7 ways to lower your auto insurance premium
Published February 2, 2026
Premiums creep up year after year. The good news: drivers have real levers to bring costs down. Here are seven that consistently work.
1. Compare quotes regularly
Insurers price the same driver very differently. Shopping every 6–12 months is the single highest-impact step.
2. Raise your deductible
Going from a $250 to a $1,000 deductible can lower premiums noticeably. Make sure you have the savings to cover it.
3. Bundle policies
Combining auto with renters or homeowners insurance often unlocks a multi-policy discount.
4. Ask about every discount
Safe driver, good student, low mileage, paperless billing, paid-in-full, defensive driving courses — many discounts go unclaimed.
5. Improve your credit (where allowed)
In most states, credit-based insurance scores influence rates. Improving credit can meaningfully lower premiums over time.
6. Reconsider optional coverage on older cars
If your car's market value is low, comprehensive and collision may not be worth the cost.
7. Drive less, or try usage-based insurance
Telematics programs reward low mileage and safe driving with discounts that can add up quickly.
Frequently asked questions
- How often should you shop around for car insurance?
- Compare quotes at least once a year, and whenever your policy renews, you move, add or remove a driver or vehicle, or your rate jumps. Insurers weigh rating factors differently, so the company that was cheapest for you last year may not be cheapest now. Getting several quotes for the same coverage levels is often the fastest way to lower your premium.
- Does getting car insurance quotes hurt your credit score?
- No. When an insurer checks your credit to generate a quote, it uses a soft inquiry, which does not affect your credit score, so you can compare as many quotes as you like. Most states allow insurers to use a credit-based insurance score as a rating factor, though a few, including California, Hawaii, and Massachusetts, prohibit it. Shopping around itself will not lower your score.
- Why does car insurance go up even with a clean driving record?
- Rates reflect more than your own record. Rising vehicle repair and medical costs, pricier parts and labor, severe-weather losses, and higher claim activity in your area can push premiums up across the board. Changes to your vehicle, address, household drivers, or, where allowed, your credit-based insurance score can also raise rates. Shopping around and asking about discounts are the main counters.
- Can a usage-based insurance program raise my rate instead of lowering it?
- With some insurers, yes. Most telematics programs offer an enrollment discount and reward safe, low-mileage driving, but some may raise rates based on risky patterns like hard braking, speeding, or frequent late-night driving, where state rules allow it. Before enrolling, read the program terms to see whether your data can increase your premium or only earn a discount.
Sources & references
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