Quick answer
Why car insurance costs so much
The average driver spent about $1,282 a year on car insurance in 2023, up 14% from the year before. Repairs, medical bills, and car prices have all gone up. But you have more control over your price than you might think. See what affects your car insurance price.
10 ways to lower your car insurance
1. Shop around every year or two. Get quotes from at least three companies with the same coverage. Prices for the same driver can vary a lot. Staying loyal doesn't always pay.
2. Raise your deductible. Your deductible is what you pay before insurance kicks in. Going from $200 to $500 can cut your collision and comprehensive cost by 15% to 30%. Going to $1,000 can save 40% or more. Just make sure you have that money saved.
3. Drop collision and comprehensive on an older car. If your car is worth less than 10 times what you pay each year for these coverages, dropping them may make sense. Example: if they cost you $500 a year and your car is worth $4,000, it may be time. Learn how comprehensive car insurance works before you decide.
4. Bundle your policies. Buying car and homeowners or renters insurance from the same company often saves money.
5. Ask about every discount. Common ones include a clean driving record, a defensive driving course, good grades for students, driver's ed, safety features, and paying in full.
6. Drive less. Many insurers give low-mileage discounts. If you work from home, tell them.
7. Try a safe-driving app, carefully. Some insurers track your driving with an app and give safe drivers a discount. But hard braking or late-night driving can raise your price with some programs. Ask how it works first.
8. Check group discounts. Employers, alumni groups, professional groups, and the military may have deals.
9. Work on your credit. In most states, insurers use a credit-based score to set prices. Paying bills on time helps over time.
10. Check insurance prices before you buy a car. Cars that cost a lot to fix, or get stolen often, cost more to insure.
When to shop again
Prices change, and so does your life. Get new quotes when you:
- Move, even across town
- Get married
- Add or remove a driver
- Buy or sell a car
- Have a ticket or crash drop off your record, often after three to five years
- Get your renewal notice with a price increase
If you have a teen driver
Teen drivers cost the most to insure. Ask about good student discounts, driver's ed or safe-driving course discounts, and adding them to your policy instead of buying their own. Putting them on an older, safer car with lower repair costs can help too.
What NOT to do
Don't cut your liability coverage to the state minimum just to save money. Liability pays for damage and injuries you cause to others. If you cause a bad crash, the bills can go far past a low limit, and you could be sued for the rest. This is the one place where cutting costs can backfire badly. For extra protection at a low cost, look at umbrella insurance.
How to compare quotes fairly
Line up these for every quote:
- Liability limits
- Collision and comprehensive deductibles
- Uninsured motorist coverage
- Extras like rental car and roadside help
Ready to compare? See car insurance costs and options.
Related pages
More car insurance guides: Car insurance cost · SR-22 insurance · What affects your auto insurance price · What comprehensive covers · Car insurance without a car · Umbrella insurance · All car insurance · High-risk car insurance · Liability-only car insurance · Car insurance for teens
Questions people ask
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