Car insurance rates rose 12% from 2024 to 2025, according to Bankrate’s True Cost of Auto Insurance report, after already climbing 17% from 2023 to 2024.
Inflation, the rising cost of repairs, an uptick in severe weather and the number and severity of accidents have all increased costs for both drivers and insurers.
But you don’t have to break the bank to pay your premiums. Here are seven simple tips for lowering car insurance rates.
Shop around
Get quotes from at least three to five companies to see who has the best rates for the coverage you want. Some insiders recommend shopping for car insurance companies every year when your policy is up for renewal.
You may think staying with the same provider automatically means savings, but that’s often not the case.
Pay your annual premium upfront
Many insurers charge for dividing your premium into monthly payments, so paying upfront essentially earns you a discount.
Auto-Owners will reduce your rate if you pay in full and on time at renewal. The company’s low rates, superior customer service and useful add-ons like gap insurance made us crown it one of the best auto insurance companies.
Auto-Owners Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Auto-Owners offers affordable premiums with high customer satisfaction ratings. There are 12 different types of discounts available, as well as various other types of insurance besides auto.
Bundle home and auto insurance
If you take out more than one kind of policy with the same provider, you can often earn a bundling discount. It’s most common if you combine auto and home insurance, but some companies discount with renters insurance, life insurance and even pet insurance.
Amica Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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Policy highlights
Amica offers a variety of auto insurance policies to fit your coverage needs. The company also offers a total of 18 discounts, including discounts for bundling and for students.
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App available
Amica offers up to 30% for bundling home and auto insurance, the largest multi-policy discount we’ve seen. It’s highly rated by J.D. Power for both customer satisfaction and its claims process and, according to the NAIC, has fewer complaints than comparable companies.
Bundling discounts by insurer
Allstate: Up to 25%
American Family: Up to 23%
Amica: Up to 30%
Auto-Owners: 10%
Erie: Up to 25%
Farmers: Up to 10%
Geico: Up to 25%
Lemonade: up to 10%
Liberty Mutual: Up to $950
Nationwide: Up to 20%
Progressive: Average of 7%
State Farm: Up to $1,127
USAA: Up to 10%
Take advantage of more discounts
Bundling isn’t the only way to save: Insurance companies offer a variety of discounts, including for safe drivers, students, homeowners, members of the military and others.
One of our top car insurance providers, State Farm offers good drivers a discount of up to 30% when they use its Drive Safe & Save mobile app to track their driving.
State Farm Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
State Farm is one of the largest auto insurers in the U.S. based on market share. It has an excellent reputation for customer satisfaction and offers discounts for safe driving and young drivers.
If you have a young driver on your policy, Geico offers a good student discount of up to 15% and another rate reduction for completing an approved driver’s ed course.
Geico Auto Insurance
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Policy highlights
Geico offers 16 discounts and a variety of optional add-ons, such as emergency roadside assistance, rental car reimbursement and mechanical breakdown insurance.
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Availability
Geico auto insurance is available in all 50 U.S. states and Washington, D.C.
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Accident forgiveness
Accident forgiveness is automatic if you remain accident-free for five years. It can also be bought as an upgrade when you buy or renew your policy.
Terms apply.
Find the right auto insurance for you and see how much you could save
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and affordable rates, even for teens.
Look into pay-per-mile insurance
A pay-per-mile policy charges users a flat daily rate, plus a few cents per mile, making it a great option if you don’t drive often.
If you average 500 miles a month, you could save over $450 a year with Nationwide’s SmartMiles program, available in 44 states. (SmartMiles even has an exception for road trips, with only the first 250 miles logged per day. )
SmartMiles® by Nationwide
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
SmartMiles® is one of the more widely available pay-per-mile auto insurance options. It offers affordable coverage by the mile, tracked through a device plugged into your vehicle or through your vehicle’s existing system for some models. For those who road trip often, only the first 250 miles of driving per day count towards mileage.
Metromile Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Metromile’s auto insurance offers coverage in eight states and is backed by Lemonade. Metromile offers discounts for insuring multiple cars and discounts for bundling policies, and a discount of up to 15% for using its Ride Along program, which tracks driving for 17 days before calculating a rate.
Improve your credit score
Your credit history often affects the price you pay for car insurance, so raising your credit score is a great way to lower your rates. Paying bills in full each month and keeping your credit utilization low are the fastest ways to boost your credit. If you need more help, *Experian Boost® is a free service that reports on-time payments that wouldn’t normally be seen by credit reporting agencies — such as those for utilities, mobile phones and subscription services.
Experian Boost®
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Cost
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Average credit score increase
13 points, though results vary
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Credit report affected
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Credit scoring model used
Results will vary. See website for details.
Ask for a higher deductible
Increasing your deductible, or the amount you’re responsible for before your insurance company pays anything, usually results in lower premiums.
Raising you deductible from $200 to $500 could reduce collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.
You will need to make sure you have more money on hand if you’re involved in an accident. If you don’t think you can meet the deductible (or have a spotty driving record) this isn’t the strategy for you.
Car insurance FAQs
How much have car insurance premiums gone up?
Between January 2023 and January 2024, full-coverage car insurance premiums rose by approximately 17%. From January 2024 to 2025, they increased by another 12%.
Why is car insurance so expensive right now?
An uptick in severe accidents is one factor, according to the Insurance Information Institute. An increase in parts and labor costs has also driven up prices, and increasingly complex automotive technology has also fueled a price increase.
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*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.