Updated October 2026. General information for US readers, not personalized financial, tax, insurance or legal advice.
Car insurance has become one of the fastest-rising household bills. In 2024 the Iowa Insurance Division noted that auto insurance rates had risen 19.5% in a single year, citing the Bureau of Labor Statistics (Iowa Insurance Division). The same regulator published practical ways to bring your premium down. Here they are, with how to use each one.
Key takeaways
- Compare quotes from several insurers at least once a year, especially at renewal.
- A higher deductible lowers your premium, but only if you can afford to pay it.
- Ask about every discount: bundling, good student, safe driver, low mileage and safety features.
- Never cut liability coverage just to save money.
10 Ways to Lower Your Car Insurance
| Tip | What to do |
|---|---|
| 1. Compare quotes regularly | Get quotes from several insurers, ideally before each renewal |
| 2. Raise your deductible | Choose a higher deductible if you have savings to cover it |
| 3. Drive safely | Avoid tickets and accidents; consider a driving-monitor app |
| 4. Choose your car wisely | Cars with high safety ratings and low repair costs usually cost less to insure |
| 5. Review your coverage | Drop coverage you no longer need on an older, low-value car |
| 6. Drive less | Ask about low-mileage or pay-per-mile programs |
| 7. Mind your credit | In many states, a credit-based insurance score affects your rate |
| 8. Claim safety discounts | Anti-lock brakes, airbags and anti-theft devices can earn discounts |
| 9. Pay annually | Paying once a year instead of monthly may cost less |
| 10. Keep continuous coverage | Gaps in coverage can raise your rates later |
Source for all 10 tips: Iowa Insurance Division.
1. Compare Quotes Every Year
Prices for the same driver and car can vary a lot between companies, and your current insurer won’t always offer its best rate at renewal. Get at least three quotes with the same coverage limits so you’re comparing like for like. Ask each company about bundling home or renters insurance and about discounts for good students, safe drivers and group memberships.
2. Raise Your Deductible
The deductible is what you pay before insurance covers a collision or comprehensive claim. A higher deductible usually means a lower premium. Only raise it to an amount you could pay tomorrow from an emergency fund.
3. Keep a Clean Driving Record
Accidents and traffic violations raise premiums for years. Some insurers offer lower rates if you use an app or device that tracks how you drive. These programs can reward careful drivers, but read how the data is used before you sign up.
4. Think About Insurance Before You Buy a Car
Vehicles with high safety ratings and lower repair costs generally cost less to insure. Get insurance quotes on the models you’re considering before you buy.
5. Review Your Coverage
If your car has lost most of its value, paying for comprehensive and collision coverage may cost more than the car is worth. Compare the yearly cost of that coverage with what you’d get if the car were totaled. Keep strong liability coverage either way, because it protects you if you injure someone or damage their property.
6. Drive Less, Pay Less
If you work from home or rarely drive, ask about low-mileage discounts or pay-as-you-drive insurance, which charges partly by the mile.
7. Improve Your Credit
In many states, insurers use a credit-based insurance score to set rates, though some states limit or ban this. Paying bills on time and lowering card balances can help. See our guide on how to raise your credit score.
8. Ask About Safety-Feature Discounts
Anti-lock brakes, airbags and anti-theft devices can qualify for discounts. Make sure your insurer has your correct VIN so the features are recorded.
9. Pay Your Premium Annually
Many insurers charge installment fees for monthly payments. Paying the full year at once can save money if you can manage it.
10. Don’t Let Your Coverage Lapse
A gap in coverage can make you look riskier to insurers and lead to higher prices later. If you’re switching companies, start the new policy before you cancel the old one.
What Not to Cut
It’s tempting to buy only your state’s minimum liability coverage, but serious accidents can cost far more than minimum limits. If you have savings or a home, ask about higher liability limits; the extra cost is often small compared with the protection.
Frequently Asked Questions
How often should I shop for car insurance?
At least once a year, and any time your situation changes: a move, a new car, a new driver in the household or a ticket falling off your record.
Does getting a quote hurt my credit?
Insurance quotes typically use a soft inquiry, which doesn’t affect your credit score.
Who can help if I can’t find coverage?
Your state insurance department can explain options, including state plans for drivers who can’t get coverage in the regular market.
Related Guides
Source: Iowa Insurance Division: Saving money on your auto insurance.