13 Ways to Lower Your Car Insurance Rate

Content provided by Liberty Mutual Insurance Company® 

You may be wondering, why is my car insurance so expensive and how can I lower it? These reasons range from the value of your vehicle to your driving habits, and lots of factors in between. 

Some things are out of your control, such as rising costs to fix your vehicle or increasing medical costs and fraud. 

The good news is, there are some things you might be able to do to lower your insurance rate if it seems too expensive.

Here are some ways to save on car insurance1

  1. Increase your deductible

  2. Check for discounts you qualify for

  3. Compare auto insurance quotes

  4. Maintain a good driving record

  5. Participate in a safe driving program

  6. Take a defensive driving course

  7. Explore payment options

  8. Improve your credit score

  9. Participate in a low-mileage driving program

  10. Review your current policy

  11. Consider your vehicle features

  12. Learn how to save with teen drivers

  13. Bundle your policies

1. Increase your deductible

Depending on your insurance provider, paying a higher deductible (the amount you pay out of pocket before your insurance coverage kicks in, in the event of an incident) is typically a quick and easy way you can make your car insurance payments less expensive. 

You may be able to do this directly online or through your insurance company’s mobile app. Keep in mind you need to be prepared to pay the deductible amount yourself if you get into an accident. Make sure you have enough savings set aside to cover your deductibles to be safe. 

2. Double check what discounts you qualify for

Research what discounts are offered by your insurance company to make sure you’re getting the best price on your car insurance.

There may be some discounts you didn’t know about. Liberty Mutual offers several different types of car insurance discounts that range from going paperless to signing up for a new policy before your old one ends.

Common discounts to lower your auto insurance1

  • Buying your policy online

  • Enrolling in preferred payment options such as automatic payment

  • Bundling you car insurance with your home insurance or multiple vehicles

  • Participating in a safe driving program like RightTrack®

  • Having advanced safety and anti-theft features in your car

  • Having an energy efficient car

  • Being a good student or being away at school for teens or young drivers

  • Being an active, retired, or reserved member of the military


Some companies may even offer discounts for things like parking in a garage (especially if you live in a high-theft area) or how much you drive.

3. Shop around for car insurance

Be sure to get several quotes online, or even from a local insurance agent.

Keep in mind that the cheapest insurance isn't always the best. Focus on the coverage you need and make sure you're getting quotes that reflect that. If you think a cheap car insurance quote is too good to be true, it likely is.

4. Maintain a good driving record

Safe drivers always save with Liberty Mutual. In addition to protecting yourself and others on the road, it pays to drive safe.

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.

Additionally, if you have a claims-free or violation-free history, you can receive additional discounts.

5. Sign up for our safe driving program

Don't have the best driving record or got into an accident recently? There's always room to improve. Regardless of your driving record, you can demonstrate your safe driving habits with our safe driving program, RightTrack®

This program can be a great way to proactively prove you're a responsible driver without having to wait for your insurance rates to lower after an accident or driving violation.

The biggest benefit to participating in RightTrack is the option to save up to 30% on your premium for the lifetime of your policy. You even get a discount just for signing up and participating.

While participating in RightTrack, we'll observe your driving habits and reward you for safe driving. Some of the behaviors we track include braking, acceleration, nighttime driving, and how much you drive overall.

We offer 4 RightTrack programs, based on where you live. Check your progress on the go with the RightTrack and Liberty Mutual mobile apps. Or set it and forget it with RightTrack plugin devices and car tag devices that monitor your driving habits automatically.

Learn more about how you can save on your car insurance with RightTrack.

6. Take an accident prevention course

Driving courses are not just for new drivers. At Liberty Mutual, we offer a discount to policy holders in certain states who complete a qualified accident prevention driver course. Some courses can even be completed online.

7. Explore payment options

If you can be flexible with your payment methods, you could save on your car insurance premium.

Liberty Mutual offers a discount if you pay for your policy with one or two annual payments. You can also save if you elect to pay with a preferred method, such as linking a bank account.

Another option is to go paperless for your account statements and communication – you’ll save on your policy and help the environment. It’s a win-win.

8. Improve your credit score

What does my credit score have to do with my car insurance? In some states, a credit check may be part of your risk assessment by insurance companies.

Sometimes people with higher credit scores get lower insurance rates because it correlates to making responsible decisions when driving.

If you want to start improving your credit score, be sure to pay your bills on time every month, decrease your credit utilization rate (the amount you spend compared to your total line of credit amount), and make sure the information on your credit report is accurate – you can dispute anything that is not correct.

9. Do you work from home or only drive a few miles a day?

If you work from home, use public transportation to get to work, or have a short commute (lucky you!), you may qualify for low mileage discounts.

10. Review your current policy

If you’ve had the same policy for a few years, or maybe several, it might be time to review and see if your coverage needs have changed. 

One thing to consider is the older your vehicle is, the less it costs to replace in the event of an accident. This means you might be able to lower your limits associated with vehicle repair, like comprehensive and collision. 

If you’ve paid off or owe a minimal amount on any loans you have on your vehicle, you may not need gap insurance. If you lease or finance your vehicle, you’re likely required to have a certain level of comprehensive and collision coverage. If you own your car, you may be able to lower or opt out of those coverages. 

You might even qualify for additional discounts since you started your policy. If you turned older than 25, got married, or purchased a home, be sure your policy reflects that information – these are all factors that might help you save on your premium.

11. Research insurance costs before deciding on what car you want

One of the factors that affects your insurance rate is the vehicle you drive, as some are more expensive to insure than others. Think: a speedy sports car versus a safety-first minivan. 

If you’re in the market for a new vehicle, it’s important to consider how much it will cost to insure the vehicle you buy. And it’s helpful to know that it’s not always the cheapest vehicles that are the cheapest to insure. 

When choosing your vehicle, keep in mind that the more expensive it might be to repair, the more likely it is that your insurance rate might reflect that. So, adding features like upgraded trim, cutting-edge audio systems, and extra technology could add up. 

Vehicles that tend to have the lowest insurance rates on average2

  • Subaru Outback

  • Jeep Wrangler

  • Honda CR-V

  • Subaru Forester

  • Ford Escape

  • Ford F-150

12. Look into ways you can save with teen drivers

Adding a teen driver to your policy will most likely make your insurance more expensive. Luckily, there are some ways to prevent your costs from increasing too drastically.

Lots of insurance companies, including Liberty Mutual, offer discounts for teens3 who get good grades, are away at school, or choose a higher deductible.

13. Bundle your policies

Combining your home and auto policies to one insurance carrier is one of the easiest ways to lower your insurance rate. 

Regardless of whether you own or rent your home, you can bundle it with your auto policy to save. In addition to a discount, you’ll save time when you only have one account to manage with one login, less payments to keep track of, and more.

See how much you could save bundling your home and auto insurance policies by getting a multi-policy quote.

1Discounts and savings are provided as general industry-wide examples for informational purposes, and may not be available from Liberty Mutual, or to all consumers.


3Discounts and savings are available where state laws and regulations allow, and may vary by state. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify.

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