Auto insurance prices are built from many factors, and some of them are within your control. The steps below focus first on paying less for the same protection, and only then on changing your coverage where it truly makes sense.
Shop around at every renewal
Insurers use different formulas to price the same driver, so quotes for identical coverage can vary a lot. Your own insurer's price can also change at renewal even when nothing about you has changed. Set a reminder to compare offers about a month before your policy renews. Some insurers give a discount for getting a quote before your current policy ends, and shopping early gives you time to switch without a gap in coverage.
Before you ask for quotes, gather your details with the Rate Checklist so every insurer or agent prices the same drivers, vehicles and use.
Compare the same coverage
A cheaper quote is only cheaper if it buys the same protection. Line up liability limits, uninsured motorist coverage, deductibles and add-ons before you look at the price. Our guide to comparing policies shows what to match, and the Compare Quotes tool does the side-by-side math.
Choose deductibles you can afford
Raising your collision and comprehensive deductibles usually lowers your premium, because you agree to pay more of each claim yourself. It only makes sense if you could pay the higher amount from savings tomorrow. The Deductible Calculator shows how long a higher deductible takes to pay for itself.
Ask about every discount
Many drivers qualify for discounts they are not receiving. Common ones reward a clean record, good grades, safety features, low mileage, paperless billing and membership in certain groups. Discounts differ by insurer and state, and they are not always applied automatically. See Available Discounts for the full list and how to ask.
Bundle, but check the math
Insuring your car with your homeowners, renters or other policies at the same company often earns a multi-policy discount, and insuring several cars on one policy usually does too. Still, a bundle is not always the lowest total. Get a price for the bundle and for separate policies, then compare the combined cost.
Understand credit-based insurance scores
In most states, insurers may use a credit-based insurance score as one rating factor. It is not the same as the score a lender uses, but it draws on similar information, such as payment history and outstanding debt. A few states, including California, Hawaii and Massachusetts, do not allow it for auto insurance, and others limit how it can be used.
Where it is allowed, paying bills on time and keeping balances low can help over time. If your credit has improved, ask your insurer whether it will review your score at renewal.
Consider usage-based insurance
Many insurers offer telematics programs that use a phone app or a plug-in device to measure how you drive, such as braking, speed, phone use, time of day and mileage. Careful drivers may earn a discount. Read the terms first: some programs can raise your price for risky driving where state rules allow, and you will be sharing driving data. If you drive very little, ask whether pay-per-mile coverage is available in your state.
Think about insurance before you buy a car
The car itself affects the price. Its value, repair costs, safety features and theft risk all play a part. Before you buy, get quotes on the models you are considering so there are no surprises. Our article on coverage for new car owners covers what to set up before the first drive.
Review collision and comprehensive on older cars, carefully
Collision and comprehensive pay up to the car's actual cash value, minus your deductible. As a car ages and loses value, the most these coverages could pay shrinks, while the premium may not shrink as quickly. Dropping them can make sense when:
- The car is paid off, so no lender or leasing company requires the coverage.
- You could repair or replace the car from savings if it were totaled or stolen.
- The yearly cost of the coverage is large compared with what it could pay after the deductible.
Without these coverages, you pay for your own car after a crash you cause, a hailstorm or a theft. The Coverage Calculator helps you weigh it, and How Car Depreciation Affects Your Coverage explains the trade-off in more detail.
Pay in full and simplify billing
Many insurers charge installment fees for monthly payments or offer a discount for paying the whole term up front. Automatic payments and paperless documents may also earn a discount. If paying in full would strain your budget, the Budget Calculator helps you plan for it.
Keep your record clean and your details current
Tickets, at-fault accidents and claims can raise your rate for several years, so safe driving is the longest-lasting way to save. In some states, completing an approved defensive driving course can earn a discount. Also tell your insurer when something changes in your favor: you drive fewer miles, you moved, a driver left the household or you added an anti-theft device.
What not to cut: Lowering liability limits to the state minimum or declining uninsured motorist coverage can save a little now and cost a great deal later. Protect those first and look for savings elsewhere. The Coverage Levels Guide explains why.
Your next step
Start with the steps that keep your protection intact: compare quotes at renewal, check every discount and review your deductibles. For more ideas, read How to Save Money on Car Insurance. If you would like help comparing offers, see the plans on Start Your Coverage.