Auto insurance prices vary from company to company, sometimes by a wide margin for the same driver and car. That is good news: much of what you pay is within your control. The goal is to lower the premium while keeping coverage that would actually protect you after a serious accident.

1. Shop around, on equal terms

The Insurance Information Institute (Triple-I) recommends getting at least three quotes. Ask each insurer to price the same liability limits, deductibles and add-ons, otherwise the cheapest quote may simply be the thinnest policy. Check each company's financial strength and complaint record too; our guide on how to choose an insurance company walks through the free tools.

2. Choose a higher deductible you can afford

Triple-I estimates that raising collision and comprehensive deductibles from $200 to $500 could cut the cost of those coverages by 15 to 30 percent, and a $1,000 deductible can save 40 percent or more. Pick a deductible you could pay from savings the day after an accident. A deductible you cannot afford turns a covered loss into a financial problem.

3. Reconsider physical damage coverage on older cars

Collision and comprehensive pay up to the car's actual cash value. Triple-I suggests that if a car is worth less than ten times the annual premium for these coverages, buying them may not be cost effective. Keep them if a lender requires them or if you could not replace the car without hardship. Do not drop liability coverage to save money: it protects you from lawsuits and is required in nearly every state.

4. Ask for every discount you qualify for

  • Multi-policy: bundling auto with home or renters insurance with the same company.
  • Multi-vehicle: insuring more than one car on a policy.
  • Safe driver: several years without accidents or moving violations.
  • Defensive driving course: available in many states, sometimes age-specific.
  • Good student and student-away: for young drivers with good grades or at college without a car.
  • Low mileage: for drivers who drive less than average or carpool.
  • Group or affinity: through employers, alumni or professional associations.
  • Vehicle safety and anti-theft: devices and features that reduce injury or theft risk.

Discounts vary by state and insurer, and as Triple-I puts it, what matters is the final price, not the number of discounts.

5. Consider a usage-based (telematics) program

Usage-based insurance prices your policy partly on how you actually drive. According to the NAIC, telematics devices, connected cars or smartphone apps can record miles driven, time of day, where the vehicle is driven, rapid acceleration, hard braking and hard cornering. A driver who covers short distances at moderate speeds will generally pay less than one who drives long distances at high speeds. Before enrolling, ask whether the program can raise your premium as well as lower it, what data is collected and how long it is kept, and whether the data can be used in a claim. The NAIC notes that these programs have raised privacy concerns and that availability varies by insurer and state.

6. Understand credit-based insurance scores

In most states insurers may use a credit-based insurance score, a rating built from your credit history that predicts the likelihood of claims rather than loan repayment. The NAIC explains that in most states an insurer cannot rely on the score alone to raise rates or to deny, cancel or non-renew a policy, and many states require notice when credit contributed to an adverse decision. Several states restrict it further. Experian's 2025 overview lists California, Hawaii, Massachusetts and Michigan among states that bar its use in setting auto rates, with narrower limits in Maryland, Oregon and Utah. Where it is allowed, paying bills on time, keeping balances low and correcting report errors can help.

7. Buy the right car and keep a clean record

Premiums reflect the car's price, repair costs, safety record and theft rates, so compare insurance costs before you buy a vehicle. Tickets and at-fault accidents usually raise rates at renewal, while a clean record over several years opens safe-driver discounts.

What not to cut

  • Liability limits far below your assets.
  • Uninsured/underinsured motorist coverage, which protects you from other drivers' gaps.
  • Coverage required by your loan or lease.

Run the numbers with the auto insurance calculator, review coverage options on our auto insurance page and in auto insurance coverage explained, then request quotes from licensed insurers in your state.