How to lower your car insurance bill

Car insurance is a big bill you can often lower by comparing insurers and asking the right questions. Here's what the latest official figures show and the steps that make the most difference.

What drivers are paying

The National Association of Insurance Commissioners (NAIC) publishes the most complete public data on what drivers pay. In its 2024 Auto Insurance Database Average Premium Supplement, the countrywide combined average premium, meaning the average cost of a policy with liability, collision and comprehensive coverage, was $1,612.81 in 2024, up 12.12% from the year before. The average amount drivers actually spent, including people who carry only liability, was $1,431.63.

State averages differ a lot:

The NAIC cautions that these averages don't account for differences in state laws, traffic, the vehicles people drive or the coverage they buy, so comparisons between states should be treated carefully. Your own price depends on your address, car, driving record, coverage and insurer.

Steps that lower your premium

The Missouri Department of Insurance lists practical ways to pay less. The ones that apply almost everywhere:

1. Shop around. Compare price, coverage and service from several insurers. Make sure each quote has the same liability limits and deductibles, or you're comparing different products.
2. Raise your deductibles, carefully. A higher collision and comprehensive deductible lowers your premium. Deductibles don't apply to liability coverage. Only choose a deductible your emergency savings could cover.
3. Ask about discounts. Insurers may offer discounts for good students, multiple cars, bundling auto with home or renters insurance, and safety features. They aren't always applied automatically, and a discount at one insurer doesn't guarantee a lower price than another insurer's regular rate.
4. Pay in full if you can. Monthly, quarterly and semi-annual payment plans often cost extra.
5. Review coverage on an older car. If what you pay for collision and comprehensive gets close to the car's value, consider reducing or dropping it (unless a lender requires it).
6. Tell your insurer about changes. Driving fewer miles, moving, selling a car, fewer drivers in the household, getting married, or turning 21, 25 or 29 may lower your premium.
7. Avoid duplicate coverage. Check whether your health or other insurance already covers something before buying the same protection on your car policy.
8. Check your credit reports. The Missouri Department of Insurance notes that most insurers there use credit history as one rating factor, alongside accidents, violations, age and location. Fixing errors on your credit reports can help where credit is used.

Your driving record matters most

The Missouri Department of Insurance says your driving record affects your rates more than anything else. Industry rate data compiled by Insurance.com shows, on average, a 34% increase after a speeding ticket of 11 to 29 mph over the limit, 53% after an at-fault accident with more than $2,000 of damage, and 90% after a first DUI. Ask your insurer how long a violation will affect your rate, and compare quotes again once it no longer counts.

How SpendySaver helps

SpendySaver's Car insurance page shows what drivers like you typically pay in your state, using the NAIC averages above adjusted for your car and driving record, next to what you actually paid your insurer over the last year. If you're well above typical, it's a sign to compare quotes. SpendySaver isn't an insurer and doesn't sell insurance.