{"id":2296,"title":"How to Get the Cheapest Car Insurance Rates Possible","slug":"how-to-get-the-cheapest-car-insurance-rates-possible","lang":null,"description":"Car insurance is expensive, but taking these steps can lower your premiums.","content":"

Nerdy takeaways

The best way to get the cheapest insurance rates for you is by comparing quotes from a few companies.
Before you renew your policy, shop around to make sure that you’re still getting the most affordable car insurance.
Check that your coverage fits your car — if you drive an older model, you may be able to drop comprehensive and collision coverage.

Car insurance rates generally go up in the long run due to rising repair costs, more frequent claims and other factors. But there are still a few ways you can lower your rates.

See what you could save on car insurance

Easily compare personalized rates to see how much switching car insurance could save you.

1. Compare rates from multiple insurers

No two car insurers have exactly the same rates. The best way to find the most affordable car insurance available to you is by comparing the quotes from three or more insurers before choosing a policy.

This way, you can quickly spot which insurers are offering you a bargain — and which are charging more than what’s typical for your driving history and coverage needs.

It’s also a good idea to compare rates before renewing an existing policy. You might discover that the option that used to be the cheapest is now the most expensive. If you find a lower rate, you can switch insurers and save money.

2. Consider dropping coverage you don’t need

The cost of comprehensive and collision coverage significantly increases the price of car insurance. While you may need to have these types of coverage while you pay off an auto loan, you could drop them once you own your car outright to lower your insurance rates.

But beware: This isn’t the best option for everyone. You shouldn’t consider dropping your policy’s comprehensive and collision coverage unless you’re sure you could replace a totaled car on your own.

As a balance between price and security, you could drop only your collision coverage. This way you keep some of the protection that your comprehensive coverage offers, but you lose collision insurance’s premium.

Don’t cut too much car insurance

While dropping full coverage is a good way for some people to lower their car insurance rates, you don’t want to reduce your other coverage levels by too much. For example, reducing your liability insurance could leave you vulnerable to paying thousands of dollars in medical expenses and property damage after an accident.

3. Increase your deductible

If you buy comprehensive and collision coverage, you’ll have to select car insurance deductibles — the amount you commit to pay when you make a claim. Increasing your deductibles lowers insurance rates, while reducing your deductibles causes rates to go up.

Increasing your deductibles is a dependable way to make your car insurance cheaper, but you don’t want to raise your deductibles so high that you couldn’t afford to pay the amount if your car was damaged.

You can use our deductibles tool to compare different options and see how much you could save.

We measured what our sample driver could save by changing nothing except their deductible amount, then tested those savings against other groups by age, credit and driving record. We calculated the national median rate and percentage difference between deductible levels to find average savings.

4. Keep a safe driving record

Being involved in an at-fault crash and having to file a claim almost always makes your car insurance rates higher. You could help to keep your insurance rates low by maintaining a clean driving record and staying claims-free (even if that means paying for small repairs on your own).

Another way that you could lower your insurance rates as a good driver is by completing a defensive driving course. Many insurers offer discounts to drivers who finish these courses, though the amount you can save varies by company.

5. Work on your credit

Your credit-based insurance score is a significant factor in the cost of car insurance in most states. California, Hawaii and Massachusetts don't allow insurers to use credit when determining car insurance rates.

As you build or repair your credit history, you reduce your cost of car insurance. NerdWallet found that having poor credit can increase people’s car insurance rates by $1,586 per year compared with having good credit. (In most situations, a FICO score of 579 or lower is considered “poor” credit, but insurers have their own models for setting rates that may use a different cutoff.)

» MORE: What is a good credit score?

6. Check insurance costs when buying a car

If you’re thinking of buying a car, you might lower your rates by choosing certain models over others.

Typically, luxury and sports cars that come with high-tech features, expensive construction materials and higher theft risk cost more to insure. Electric cars, too, often have higher insurance rates because of their expensive batteries.

To get lower car insurance rates, shop for safe, popular cars. We found that the cheapest cars to insure are Subaru Outbacks and Crosstreks and Honda CR-Vs.

See what you could save on car insurance

Easily compare personalized rates to see how much switching car insurance could save you.

7. Consider usage-based or pay-per-mile insurance

If you’re a safe driver who doesn’t log many miles, consider a usage-based insurance program, such as Allstate’s Drivewise, Progressive’s Snapshot or State Farm’s Drive Safe & Save. These programs offer discounts to safe drivers, but signing up means sharing details about your driving habits with your insurer.

A similar option is pay-per-mile insurance, like Nationwide’s SmartMiles or USAA’s SafePilot Miles. With per-mile insurance, your rate changes every month with the number of miles you drive. Per-mile plans are best if you don't drive much, like if you work from home or rely on public transportation more than your personal vehicle.

8. Ask about discounts

Insurers typically provide car insurance discounts. While discounts vary by insurance company and the state you live in, you can usually get a discount if you:

Bundle car insurance with other policies, such as homeowners insurance.
Insure multiple cars with one policy.
Pay your entire annual or six-month premium at once.
Agree to receive documents online.
Own a car with certain anti-theft or safety features.
Are a member of particular professional organizations or affiliate groups.

But don’t be swayed by a long list of possible discounts. Just because an insurer offers a lot of discounts doesn’t mean that their rates will be cheaper than the competition. It’s best to compare rates from multiple insurers.

» MORE: The best auto and home insurance bundles

Car insurance hacks that you should avoid

There’s a lot of bad advice on the internet about reducing car insurance costs. There are some common tips or “hacks” that might at first appear like smart ways to cut down on your insurance bill, but in reality could leave you open to having your insurance canceled or not renewed. You could also face legal action if you are underinsured, not to mention having to pay all of the out-of-pocket expenses that could come from an accident.

Lying about past driving violations and claims

You might be tempted to try and lower your insurance rates by not mentioning a past speeding ticket, accident or a claim you made when you are shopping for insurance. If an insurer discovers the lie, they may deny a claim or cancel your policy.

Leaving drivers off of your policy

Insurance companies require you to disclose all licensed drivers in your home. If a newly licensed driver lives with you and uses your car, you can’t just leave them off of your policy to avoid the price hike that comes with new drivers.

If you do leave them (a process called excluding drivers from coverage) off and they’re involved in an accident, the damage they cause wouldn’t be covered — and your policy could be canceled.

Misrepresenting your location and other personal information

Car insurance rates vary — sometimes by a large amount — depending on where you live. This pricing difference causes some people to claim that they live in a cheaper city or state to lower their insurance rates. Doing this could lead to a denied claim or canceled policy, which could be worse than having to pay a little more than drivers in a nearby area.

We nerd out on car insurance

Our goal is to give you what you need to make smart decisions about your car insurance.

Here’s why you can trust NerdWallet:

We do our homework. We regularly evaluate and review many of the insurance companies we write about. And all of our content is fact-checked before publication. This means the star ratings you see on our reviews are accurate and up-to-date.
We analyze the data. We update our average car insurance rates every month. To do that, we analyze more than 500 million rates from across the country. These rates are provided by Quadrant Information Services.
We are unbiased. NerdWallet’s content is never influenced by our business partners and advertisers. Learn more about how we write in our editorial guidelines.

Methodology

NerdWallet found median rates based on public filings obtained by pricing analytics company Quadrant Information Services. We examined rates for men and women for all ZIP codes in any of the 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutual is not included in our rates analysis due to a lack of publicly available information.

In our analysis, “good drivers” had no moving violations on record; a “good driving” discount was included for this profile. Our “good” and “poor” credit rates are based on credit score approximations and do not account for proprietary scoring criteria used by insurance providers.

These are median rates, and your rate will vary based on your personal details, state and insurance provider.

Sample drivers had the following coverage limits:
$100,000 bodily injury liability coverage per person.
$300,000 bodily injury liability coverage per crash.
$50,000 property damage liability coverage per crash.
$100,000 uninsured motorist bodily injury coverage per person.
$300,000 uninsured motorist bodily injury coverage per crash.
Collision coverage with $1,000 deductible.
Comprehensive coverage with $1,000 deductible.

In states where required, minimum additional coverages were added. We used the same assumptions for all other driver profiles, with the following exceptions:
For drivers with minimum coverage, we adjusted the numbers above to reflect only the minimum coverage required by law in the state.
We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit. In states where credit isn’t taken into account, we used only rates for “good credit.”
For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.
For drivers with a DUI, we added a single drunken driving violation.
For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.

We used a 2023 Toyota Camry LE in all cases and assumed 12,000 annual miles driven. We analyzed rates for drivers of the following ages: 20, 30, 35, 40, 50, 60 and 70.

These are rates generated through Quadrant Information Services. Your rates will be different.

25 Most Popular Vehicles Methodology

NerdWallet found median insurance estimates based on data collected about the largest insurers in all 50 states and Washington, D.C. Rates were for 35-year-old male and female drivers with good credit, no tickets or violations, and with the following coverage limits:
$100,000 bodily injury liability coverage per person.
$300,000 bodily injury liability coverage per crash.
$100,000 property damage liability coverage per crash.
$100,000 uninsured motorist bodily injury coverage per person.
$300,000 uninsured motorist bodily injury coverage per crash.
Collision coverage with $1,000 deductible.
Comprehensive coverage with $1,000 deductible.

In states where required, minimum additional coverages were added. Some policies include additional coverages at the insurer’s discretion. These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Vehicles listed were among the top-selling models in the U.S. in 2023, according to data collected by Kelley Blue Book. Starting MSRP and insurance rates are for 2024 models.

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