Auto Cheapest Car Insurance is one of those liabilities that most of us can’t avoid, but that doesn’t mean we should overpay because! Whether you’re renewing a policy or buying new, there are easy ways to make sure you get the cheapest car insurance rate to get the coverage you need.
Auto insurance is actually one of the easiest debts to lower with a little deliberate effort. Unlike utilities or a rental property, you actually have little control over what you pay, and many families are leaving hundreds (or thousands) of dollars on the table simply because they haven’t updated their policy in a while.
Now let’s dig into practical ways you can lower your premiums and save money!
Tips for Finding the Cheapest Car Insurance:
1. Always Shop (Even If You Like Your Current Company)
One of the biggest mistakes people make with car insurance is staying loyal to one company for a long time. Insurance companies often reserve their best rates for new customers. That means the premium you signed up for years ago may no longer be competitive even if you’ve been a safe, reliable driver.
At least once a year (or whenever your policy is renewed), take the 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 change, but having competitive quotes gives you leverage. Sometimes simply telling your current insurer that you’re thinking of leaving can get them to lower your rate.
2. Ask About Discounts, Then Ask Again
Most insurance discounts are not automatically applied. Usually you have to ask.
Some common discounts include:
- Safe or harmless driver discounts
- Great student discounts for young drivers
- Low mileage discounts
- Paperless payments or automatic payments
- Multiple policies (home/tenant coverage + auto)
- Discounts for workplace, academic, or professional group
Even if you’ve asked before, it’s worth checking again. Eligibility for the discount may change over time, especially if your driving habits, work, or home situation have changed.
Tip: Ask your agent to review your account and make sure all available discounts have been used.
3. Increase Your Deductible To Lower Your Monthly Premium
A deductible is the amount you pay out of pocket before the insurance pays the entire claim. Choosing a higher deductible usually results in a lower monthly payment.
For example:
- Increasing your deductible from $500 to $1,000 can significantly reduce your insurance costs.
- 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 original coverage by adjusting your share of responsibility if something happens.
4. Recheck Availability of Old Cars
If you’re driving an older car that has significantly depreciated, it may not make sense to continue paying for comprehensive collision or comprehensive coverage.
A good rule of thumb:
- If the annual cost of cover is close to or exceeds the value of the car, it’s time to think again.
- Downgrading other coverages can lead to significant savings, especially on premium vehicles.
You’ll still want to keep the liability coverage, but customizing your policy based on the car’s current value can free up money every month.
5. Take Advantage of Low-Cost and Usage-Based Programs
If you’re driving less than you used to — whether you’re working from home, carpooling, or running errands — you may be paying more.
Many insurers offer:
- Low mileage discounts
- Usage-based or telematics systems that track driving habits
- Pay-per-mile insurance options
If your car spends more time parked than on the road, make sure your insurance policy reflects that fact.
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 down.
Avoiding tickets, accidents, and claims helps you lock in lower rates, qualify for safe driver discounts, and prevent rate hikes that may follow violations.
Even one speeding ticket can raise your premiums for years, so safe driving really pays off.
7. Pay Your Premium in Full If You Can
Many insurance companies charge more for your monthly payments, essentially adding interest to your insurance.
If you can pay less annually or annually, you can avoid these extra costs and lower your overall costs.
If paying in full seems overwhelming, consider setting aside a little each month in a sinking fund so you’re ready when it comes time to renew.
8. Repair Installations for Rarely Used Vehicles
This is a tip that MoneySavingMom readers have shared over the years, and it’s especially useful for families with multiple cars.
Call your insurance company and ask about reduced usage or storage coverage options if you have:
- Second car rarely driven
- A car that lasts for months at a time
- Seasonal or spare car
You may be able to temporarily reduce coverage and save money while keeping the car insured.
9. Never Auto-Renew Without Updating Your Policy
Automatic renewal is convenient, but convenience can be expensive.
Each renewal period is an opportunity to check for new discounts and adjust coverage if there have been changes in your situation. Shopping for the best deals doesn’t have to take long and can save you a lot of money in the long run.
Even spending 30 minutes reviewing your policy once a year can lead to big savings.
Bonus Tips: How to Get the Cheapest Car Insurance for Young Drivers
With 3 young drivers, I can tell you personally: adding a young or teenage driver to your auto insurance will increase your premiums – there is no way around it. That being said, you will find even more meaningful savings if you follow these tips when insuring a young driver! Make sure you shop around, encourage your young driver to keep a clean driving record, and double check that you have full access to older vehicles.
Here are some ways to find the cheapest car 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 rating or higher.
- Look for other discounts for new drivers – Some insurance providers offer additional discounts for driver’s education courses, for students who are out of school without a car, and to be listed on a family policy instead of one.
- Choose your young driver’s car carefully – One of your biggest expenses is the car your young driver is assigned to on the road. Whenever possible, stick to the cheapest car – something old, reliable, and boring at best. Pairing a decent car with high deductibles (if you can afford it) can lower premiums even more, while keeping the coverage you need.
Turn Car Insurance Into A Money-Saving Annual Win
Finding the cheapest car insurance doesn’t require you to switch companies every few months or become an insurance expert. What it does All you need to do is treat your policy like any other part of your budget and something that should be reviewed regularly.
A good place to start is to choose one small action this week:
- Ask for two or three new quotes
- Call your current insurer and ask for a discount update
- Revisit an old or rarely used car
- Adjust your deductible to better match your savings
Once you’ve done that, make it a habit. Add an annual reminder to your calendar to review your auto insurance before it’s up for renewal. Prices are subject to change. Discounts are subject to change. Your life is changing. 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 grocery shopping, debt payments, savings, or family budget goals. And the best part? Most of these changes take less than an hour to make.
Cheapest Car Insurance
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What are your tips for finding the cheapest auto insurance? Share your advice in the comments below!
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