Car insurance premiums increased 19.5% between June 2023 and June 2204, according to the Department of Labor's July 2024 Consumer Price Index.
The reasons are many and include lingering inflation, the rising cost of repairs, an uptick in severe weather and the number and severity of accidents.
Even though rates are on the rise, you don't have to break the bank to pay your premiums. Here are tips to get the best price on car insurance.
How to save on car insurance
- Pay your annual premium in full
- Bundle home and auto insurance
- Take advantage of discounts
- Pay-per-mile car insurance
- Improve your credit score
- Ask for a higher deductible
- FAQs
Shop for the right car insurance
Pay your annual premium upfront
Many insurers charge a fee for dividing your premium into monthly payments. Auto-Owners is among those that will reduce your rate if you pay in full and on time at the time of renewal.
Auto-Owners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Terms apply.
Auto-Owners' low rates, superior customer service and add-ons likegap insurance made us crown it one of the best auto insurance companies overall.
Bundle home and auto insurance
Most insurance companies will lower your rate if you take out more than one kind of policy. Known as bundling discounts, they're most common if you get auto and home insurance from the same provider, though some companies will include renters insurance, life insurance or even pet insurance.
Amica Auto Insurance
Cost
The best way to estimate your costs is to request a quote
Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
App available
Yes
Amica offers the largest multi policy discount of any insurance company we reviewed — up to 30% for bundling home and auto insurance. Its highly rated for both customer satisfaction and the claims process by J.D. Power and has fewer complaints about auto insurance than comparable companies, according to the NAIC.
Here are the discounts offered by top insurance companies for bundling home and auto policies.
Allstate: Up to 25%
American Family: Up to 23%
Amica: Up to 30%
Auto-Owners: 10%
Erie: Up to 25%
Farmers: Up to 10%
Geico: Up to 25%
Lemonade: up to 10%
Liberty Mutual: Up to $950
Nationwide: Up to 20%
Progressive: Average of 7%
State Farm: Up to $1,127
USAA: Up to 10%
| Company | Discount for bundling auto and home |
|---|---|
| American Family | up to 23% |
| Amica | up to 30% |
| Allstate | up to 25% |
| Auto-Owners | 10% |
| Erie | up to 25% |
| Farmers | up to 10% |
| Geico | up to 25% |
| Lemonade | up to 10% |
| Liberty Mutual | up to $950 |
| Nationwide | up to 20% |
| Progressive | an average of 7% |
| State Farm | Up to $1,127 |
| USAA | Up To 10% |
Take advantage of other discounts
Bundling isn't the only way to save: Insurance companies offer a variety of discounts, including for safe drivers, students, homeowners, members of military and more.
One of our top car insurance providers, State Farm offers good drivers a discount of up to 30% when they use its Drive Safe & Save mobile app to track their driving.
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Terms apply.
Read our State Farm Auto Insurance review.
If you have a young driver on your policy, Geico offers a good student discount of up to 15% and another rate reduction for completing an approved driver's ed course.
Geico Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Geico coverage and services are available in all 50 states and the District of Columbia and there are 16 different types of discounts available. In addition to the standard coverage options, Geico offers various optional add-ons, such as emergency roadside assistance, rental car reimbursem*nt and mechanical breakdown insurance.
Terms apply.
Read our Geico Auto Insurance review.
Consider pay-per-mile insurance
If you work remotely or otherwise don't drive often, apay-per-mile policy could save you more than 40% over traditional insurance. Users are charged a flat daily rate with an added charge of a few cents per mile. Most pay-per-mile programs require drivers to use a device or app that tracks their vehicle's mileage, speed, acceleration and braking distance.
If you drive 500 miles a month, you could save over $450 a year with Nationwide's SmartMiles program, which is available in 44 states. It even has an exception for road trips, with only the first 250 miles per day logged.
SmartMiles® by Nationwide
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
SmartMiles® is one of the more widely available pay-per-mile auto insurance options. It offers affordable coverage by the mile, tracked through a device plugged into your vehicle or through your vehicle's existing system for some models. For those who road trip often, only the first 250 miles of driving per day count towards mileage.
Metromile is another strong contender in the pay-per-mile space with a discount of up to 15% for bundling with Lemonade home or renters insurance.
Metromile Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Metromile's auto insurance offers coverage in eight states and is backed by Lemonade. Metromile offers discounts for insuring multiple cars and discounts for bundling policies, and a discount of up to 15% for using its Ride Along program, which tracks driving for 17 days before calculating a rate.
Improve your credit score
In most states, your credit history affects the price you pay for car insurance. Need to work on raising your credit score? *Experian Boost™ is a free service that reports consistent payments that wouldn't normally be seen by credit reporting agencies — like rent, phone and subscription service payments.
Experian Boost™
On Experian's secure site
Cost
Free
Average credit score increase
13 points, though results vary
Credit report affected
Experian®
Credit scoring model used
FICO® Score
Results will vary. See website for details.
How to sign up for Experian Boost:
- Connect the bank account(s) you use to pay your bills
- Choose and verify the positive payment data you want added to your Experian credit file
- Receive an updatedFICO® Score
Learn more about eligible payments and how Experian Boost works.
Ask for a higher deductible
Your deductible is the amount you're responsible for before your insurance company starts paying. Typically, the higher the deductible, the lower your premium.
Increasing your deductible from $200 to $500 could reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.
You'll need to have more money on hand if you're involved in an accident, so if you don't think you can meet the deductible — or have a spotty driving record — this isn't the strategy for you.
FAQs
How much have car insurance premiums gone up?
Between June 2023 and June 2024, car insurance premiums rose nearly 20% on average, according to the Bureau of Labor Statistics' Consumer Price Index for July 2024.
Why is car insurance so expensive right now?
An increase in severe accidents is one factor, according to the Insurance Information Institute. Supply chain issues and more complex technology have also fueled the price for new cars, which in turn has been driving up premiums.
How much is car insurance?
The average cost of full coverage car insurance in August 2024 was $2,329 per year and minimum coverage is $633 per year. Individual rates can vary greatly based on a variety of factors, including your location, age, gender and driving history.
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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
