How to Lower Your Auto Insurance Rates in 2026 (6 Simple Steps)

Lower your auto insurance rates by seeking out car insurance discounts, evaluating your policy, shopping for cheap quotes, and much more.

Many factors affect auto insurance rates, including your driving record, credit, and vehicle. While you can’t change certain factors, improving other areas leads to lower rates.

Now, let’s go through a list of easy ways to lower your car insurance rates. Save on auto insurance by entering your ZIP code above and comparing quotes.

Step #1 – Look for Discounts

If you’re wondering how to get lower car insurance rates, auto insurance discounts are a great place to start. Most companies offer numerous discounts based on the policy, driver, and vehicle. Additionally, many drivers qualify for multiple discounts and can bundle them for the most savings.

You may qualify for numerous discounts, including low mileage and driving courses, as well as discounts based on how you pay your bill. For example:

• You can get a low-mileage discount if you don’t drive a lot, since less time on the road equals lower accident risk.
• Some companies also give discounts to drivers who complete a defensive driving course, though you’ll usually need to be at least 55 to qualify.
• In addition, you can get discounts for paying your bill in full, signing up for automatic payments, and going paperless.
• Most car insurance companies give cheaper rates if you bundle insurance products such as auto, homeowners, renters, boat, RV, pet, and ATV insurance. (Read More: How to Get a Homeowners Auto Insurance Discount)

Many car insurance companies also offer usage-based car insurance programs that use telematics to monitor driving. These programs use an app to monitor specific driving behaviors like hard braking and offer a discount based on how safely you drive.

Each insurance company creates its own telematics program with different requirements and discounts. Check out the table below to compare usage-based insurance savings from the top providers:

Usage-Based Auto Insurance Discounts by Provider & Savings Amount

Since not all discounts automatically apply to your policy, be sure to speak to your insurer to take advantage of all the discounts available to you.

While most car insurance companies won’t raise your rates if you score poorly, some companies increase rates if the program shows you aren’t driving safely. So, be sure to carefully consider the program before you sign up.

Step #2 – Evaluate Your Policy

Carefully consider the coverages on your car insurance policy to save extra money. For example, if you’re financing your vehicle, you could remove gap insurance after a certain amount of time.

While most experts recommend full coverage auto insurance, you could benefit from lower coverage depending on your situation. So, if you have an older car that isn’t worth much, you could drop full coverage, but ensure you can afford to pay for repairs out of pocket.

You could also remove some add-ons from your policy, such as roadside assistance and rental car reimbursement coverage. While the extras are good to have, removing them from your policy will save you money. 

Another way to lower your car insurance rates is to raise your deductible. A deductible is an amount you pay before your insurance kicks in. Typically, deductibles range from $500 to $1,000. While a higher auto insurance deductible means you’ll pay more out of pocket in an accident, your car insurance rates will go down.

Step #3 – Drive Safely

Your driving record is one of the most significant factors determining car insurance rates. Tickets, accidents, and DUIs cause rates to skyrocket.

This table shows the average car insurance rates after a single ticket from top companies:

Full Coverage Auto Insurance Monthly Rates by Provider: One Ticket vs. Clean Record

Drivers with a clean driving record pay significantly lower rates than drivers with tickets and accidents. Just one car accident can raise your rates, as seen in the table below:

Full Coverage Auto Insurance Monthly Rates: One Accident vs. Clean Record

Some insurers are extremely picky about covering drivers with a DUI on their record. Companies charge much higher rates for these drivers. Let’s take a look at rates with a DUI:

DUI Full Coverage Auto Insurance Monthly Rates vs. Clean Record by Provider

Maintaining a clean driving record is an easy way to get low car insurance rates, but don’t worry if you already have infractions on your record. Most states only allow insurance companies to increase rates for three to five years. 

You save money on fines and higher rates and may also be eligible for additional car insurance discounts for maintaining a clean record.

Read More:

• Cheap Auto Insurance After a DUI
• Auto Insurance for Drivers With an Accident
• Best Auto Insurance Companies for Drivers With Speeding Tickets

Step #4 – Improve Your Credit

Many drivers don’t know that their credit score impacts their car insurance rates. Studies show that drivers with high credit scores are less likely to file claims since they can pay for damages out of pocket.

On the other hand, drivers with a low credit score file more claims and cannot typically pay for damages themselves.

This table shows average car insurance rates based on credit score:

Full Coverage Insurance Monthly Rates by Credit Score

Since a higher credit score equals lower car insurance rates, do everything possible to raise your score. Make on-time payments and use credit wisely to get better rates on everything from car insurance to mortgages.

In addition, periodically check your credit report to ensure it’s accurate. Report any inaccuracies immediately to improve your credit score.

Read More: How Credit Scores Affect Auto Insurance Rates

Step #5 – Consider Cheaper Car

It should not be surprising that the type of car you own determines your car insurance rates. Drivers with newer or more expensive vehicles pay much higher rates for insurance since it costs more to repair or replace them. On the other hand, older cars or vehicles with a low MSRP cost less to insure.

Instead, consider buying a less expensive car with advanced safety features to make the most of car insurance discounts.

Step #6 – Shop for Quotes

If you’ve exhausted all cost-saving measures with your current company, you should shop around for cheap coverage from the best auto insurance companies. Each company weighs your personal factors differently and offers different rates. For example, one company may overlook a fender bender while another will charge higher rates. 

Here is a list of the top insurance companies and the average rates for minimum liability coverage:

Liability Auto Insurance Rates by Provider

 

We recommend comparing rates, ratings, and discounts from multiple car insurance companies to find the best coverage with the cheapest rates.

Rates can be especially high if you have a young driver on your auto policy.

Let’s take a look at rates for teenage drivers with the top insurance companies to get an idea of what young drivers will pay:

Teen Full Coverage Auto Insurance Monthly Rates by Provider, Age, & Gender

Fortunately, there are ways to find cheaper car insurance rates for teenage drivers — simply shop for coverage from the companies with the cheapest teen auto insurance.

More About the Ways to Lower Your Auto Insurance Rates

Drivers wondering how to lower their auto insurance premiums can utilize car insurance discounts, improve their credit score, maintain a clean driving record, and buy an affordable vehicle for cheap premiums. Additionally, raise your deductibles and eliminate unnecessary coverages to keep rates low.

Rates vary from company to company, so enter your ZIP code into our free quote tool below to shop around to find the best rates. Compare multiple companies to see who offers the lowest rates and the best discounts.