Mother and daughter driving in car
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You don’t have to sacrifice value to get cheap auto insurance. It’s possible to find excellent insurance that’s still affordable and fully covers you in case of an accident or theft. You just have to know how to shop and where to look.

Being a savvy shopper is one of the best ways to save. Comparison shopping, strategically seeking out discounts from various auto insurance carriers and knowing the insurance requirements in your state can all help lower your costs.

Spending just a little extra time shopping for car insurance can save you hundreds of dollars per year.

How to find cheap car insurance

Comparison shopping is one of the best ways to find the cheapest car insurance for your needs.

The first step is to shop online and get multiple quotes from carriers. Costs can vary drastically by company. You might get a better quote from one company depending on the type of insurance you’re interested in purchasing.

It’s important to shop at small auto insurers in addition to large insurers. Regional companies may be able to beat the lowest offers from the major players.

Remember, your ability to find cheaper car insurance relies heavily on where you live. In order to find the best auto insurance for your needs, and the most affordable, compare carriers by state.

How to save on car insurance

Regardless of which auto insurance company you choose, there are things you can do outside of comparison shopping to save on your policy.

  • Ask about discounts: Insurance companies typically offer special ways to save, and there may be some you’re not taking advantage of. Some companies offer discounts for low mileage, maintaining a good driving record, being a member of certain organizations or having multiple policies with the company. Make sure to ask your agent about available discounts.
  •  Drop some insurance coverage: It’s important to be fully covered in case of an accident or theft, but you may not need as much coverage on an older car. Having collision or comprehensive coverage on a car that’s worth less than 10 times the insurance premiums may not be worth it.
  • Increase your deductible: Raising the deductible on your insurance policy can significantly lower costs. Increasing your deductible from $200 to $500 could lower your insurance cost by 15 to 30 percent, according to the Insurance Information Institute.
  • Improve your credit: Those with excellent credit receive the cheapest auto insurance. Insurers often use credit information to price insurance costs. If your credit could use some work, take time to improve your credit score.


If you’re searching for cheaper car insurance, start looking for discounts. Insurance companies, large and small, offer ways to save. There could even be discounts at your current insurer that you’re not taking advantage of.

Insurers offer discounts for things like customer loyalty, affiliations, driving history, driver training, demographics, safety equipment and even for using certain payment methods.

Here are some of the most common discounts auto insurers offer:

  • Low mileage discount: You save by driving under a certain number of miles per year, as specified by the insurer.
  • Multiple policy discount: You save by bundling your car and home insurance policies, for example, with the same company.
  • Safe driving discount: You save by having a clean driving record.
  • Safety feature discount: You save by driving a vehicle that has safety features like anti-lock brakes and an anti-theft device.
  • Good student discount: You save by maintaining a certain GPA.

Student discounts

Many auto insurers offer students a variety of ways to get cheaper auto insurance, from being a good student to becoming a member of a certain fraternity, sorority or honor society.

Younger drivers can be more costly to insure, but discounts can help to reduce that cost. For example, insurers will typically offer a student discount to those who maintain at least a B average in school. There are also discounts for students who take a driving training course. And students who attend a school at least 100 miles away from home and don’t take their car may also get a reduction.