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Professor of Risk Management
25+ years in insurance
Former commercial lines underwriter
Updated
Car insurance rates are on the rise, but there are still several ways to lower your car insurance costs. Shopping around to compare quotes and bundling your insurance policies with the same company are two ways you could save big.
In this article, you’ll find nine expert tips that can help you get the cheapest auto insurance possible.
Everything seems to be getting more expensive these days, and you’re probably feeling the squeeze in all areas of your budget, from food to housing and everything in between. Unfortunately, car insurance costs are no exception.
While the post-pandemic rise in average auto insurance rates has begun to slow — rates increased by around 3% since the fall of 2024, according to the most recent Consumer Price Index[1] — the need to save money is as prevalent as ever. But despite ever-rising costs, you still have multiple ways to lower your premiums without sacrificing coverage.
Here are nine money-saving strategies to help you get cheaper car insurance.
Strategy  | Potential Savings |
|---|---|
| Shop around and compare quotes | $867† per year |
| Explore available discounts | Up to 40% |
| Bundle your policies | Up to 25% |
| Look into telematics | Up to 40% |
| Re-evaluate your needs | Varies |
| Consider regional insurers | Varies |
| Practice safer driving | Up to 34% |
| Consider pay-per-mile | Varies based on mileage |
| Increase your deductible | Varies |
Potential savings: $867† per year
The best way to get cheap car insurance is by shopping around and comparing quotes from at least three different insurance companies. By comparing the same coverage types, deductibles, and limits from different companies, you can be sure you’re getting the best value for your coverage needs.
After all, every insurance company calculates rates differently. And with hundreds of them out there, comparing quotes is the only way to find the best rate. Check out the chart below to see just how much rates can vary from one company to the next.
Company | Average Monthly Premium |
|---|---|
| USAA | $52 |
| State Farm | $54 |
| Liberty Mutual | $131 |
| The Hartford | $141 |
| Amica | $251 |
It’s a good idea to compare car insurance quotes every six months. If you don’t want to enter all your personal information into each company’s website, an insurance-comparison site is a faster and easier option.
We work with over 120 major insurers to help you find the best possible rate.
Potential savings: Up to 40%
Many drivers don’t take advantage of all the car insurance discounts they’re eligible for. Most insurers offer more than a dozen discounts for drivers — some you may not even be aware are available.
And the best part is that discounts can be stacked together, maximizing your savings potential.
Here are some common auto insurance discounts you might not be aware of and how much you can save with each:
Discount Category | Example Discounts | Average Percentage Savings |
|---|---|---|
| Discounts based on driver types | Good student, homeowner, customer loyalty | 5% to 35% |
| Driving history discounts | Good driver, defensive driver, telematics programs | 5% to 40% |
| Vehicle-related discounts | New car, anti-theft devices, safety equipment | 5% to 23% |
| Membership/occupational discounts | Military, teachers, federal employees | 10% to 25% |
| Policy-related discounts | Bundling, auto pay, multi-vehicle | 5% to 25% |
Potential savings: Up to 25%
Bundling your insurance policies with the same company is typically the largest single discount available. Although the home and auto multi-policy discount is the most common, some insurers allow you to bundle car insurance with boat, RV, motorcycle, or life insurance.
The amount you can save with a bundling discount depends on the insurance company, policy types, and your state. Here are a few examples of how much you could save by bundling your insurance policies together:
Company | Potential Savings |
|---|---|
| Amica | Up to 30% |
| Erie | Up to 25% |
| American Family | Up to 23% |
| Nationwide | Up to 20% |
| State Farm | Up to 17% |
Potential savings: Up to 40% (varies based on driving behavior)
Another way to get lower car insurance rates is to allow your insurance company to track your driving habits. A usage-based insurance program tracks factors like the number of miles and time of day you drive, how you accelerate and brake, and if you use your phone while driving.
Some insurers offer a participation discount and additional savings after you complete the program. Here’s an overview of some of the most notable telematics programs and how much you can save with each:
Telematics Program | Initial Discount | Maximum Discount |
|---|---|---|
| Allstate Drivewise | Varies by state | Varies by state |
| American Family KnowYourDrive | 10% | 20% |
| Chubb SafeLane | 10% | 20% |
| Direct Auto DynamicDrive | 10% | Not disclosed |
| Farmers Signal | 5% | 15% |
| GEICO DriveEasy | 10% | 10% |
| Liberty Mutual & Safeco RightTrack | 10% | 30% |
| Nationwide SmartRide | 10% | 40% |
| Progressive Snapshot | Varies by state Average discount of $94 | Varies by state Average discount of $231 |
| State Farm Drive Safe & Save | 5% | 30% (may exceed 30% in some states) |
| The Hartford TrueLane | 12% | 25% |
| Travelers IntelliDrive | 10% | 30% (up to 40% in Nevada) |
| USAA SafePilot | 10% | 30% |
Keep in mind that not everyone benefits from telematics — sometimes even if you drive safely. For example, if you drive a lot of miles or late at night, you might not see any savings. You may even see your rates increase with some companies, such as Progressive.
Potential savings: Varies
The types of coverage and amount you buy affect your auto insurance costs. Having the proper coverage amounts can help ensure you’re adequately protected without paying too much for insurance.
For example, you may have higher limits than you need or an older car that no longer requires comprehensive and collision insurance.
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Nick Versaw
Nick Versaw - Managing Editor, Compare
It’s a good idea to re-evaluate your coverage whenever your situation changes — think buying a new (or new-to-you) car, moving to a new address, getting married or divorced, graduating from college, or adding a new driver to your policy. And since your age directly affects premiums, too, it’s worth taking the time to get a few quotes around your birthday each year to make sure you’re still getting the best deal.
Some coverage needs don’t necessarily last forever. This goes for gap insurance. Keep an eye on your loan balance and your car’s value. Once you’ve paid off enough of your loan so that you wouldn’t be underwater if you total your car, call your insurer and ask to remove gap coverage from your policy.
Potential savings: Varies
Although you’re probably familiar with the big-name insurance companies that spend money on advertisements, hundreds of small insurance companies exist.
Regional insurers are only available in select states, but they often offer personalized customer service and lower rates than larger companies. For example, while GEICO’s national average rate is among the lowest, NJM offers much cheaper coverage than the industry giant in New Jersey. You can also typically get some of the best customer service around if you live in a state where Erie sells policies.
These companies may be worth checking out if they’re available in your state:
| User Reviews | 4.3 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.2 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $70/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $127/mo |
Erie Insurance's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.5 | 2.9 |
| Policy transparency | 4.1 | 3.1 |
| Value | 4.2 | 2.9 |
| User Reviews | 4.2 |
|---|
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 665 |
|---|---|
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $44/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $90/mo |
| User Reviews | 4.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $81/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $160/mo |
American Family's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.7 | 2.9 |
| Policy transparency | 4.7 | 3.1 |
| Value | 4.4 | 2.9 |
Drivers value the friendly staff but are disappointed by the high premiums and significant rate increases.
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Potential savings: Up to 34% (after look-back period ends)
Your driving history plays a significant role in your insurance premiums. Being a safe driver can also help you get cheap car insurance.
In fact, Compare.com data shows rates increase by around 30% with a ticket, 34% after an at-fault accident, and 48% after a DUI conviction. These infractions can stay on your record for three or more years, causing higher premiums for years to come.
A clean driving record comes from safe driving habits and avoiding tickets and accidents. With a clean record, you could also be eligible for accident forgiveness, which prevents a surcharge if you do cause an accident down the road.
Potential savings: Varies based on monthly mileage
If you drive less than 10,000 miles per year, a pay-per-mile insurance policy could save you quite a bit on your monthly bill. Instead of charging you the same figure each month, your insurer will set a much lower base rate, and the rest of your bill will depend on how many miles you drive that month.
Some insurers like Mile Auto specialize in pay-per-mile policies. But many big-name insurers offer their own mileage-based programs. For example, if you already have Allstate, its Milewise program might be worth considering. The same goes for Nationwide customers and the company’s SmartMiles plan.
Potential savings: Varies
When you purchase coverages like collision and comprehensive, you can choose your car insurance deductible. The deductible is the amount you pay after filing a claim before the insurance company pays its share.
The higher the deductible, the more you can save on your car insurance premium. But a higher deductible means you’re paying more out of pocket after an insurance claim, so make sure you can afford it before making the change.
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While the tips we outlined above can lead to some significant savings, a few often-simple mistakes can derail your premiums. No matter how much you pay for coverage, avoid these money-sucking mistakes:
Sometimes, budgets can be tight, and you’ll need to make tough choices about how you spend your paycheck. Canceling your car insurance prematurely or letting your policy expire might seem like a decent idea, especially if you don’t plan to drive much.
But companies keep a close eye on your insurance history, and even a short lapse can lead to much higher rates in the future. And they can snowball over time, leading you to dish out thousands of dollars more over the next several years.
It may be tempting not to disclose a recent speeding ticket or to use a different address when signing up for a new policy. But insurers have access to detailed records and will know when your information isn’t quite accurate.
While your insurer will likely correct basic information like your driving record before even offering you rates, long-standing inaccuracies can lead to claim denials or even canceled coverage.
Simply put, it’s not worth the risk.
You may have come across an insurance company or agent offering things like “no-deposit” car insurance or “one-day coverage.” While these might sound great, they don’t really exist in the real world. You’ll always need to put some money down to activate your policy, and standard insurers limit policies to six months or a year.
We recommend researching customer reviews on reputable sites like Trustpilot and industry reports from services like J.D. Power before switching to a new insurer.
And, as with many things in life, if it seems too good to be true, it probably is.
While we all want to get the cheapest car insurance possible, it’s often not worth sacrificing coverage just to get a lower price. For example, if you total your car and have only liability coverage, you’d be stuck with the cost of replacing your vehicle.
The same goes for coverage limits. Many states mandate relatively low liability limits, like $25,000 in property damage coverage. But with the average new car costing more than $50,000,[2] it’s relatively common to exceed those basic limits.
If you’re unsure about how much coverage you need, reach out to your insurance agent and go over your options.
We’ve provided multiple ways to get affordable car insurance. Now, we’ll answer some common questions that might help you save even more.
Some of the best (and easiest) ways to get cheaper car insurance are to compare quotes regularly, take advantage of discounts, and bundle your policies with the same company. Each of these strategies can individually save you up to 25% or more on your bill.
It depends on several factors, most notably your location and your coverage needs. If you live in a relatively cheap state for car insurance, like Iowa, North Carolina, or Idaho, it’s likely a lot, especially if you have basic coverage. But if you need robust coverage and live somewhere with expensive insurance, such as Maryland, New Jersey, or Washington, D.C., it’s probably not a bad price.
Country Financial currently offers the cheapest average rates in the U.S., according to Compare.com data. Its average rate for basic liability coverage is just $44 per month. Auto-Owners and USAA aren’t far behind.
But none of these companies will be the cheapest option for every driver. The best way to find the cheapest company for you is to compare personalized quotes from as many insurers as possible.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Professor of Risk Management
25+ years in insurance
Former commercial lines underwriter
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.