Car Insurance Is Expensive. Here Are 10 Tips for a Lower Premium.

American consumers seem to be spending a little more on everything lately. On auto insurance, they are spending a lot more.

Auto insurance premiums rose by about two-thirds from April 2020 through April 2026, according to federal data. The average American motorist paid $2,638 for full-coverage insurance in 2025, Bankrate reports. Thankfully, premiums have leveled off over the past year.

Insurance premiums have been rising because cars and trucks have gotten a lot more expensive: They cost more to repair and replace.

Serious car accidents spiked in the pandemic years, along with attendant medical costs, driving premiums up further.

“People had developed more risky driving behavior during the pandemic,” said Matt Brannon, senior economic analyst at Insurify.

Fortunately, there are several easy ways — and some harder ones — to reduce your premium. Here are 10 tips from the experts.

Shop Around for the Best Car Insurance Value

Finding a new insurance company takes time, but the switch can dramatically lower your annual premium.

Notwithstanding the endless barrage of TV ads, some insurers do tend to cut better deals. An analysis by Bankrate found a swing of more than $1,000 between the cheapest and most expensive annual full-coverage premium among the largest companies. Here are a few averages:

USAA: $2,059
Geico: $2,167
Progressive: $2,190
State Farm: $2,686
Allstate: $3,355

Insurers use varying formulas to calculate premiums, typically factoring in your age, location, driving record and credit score, among other items.

Bankrate, Insurify and others offer online tools for comparing quotes.

“I would say that comparing car insurance rates is the most low-effort, high-reward way that people can save on car insurance costs,” Brannon said.

You should also consider working with an independent insurance agent, said Keith Barry, senior autos reporter at Consumer Reports. Rather than represent a single insurer, an independent agent represents several.

“Working with an independent broker can sometimes be a key to some hidden savings,” he said. “There are some top-rated insurers that only work with independent brokers.”

Increase Your Deductible

This is a quick, easy and valuable fix, although it sounds scary: Increase your deductible, the amount of cash you pay before your insurance kicks in.

Many policies come with a $500 deductible. Doubling it to $1,000 can reduce an annual premium by 20% to 25%, according to Consumer Reports.

Raising a deductible makes sense, experts say, because most motorists rarely file claims.

“Unless you’re having a deductible crash every year, you’re going to come out ahead,” Barry said.

Drop Collision and Comprehensive Coverage

Dump your collision coverage? This sounds like another risky move. And it is, if you have a really valuable car.

Collision insurance covers damage to your car if you’re in a crash. Comprehensive covers non-collision damage.

Drivers should think about dropping both, experts say, for an older car of declining value.

One insurance industry rule of thumb says you should consider ending collision and comprehensive coverage if your annual premium is more than 10% of the value of the vehicle.

The reason: You could be paying more for the coverage than you’ll get from the insurance company if your car is damaged.

“If your car is worth $3,000 and you have a $1,000 deductible, the most you’re going to get for it is $2,000,” said Rod Bhatt, an insurance analyst at LendingTree.

Take a Defensive Driving Course

Some insurers will give you a discount if you take an approved safe-driving course.

In New York, for example, motorists can reap a 10% discount on auto insurance if they take a state-approved course, which costs about $25, according to Consumer Reports. You can repeat it every three years.

“The discounts can be a little over $100 a year,” Barry said. “But that depends on the state, and it depends on the insurer.”

Look for Discounts

Auto insurers typically offer a range of potential discounts. You may be able to lower your premium by:

Insuring multiple vehicles
Bundling multiple policies from the same insurer
Being a good student
Serving in the military
Driving fewer miles in a year
Owning a car with enhanced safety features
Being a safe driver
Being loyal to your insurance company
Paying your entire premium upfront
Using autopay for your premium

Insurers apply some discounts automatically. For others, you have to ask.

Consider a Safe-Driving App

One way to save money on car insurance is to enroll in a driver monitoring program.

The evolving technology uses an app, a plug-in device or an electronic tag to monitor driving, according to Consumer Reports. The program measures speed, braking and your propensity to drive and text, among other factors.

“If you’re a good driver, you could save 10% to 20%, sometimes 30%,” Bhatt said. “It varies by company. You’ve got to read the fine print, though. Some companies, if you drive poorly, they’ll raise your rate.”

And there are privacy concerns.

Work on Your Credit Score

Insurers often consider credit when setting insurance premiums. Drivers with weaker credit tend to pay more, although some states forbid insurers from using credit as a factor.

Good credit doesn’t happen overnight, but a rising score can yield lower premiums over time.

“Paying down debts and avoiding late payments over time will keep you in good standing for lower insurance rates,” Bhatt said.

Be a Better Driver

Maintaining a clean driving record is a great way to lower your premium.

That means avoiding mishaps that can send your premiums up. The costly ones include speeding tickets, accidents that are your fault, and drunken driving convictions.

“A safe driving record is the most important factor, generally, in one’s auto insurance,” Brannon said.

“The biggest factors in serious crashes are speed, impairment and distraction,” Bhatt said. “And these are things that you can control.”

Buy a Cheaper Car

You probably noticed the hit to your pocketbook the last time you bought a new car: The more valuable the car, the more you pay to insure it.

Insurance premiums tend to be lower on vehicles that are worth less, because they generally cost less to repair and replace.

Luxury cars and “performance” cars, the ones with powerful engines, tend to cost more to insure.

“You could save many hundreds of dollars a year, depending on what kind of car you’re driving,” Barry said.

Review Before You Renew

Take a close look at your insurance policy every six months or so, experts advise. Make sure you aren’t paying for coverage you don’t need, or missing out on potential savings.

You should also review your policy after a major life change: A move. A new job. A change in your commute. A marriage or divorce. Adding or losing a driver in your household. Retirement.

“Any of those times are times to check out your insurance policy,” Barry said. “Those are things that can change your premium.”