Top ways to save on car insurance in 2025

The nine best ways to save on car insurance in 2025

We’ve compiled a list of nine ways to get the lowest car insurance rates possible in 2025. You can see significant savings by applying as many of them as you can.

Start saving today by reconsidering your coverage levels and limits, raising your deductibles, participating in usage-based programs and looking for lesser-known discounts. Other ways to lower rates include shopping around, maintaining a clean driving record and improving your credit score.

1. Compare quotes and shop for the best rates

How it save money: Many factors affect insurance rates, from your age and gender to your driving record. However, each insurer decides how to use that information to calculate rates. For example, while one insurer may charge much higher rates for a speeding ticket, another may not bump rates as much if it’s your only infraction.

How to do it: As you shop for insurance, compare quotes for individual and bundled policies. Most insurers offer a discount if you bundle policies, such as home and auto. However, that’s not always the best deal. You may find significantly cheaper rates by going with two different insurers.

Why it works: Shopping around lets you see how each type of policy compares to others from various insurers, allowing you to find the coverage you need at the lowest rates.

How it saves money: Many major insurers offer discounts to drivers who participate in telematics programs. These usage-based insurance (UBI) programs record behaviors behind the wheel and offer discounts based on safe driving.

How to do it: Ask your insurance company if it offers a usage-based program. Examples include Progressive Snapshot, State Farm Drive Safe & Save and Allstate Drivewise. Sign up and then install the app or plug-in device to start monitoring your driving.

Why it works: Most companies will offer a discount just for signing up, and then calculate a further discount based on your driving habits.

NOTE: While most insurers don’t raise rates based on a driver's performance, some do, so be aware before you sign up.

3. Adjust your coverage levels based on your vehicle’s value and usage

How it saves money: Older cars and cars that are rarely driven may need less coverage, which means lower insurance rates.

How to do it: If you have an older car that isn’t worth much, you may be able to drop comprehensive and collision coverageCollision coverage helps pay for repairs or replacement of your car if it's damaged in an accident, regardless of who is at fault and is subject to a deductible.. Most states require drivers to carry liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people. to pay for damages they cause to other vehicles and property. If you don't drive much, you can also consider reducing coverage, since your risk is lower.

Why it works: Dropping comprehensive and collision coverages reduces car insurance rates because the insurance company doesn't have to repair your car.

4. Look for additional car insurance discounts

How it saves money: Car insurance companies offer numerous discounts, and most allow you to bundle them for maximum savings. Typical savings include multi-policy, paid in full and good driver discounts.

How to do it: Ask your insurance company about available discounts you aren't currently getting. You may need to provide some documentation. For example, the good student discount may require a copy of your grades.

“Insurance companies offer discounts for continuous insurance coverage, so it’s good for consumers to be mindful of keeping a policy for at least six months with the same company and then shopping for new coverage at renewal,” said Dorothy Cato with Skyway Insurance Services in Monroe, N.C.

Other car insurance discounts to look for include:

Loyalty
Occupational
Vehicle safety features
Automatic payment
Low mileage
Defensive driving course
Early signing
Paperless

Why it works: Discounts provide instant rate reductions, and there are a lot more to choose from than most people know, so asking makes a difference.

5. Maintain a good credit score

Why it saves money: Statistically, drivers with bad credit are more likely to file claims. Insurance companies believe that drivers with bad credit will cost them more money than drivers with good credit. On average, drivers with bad credit pay 76% more.

How to do it: Make on-time payments, carefully consider how you use credit, and avoid using all your credit lines to get a better credit score. Improving your credit score may take time, but it leads to significantly lower car insurance rates and other financial perks.

Why it works: Credit is one of the most significant factors in car insurance rates, so improving your credit will reduce your rates.

NOTE: Although a few states have banned the use of credit history for car insurance rating, most allow it.

6. Bundle auto insurance with home and other policies

How it saves money: Most major insurers offer drivers a discount for bundling policies. If you have one insurance company handling your home and auto policies, you can save an average of 15% on both policies with bundling.

How to do it: Simply insure your car and your home with the same company. Other policies may also earn you a discount, like life, umbrella and specialty coverage, so ask about that, too.

Why it works: Insurance companies consider people with a lot of policies to be high-value customers, so they offer discounts to keep all your coverage in one place.

7. Avoid small claims to keep your premium low

How it saves money: Filing an insurance claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. can raise your rates for several years; avoiding claims keeps rates low. Insurance companies even offer discounts for being claims-free.

How to do it: If you can afford to pay for repairs yourself, you can avoid higher car insurance rates that may cost you more in the long run. Don't file claims for damage that is near your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim. or that you can pay for out of pocket.

Why it works: When insurance companies see you as a lower risk, they reward you with lower rates.

8. Drive safely and keep a clean record

How it saves money: Drivers with a clean record typically have much lower rates than drivers with traffic infractions. For example, a DUI raises car insurance rates an average of 90%, and speeding tickets increase rates by 39%.

How to do it: Obey traffic laws, practice defensive driving and avoid distracted driving to keep your record clean.

Why it works: A clean driving history tells the insurance company you're a low risk for a claim, so you get lower rates.

9. Raise your deductible

How it saves money: Raising your car insurance deductible from $500 to $1,000 or higher significantly lowers car insurance rates.

How to do it: Choose the highest deductible that you feel comfortable with. It should be one you can afford to pay if you file a claim.

“Also, it's good to review your policy to make sure your deductibles are correct... Often, customers will have a very low deductible, especially for collision coverage, and this will make your insurance more expensive. If you have a good driving record, it makes sense to have a higher collision deductible from a risk perspective. Essentially, you are betting that you won't have an at-fault accident,” says Cato.

Why it works: You're taking on more of the financial risk if there's a claim. In return, the insurance company charges lower premiums.

Helpful auto insurance tools and calculators

In case you missed it

Stay updated with our latest insurance insights and guides

Top ways to save on car insurance in 2025

The nine best ways to save on car insurance in 2025

1. Compare quotes and shop for the best rates

3. Adjust your coverage levels based on your vehicle’s value and usage