Car insurance is one of those things we all need but no one really wants to overpay for. If you’ve ever wondered how to get the cheapest car insurance without sacrificing good coverage, you’re not alone. The good news? There are real, practical ways to reduce your car insurance costs—and it starts with knowing where to look and what to ask.
Here are practical tips, insurer examples, and the information you need to make smarter decisions when shopping for car insurance. Spoiler alert: it’s not just about finding the lowest number—it’s about getting the best value.
1. Compare Car Insurance Quotes (Always!)
This is your first and most important move. Getting multiple car insurance quotes helps you understand the range of prices and coverage available to you. Rates can vary drastically from one insurer to another, even for the exact same coverage profile.
Use comparison tools like:
- Ratehub
- NerdWallet or The Zebra
- Compare.com
You can also visit insurer websites directly to get quotes from:
- GEICO: Known for affordable rates and quick quotes.
- Progressive: Offers competitive pricing and a Name Your Price tool.
- State Farm: Popular for bundling discounts and local agent support.
- Allstate: Offers various discounts and strong digital tools.
- Aviva or Intact Insurance (Canada): Popular for customizable coverage options.
When comparing, make sure you’re looking at the same type of coverage, limits, and deductibles so it’s an apples-to-apples comparison.
2. Bundle Your Policies
If you already have homeowners’ or renters’ insurance, bundling it with your car insurance can lead to significant savings. Many companies offer 10% to 25% discounts for bundling.
For example:
- State Farm offers multi-policy discounts that are easy to apply.
- Progressive claims customers save an average of 12% when bundling auto and home insurance.
Even if you don’t own a home, renters’ insurance can still be bundled for savings.
3. Raise Your Deductible
Your deductible is what you pay out of pocket before your insurance kicks in. Choosing a higher deductible (say $1,000 instead of $500) can lower your premium considerably. This is best for drivers who don’t anticipate frequent claims and have a solid emergency fund.
Just be sure you’re financially prepared to cover that higher deductible if something does happen.
4. Maintain a Clean Driving Record
Insurers reward safe driving with lower premiums. A clean record—free of accidents, speeding tickets, or other violations—can keep your costs low and qualify you for discounts.
Most major insurers, including GEICO, Allstate, and Intact, offer safe driver discounts. Some even use telematics to monitor your driving habits and adjust your premium based on real-time behavior (more on this below).
5. Enroll in Usage-Based Insurance (UBI)
UBI programs use mobile apps or plug-in devices to track how safely you drive. If you’re a low-mileage, careful driver, these programs can offer major discounts.
Examples include:
- Drivewise by Allstate
- Snapshot by Progressive
- My Drive by Aviva (Canada)
These programs monitor things like hard braking, acceleration, and the time of day you drive. Safe habits can lead to discounts of up to 30% in some cases.
6. Ask About Every Possible Discount
Insurers offer more discounts than most people realize. Here are a few you should ask about:
- Good student discount (typically for full-time students with a B average or better)
- Low-mileage discount
- Military or veteran discounts
- Senior driver programs
- Anti-theft device discount
- Defensive driving course discount
For example, Liberty Mutual and Allstate both offer defensive driving discounts when you complete a certified course.
7. Choose the Right Car
The make and model of your vehicle affect your premium. High-performance or luxury vehicles usually come with higher insurance costs. On the other hand, cars with high safety ratings and lower repair costs are generally cheaper to insure.
Some insurers like GEICO and Progressive have vehicle insurance cost calculators on their websites, allowing you to estimate rates before you even buy a car.
8. Shop Around at Renewal Time
Don’t just set it and forget it. Car insurance rates can change annually based on your personal profile and the company’s own pricing algorithms. Shopping around before your policy renews is a great way to make sure you’re still getting the best deal.
Many drivers find that switching insurers every couple of years can lead to significant savings, sometimes 15% or more. Remember, loyalty doesn’t always pay in the insurance world.
9. Consider Pay-Per-Mile Insurance
If you don’t drive much—say, under 10,000 miles per year—pay-per-mile insurance might be your cheapest option.
Companies like Metromile and Mile Auto (U.S.) and CAA MyPace (Canada) offer pay-as-you-drive plans where your premium is based on how much you actually use your vehicle.
This option is especially useful for remote workers, retirees, or people who use public transportation most of the time.
Final Thoughts
Getting the cheapest car insurance isn’t bout cutting corners—it’s bout understanding your options and making choices that align with your driving habits, coverage needs, and budget. From comparing car insurance quotes to enrolling in UBI programs, small steps can lead to big savings.
The key takeaway? Don’t settle for the first number you see. Shop smart, ask questions, and be proactive. With the right strategy, cheap car insurance is absolutely within reach.
Need help comparing quotes or figuring out what coverage you need? Drop a comment below or reach out—we’re here to help you drive smarter and save money.