How To Save Money on Car Insurance in 9 Ways 2024 (2024)

FAQs

Are insurance rates going up in 2024? ›

Car insurance costs have been on the rise, leaving drivers searching for ways to save on car ownership costs. In fact, according to a report from Bankrate, the average annual premium of full coverage auto insurance rose to $2,543 in 2024 — up 26% from the previous year.

Among the most common policy discount opportunities are multi-vehicle, multi-policy, military, homeowner, good student, customer loyalty and safe driver discounts. Inquire about discounts with potential new providers, but don't forget to ask your existing insurer if you qualify for savings as well.

How to lower your car insurance rate. Some of the most impactful ways to lower your car insurance include qualifying for multiple discounts, avoiding accidents, and changing your coverage. Comparing rates, trying usage-based insurance, and knowing how your vehicle might affect your rate can also help.

Car insurance premiums ncreased 20.6% in the 12 months ending February 2024, according to Cthe latest Consumer Price Index, released March 12, 2024. The reasons are many — from lingering inflation and the rising cost of repairs to an uptick in severe weather and the number and severity of accidents.

Nationally, the average cost of full coverage car insurance rose to $2,543 in 2024, an increase of 26 percent over last year.

Defined Events Coverage

Unless the policy specifically defines a damage-causing event, no coverage will be rewarded to the claimant. Avoid policies in which the defined events are limited, improbable or irrelevant to your situation.

A high deductible will lower your overall insurance rate, however it will increase your out-of-pocket costs if you file a claim.

Maintain a good driving record

Always avoid speeding, getting into accidents, and other driving incidents. Not only do you prevent expensive speeding tickets or other moving violation costs, you also help keep your insurance rates lower by proving you're a less risky driver.

What car has the cheapest insurance? ›

Which car make is the cheapest to insure? Mazdas, Chryslers and Subarus are the cheapest cars to insure. Certain car makes tend to be more expensive to insure than others. For example, a Mazda tends to be cheaper to insure when compared to a luxury brand such as Tesla.

The way you drive is likely to be the biggest factor in how much you pay for car insurance. Just one speeding ticket could raise your rate for full coverage an average of $409 annually. And the more traffic violations and accidents you have, the higher your rate will soar.

You should carry the highest amount of liability coverage you can afford, with 100/300/100 being the best coverage level for most drivers. You may need to carry additional coverages to protect your vehicle, including comprehensive, collision and gap coverage.

But no matter where you live, liability car insurance—which covers damage and injuries you cause others in an accident—is the main required coverage. The minimum car insurance required by your state is important to know, but this amount may not be adequate for your needs.

If your car insurance goes up for seemingly no reason when you renew your policy, it's likely due to an increase in risk that's outside of your control. This could include reasons like increased claims in your area (due to more extreme weather damage, more accidents, etc.) and higher car repair and replacement costs.

Rate level increases often come about because of trends in the industry towards more expensive vehicle repair and medical costs. Repairs and medical costs are almost always on the rise, so overall rate decreases are a very rare occurrence.

The insurance industry references the Consumer Price Index to measure inflation and adjusts rates accordingly. It's one big reason why property owners find that their home insurance keeps going up year after year, even if nothing's changed on their property.

Factors such as longer repair times and more expensive rental car costs are resulting in rising prices, according to a report by the American Property Casualty Insurance Association. Also, cars are becoming costlier to fix.