Different Ways to Lower Car Insurance Rates

Shopping around, qualifying for discounts, and raising your deductible are ways to lower car insurance rates. Compare quotes from companies using our online tool and find low car insurance rates.

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UPDATED: May 4, 2022

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Written By: Laura BerryReviewed By: Joel OhmanUPDATED: May 4, 2022Fact Checked

Here's what you need to know...

  • If you want to lower your auto insurance rates, you need to learn shop around
  • Buy a car that is can get you discounts, like a sturdy, safe car or a hybrid vehicle
  • Sometimes raising your insurance deductible can save you money in the long run
  • Always compare several insurance providers before choosing one to purchase from

Car insurance premiums are on the rise and, given the high prices of new automobiles and the number of new drivers on the road, it is of little wonder why.

Millions of Americans know they are paying too much for their car insurance but do not know how to get a discount on their standard rate.

Read through these tips for decreasing car insurance rates and then enter your ZIP in above to start comparing car insurance rates today!

Shopping Around for Cheap Car Insurance


The first tip is simple: learn to shop around.

Accepting your insurance company’s default premium is the worst thing you can do if you really want to start paying less for your insurance!

The car insurance company somewhat takes your business for granted.

They have already categorized you and hope that you will continue paying the same premium as long as you can afford it.

What if you tell the insurance company that you are not willing or able to make the same premium payment? Or what if you tell the insurance company that you are willing to sign with a new insurance provider if it means reducing your monthly bill?

One of two things will happen:

  1. The insurance provider will try to figure out a way for you to save money to keep your business.
  2. You will actually go out and search for other insurance providers who meet your criteria for a new policy.

Remember that these insurance providers competitively price their premiums and change their rates on a regular basis. It is best to get at least three different comparison prices before you make your choice.

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What Cars are Worth Covering?

Black car interior.

The insurance company will usually only provide a discount if you can also provide them some kind of benefit.

For example, some insurance providers are willing to provide a discount for hybrids cars or cars that are built with special safety features.

Some cars are well known throughout the industry for having fewer claims or for having less expensive repairs, and so they will be discounted.

It’s best to research your choice of manufacturer and make before buying or leasing a vehicle, because some vehicles carry higher premiums as a rule.

The sooner you learn what coverages are worth paying for and what coverages are not, the sooner you will be able to reduce the cost of insurance overpayment.

For example, some cars are far too old to justify high collision or comprehensive damage costs.

The combined premium you pay every year may even exceed the price of car’s market value.

If you are able to cover the cost of repairs yourself, you can eliminate all coverages except liability (as required by most states) and only pay a small percentage of full coverage cost.

Should I raise my car insurance deductible in order to save money on my car insurance?

Raising your insurance deductible is an excellent way to lower your car insurance premiums.

Your deductible is the amount of money that you will pay out of pocket when you are the cause of an accident. In a no-fault state, this is the amount you will pay any time you are in a car accident.

Many car insurance companies only have two deductible options $250 and $500. However, there are several that offer you many different tiers from $0 to $2500-some will even allow you to choose a higher deductible.

While the benefit to a higher deductible is lower premiums, you do need to be cautious about choosing a deductible that is too high. It defeats the purpose of maintaining a high deductible if you can’t afford to pay the deductible after you have a car accident.

Accepting Personal Responsibility for Your Vehicle


Accepting more personal responsibility for your car or truck can help you reduce your insurance premium.

For example, reducing your overall mileage and using your vehicle for only personal traveling and errands can help lower your car payment.

Driving carefully and avoiding all accidents or traffic tickets for a period of at least three years can drastically lower your premium rate, as can taking a defensive driving course.

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Qualifying for Car Insurance Discounts


Fixing your credit problems and paying off your debt is a shrewd move since many insurance companies will consider an insured’s credit report and score before determining a rate.

Other discounts that might be available in special circumstances include a student discount, a discount for airbags, anti-lock brakes, and car alarms, and a multiple vehicle discount.

A multi-policy discount offers a reduction of premium rate by charging less for different insurance contracts, such as automotive homeowners and umbrella insurance.

In some cases, motorists who move to a safer neighborhood, or perhaps a more rural district, save money because of skyrocketing insurance rates for busy urbanites.

Every insured person would like to receive a loyalty discount overtime, but this isn’t always a likely scenario to look forward to.

Remember that insurance rates are cyclical and can be affected by a variety of industries including automotive, real estate, insurance and mortgage markets.

The only way to know for sure is if you compare different insurance rates and then choose the company and contract most appropriate for your driving habits and style.

Compare Car Insurance Rates Online

Why not use our free comparison tool right now and compare several car insurance company products all at the same time?

Enter your ZIP code below to start comparing car insurance rates online now!

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP® Joel Ohman

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