Reviewed by Conor Keenan, AWMA®
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How to Save on Car Insurance
You don't have to wait for your next renewal to see if you could save.
See What Other Insurers Would Charge
Start with your current policy or declarations page. Find your total premium, coverage limits, deductibles and any optional coverage you currently carry.
Then use those details when you shop for quotes. Insurance prices can vary from one company to another, even for the same driver, vehicle and coverage.
When comparing options, look at:
- Your total six- or twelve-month premium
- Liability and other coverage limits
- Collision and comprehensive deductibles
- Discounts included in the quote
- Installment or payment fees
Compare the full policy cost, not just the advertised monthly payment. A quote may look cheaper simply because it includes less coverage or a higher deductible.
The NAIC shopping tool can help you organize the details as you compare.
Look for Easy Ways to Lower the Price
Before accepting a quote, check whether you're getting credit for every discount available to you.
Ask about changes in your annual mileage or commute, multi-policy discounts, vehicle safety features and other discounts you may qualify for. If you're considering a bundle, compare the combined price with what the policies would cost separately.
You can also see how changing your deductible affects your premium. A higher deductible may lower what you pay for insurance, but it also increases what you could owe after a covered claim.
Choose a deductible you would be comfortable paying if you needed to make a claim.
If your vehicle is financed or leased, check your lender's requirements before changing collision or comprehensive coverage. State minimum liability requirements are a legal minimum, not necessarily the right amount of protection for every driver.
Found a Better Deal? Switching Can Be Simple.
If another insurer offers the coverage you want at a better price, you don't necessarily need to wait until your current policy expires to switch.
Before canceling your existing policy:
- Confirm your new policy has been approved.
- Pay any amount required to activate the new policy.
- Verify the exact date and time your new coverage begins.
- Once the new coverage is active, cancel your old policy.
Never cancel your existing insurance until your replacement coverage is active.
Ask your previous insurer about any cancellation charges and whether you're due a refund for unused prepaid premium. Save your new proof of insurance and update your lender or lease company if required.
This Week's Finish Line: Check What You Could Save
Get at least one car insurance quote using coverage that's reasonably comparable to what you have today.
Even if you decide to stay with your current insurer, you'll know whether your current rate is still competitive.
And if another insurer offers similar coverage for less, switching could turn one quick comparison into savings that continue month after month.
Frequently Asked Questions
Can I switch car insurance before my policy expires?
Usually, yes. You generally don't have to wait until your renewal date to change insurers. If you find a better option, make sure your new coverage is active before canceling your current policy.
Will I get a refund if I switch car insurance early?
You may receive a refund for unused prepaid premium after canceling your old policy. The amount can depend on your insurer, policy terms and any applicable cancellation charges, so it's worth asking before you switch.
Will switching car insurance cause a coverage gap?
It shouldn't if you time the switch correctly. Confirm the exact date and time your new policy begins before canceling the old one so your coverage continues without interruption.
How do I know if a cheaper car insurance quote is actually a better deal?
Compare more than the monthly price. Look at the total policy premium, coverage limits, deductibles and optional coverage. A lower quote isn't necessarily a better deal if you're giving up protection you want.
Should I get multiple car insurance quotes?
Comparing more than one insurer can give you a better sense of whether your current rate is competitive. Prices can differ between insurers even when you're requesting similar coverage.
Can I ask my current insurer to match a lower quote?
You can ask your current insurer to review your policy, discounts and available pricing after you receive another quote. Even if they don't match it exactly, they may identify discounts or coverage changes that could lower your premium.
Is switching car insurance difficult?
The process can be fairly straightforward. Once your new policy is approved and active, you can cancel your previous policy, save your new proof of insurance and update your lender or lease company if needed.
When is a good time to compare car insurance rates?
Your renewal is a natural time to shop, but you don't have to wait for it. It may also be worth comparing rates after a major life change, a change in your driving habits or whenever you feel your premium has become too expensive.