7 ways to save on car insurance in 2026

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.

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.

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.

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 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 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.

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.

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. )

Metromile is another strong contender in the pay-per-mile space, with a discount of up to 15% if you bundle with Lemonade home or renters insurance. 

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.

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.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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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.