How to Find Cheap Car Insurance

Finding cheap car insurance isn’t necessarily about choosing the first low monthly quote you see. To find the best deals, employ tactics like comparing quotes from several companies, understanding which coverage you need, and taking advantage of all possible discounts.

Across the U.S., full coverage car insurance averages $196 monthly ($2,356 per year) and minimum coverage averages $60 monthly ($722 per year). This guide breaks down what affects your policy cost, which companies offer the lowest rates, and steps to reducing your premium.

3. Increase Your Deductibles

Raising your collision or comprehensive deductible from $500 to $1,000 can reduce your premium by 10 to 20 percent. A $1,000 deductible generally strikes a good balance — if you can afford that cost out-of-pocket in the event of a claim — because you want to avoid filing claims under this amount, due to the risk of your premiums increasing. If you can afford it, a $2,000 deductible can save you even more, but remember, you’re on the hook for that amount before your coverage kicks in.

4. Improve Your Credit Score

If your state allows credit-based insurance scoring (this is true everywhere except California, Hawaii, Massachusetts, and Michigan), building your credit can lower your premium over time. Insurers see strong credit as a predictor of fewer claims.

5. Sign Up For a Telematics Program

Telematics programs track your driving behaviors — like accelerating, hard braking, speeding, and phone use — and offer a potential discount for good driving. Before signing up for a telematics program, read the fine print, as some programs may raise your rates for poor driving.

6. Consider Your Vehicle Choice

Choosing a car with lower repair costs and stronger safety ratings can reduce your insurance bill. Small sedans, minivans, and mid-size SUVs are typically cheaper to insure than luxury vehicles or sports cars.

7. Maintain a Clean Driving Record

Avoiding accidents and moving violations keeps your rates low. After three to five years of clean driving, many insurers will reduce your premiums automatically.

8. Shop for Quotes — But Decide Wisely Before Switching.

Your rate can change based on market conditions, your address, or updates to your driving record. Even if you’re satisfied with your current insurer, it’s smart to compare periodically.

That said, switching insurers too frequently can raise flags — companies view customers who jump around as less desirable, and may raise rates accordingly. If your savings from switching aren’t significant, it may be wiser to sit tight with the same insurer for at least three years.

9. Ask About Low-Mileage Discounts or Pay-Per-Mile Insurance

If you drive fewer than 8,000–10,000 miles per year, you may qualify for low-mileage discounts or save with a pay-per-mile policy. These can be substantially cheaper for remote workers or retirees.

Credit Score

Insurers in many states use credit-based insurance scores to predict claim risk. Better credit often means better rates. The only states that prohibit this practice are California, Hawaii, Massachusetts, and Michigan. Maryland, Oregon, and Utah limit the use of credit-based insurance scores, but don’t ban them entirely.²