Day 6 • Updated for 2026 • Read time: 5 min

How to Cut Your Car Insurance Cost in 2026 — 10 Smart Moves

Quick summary: Car insurance premiums rose sharply in recent years but increases are moderating as the market stabilizes. Still, many drivers can save significantly by applying a few proven steps: shop smarter, change coverage where safe, and take advantage of discounts and safe-driving tech.

Important facts (2025–2026): After large increases in 2023–2024, average rate hikes slowed in 2025 as insurers adjusted pricing — but experts expect modest increases or stabilization into 2026 depending on your state and driving record. 0

1. Shop and compare quotes — every renewal

Insurers price risk differently. Get at least 3 quotes before renewing; small differences in underwriting can save you hundreds. Use both direct quotes and broker/comparison sites to find the best match for your driving profile. Industry studies show shopping is the single most effective step to reduce premium. 1

2. Increase deductibles (if you can afford it)

Raising collision/comprehensive deductibles from $500 to $1,000 often reduces your premium substantially. Only do this if you have the emergency funds to pay the higher deductible after an accident. (See insurer and consumer guides for deductible impact.) 2

3. Remove redundant coverage on older cars

If your car’s cash value is low, consider dropping collision or comprehensive coverage — but only after calculating replacement cost vs. annual premium savings. Many drivers unknowingly over-insure older vehicles.

4. Use discounts smartly

• Bundling (home + auto) usually reduces cost.
• Safe-driver, low-mileage, student, and paid-in-full discounts are common.
• Telematics / usage-based discounts reward safe driving but compare privacy terms first.

Consumer and insurer guidance lists these as top saving strategies. 3

5. Choose cars that are cheaper to insure

Before buying, compare insurance costs for the exact make, model and trim — repair cost, theft rates and safety ratings matter. Safer, cheaper-to-repair cars get lower premiums. Use an insurer or IIHS tool when shopping. 4

6. Check state minimums and legal changes

Minimum liability requirements vary by state and some states updated limits recently (2024–2025); New Jersey and several others scheduled limit changes through 2025–2026. Always confirm your state’s required minimums — carrying only the minimum may be risky in serious crashes. 5

7. Improve or document your driving record

Tickets and accidents cause the biggest near-term premium increases. Defensive driving courses, accurate reporting of claims, and time (claims-free years) reduce premiums. Check with insurers about accident forgiveness or claim-free discounts.

8. Pay attention to credit-based and location factors

Where you live and, in some states, credit-based insurance scores affect rates. If your area’s premiums are high, shopping carriers and adjusting coverages may offset geographic surcharges. Note: some states limit or prohibit certain rating factors — always ask insurers what factors they use. 6

9. Consider amount and type of coverage carefully

Compare liability limits (e.g., 25/50/25 vs higher limits) and consider uninsured/underinsured motorist coverage. If you can’t afford higher limits, at least avoid extremely low liability protection — medical and legal costs after serious crashes quickly exceed low limits. For many drivers, raising liability to a moderate level (100/300) is a safer, cost-effective move.

10. Choose the right company — not just the cheapest

Price matters, but so do claims service, digital tools, and satisfaction. Industry studies like J.D. Power’s Auto Insurance Study rank companies on trust, claims, and ease of business — use these rankings when you decide. 7

Quick savings checklist

• Compare 3+ quotes at renewal.
• Raise deductibles if you have emergency savings.
• Bundle policies and ask about all discounts.
• Drop collision on high-mileage/older cars only after math.
• Take a defensive driving course for discounts (if available).

Disclaimer: This article is informational and not legal advice. Insurance rules and minimums change by state — always confirm with your state regulator or insurer before changing coverage. Key industry trends and state law updates cited from insurer industry reports and consumer guides.