In 2025, the average cost of full coverage car insurance in the United States is over $2,500 per year. Though rates vary by location, the high cost of insurance can put a strain on people’s finances. The good news is that there are ways to reduce your car insurance costs. If you’re wondering, “How can I save money on car insurance?” you’re in the right place.
Use this guide to learn how to save money on car insurance in eight different ways. You may be surprised how much you can bring down your auto insurance rates.
1. Shop Around for the Best Rates
A common mistake people make when they shop for car insurance is choosing the first or second option they find by default. It’s understandable. Manually searching for rates from many different car insurance providers can be tedious, but comparing your options is the best way to find cheap car insurance.
Luckily, there’s a simple solution. Use a tool like EverQuote for a free customer car insurance comparison so you can quickly find the best option for your needs. You can cut down the time you spend searching for deals and still save money on car insurance.
2. Bundle Insurance Policies for Discounts
Many insurance companies offer exclusive discounts to customers who purchase multiple insurance policies from them. For example, bundling your home and auto insurance policies with the same insurance company may unlock some discounts.
Make a list of the different types of insurance you need and check whether insurance providers offer discounts for bundling any of them. An insurance agent may have more details on the insurance bundles available to you.
3. Safe Driving Discounts
You may be able to reduce your car insurance costs with a safe driver discount. Insurance companies offer these car insurance discounts to reward customers who drive responsibly and reduce their risk of getting into accidents.
The rules for qualifying for a safe driving discount vary by insurance provider, so check the requirements with the provider you choose. For example, some providers may reduce your rates slightly for every six months or year you go without getting into an accident. Others may give you discounted rates if you complete a defensive driving course.
4. Evaluate and Drop Unnecessary Coverage
It’s a good idea to review your car insurance regularly to make sure you’re not paying for any coverage you don’t actually need. Check the car insurance requirements in your state. Any coverage beyond these minimums is optional, so you should only pay for additional coverage that you truly believe you need.
As your car goes down in value, it may make less sense to continue paying for comprehensive coverage and collision coverage, for example. Dropping unnecessary coverage is one of the best ways you can save money on car insurance.
5. Maintain a Good Credit Score
Did you know that your credit history can affect your car insurance rates? Because a lower credit score can lead to higher car insurance premiums, try to keep your score as high as possible.
6. Keep a Clean Driving Record
Driving safely and keeping a clean driving record isn’t just good practice on the road. It can also save you money on your insurance coverage. Insurance companies view drivers with clean driving records as lower risk, so they generally offer lower premiums. Try to establish a history of driving without any accidents to get the best rates.
7. Pay-per-Mile or Usage-Based Insurance
If you don’t drive very far every year and are wondering how you can save money on car insurance, consider pay-per-mile or use-based car insurance. Pay-per-mile car insurance plans calculate your fees based on how far you drive. Generally, you have to pay a lower fixed base rate fee every month, plus a small additional fee for every mile you drive. The car insurance company may send you a mileage tracking device to install in your vehicle, or you may use a smartphone app to track how far you go in your vehicle.
Usage-based insurance adjusts your insurance premium based on your driving habits. Your insurance company may track your driving data through a smartphone app and set your rates based on information like your braking, acceleration, and the time of day you typically drive.
8. Consider Joining a Group Insurance Plan
You may also be able to save money on your car insurance with a group insurance plan. In these plans, multiple people sign up for car insurance together to access discounted rates. Check to see whether you can access one of these plans through your employer or another group you belong to.
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How do you save money on car insurance when you don't know which companies offer the most affordable deals? To know how much you have to pay for the car insurance coverage you need, you must see all your options.
Because insurance options vary significantly by ZIP code and driver profile, the best way to find the right plan at the right price is to compare custom options. Get your free custom comparison from EverQuote in just a few minutes today.