Car insurance costs seem to creep up every year—and it’s not just your imagination.

In 2025, the average cost of full coverage car insurance in the U.S. climbed to about $2,638 per year, or roughly $220 per month—a 12% increase from 2024, according to Bankrate. That means many drivers are spending more of their hard-earned income just to stay insured, especially in states with higher premiums. (Looking at you, Florida, Louisiana, New York and Nevada.)

The good news? There are plenty of strategic ways to lower your bill. Learning how to save on car insurance is a simple strategy for reducing your monthly expenses.

How to Save Money on Car Insurance: 15 Proven Tips

Below are 15 proven strategies to help lower your car insurance costs, from simple tweaks you can make today to long-term habits that add up to big savings over time.

1. Compare Quotes From Multiple Providers

First things first: Shopping around is the single most effective way to save on car insurance. Rates can differ by hundreds or even thousands of dollars for the same driver depending on the insurer. 

Online comparison tools, like Insurify, make this quick and easy. Even better? KashKick rewards members when they get a personalized car insurance quote from Insurify. As soon as you earn $10, you can cash out via PayPal!

2. Bundle Policies

Many insurance companies offer discounts if you bundle multiple policies, such as auto and homeowners or renters insurance. Bundling can reduce premiums by 5–30%, depending on your provider. This is especially helpful for people looking to save on multiple lines of coverage.

3. Raise the Deductible

A higher deductible usually means a lower monthly premium. For example, raising your deductible from $250 to $500 can save hundreds of dollars annually, assuming you have the emergency fund to cover a larger out-of-pocket expense if you have to file a claim.

4. Maintain a Clean Driving Record

Traffic violations, accidents and claims can dramatically increase your insurance costs. For example, a law firm in Florida estimates that an at-fault accident could increase a driver’s insurance rates from $2,000 annually to up to $3,000 annually.

Rate hikes depend on the insurer, location and severity of the accident, but safe driving is key to reducing premiums over time. In fact, drivers may also qualify for “accident-free” or “safe driver” discounts.

5. Improve Your Credit Score

In many states, insurers use credit history as a factor in calculating rates. Improving your credit score—paying bills on time, lowering credit utilization and keeping accounts in good standing—can lead to significant savings.

6. Ask About Discounts

Insurance companies offer a wide array of discounts, often more than you think:

• Good student discounts
• Military service discounts
• Low mileage discounts
• Anti-theft device discounts
• Multi-car discounts

Many discounts are not automatically applied, so asking can result in immediate savings.

7. Drop Unnecessary Coverage

Full coverage may not always be necessary. For older vehicles that are fully paid off, consider whether collision or comprehensive coverage is worth the premium. Adjusting coverage levels can reduce costs while still protecting the essentials.

8. Drive Less When Possible

Some insurers offer discounts for low-mileage drivers. If your commute is short, you work remotely or you drive infrequently, reporting fewer miles can reduce your premiums.

9. Choose a Cheaper Car to Insure

Cars with high repair costs, expensive replacement parts or strong performance capabilities typically have higher premiums. When purchasing a new car, check its insurance cost before committing. This simple step can save hundreds per year.

10. Take a Defensive Driving Course

Many insurance companies reduce premiums after completing an approved defensive driving course. These courses, often available online or in a few hours at a local class, teach safe driving techniques while potentially lowering insurance costs.

11. Avoid Small Claims

Filing claims for minor repairs may seem convenient, but it can lead to higher rates in the future. If possible, pay for small damages out-of-pocket to maintain lower premiums.

12. Pay Premiums in Full

Paying monthly often includes service fees. Paying semi-annually or annually can save money and simplify your billing schedule.

13. Keep Personal Info Updated

Outdated information—address, mileage, vehicle usage and even employment status—can inflate rates. Keeping your insurer updated ensures premiums accurately reflect your risk profile.

14. Go Paperless

Many insurers offer small savings if you enroll in paperless billing or set up online payments. These discounts may only be $5–$15 per month, but they add up over the year—and online billing also helps you avoid late fees that could raise your rates.

15. Ask About Loyalty or Renewal Discounts

While switching providers can often be the best way to save, some insurers reward long-term customers with renewal discounts. Always ask if any loyalty programs are available.

When and How Often You Should Shop for New Quotes

Many drivers make the mistake of sticking with the same insurer year after year without reviewing their rates. The reality is that car insurance premiums fluctuate constantly, based on factors like market trends, state regulations and personal circumstances.

Here are some good rules of thumb:

• Every 12 months: Even if nothing major has changed, annual comparisons can reveal new savings opportunities.
• After major life changes: Moving to a new city, purchasing a new vehicle, getting married or improving your credit score can all affect rates.
• After claims or accidents: Once your claim history changes, it’s smart to see if switching providers or renegotiating coverage could lower premiums.

By shopping for quotes regularly, drivers can uncover better rates, new discounts and policy adjustments that save money. Using tools like Insurify through KashKick makes this process quick, transparent and rewarding.

Conclusion

Understanding how to save on car insurance doesn’t have to be complicated. From comparing quotes, bundling policies, raising deductibles and taking advantage of discounts to using tools like KashKick, there are many ways to lower your monthly premiums without sacrificing coverage.

Smart, informed choices today can result in significant savings tomorrow—and give you more control over your finances.