If your car insurance rate has increased since your previous renewal, you’re not alone. According to a recent State of Auto Insurance in 2025 report, the average cost of car insurance for 2025 is expected to reach about $2,100 per year, representing a 7.5% increase. While this marks another year of rising premiums, the figure is much lower than the average rate increase of 16.5% that many customers saw in 2024. Still, like most drivers, you’re likely looking for ways to lower your car insurance rate without compromising your coverage. Thankfully, there are a handful of steps you can take today to help lower your annual insurance costs.
10 Ways to Get a Lower Car Insurance Rate
Key Takeaways:
- Car insurance rates are based on multiple factors, so comparing quotes from multiple companies can help you find the best combination of coverage and price.
- Making small policy adjustments, such as changing your payment method or changing your deductible, could reduce your overall insurance premium without having to switch providers.
- Maintaining a good driving record and practicing safe driving habits will position you to get the best rates available above all else.
1) Compare Auto Insurance Quotes to Find the Best Rate
One of the simplest ways to lower your car insurance rate is to regularly shop around and compare car insurance quotes from multiple companies. Even if your driving profile doesn’t change, auto insurers weigh various factors that affect your rate differently, which can help you score a lower premium.
Compare car insurance quotes using the same coverage levels to ensure an accurate assessment of each potential policy. We recommend comparing quotes annually to take advantage of new discounts or changes in a company’s pricing model. Even if you purchased a competitive policy last year, that doesn’t guarantee that it’s still the best deal today.
At AIS, we make it easy to compare rates from our network of trusted insurance partners in minutes. Simply answer a few questions regarding your driving history and coverage preferences, and we’ll automatically provide you with multiple quotes to help you find your best rate.
2) Consider Paying Your Car Insurance in Full
If you have a good relationship with your insurance company and don’t want to switch providers, consider paying for your auto insurance policy in full. Some insurers provide a discount for policyholders who opt to pay for their coverage upfront rather than in monthly installments.
If it’s not possible for you to pay your coverage in full, you may be able to save a few dollars by opting for paperless billing or using a preferred payment method, such as linking a banking account. This can vary by company, so always ask your agent how different payment methods can ultimately affect your rate.
3) Bundle Your Insurance Policies with a Single Provider
Bundling your car insurance with your homeowners, RV, or any other kind of insurance with the same company can open the door to huge savings with minimal effort. For example, you could save up to 14.7% on your homeowners policy if you choose to bundle your auto and home with Mercury Insurance. Plus, bundling multiple insurance policies makes it easy to manage your coverage through a single insurer, which will help save you time and money. Learn more about bundling insurance here.
4) Adjust Your Deductible
If your policy includes comprehensive and collision coverage, you can potentially save by increasing your policy’s deductible.
A deductible is the amount you must pay out of pocket towards an insurance claim before your actual coverage steps in. Opting for a higher deductible typically results in a lower policy rate. Conversely, lowering your deductible can cause your policy to increase. Exact savings can vary greatly depending on your insurer, so always research thoroughly before making a major policy change.
It’s also important to assess your finances before raising your deductible, since you’ll need to pay that amount in the event of an accident or vehicle damage. Choosing a high deductible you cannot cover is not wise, as doing so could leave you with limited options if your car needs repair.
5) Research Car Insurance Options Before Purchasing a New Car
If you’re in the market for a new car, you could potentially lower your car insurance by choosing a vehicle that is cheaper to insure. As a general rule, expensive and flashy cars are typically more expensive to insure than moderately priced autos like small SUVs or sedans. That’s because your car’s value is a key factor that determines your insurance rate, since your policy is responsible for covering repair or replacement costs if you file a claim. The more expensive a car is, the more it will cost to repair or replace it.
6) Double Check What Discounts You May Already Qualify For
Bundling your car insurance isn’t the only way to get a discount on your auto insurance policy. In fact, most insurance companies offer multiple discounts you may qualify for by just being you. Here are just a few common discounts most insurance companies offer that could lower your car insurance rate:
- E-bill or auto-pay discounts
- Good driver discounts for those who haven’t been involved in any accidents for a set period
- Association discounts, such as AAA or Sam’s Club
- Telematics usage-based discounts for enrolling in programs that track your driving habits
- Multi-vehicle discounts
- Bundling discounts
- Advanced safety and anti-theft features discounts
- Good student discounts for those enrolled in a university with a specific GPA
7) Maintain a Clean Driving Record
This one may seem obvious, but maintaining a clean driving record ensures you get the best rates possible no matter who your insurer is. Having a long history of violations and accidents on your record will unfortunately cause insurance companies to view you as a high-risk driver, resulting in increased rates.
Practicing good driving habits and even taking a defensive driving course will not only help you keep your rate as low as possible, but also help you stay safe on the road.
8) Work on Your Credit Score
Your credit score could significantly impact your auto insurance, as most insurers use your credit information to determine your final insurance rate. The only states that restrict insurers from using credit information to determine your premium are California, Hawaii, Massachusetts, and Michigan.
If you need to improve your credit score to lower your car insurance, consider the following:
- Make all loan and credit card payments on time
- Keep credit card balances low
- Dispute any inaccuracies on your credit report to remove harmful marks
9) Consider Opting for Usage-Based Insurance
If you have low annual mileage and have a clean driving record, opting into usage-based programs can significantly lower your car insurance rate. Most major insurance companies offer some form of usage-based or pay-per-mile insurance that requires you to download an app or install a small device in your car. This shares your driving habits with your insurer. However, keep in mind that these programs can also increase your rates if your habits make you seem like an unsafe driver.
10) Review Your Policy Annually
Regularly reviewing your car insurance policy is the best way to ensure you have the best coverage at the most competitive rate. Large life milestones such as getting married, moving to a new state, or purchasing a new car can all affect your insurance policy differently. Plus, situations can sometimes change, which might result in you needing different levels of coverage. For example, if you own an older car, you may not need comprehensive and collision coverage if having the coverage on your policy costs more than your potential payout.
By staying informed and reviewing your policy annually, you’ll be able to make smarter decisions regarding your car insurance that could help you find different savings options.
AIS Can Help You Find the Best Car Insurance Rate
At AIS, we have over 55 years of experience helping customers find and secure reliable car insurance that doesn’t break the bank. Whether you’re simply looking for a change or need to compare quotes before purchasing a new car, our insurance specialists can help. We’ll guide you through the different options we have through our network of insurance partners to find a policy that suits your needs and budget. Give us a call today at (888) 772-4247, or start a free quote online to see how AIS can help.
The information in this article is obtained from various sources and offered for educational purposes only. Furthermore, it should not replace the advice of a qualified professional. The definitions, terms, and coverage in a given policy may be different than those suggested here. No warranty or appropriateness for a specific purpose is expressed or implied.