How to lower your car insurance premium

There is no universal trick for cutting a car insurance bill, and nobody can promise a specific result without knowing your situation. What you can do is work through the levers you actually control. Some take a few minutes, while others pay off over years. How much each one helps will vary by insurer and state.

Shop around at renewal

Insurers price the same driver differently, so comparing several companies is often the most useful single step. It is reasonable to check every year or two, and after any major life change such as moving, buying a car or adding a driver. Our guide on how to compare quotes properly explains how to make those comparisons fair.

Review your deductibles

A higher collision and comprehensive deductible usually lowers the premium, because you agree to absorb more of a claim. Only choose an amount you could pay on a bad day. Ask for the price at two or three deductible levels and see whether the difference justifies the extra risk.

Reconsider coverage on an older car

As a car loses value, collision and comprehensive can pay out less while still costing a meaningful amount. If you own the car outright, our comparison of full coverage vs liability only can help you decide whether to keep them.

Ask about discounts by name

Discounts differ by insurer and state, and they are not always applied automatically. Ask whether you qualify for any of these:

• Insuring home and auto with the same company, or more than one vehicle
• Paying the premium in full, or using automatic payments or paperless billing
• Good grades for young drivers, or a period away at school without the car
• A clean record or an approved defensive driving course
• Safety and anti-theft equipment, or membership in certain groups and employers

Consider usage-based insurance carefully

Some insurers offer programs that track mileage or driving habits through an app or device. Careful, low-mileage drivers may benefit. However, not every program guarantees a lower price, and some may raise it based on what they observe. Read how the data is used before you enroll, including whether it can affect your price at renewal.

Keep your details current

If you have started working from home, retired or changed your commute, tell your insurer, since lower mileage may affect your price. Also check that the policy lists the right vehicles and drivers. You may be paying for something that no longer applies.

Protect your record and your credit

Tickets and at-fault accidents can affect your price for years, so careful driving is a long-term strategy. Where insurers may use credit, paying bills on time and keeping balances manageable may also help over time. This will not apply in states that restrict or ban credit in pricing, such as California, Hawaii and Massachusetts.

Think about insurance before you buy a car

Models that look similar can be priced quite differently. Getting a price for the specific vehicle before you sign may prevent an unwelcome surprise, particularly with sports cars, luxury models and some electric vehicles.

Shortcuts to avoid

• Dropping below your state's required coverage. Penalties can include fines and loss of your license or registration.
• Letting coverage lapse. A gap can make future coverage more expensive, and it leaves you exposed.
• Misstating facts. Giving a false address, leaving out a regular driver or understating mileage can lead to a denied claim or a canceled policy.

Where to start

See how your state compares on our state averages table, then try different scenarios in the estimate calculator to see which factors matter most in a simplified model. For background on those factors, read what affects car insurance rates.