You can get cheap car insurance by consistently comparing quotes from multiple companies, taking advantage of every available discount, and opting for a higher deductible if you can afford the out-of-pocket cost. The single most effective strategy is to shop around, as rates for the same driver profile can vary dramatically between insurers.
The table below illustrates sample annual premium quotes for a single 35-year-old driver with a clean record, driving a 2020 Honda CR-V, based on real market data. This demonstrates the potential savings from comparison shopping.
| Insurance Company | Annual Premium for Basic Coverage | Annual Premium for Full Coverage |
|---|
| Company A | $1,150 | $1,820 |
| Company B | $980 | $1,550 |
| Company C | $1,300 | $2,100 |
| Company D | $890 | $1,490 |
| Company E | $1,220 | $1,910 |
Maintain a clean driving record. This is the most significant factor you control. Accidents and traffic violations, especially DUIs, will cause your premiums to skyrocket for several years. Defensive driving courses can sometimes negate a minor violation or simply qualify you for a discount.
Increase your deductible. The deductible is the amount you pay out-of-pocket before insurance covers a claim. Raising your comprehensive and collision deductible from $250 to $1,000 can lower your premium by 15% or more. Only choose a deductible you can comfortably afford in an emergency.
Bundle your policies. Most major insurers offer a multi-policy discount if you purchase your auto and homeowners or renters insurance from them. This can typically save you 10% to 25% on your total premium costs.
Ask about every discount. Insurers offer discounts for a wide range of reasons, including:
- Good student discount for young drivers maintaining a B average.
- Low-mileage discount if you drive significantly less than the average annual mileage (around 12,000 miles).
- Paid-in-full discount for paying your six-month or annual premium upfront.
- Safety feature discounts for anti-theft devices, anti-lock brakes, and modern safety tech like automatic emergency braking.
Finally, review your coverage annually. As your car ages, the value of comprehensive and collision coverage may diminish. If your car's market value is low, dropping these coverages might be a cost-effective option, though it increases your financial risk in an accident you cause.
