How to lower your car insurance rate

Some of the most impactful ways to lower your car insurance include qualifying for multiple discounts, avoiding accidents, and changing your coverage. Comparing rates, trying usage-based insurance, and knowing how your vehicle might affect your rate can also help.

4 min to read

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:

  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:

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