7 Ways to Lower Your Car Insurance Rate (2024)

7 ways to lower your car insurance premium

If you're wondering how to get a lower car insurance rate, use these methods for lowering your premium:

1. Qualify for insurance discounts

   Getting more discounts that lower your car insurance premium might be easier than you think. Progressive offers car insurance discounts for the following, and more:

   • Bundling your car and property insurance^Δ
   • Quoting online^*
   • Paying up front^**instead of monthly
   • Setting up autopay^*
   • Signing your policy online^**
   • Going paperless^**
   • Driving safely with the Snapshot® program^†
   • Qualifying for student driver insurance discounts

2. Increase your deductible

   You can often opt to increase your car insurance deductible — this means you would pay more out of pocket if you have a claim but, in exchange, pay less for your policy. There are typically deductibles on auto collision coverage, auto comprehensive coverage, UM/UIM coverage, and PIP. If you have any of these coverages, reach out to your insurer to see if you can increase the deductible in exchange for a lower premium.

3. Reduce your coverage

   Nearly every state requires a minimum amount of car insurance, but your coverage might include more than what's required. If that's the case, consider lowering your liability insurance limits to reduce your premium. You can also drop optional coverages like comprehensive and collision, as long as you don't have a car lease or loan that requires them.

4. Compare rates

   To find out how your rate compares with what you might get at another insurer, compare your car insurance quote to rates from other companies. To get a true comparison, select the same coverages, limits, and deductibles for each insurer you compare.

5. Try usage-based insurance

   Usage-based insurance (UBI) helps your car insurance premium align with your driving habits, including how much and how safely you drive. If you drive very little and you avoid dangerous habits like turning and braking quickly, you might be rewarded with a lower rate through UBI. However, not every driver who tries UBI is guaranteed a reward — riskier driving habits might result in a higher rate. To give it a try, check out Progressive's UBI, known as the Snapshot® program.^†

6. Take a defensive driving course

   Some insurers offer a defensive driving discount, and some states even require insurers to offer one. In some states, you can qualify for this discount by taking a four-hour defensive driving course. The course might qualify you for a lower premium, and it can improve your driving habits, potentially leading to fewer violations and claims in the future.

7. Get a car that's cheaper to insure

   Your insurance rate may be influenced by the car make and model you drive. The next time you're shopping for a new car, consider getting a car that's cheaper to insure. These cars may be safer on the road, as noted by IIHS-HLDI, and therefore less likely to be involved in costly claims.

Does removing a driver reduce my insurance rate?

Yes, removing a driver from your auto policy might reduce your rate, especially if the driver has a history of insurance claims and accidents. Remember, drivers in nearly every state are required to carry some amount of auto liability coverage, and some states don't allow any household members of driving age to be removed from a policy. A driver should typically only be removed from a policy if they have passed away or if they've moved (and will therefore be covered on a different policy).

If someone won't be driving at all but will remain in your household, your insurer may allow them to be listed as an excluded driver on your policy, which could have a similar effect to removing them from the policy.

What leads to reduced insurance rates?

The following factors can lead to a better insurance rate:

• Discounts

• A clean driving record

• Low severity and frequency of past claims

• Vehicle usage

• Car make and model

• Coverage, limit, and deductible selections

• Location

• Age of drivers