How to Find the Cheapest Car Insurance + Smart Ways to Save Every Dollar

Auto insurance is one of those bills most of us can’t avoid, but that doesn’t mean you have to overpay for it! Whether you’re renewing a policy or shopping for new coverage, there are simple ways to make sure you’re getting the cheapest car insurance price for the coverage you need.

Auto insurance is actually one of the easiest bills to lower with a little intentional effort. Unlike utilities or rent, you actually have quite a bit of control over what you pay, and many families are leaving hundreds (or even thousands) of dollars on the table simply because they haven’t revisited their policy in a while.

Now let’s dig into practical ways you can lower your premiums and save money!

Tips to Get the Cheapest Car Insurance:

1. Shop Around Regularly (Even If You Like Your Current Company)

One of the biggest mistakes people make with car insurance is staying loyal to one company for too long. Insurance companies often reserve their best rates for new customers. That means the great deal you signed up for years ago might no longer be competitive even if you’ve been a safe, responsible driver.

At least once a year (or whenever your policy renews), take time to get quotes from multiple insurers, compare coverage apples-to-apples, and see how your current rate stacks up.

This doesn’t mean you have to switch, but having competing quotes gives you leverage. Sometimes simply telling your current insurer that you’re considering leaving can prompt them to lower your rate.

2. Ask About Discounts, Then Ask Again

Many insurance discounts aren’t applied automatically. You often have to ask.

Some common discounts include:

Safe or accident-free driver discounts

Good student discounts for young drivers

Low-mileage discounts

Paperless billing or autopay

Multi-policy (bundling home/renters + auto)

Workplace, alumni, or professional group discounts

Even if you’ve asked before, it’s worth checking again. Discount eligibility can change over time, especially if your driving habits, job, or household situation has changed.

Tip: Ask your agent to review your account and confirm that every available discount is applied.

A magnifying glass rests on a document titled "Insurance Policy" beside a toy car and a $100 bill.

3. Raise Your Deductible to Lower Your Monthly Premium

Your deductible is the amount you pay out of pocket before insurance covers the rest of a claim. Choosing a higher deductible usually results in a lower monthly premium.

For example:

Increasing your deductible from $500 to $1,000 can significantly reduce your insurance cost.

This strategy works best if you have a small emergency fund or sinking fund set aside to cover that deductible if needed.

This is a great way to save ongoing money without reducing your actual coverage by adjusting your share of responsibility if something happens.

4. Re-Evaluate Coverage on Older Cars

If you’re driving an older vehicle that’s already depreciated significantly, it may not make sense to keep paying for full collision or comprehensive coverage.

A good rule of thumb:

If the annual cost of coverage is close to or exceeds the car’s value, it’s time to reconsider.

Dropping certain coverages can lead to meaningful savings, especially on paid-off cars.

You’ll still want to keep liability coverage, but customizing your policy based on the car’s current value can free up money every month.

5. Take Advantage of Low-Mileage and Usage-Based Programs

If you’re driving less than you used to — whether you’re working from home, carpooling, or running fewer errands — you could be paying too much.

Many insurers offer:

Low-mileage discounts

Usage-based or telematics programs that track driving habits

Pay-per-mile insurance options

If your car spends more time parked than on the road, make sure your insurance reflects that reality.

Crystal Paine takes a selfie in a car with her daughter in the back seat grinning at the camera.

6. Keep Your Driving Record Clean

This may sound obvious, but it’s one of the most powerful long-term ways to keep insurance costs low.

Avoiding tickets, accidents, and claims helps you lock in lower base rates, qualifies you for safe-driver discounts, and prevents rate hikes that can follow violations.

Even one speeding ticket can raise your premiums for years, so safe driving really does pay off.

7. Pay Your Premium in Full If You’re Able

Many insurance companies charge extra fees when you pay monthly, essentially adding interest to your policy.

If you can afford to pay semi-annually or annually, you may avoid these extra charges and reduce your total cost.

If paying in full feels overwhelming, consider setting aside a little each month in a sinking fund so you’re ready when renewal time comes.

Close-up of the front left headlight and bumper of a white SUV parked in a residential driveway. A suburban home and another car are blurred in the background.

8. Adjust Coverage for Cars That Are Rarely Used

This is a tip MoneySavingMom readers have mentioned over the years, and it’s especially helpful for families with multiple vehicles.

Call your insurance company and ask about reduced-use or storage coverage options if you have:

A second car that’s rarely driven

A vehicle that sits for months at a time

A seasonal or backup car

You may be able to temporarily lower certain coverages and save money while still keeping the vehicle insured.

9. Never Auto-Renew Without Reviewing Your Policy

Auto-renewal is convenient, but convenience can be expensive.

Each renewal period is a chance to check for new discounts and adjust coverage if there have been changes in your situation. Shopping for better rates doesn’t have to take long and can help you save more money in the long run.

Even spending 30 minutes reviewing your policy once a year can lead to significant savings.

Crystal Paine smiles for a selfie in the passenger seat while her teenage son sits in the driver’s seat of a parked car.

Bonus Tips: How to Get the Cheapest Auto Insurance for Young Drivers

With 3 young drivers, I can tell you firsthand: adding a teen or young driver to your auto insurance policy will increase your premiums — there’s no way around it. That said, you’ll get even more meaningful savings if you follow these tips when insuring a young driver! Be sure to shop around, encourage your young driver to keep a clean driving record, and re-evaluate having full coverage on older cars.

Here are some other ways to score the cheapest auto insurance for young drivers:

Get a “Good Student Discount” — If your young driver earns good grades, many insurers offer savings just for maintaining a B average or higher.

Look into other young driver discounts — Some insurers offer additional discounts for driver-education courses, for students who are away at school without a car, and for being listed on a family policy instead of a standalone one.

Choose your young driver’s car carefully — One of your biggest cost factors is the car your young driver is assigned to on the policy. Whenever possible, place them on the least expensive vehicle — ideally something older, reliable, and boring in the best way. Pairing a modest car with higher deductibles (if you can comfortably afford them) can cut premiums even more, while still keeping the coverage you need.

Three U.S. one-dollar bills lie flat with various coins stacked on top.

Turn Car Insurance Into an Annual Money-Saving Win

Getting the cheapest car insurance policy doesn’t require switching companies every few months or becoming an insurance expert. What it does require is treating your policy like any other part of your budget and something that deserves a regular check-in.

A good place to start is by choosing one small action this week:

Request two or three new quotes

Call your current insurer and ask for a discount review

Revisit coverage on an older or rarely used vehicle

Adjust your deductible to better match your savings

Once you’ve done that, make it a habit. Add a yearly reminder to your calendar to review your auto insurance before it renews. Rates change. Discounts change. Your life changes. Your policy should reflect all of that.

Even saving $30–$50 a month adds up to hundreds of dollars a year. This is money that could go toward groceries, debt payoff, savings, or family budgeting goals. And the best part? Most of these changes take less than an hour to make.