Learning how to get the cheapest car insurance is a priority for most drivers. Securing the cheapest car insurance involves more than just finding a low quote; it’s about balancing cost with adequate coverage. A policy that seems cheap but leaves you underinsured can cost you thousands later.
This guide provides clear, actionable steps to lower your premiums without sacrificing essential protection. We will cover factors you control, discounts you can claim, and smart shopping strategies.
Let’s begin with the foundational elements that determine your insurance cost.
How To Get The Cheapest Car Insurance
The journey to affordable coverage starts with understanding what insurers evaluate. Your premium is not a random number. It’s a calculated risk assessment. By knowing the levers you can pull, you take control of the process.
Understand The Factors You Can Control
Many rating factors are within your power to change or influence. Focusing on these areas yields the most significant savings.
Your Driving Record Is Paramount
A clean driving history is the single best way to secure low rates. Insurers see tickets and accidents as indicators of future risk. Even a single speeding ticket can increase your premium for years.
- Avoid traffic violations by obeying speed limits and traffic signals.
- Practice defensive driving to prevent accidents, even those that aren’t your fault.
- Consider taking a defensive driving course to refresh your skills; some states mandate a discount for completion.
Your Credit Based Insurance Score
In most states, insurers use a credit-based insurance score to predict risk. Studies show a correlation between credit management and likelihood of filing claims. Improving your credit can directly lower your insurance costs.
- Pay all bills on time, every time.
- Keep credit card balances low relative to your limits.
- Avoid opening several new credit accounts in a short period.
- Regularly check your credit reports for errors and dispute any inaccuracies.
Your Vehicle Choice Matters
The car you drive has a huge impact on your quote. Insurers analyze repair costs, theft rates, and safety data for every make and model.
- Before buying a car, get insurance quotes for different models you’re considering.
- Generally, sedans and minivans are cheaper to insure than sports cars or luxury SUVs.
- Vehicles with high safety ratings and anti-theft features often qualify for discounts.
Maximize Every Available Discount
Insurance companies offer dozens of discounts, but they won’t always apply them automatically. You need to ask. Here are the most common and valuable ones.
Bundling Policies
Combining your auto insurance with another policy, like homeowners or renters insurance, with the same company almost always triggers a discount. This can save you 10% to 25% on both policies.
Pay In Full And Go Paperless
Paying your entire six-month or annual premium upfront avoids monthly service fees. Opting for electronic documents and autopay can also shave a small percentage off your bill.
Low Mileage And Usage Based Discounts
If you drive significantly less than the average driver (often under 7,500 miles a year), you may qualify for a low-mileage discount. Alternatively, usage-based programs that track your driving via a mobile app or plug-in device can offer savings for safe habits.
- These programs monitor braking, speed, mileage, and time of day you drive.
- Good drivers can see substantial discounts, but poor scores might lead to higher rates.
Loyalty, Affiliation, And Professional Discounts
Don’t overlook discounts for being a long-term customer, a member of certain organizations (like alumni associations or professional groups), or working in a specific profession (e.g., teacher, engineer). Always inquire.
Adjust Your Coverage Strategically
While you must meet your state’s minimum liability requirements, other coverage types are flexible. Adjusting these can lower your premium, but you must understand the trade-offs.
Raise Your Deductible
The deductible is the amount you pay out-of-pocket before insurance kicks in on a comprehensive or collision claim. Choosing a higher deductible lowers your premium.
- Evaluate your emergency savings. Can you comfortably afford a $1,000 deductible instead of $500?
- If you have an older car with a low market value, consider dropping comprehensive and collision coverage entirely.
Review Your Coverage Limits Regularly
State minimums for liability are often dangerously low. While increasing them costs more, it provides crucial financial protection. The goal is to find the sweet spot between adequate protection and cost.
- For example, increasing from 50/100/50 to 100/300/100 provides much better asset protection for a relatively modest premium increase.
Master The Shopping Process
Even with perfect credentials, you won’t get the best rate if you don’t shop correctly. This is not a one-time task. You should compare quotes at least once every two to three years.
Gather Your Information Beforehand
Being prepared makes getting quotes faster and ensures they are accurate. You will need:
- Driver’s license numbers for all household drivers.
- Vehicle Identification Numbers (VINs) for all cars.
- Details of your current coverage (declarations page).
- An estimate of annual mileage for each vehicle.
Compare Apples To Apples
The only way to truly compare quotes is to request identical coverage types, limits, and deductibles from each company. A lower quote might simply mean less coverage.
- Decide on your desired coverage package before you start shopping.
- Use this exact same package when requesting quotes from every insurer.
- Provide the same personal and vehicle information to each one.
Use Multiple Quote Methods
Different insurers use different channels. To be thorough, you should explore several.
- Independent Insurance Agents: They work with multiple companies and can do the shopping for you.
- Direct Insurers: Get quotes online or by phone from companies like Geico, Progressive, and State Farm.
- Company Websites: Many regional insurers only sell directly through their own sites or agents.
Look Beyond The Price
The cheapest policy is only a good deal if the company provides reliable service. Before deciding, check the insurer’s financial strength ratings from agencies like A.M. Best and read customer reviews about their claims process.
Special Considerations For Different Drivers
Your specific situation can present unique challenges and opportunities for savings.
For Young And Inexperienced Drivers
New drivers face the highest rates due to their lack of experience. Strategies to reduce costs include:
- Remaining on a parent’s policy as an occasional driver if possible.
- Maintaining good grades to qualify for a “good student” discount.
- Choosing a safe, modest vehicle to insure.
For Senior Drivers
Mature drivers can often access discounts for completing a refresher driving course designed for older adults. It’s also wise to periodically review your coverage, especially if your annual mileage has decreased in retirement.
For Drivers With A Poor Record
If you have accidents or tickets, shopping becomes even more critical. Some companies specialize in higher-risk drivers. While you may pay more for a few years, a clean record going forward will gradually restore your rates.
Maintain Your Cheap Rate Over Time
Getting a good rate is an acheivement, but keeping it requires ongoing attention.
Conduct Annual Policy Reviews
Life changes, and so should your insurance. Each year, review your policy and update your insurer on any changes that could lower your premium, such as:
- A new job with a shorter commute.
- Getting married.
- Adding a new safety feature to your car.
Continue To Monitor Your Credit
Since your credit score often affects your rate in many states, consistent good financial habits will help keep your insurance costs down over the long term.
Stay Loyal (But Not Complacent)
While loyalty discounts exist, the best rate for a new customer is often better. Even if you’re happy with your current company, get comparison quotes every few years to ensure you’re still getting a competitive price. You can use these quotes as leverage to ask your current insurer for a better rate.
Frequently Asked Questions
What Is The Cheapest Type Of Car Insurance?
The absolute cheapest policy is your state’s minimum liability coverage. However, it often provides insufficient protection. The most cost-effective strategy is to carry liability limits that protect your assets, along with comprehensive and collision coverage if your vehicle is valuable, while taking advantage of all discounts.
How Can I Lower My Car Insurance Immediately?
You can get a lower rate quickly by raising your deductibles, removing unnecessary coverage (like collision on an old car), and asking your insurer to apply any missing discounts you qualify for. The fastest significant saving, however, usually comes from shopping around and switching companies.
Is It Better To Pay Car Insurance Monthly Or Every Six Months?
Paying in full for a six-month or annual term is almost always cheaper. Insurers typically charge a monthly installment fee or service charge, which adds up over the year. If you can afford the lump sum, paying upfront saves money.
Does Your Credit Score Affect Car Insurance Rates?
In most states, yes. Insurers use a credit-based insurance score as a factor in determining your premium. Maintaining a good credit score is an important part of securing and keeping low car insurance rates. A few states, like California and Massachusetts, prohibit this practice.
How Often Should I Shop For Car Insurance?
Experts recommend comparing quotes from different companies at least once every two to three years. You should also shop after any major life event, like moving, buying a new car, or adding a driver to your policy, as these changes can affect your rate differently across insurers.