How to Get Lower Car Insurance

Car insurance is one of the biggest recurring expenses for drivers. The average American spends over $1,500 per year on premiums, and rates continue to climb due to inflation, repair costs, and rising accident claims. But the good news is, you have more control over your bill than you might think. With a few smart strategies, you can save hundreds of dollars a year — without sacrificing the coverage you need.

In this guide, we’ll break down eight proven ways to lower your car insurance premium, plus insider tips to make sure you never overpay.

Why Car Insurance Costs Keep Rising

Before cutting costs, it helps to understand why your premium may feel so high. Insurance rates are based on factors like:

• Your driving record
• Your credit history
• The type and age of your car
• Where you live
• State minimum requirements

Knowing how these elements affect your premium makes it easier to identify where you can save.

Proven Ways to Lower Your Premium

There are proven strategies to get lower car insurance that can save you some serious money. Here are a few tips that you can use to get cheaper rates.

1. Improve Your Credit Score

Insurance companies view your credit history as a predictor of financial responsibility. A higher score often means lower risk — and lower premiums.

• Drivers with poor credit can pay up to twice as much as those with good credit.
• Raising your score from the “fair” to “good” range can unlock major savings.

If your score is under 650, consider paying down balances, setting up autopay, and checking your credit report for errors.

2. Keep a Clean Driving Record

Nothing drives up premiums like accidents, speeding tickets, or DUIs.

• Even one ticket can raise your rates for several years.
• A DUI conviction can more than double your premium — and some companies won’t insure you at all.

Safe driving not only protects your life but also lowers your auto insurance bill.

3. Raise your Deductible

This adds up to hundreds per year. Before you do this, make sure you save the entire deductible amount in case you get into an accident and file an auto insurance claim.

One of the easiest ways to cut costs is by increasing your deductible — the amount you pay out of pocket before insurance kicks in.

• Raising the deductible from $250 to $1,000 could save you 15–25%.
• Keep the deductible amount in a savings account so you’re prepared in case of a claim.

4. Reduce Coverage on Older Vehicles

If your vehicle is more than eight years old or worth less than ten times your annual premium, paying for full coverage may not make sense.

Dropping collision or comprehensive coverage on older cars can reduce your premium significantly.  Review your policy before it expires to see what coverage you need to reduce or add.Always compare the cost of coverage against your car’s current value.

5. Bundle your Home and Auto Coverage

Insurers want as much of your business as possible. As a homeowner, you can take advantage of a discount worth 5% or more by bundling your home and car insurance coverage. This is known as a multi-policy discount. You can qualify for even more significant discounts if you bundle two or more cars with the same insurer and your homeowner’s insurance. Some carriers offer greater discounts for bundling, but don’t assume bundling always means the lowest price — compare bundled vs. standalone rates before committing.

6. Save with Group Insurance

Some providers give significant discounts to drivers who buy insurance through a group employee plan. There are also group auto insurance plans through alumni and business groups. These can offer rates much lower than buying as an individual. If you work for a large company or belong to an alumni network, ask if this perk is available.

7. Take Advantage of Low Mileage Discounts

If you drive less than 8,000–10,000 miles per year, you may qualify for a low-mileage discount. If you are recently retired and no longer commute or drive much, make sure you get this discount when you renew your policy.

Specialty insurers like Metromile charge by the mile, which can save retirees, remote workers, or city dwellers hundreds per year. Always report your mileage honestly — many insurers now verify through odometer checks or telematics devices.

8. Get All the Discounts You Can

Insurance companies offer more discounts than most people realize. Some of the most common include:

• Good student (for drivers under 25 with a B average or better)
• Safe driver (accident-free for three or more years)
• Military/veteran savings
• Senior discounts
• Anti-theft device installation
• Defensive driving course completion

Ask your insurer for a full list — you may be surprised by what you qualify for.

9. Shop Online for Cheap Direct Rates

The fastest way to lower your premium is by comparing quotes online. Direct-to-consumer insurers cut costs by selling policies online, passing the savings to you. Get at least eight online quotes. Don’t ignore small or regional insurers — many offer better rates than big national companies.

Online comparison tools make this simple: just enter your ZIP code and get personalized rates in minutes.

Final Thoughts on How to Get Lower Auto Insurance

Lowering your car insurance isn’t about cutting corners — it’s about making smarter choices. From boosting your credit score to adjusting your coverage, every small change adds up.

The most important step? Shop around before every renewal. Rates change constantly, and the insurer that’s cheapest this year may not be next year. By staying proactive, you can keep your premiums low while protecting yourself and your family on the road.

Now that you know how to get lower car insurance, it’s time to start comparing quotes.