Car Insurance Hacks: 3 Smart Ways to Lower Your Rates

The average car insurance premium in the United States is $2,389 in 2023 -- and that's for good drivers. Add in accidents, speeding tickets, or DUIs and things get a lot more expensive quickly. It's enough to make some drivers get rid of their cars altogether.

But even then, drivers still need insurance unless they never plan to get behind the wheel of a car again. So it's important to know how to score the best cheap car insurance. Here are three tips to help drivers get the most coverage at the lowest price.

1. Shop around

Yes, I know it's cliche advice. But it's repeated for a reason. Every insurance company has its own proprietary system for assessing risk. They all look at the same factors, more or less, but they weigh these factors differently. That's why different companies often give the same driver vastly different rates.

The only way to know how much different companies will charge a specific driver is to get quotes from them to compare. Fortunately, most auto insurers make that pretty easy. Online quote tools can give drivers a price estimate in minutes after answering a few questions about the driver and the vehicle. Most sites enable you to save quotes as well so it's easy to return to them later.

It's best to get quotes from at least three to five car insurance companies before settling on one, to get a sense of which offers the best deal. Pay attention not only to the premium cost but also to the amount of coverage available for that price.

2. Look for discounts

Most auto insurers automatically apply discounts to a driver's premium during the quote process. But there are a few exceptions. Many companies now offer driver monitoring programs, for example, but they cannot force drivers to participate. Not everyone wants to, because they're not comfortable being tracked. But for drivers who don't mind, this is a great way to save because there's usually an upfront discount just for enrolling.

It's important to recognize that qualifying for more discounts with one insurer doesn't always correlate to a lower rate. However, it doesn't hurt to check. Those who believe they'll qualify for special discounts, like savings for electric vehicles or military service, might do better by seeking out insurers who reward drivers with these factors.

3. Choose a higher deductible

Going with a higher deductible reduces insurance premium costs, sometimes significantly. Most insurance companies give drivers a choice between several deductibles, which they can adjust once they get their quote. Changing this will enable them to see the change in premium costs in real time.

Choosing a higher deductible means a driver will have higher out-of-pocket costs in the event of an accident. But this might not be a concern for those who can save up for the deductible in their emergency fund.

Even following the above steps, it might be tough to find affordable auto insurance right now, especially for drivers with negative marks on their records. In that case, it might be necessary to reduce coverage temporarily. But keep shopping around every few months to see what's out there. Eventually, those dings on your record will fall off and that will open the door to better rates.