Auto insurance premiums have surged roughly 67% from April 2020 to April 2025, with the average American paying $2,638 for full coverage in 2024. Costs have stabilized over the past year, but rates remain elevated due to more expensive vehicles and a spike in serious accidents during the pandemic.
“People developed more risky driving behavior during the pandemic,” said Matt Brannon, senior economic analyst at Insurify.
Here are the top expert-backed strategies to lower your premium:
1. Shop Around - Switching insurers can save over $1,000 per year. According to Bankrate, average annual full-coverage premiums range from $2,059 (USAA) to $3,355 (Allstate). Independent brokers can unlock deals not available to the public.
2. Raise Your Deductible - Doubling your deductible from $500 to $1,000 can cut your premium by 20% to 25%, per Consumer Reports. Most drivers rarely file claims.
3. Drop Collision & Comprehensive on Old Cars - If your annual premium exceeds 10% of your car’s value, consider dropping these coverages. You may be paying more than you’d ever collect.
4. Take a Defensive Driving Course - A state-approved course (often $25) can yield a 10% discount in some states.
5. Ask for Discounts - Insurers offer breaks for bundling policies, good student records, military service, low mileage, safety features, and autopay. Some are automatic; others require asking.
6. Try a Safe-Driving App - Telematics programs can save good drivers 10-30%, but read the fine print: poor habits can raise your rate.
7. Improve Your Credit Score - In most states, insurers factor in credit. Pay down debt and avoid late payments.
8. Drive Safely - A clean record is your strongest lever. Speed, impairment, and distraction are the biggest crash factors.
9. Buy a Cheaper Car - Luxury and high-performance vehicles cost significantly more to insure.
10. Review Your Policy Before Renewal - Check every six months, especially after major life changes: moving, marriage, retirement, or adding a driver.