How To Lower Your Auto Insurance (2024)

Insurance is expensive, and getting lower car insurance rates is necessary for every driver. Fortunately, there are multiple ways to save on auto insurance, including asking for discounts and bundling policies.

Many factors, such as your age, driving record, and credit score, impact your car insurance rates. While you can’t change some factors like your age, improving other areas leads to lower rates.

One of the best ways to get cheaper car insurance is to shop around. Compare rates and discounts from multiple companies to find the best deal. Car insurance discounts also significantly impact rates, so take advantage of your eligible discounts.

Keep reading to learn more about how to lower your car insurance rates and save more money.

How can you lower your car insurance rates?

Many factors affect car insurance rates, including your driving record, credit score, vehicle, and coverage. Making changes to each of these factors results in cheaper auto insurance rates.

While some changes, like improving your credit score, take time, there are some ways to lower rates quickly. So shop around and add discounts for the quickest, most significant savings.

Now, let’s go through a list of easy ways to lower your car insurance rates. Remember, every car insurance company charges different rates and weighs your personal factors differently. As a result, rates vary widely between companies.

1. Take Advantage of Car Insurance Discounts

If you’re wondering how to get lower car insurance rates, car insurance discounts are a great place to start. Most companies offer numerous discounts based on the policy, driver, and vehicle. Additionally, many drivers qualify for multiple discounts and can bundle them for the most savings.

You may qualify for numerous discounts, including low mileage and driving courses, as well as discounts based on how you pay your bill. For example:

• Many car insurance companies will offer a low-mileage discount if you don’t spend much time behind the wheel. They know that less time on the road equals less of a chance of an accident.
• You may also be eligible for a discount for taking a defensive driving course. While most insurers will offer a discount, many states also allow you to use the course to remove points from your driver’s license. However, some insurers require drivers to be a certain age to take the course, such as 55 and older.
• In addition, you can get a discount for paying your bill in full, signing up for automatic payments, and going paperless. 

Since not all discounts automatically apply to your policy, be sure to speak to your insurer to take advantage of all the discounts available to you.

2. Raise Your Deductible

Another way to lower your car insurance rates is to raise your deductible. A deductible is an amount you pay before your insurance kicks in. Typically, deductibles range from $500 to $1,000.

Although a higher deductible means you will pay more out of pocket in an accident, your car insurance rates are lower.

3. Take a Close Look at Your Car Insurance Policy

Carefully consider the coverages on your car insurance policy to save extra money. Although most experts recommend full coverage, you could benefit from lower coverage depending on your situation.

For example, if you’re financing your vehicle, you may be able to remove GAP insurance after a certain amount of time. Or, you may be able to lower your coverage if your car is older.

In addition, you may be able to remove some add-ons from your policy. Consider removing roadside assistance and rental car reimbursement, for example. While the extras are good to have, removing them from your policy will save you money. 

4. Keep Your Driving Record Clean

Your driving record is one of the most significant factors determining car insurance rates. Tickets, accidents, and DUIs cause rates to skyrocket.

This table shows the average car insurance rates after a single ticket from top companies.

Full Coverage Auto Insurance Monthly Rates: One Ticket vs. Clean Record

Drivers with a clean driving record pay significantly lower rates than drivers with tickets and accidents. Just one car accident can raise your rates, as seen in the table below.

Full Coverage Auto Insurance Monthly Rates: One Accident vs. Clean Record

Some insurers are extremely picky about covering drivers with a DUI on their record. Companies charge much higher rates for these drivers. Let’s take a look at rates with a DUI.

Full Coverage Auto Insurance Monthly Rates by Driving Record

Maintaining a clean driving record is an easy way to get low car insurance rates. But don’t worry if you already have infractions on your record. Most states only allow insurance companies to increase rates for three to five years. 

You save money on fines and higher rates and may also be eligible for additional car insurance discounts for maintaining a clean record.

5. Improve Your Credit Score

Many drivers don’t know that their credit score impacts their car insurance rates. Studies show that drivers with high credit scores are less likely to file claims since they can pay for damages out of pocket.

On the other hand, drivers with a low credit score file more claims and cannot typically pay for damages themselves.

This table shows average car insurance rates based on credit score.

Full Coverage Auto Insurance Monthly Rates by Credit Score

Since a higher credit score equals lower car insurance rates, do everything possible to raise your score. Make on-time payments and use credit wisely to get better rates on everything from car insurance to mortgages.

In addition, periodically check your credit report to ensure it’s accurate. Report any inaccuracies immediately to improve your credit score.

6. Buy a Cheaper Vehicle

It should not be surprising that the type of car you own determines your car insurance rates. Drivers with newer or more expensive vehicles pay much higher rates for insurance since it costs more to repair or replace them.

Consider buying a cheaper or older car to keep rates low. For example, the Jeep Wrangler, Honda CR-V, and Ford F-150 have some of the cheapest car insurance rates. 

However, the Tesla Model S, BMW 7 Series, and Audi R8 have significantly higher rates.

Instead, consider buying a less expensive car with advanced safety features to make the most of car insurance discounts.

7. Use a Telematics Program

Many car insurance companies offer usage-based car insurance programs that use telematics to monitor driving. These programs use an app to monitor specific driving behaviors like hard braking and offer a discount based on how safely you drive.

Each insurance company creates its own telematics program with different requirements and discounts.

While most car insurance companies won’t raise your rates if you score poorly, some companies increase rates if the program shows you aren’t driving safely. So, be sure to carefully consider the program before you sign up.

8. Look for Cheaper Car Insurance Rates for Young Drivers

You know rates are incredibly high if you have a young driver on your auto policy. Let’s take a look at rates for teenage drivers with the top insurance companies to get an idea of what young drivers will pay. 

Full Coverage Auto Insurance Monthly Rates for Teen Drivers

Fortunately, there are ways to find more affordable car insurance rates for teenage drivers. 

Take advantage of savings including driver’s ed, good student, and away student discounts, which significantly lower rates. Also, choosing a less expensive vehicle and raising the deductible helps keep rates reasonable for young drivers.

9.  Bundle Insurance Policies with One Insurer

Most car insurance companies offer cheaper rates and discounts if you bundle your insurance needs. You can bundle the following insurance types:

• Auto 
• Homeowners
• Renters
• Boat
• RV
• Pet
• ATVs

Read more: How to Get a Homeowners Auto Insurance Discount 

In addition, it’s easier to keep up with your insurance information if you only use one company. You may easily be able to access all of your policies through your company’s app or website.

10. Shop Around to Save Money on Car Insurance

The very best way to get cheap car insurance is to shop around. Each company weighs your personal factors differently and offers different rates. For example, one company may overlook a fender bender while another will charge higher rates. 

Here is a list of the top 10 insurance companies and the average annual rates for minimum liability coverage.

Liability Auto Insurance Average Rates From Top Providers

It is recommended to compare rates, ratings, and discounts from multiple car insurance companies to find the best coverage with the cheapest rates. 

Lowering Car Insurance Rates: The Bottom Line

Most drivers wonder how to lower their car insurance rates. Fortunately, there are some ways to help you get the cheapest rates out there.

Utilize car insurance discounts, improve your credit score, maintain a clean driving record, and buy an affordable vehicle to get the lowest rates. Additionally, raise your deductibles and eliminate unnecessary coverages to keep rates low.

Rates vary from company to company, so shop around to find the cheapest rates. Compare multiple companies to see who offers the lowest rates and the best discounts.