The most effective ways to save money on car insurance are comparing quotes from multiple insurers, bundling your home and car policies, raising your deductible and taking advantage of discounts. Most drivers who shop around find they have been overpaying their premiums with their current insurer without knowing it.
Jerry has helped 144,353 drivers compare quotes and find savings on their car insurance policies in the past year. Here is what actually moves the needle on your rate.
Jerry pulls up to 20 quotes from top rated carriers.
8 ways to lower your car insurance premium
Some of these tips take five minutes, while others are habits that pay off over time. Any combination of the steps below could add up to meaningful savings on your policy.
1. Shop around and compare quotes
Rates for the exact same coverage can vary by hundreds of dollars per year depending on the insurer. Most drivers stick with the same company year after year without ever checking whether they could pay less elsewhere.
According to the Insurance Information Institute, shopping around is one of the most effective steps you can take to lower your premium. And there’s no need to fill out forms on insurance websites; you can use Jerry to compare quotes from 50+ insurers in minutes, without any long forms or phone calls.
2. Bundle your home and car insurance
Jerry customers that bundle their home insurance and car insurance together typically save up to 40%. But bundling is not always the cheapest path. Sometimes pairing policies from two different carriers costs less overall than any single-carrier bundle discount.
Jerry’s mix-and-match approach lets you compare bundled and unbundled combinations side by side, so you can see which option actually saves more for your situation.
3. Raise your deductible
Your car insurance deductible is the amount you pay out of pocket before insurance covers the rest. Choosing a higher deductible, say $1,000 instead of $500, can reduce your premium by 15% to 30%, according to the Insurance Information Institute. Most Jerry customers typically choose a deductible between $501-$1,000.
This strategy makes the most sense if you have savings available to cover the higher deductible if you ever need to file a claim, and if you do not file claims often.
4. Take advantage of car insurance discounts
Most drivers qualify for more car insurance discounts than they realize. The challenge is that insurers do not always apply every discount automatically. Here are the most common ones to ask about:
- Good driver discount for drivers with no accidents or tickets over the past three to five years.
- Multi-car discount for insuring more than one vehicle on the same policy.
- Good student discount for full-time students who maintain a B average or better.
- Telematics or usage-based discount for low-mileage drivers or drivers who consent to monitoring their driving habits via an app or device.
- Pay-in-full discount for paying your annual premium upfront instead of monthly.
- Anti-theft device discount for vehicles equipped with alarms, GPS trackers or immobilizers.
- Defensive driving course discount for completing an approved driver safety course.
5. Keep a clean driving record
Your driving record is one of the most heavily weighted factors in your premium. A single at-fault accident or major violation can raise your rate significantly and stay on your record for three to five years depending on your state and insurer.
Avoiding tickets, accidents and violations is the most lasting way to keep your rate low over time. The longer your clean record, the more leverage you have when shopping for a better rate.
And be sure you’re covered for any accidents that do happen with another driver. According to the Insurance Research Council, approximately one in six drivers on the road has no insurance, which means even a clean driving record does not protect you from their mistakes. You can add uninsured motorist coverage to your policy to stay protected from these drivers.
6. Drop or reduce coverage on older cars
If your car is older and worth less than $5,000, you may be paying more in collision and comprehensive premiums than you would ever collect in a claim. At that point, carrying only liability coverage could save you money.
A rough way to decide: add up what you pay annually for collision and comprehensive, then add your deductible. If that number is close to or higher than your car’s current value, dropping full coverage may make financial sense. Jerry can help you compare coverage options to run the math for your situation.
7. Try a telematics or usage-based insurance program
Many insurers offer discounts to drivers who agree to be tracked via an app or plug-in device. These programs measure things like speed, hard braking and mileage.
Most programs have an opt-out option if your driving score does not work in your favor. It is worth trying, especially if you consider yourself a careful or low-mileage driver.
8. Review your coverage at every renewal
Your life changes, and your insurance should keep up. Getting married, buying a home, moving to a new state or adding a teen driver to your policy all affect how much car insurance you need and what you should be paying.
Setting a reminder to compare car insurance quotes each time your policy renews takes only a few minutes and can catch meaningful rate changes. Jerry tracks market rates and lets you know when it makes sense to reshop.
Key takeaway: The easiest way to lower your car insurance premium is to compare quotes from multiple insurers. Rates for the same coverage can vary by hundreds of dollars. Beyond that, bundling, raising your deductible, and asking about discounts can add up to real savings.
How to get cheap car insurance with Jerry
Finding a lower rate does not need to take a full afternoon. Jerry makes it easy to compare your options from over 50 insurers in one place so you can find the cheapest car insurance policy possible.
- Compare quotes from 50+ carriers in minutes. Share a few basic details about yourself and your car. Jerry pulls real-time, side-by-side quotes.
- Customize your limits and deductibles. Adjust your coverage levels to see exactly how changes affect your price before you commit.
- Bind coverage in-app with no lapse between policies. Jerry handles the switch and can cancel your old policy so you do not have to.
What affects your car insurance rate
Before you can lower your rate, it helps to understand what goes into it. Insurers look at a combination of personal factors and coverage choices when calculating your premium. Some of these you cannot change, but many you can.
Key takeaway: Your rate is based on how much risk you appear to represent. The good news is that most of the biggest factors, like your coverage level, deductible and driving habits, are within your control.
How young and new drivers can save on car insurance
Young drivers, teen drivers and new drivers tend to pay the highest premiums because insurers see them as statistically higher risk. According to the NHTSA, drivers ages 15 to 20 made up just 5.1% of licensed drivers in 2021, yet accounted for 8.5% of all drivers in fatal crashes.
Jerry customers under the age of 20 typically pay between $183 to $412 per month for full coverage car insurance. You can learn more about how age affects car insurance prices in our data study on car insurance costs by age.
That said, there are several practical steps young drivers can take to lower their premiums meaningfully:
- Stay on a parent’s policy. Being added to an existing policy is almost always cheaper than buying a separate policy as a young driver. Most insurers allow drivers up to age 26 to remain on a parent’s policy. See how much a 16-year-old pays for car insurance to understand the starting point.
- Ask about the good student discount. Full-time students who maintain a B average or better qualify for a good student discount at most major insurers. This alone can reduce a premium by 5% to 25% depending on the carrier.
- Complete a driver’s education or defensive driving course. Many states allow young drivers to earn an insurance discount by completing an approved course. It also helps build the clean driving record that leads to lower premiums long-term.
- Try a telematics program. Usage-based insurance programs that monitor your driving habits can be especially valuable for young drivers who are actually careful behind the wheel. If your driving score is good, the savings can offset a significant portion of the age surcharge on your premium.
- Drive a car that is cheap to insure. Sports cars, luxury vehicles and high-theft models cost more to insure. A used sedan with a good safety rating typically means lower premiums for a young driver.
- Compare quotes before committing to any insurer. Rates for young drivers vary enormously between carriers. Some insurers are far more competitive for teen and new drivers than others. Jerry compares quotes from 50+ insurers so you can see all your options in one place.
Key takeaway: Young and new drivers pay more, but staying on a parent’s policy, earning good student discounts and trying telematics programs can all lower the cost meaningfully.
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FAQ
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Ben Moore is a writer and editor at Jerry and an auto insurance expert. He previously worked as a writer, editor and content strategist on NerdWallet’s auto insurance team for five years. His work has been published in The Associated Press, Washington Post, Chicago Sun-Times, MarketWatch, Nasdaq and Yahoo News. He also served as a NerdWallet spokesperson, with appearances on local broadcast television and quotes in Martha Stewart and Real Simple magazine.
Ben has an extensive background in digital marketing, working on affiliate and programmatic advertising campaigns for brands like Cabela’s, H&R Block and Sears. He holds a bachelors degree in marketing from Olivet Nazarene University.
