14 Ways to Lower Your Car Insurance Rate in 2025

Car insurance prices have skyrocketed over the past few years, even as overall inflation has cooled. This surge is largely due to increased crashes, litigation, and rising repair costs. A 2024 report found that the average auto insurance premium in the U.S. has increased by 26%.

But car insurance is essential for anyone who drives—so how can you make your policy more affordable? Here are 14 expert tips from C&S Insurance to help you save money on your car insurance premium.

1. See if You Qualify for Discounts

Before switching insurers, check for discounts with your current provider. You might save by enrolling in autopay, paying online, or paying your premium upfront instead of monthly.

Students can often qualify for a good student discount by submitting their grades. If you’re away at college for extended periods and leave your car at home, you may also be eligible for a reduced rate.

Military members—active, retired, or reserved—may qualify for discounts, depending on the insurer.

Parking your car in a garage and driving less can also lead to savings. (See Tip #8 for more on reporting mileage.)

2. Switch Insurance Companies

Switching insurers could help you save significantly. According to Consumer Reports, drivers who switched over the past five years saved an average of $461 per year.

It’s smart to shop for a new policy annually, especially after major life changes like moving, starting a new job, working remotely, retiring, or getting married. Moving to a less populated area or reducing your commute could also lower your rates.

Older drivers facing sharp rate increases may also benefit from shopping around—particularly if they have a clean driving record.

3. Improve Your Credit Score

Boosting your credit score can make you appear more responsible to insurers—leading to lower rates. However, some states, including California, Hawaii, Massachusetts, and Michigan, restrict or prohibit the use of credit scores in setting premiums.

On average, drivers with poor credit (scores below 580) pay more than $1,700 annually compared to those with scores above 800.

4. Sign Up for an Automated Driver Monitoring Program

Many insurers offer driver monitoring programs that can lead to savings—often through a smartphone app or a device that plugs into your car’s diagnostic port. These programs track your speed, braking, turning habits, and location.

The median driver saves about $120 annually, and savings can exceed $900.

However, be aware of privacy concerns. Before enrolling, ask how your data will be used and whether negative driving behavior could actually increase your rates. Also, check if frequent nighttime driving would impact your premium.

5. Take a Defensive Driving Course

Defensive driving courses not only sharpen your skills but can also reduce your premium by an average of $233 per year.

Before enrolling, make sure the course is state-approved and check with your insurer to confirm it qualifies for a discount.

6. Take a Course for Older Drivers

Older drivers may see premiums rise sharply. However, completing a driver education course designed for older adults can help mitigate this. These courses address age-related challenges like diminished hearing, eyesight, and flexibility.

Programs are available through organizations like AAA, and AARP offers member discounts.

7. Upgrade to a Car with Advanced Safety Systems

If you’re shopping for a new car, consider models equipped with advanced safety features such as automatic emergency braking (AEB), strong crash-test ratings, blind spot monitoring, and side or curtain airbags.

While newer cars can have higher base premiums, advanced safety systems reduce accident risk—potentially lowering your rates.

8. Report Your Mileage If You Drive Less

If you drive fewer than 10,000 miles per year, you may qualify for a lower rate. Reporting your mileage—or regularly submitting odometer readings—could save you over $100 annually.

9. Bundle Home and Auto Insurance

Purchasing your home and auto insurance from the same company can yield significant discounts—sometimes saving you hundreds per year. While bundling doesn’t always guarantee savings, it’s worth exploring with an insurance agent.

[Learn more about the benefits of bundling.]

10. Increase Your Deductible

Raising your deductible—the amount you pay before insurance covers a claim—can lower your premium. Increasing your deductible from $500 to $1,000 could reduce your premium by 20–25%.

Just be sure you can comfortably afford the deductible if you ever need to file a claim.

11. Drop Collision and Comprehensive Coverage

If you drive an older car that has significantly depreciated in value, you might consider dropping collision and comprehensive coverage. However, remember that liability-only policies leave you responsible for damage to your own vehicle and medical expenses after an at-fault accident.

A general guideline: If your annual premium exceeds 10% of your car’s current value, it may be time to drop these coverages.

12. Pay Out of Pocket for Minor Damage

For minor damage—like a bumper dent or a scraped door—you might save money by paying for repairs out of pocket rather than filing a claim. This can help you avoid future premium increases.

However, be aware that accidents involving other vehicles or property often require official reporting, depending on your state laws.

13. Switch to a Dividend Policy

Dividend policies allow policyholders to share in the insurer’s profits through annual payouts. These policies can save you $116 or more per year and often offer additional savings when you bundle home and auto coverage.

14. Work with an Independent Insurance Agent

Independent agents aren’t tied to specific companies, so they can compare rates and coverage options to find the best deal for you. Working with an independent agent could save you hundreds annually.

Get in touch with an independent agent at C&S Insurance today.