings ranges.
Savings Analysis
We calculated potential annual savings by comparing baseline rates with discounted rates for each strategy. Savings estimates reflect real-world data from multiple driver profiles and coverage scenarios, including:
Driver Profiles
We collected data for multiple driver profiles to ensure accurate savings estimates:
Coverage Levels and Deductibles Explained
Our analysis used standard coverage levels to ensure consistent comparisons. Full coverage includes liability (required in almost every state) plus comprehensive and collision 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:
When referencing state minimum coverage, we used the minimum required in each state. Savings percentages apply to both full coverage and minimum coverage policies unless otherwise specified.
About Mark Fitzpatrick
A long-time freelance writer, Karon Warren has covered finance, insurance, health care, business, travel and other topics for such outlets as Lending Tree, Student Loan Hero, Healthgrades, USA Today and others.
