Cheap Car Insurance 2025

Car insurance is required by law in most states. That means no matter what kind of vehicle you drive, it likely must be insured. It can be tempting to skimp on car insurance and search for the cheapest rates available. However, going for the absolute cheapest car insurance rates in your area may not be the best choice.

Policies with prices that sound too good to be true sometimes are. While you want to save money on car insurance, you also need to ensure you get coverage that comes through when you need it most. 

The good news is that there are plenty of quality car insurance companies that sell highly affordable policies. A local independent insurance agent can help you find the cheapest car insurance in your area from a carrier that doesn't sacrifice quality or customer service. 

How to Get Cheap Car Insurance: 7 Easy Tips

There are several fairly easy, practical steps you can take to reduce your auto insurance rates, even if you already have a policy. Many drivers think they have no control over the cost of their premiums once they've secured coverage. However, you can try these seven ways to reduce your auto insurance premiums.

Bundle your coverage

Do you have more than one type of insurance policy, such as auto insurance and homeowners insurance, renters insurance, condo insurance, or boat insurance? If so, you could save a lot of money on each policy if you bundle them with the same carrier. 

Be sure to ask about bundling discounts. And if you have one policy through another insurance company, consider switching over so you can reduce your rates.

Increase your policy's deductible

Your policy's deductible is the amount you have to pay out-of-pocket each time you file a claim before receiving reimbursement. As with most types of insurance, the higher your auto insurance deductible is, the lower your monthly or annual premiums are. 

This can help you save a lot of money on your insurance payments and can help you continue to save money if you maintain safe driving practices and never have to file a claim. Keep in mind that if you ever have to file a car insurance claim, you'll have to pay more out of your own pocket if you have a higher deductible.

Improve your credit score

Most states allow auto insurance companies to factor in your credit score when calculating your car insurance rates. Safe driving behaviors are thought to be linked to responsible credit management, so many car insurance companies reward drivers with good credit scores with lower policy premiums. 

If your credit score is roughly 700 or higher, you may be able to reduce your auto insurance costs. If your current credit score is lower than this range, take some measures to help build it up, such as by paying down any credit card balances faster. Once your credit score has improved, check in with your car insurance company about lowering your rates.

Enroll in a telematics insurance program

Also known as usage-based insurance, telematics car insurance allows your carrier to monitor your driving habits through a GPS device in your vehicle or via a mobile app on your smartphone. The app or device automatically sends data to your car insurance company each time you drive and tracks behaviors like sudden or heavy braking, speeding, fast acceleration from stops, and swerving. 

Drivers who practice safe habits or don't drive very often can easily start to earn car insurance discounts through telematics programs. However, drivers who are prone to bad or unsafe behaviors like speeding may not want to participate in a telematics program because the results could actually lead to increased coverage rates.

Reduce your policy's coverage limits

One easy way to reduce your auto insurance rates is by reducing your policy's coverage limits. You may be able to remove your comprehensive coverage or collision coverage, or lower the limit on your liability coverage or uninsured motorist coverage. This is another method that's best for safe drivers who have a low risk of ever having to file a claim. 

Be aware that if you reduce your car insurance's limits and you get into an accident or your vehicle gets stolen or vandalized, you'll have less possible reimbursement available to you to help pay for repairs or a replacement, or no coverage at all for theft or vandalism if you removed your comprehensive coverage.

Only buy the minimum coverage

Most states in the U.S. require all drivers to at least carry liability insurance in two forms: bodily injury liability and property damage liability. Certain states also require uninsured motorist coverage, personal injury protection, or medical payments coverage. 

If you only purchase the minimum amount of car insurance required in your state, you'll pay much less for your policy. Again, it's critical to consider that if you choose this method to get cheaper car insurance, you'll have less coverage in case of an incident.

Shop around and compare quotes

One of the easiest ways to find the cheapest car insurance available is to shop around and compare quotes from a number of different carriers. A local independent insurance agent can do this for you since these agents have access to multiple car insurance companies. They can compare coverage and costs and present you with several options for only quality, affordable policies. 

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Get Cheap Car Insurance With These Common Discounts

Car insurance discounts are available from most carriers, but the specific discounts offered and the percentage of savings of each vary by insurer. Still, there are a number of common car insurance discounts you can typically expect to find from most insurance companies. Look for these 10 car insurance discounts to help reduce your premium rates:

Safe driver discounts

Drivers who maintain clean driving records are usually rewarded with cheap car insurance rates by their insurance companies. If you keep your record clear of any at-fault accidents, speeding tickets, or other traffic violations for a set number of years, you can start to earn a good driver discount. Requirements vary by insurer, but many car insurance companies look for drivers to maintain safe habits for at least three to five years before they can start to earn savings.

Multi-car discounts

If you own more than one vehicle, it can be wise to insure them both through the same carrier. Most car insurance companies offer multi-car discounts if you cover more than one vehicle under the same policy. One easy way for a lot of drivers to obtain this type of discount is by sharing a car insurance policy with a spouse or domestic partner.

Safety features discounts

The safer your vehicle is to drive, the less of a risk it is to both you and your car insurance company. That's why drivers with various safety features installed in their vehicles are often rewarded with additional savings. If your vehicle is equipped with anti-lock brakes (ABS), airbags, burglar alarms, or other anti-theft devices, you could earn a car insurance discount.

Defensive driving course discounts

Completing an approved defensive driving course is another easy way to qualify for a car insurance discount from most carriers. Check with your car insurance company first to find out which defensive driving courses could qualify you for savings before you sign up for a class. Note, however, that this discount is sometimes only offered to drivers who are at least age 50.

Affiliation discounts

Being involved in or affiliated with many different kinds of organizations can help you earn a car insurance discount. Being a graduate of a certain college or university, a military member, a federal employee, or a member of AARP are just a few common examples of ways to earn car insurance discounts. Make sure to ask your car insurance company about affiliation discounts if you're an alumnus or affiliated with any other organizations.

Good student discounts

Many car insurance companies offer good student discounts. If you have an insured teen or young driver who is a student who maintains good grades on your car insurance policy, you might be eligible for savings. Most carriers require students to maintain at least a 3.0 GPA or a B average to qualify. 

Student away-from-home discounts

For parents of insured student drivers, discounts may also be available if your teen lives away from home. This discount is often only available if the teen or young driver won't be using the insured vehicle while they're living on campus.

Homeowner discounts

Are you a car owner and also a homeowner? Then, you could qualify for an additional car insurance discount just for owning a home. And that's on top of the bundling discount you could earn by getting your home insurance through the same carrier as your auto insurance.

Paid-in-full discounts

You can save yourself and your car insurance company money if you choose to pay your policy's premiums in full up front. Paying either your six-month or 12-month premium as one lump sum can reduce paperwork and electronic transactions. 

Not to mention, there's increased convenience for many drivers who choose to pay for their coverage all at once. You'll just need to determine if this option is budget-friendly for you.

Autopay discounts

Signing up for automatic payments is another great way to earn car insurance discounts from most carriers. Many car insurance companies allow you to select a specific date for your payments to be auto-drafted each month as a bonus. Choosing autopay for your car insurance can offer the benefit of a potential discount as well as one less bill to have to plan and remember to pay each month.

Do Car Insurance Rates Go Down Over Time?

Car insurance rates are by far the most expensive for teen drivers. Once drivers reach age 25, they experience a significant decline in their auto insurance premiums, provided they maintain a clean driving record. 

However, rates for senior drivers can start to slightly increase again after age 65, depending on the insurer. Here are some average car insurance costs by age to further illustrate this.

Average Car Insurance Cost by Age

The average annual cost of car insurance for a 16-year-old female driver is $5,565, compared to $3,238 for a 25-year-old female. As demonstrated, the car insurance rates for a 25-year-old female are only about 58% of what they are for a 16-year-old. That's a savings of just over 42% after nine years. 

Note that car insurance premiums typically continue to decline as the driver ages, provided they don't accumulate any at-fault accidents or other violations on their record. However, this trend stops once the driver enters their mid-60s. The average annual cost of car insurance for a 60-year-old male is $2,438, while the average cost for a 70-year-old male is $2,647. 

What Are the Risks of Getting Cheap Car Insurance?

Though buying the car insurance policy with the cheapest price tag may be tempting, you'll want to make sure you're not sacrificing the quality of your coverage. Some car insurance companies have a reputation for being cheap while sacrificing customer service. Other carriers have been reported by customers to not pay out claims even if an incident should have been covered. 

Here are some of the major potential drawbacks to buying the cheapest car insurance available:

1. Poor customer service: Sometimes, buying cheap coverage can mean paying for low-quality customer service right along with it. Certain cheap car insurance carriers reportedly pass customers between departments until they hang up in frustration or don't answer or return calls or communications at all. Car insurance is a type of coverage that you absolutely want to be backed by an outstanding customer service experience. Consider if you ever need to file a claim after an accident, and how much worse the situation could become if you couldn't rely on your carrier to help you as promised.
2. High deductible amounts: To advertise cheap car insurance, certain carriers cleverly bury the fact that their policies come with extremely high deductibles. While higher deductibles can help offset your premium payments, they also mean that you'd have to pay much more out of your own pocket before receiving reimbursement for any claims filed. In case of a car theft, an expensive accident, or a hefty lawsuit, you might end up wishing you'd chosen a policy with higher monthly premiums and a lower deductible amount.
3. Lack of coverage options: Some car insurance companies only sell the minimum amount of coverage required by the state. This allows them to charge much lower premiums. However, the customer will only be covered by the bare minimum, which is likely to be the minimum liability and maybe uninsured motorist, medical payments, or personal injury protection. After a major accident or a car theft, the driver could be left having to pay to repair or replace their vehicle on their own if they lacked collision coverage or comprehensive coverage.

Of course, not all car insurance companies that advertise cheap auto insurance mean a sacrifice in service or quality. It's just critical to research the available options and the reputations of each car insurance company before you choose one solely based on rates. Be sure to look up customer reviews for each carrier and take note of mentions of poor claims responses or communication. 

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What Factors Influence Car Insurance Costs?

Obtaining cheap car insurance can be easier when you understand a few of the factors that go into calculating your policy's costs. While you may not have control over all of these factors, there may be a few you can change or improve to help decrease your rates. 

Here are just a handful of the most common factors that impact car insurance costs.

• Driver age: Teen drivers and young adults pay the highest rates for car insurance by far. Car insurance rates tend to drop significantly once a driver reaches age 25 and continue to drop steadily each year afterward. However, this trend starts to reverse around age 65.
• Location: Where you live can significantly impact car insurance rates as well. The average cost of new vehicles in your area, the location's risk of severe weather, and local car theft rates can all impact car insurance premium rates.
• Coverage chosen: The types of coverage selected to go into your policy will impact its premium rates. If you buy a minimum liability-only policy, you'll pay much less than if you get full coverage. However, you could end up having to pay much more if you ever experience an accident, lawsuit, or another incident and lack the proper coverage.
• Driving record: Drivers with clean records free of accidents and traffic violations pay much less for their car insurance than those with at least one at-fault accident or speeding ticket. After a period of three to five years free of accidents and violations, you might even start to receive a discount from your carrier.
• Vehicle type: The kind of vehicle you drive can greatly impact your car insurance rates as well. The more expensive your vehicle would be to repair or replace, the more you'll have to pay for your coverage. Further, vehicles with greater safety ratings often can earn cheaper car insurance rates because their drivers are statistically less likely to have to file claims.
• Annual mileage: The less you drive your car, the less of a risk you are to your car insurance carrier. If you drive fewer than a certain number of miles per year, you could be rewarded with much lower car insurance rates than if you make long commutes every day.

Many other factors can also play a role in determining your car insurance costs. To get an even better idea of these factors and exactly how much they can influence car insurance premiums in every location, check out our car insurance calculator.

The Cheapest Car Insurance Companies of 2025

There are plenty of top-quality car insurance carriers with excellent reputations that also offer affordable car insurance rates. Knowing where to find cheap car insurance that won't leave you stranded without the reimbursement you deserve after an accident is critical. You want to be certain your carrier will deliver on its coverage promises in case you're ever faced with a lawsuit or an accident.

We compared some of the top car insurance companies in the nation to find out which has the cheapest rates for 2025.

How We Select the Cheapest Car Insurance Companies

To determine the cheapest car insurance companies, we looked at coverages offered, rates, and available discounts. We compared each carrier's average prices for male and female drivers who drove an average of 12,000 miles per year, purchased a medium amount of coverage, and had good driving records and credit scores. We also chose only top-quality carriers with excellent customer feedback, Better Business Bureau ratings, and AM Best ratings for financial strength.

An Independent Insurance Agent Can Help You Find Cheap Car Insurance

When you're looking for cheap car insurance, no one's better equipped to help you find it than a local independent insurance agent. Because they're independent, these agents are free to shop and compare policies from multiple car insurance companies that offer coverage in your area. 

They'll present you with options for the cheapest car insurance policies that don't sacrifice anything in terms of coverage or quality. And down the road, your agent will still be there to help you file car insurance claims or update your coverage as necessary.