How to Lower Your Auto Insurance Premium: Verified Steps

State-specific guidance is linked to official sources below. National premium figures come from Insurify estimates; actual rates and discount eligibility vary by insurer, state, coverage, and driver.

You can lower your auto insurance premium by checking eligible discounts, comparing quotes from several insurers, considering a higher deductible only if you can afford it, and reviewing your coverage and policy details. Insurify reported that the average annual full-coverage premium fell 6% to $2,144 by the end of 2025; its October 2026 cost page projects a national average of $2,242 a year by the end of 2026. These are national estimates, not a quote for an individual driver.

What discounts can lower my premium?

Many insurers offer discounts, but eligibility, amounts, and whether a discount is applied automatically vary by insurer and state. The NAIC lists possible savings for insuring multiple vehicles, completing driver-education courses, qualifying as a good student or mature driver, having airbags or other safety equipment, using anti-theft devices, and combining auto and home insurance with the same company. Ask your insurer which discounts are available to you and verify that your policy information is accurate.

Some states publish detailed discount guides. Michigan’s Department of Insurance and Financial Services (DIFS) provides a company-by-company chart, but the linked Your Guide to Automobile Insurance labels that table “2019 Auto Buyers Discount Chart.” Treat those percentages as historical, not as current offers. The guide also notes that discounts may apply only to certain coverages and that an insurer may cap total discounts. Ask carriers for their current terms. In New York, the Department of Financial Services says insurers must automatically apply discounts for specified vehicle features and qualifying safety courses; drivers should still confirm that applicable discounts appear on their policies.

Should I raise my deductible?

Raising your deductible can lower your premium, but you need to be able to cover the higher amount if you file a claim. Ask your insurer to quote both a $500 and a $1,000 deductible so you can compare the actual premium difference before making a change. The NAIC identifies higher deductibles on collision and comprehensive coverage as one way to reduce costs, while cautioning drivers to consider whether they can afford the larger out-of-pocket expense.

What should I do now?

These steps are based on guidance from the NAIC and state insurance departments. Start with your current insurer before shopping around.

1. Review your declaration page. Check your premium, coverage limits, deductibles, and any discounts listed in your policy documents. Layouts vary by insurer; ask your agent or company if you cannot locate the discount information.
2. Call your insurer and ask for a complete discount list. Ask specifically about multi-policy, multi-vehicle, claims-free, defensive driving, good student, safety devices, and anti-theft. The NAIC advises asking your agent or company if you are eligible for any discounts.
3. Get a quote with a higher deductible. Ask your insurer what your premium would be with a $1,000 deductible instead of $500. Compare the monthly savings with what you would pay out of pocket after a claim.
4. Ask for a bundling quote. If you have home or renters insurance, get a quote for combining policies with the same insurer. Multi-policy discounts are common.
5. Inquire about telematics and safe-driving programs. Some insurers offer discounts through mobile apps or plug-in devices that monitor driving behavior. The New York DFS lists telematics as an additional potential discount.
6. Shop at least three insurers. The NAIC advises shopping around before buying insurance because prices differ among companies. When comparing quotes, make sure the policies have the same coverages and deductibles.
7. Check your state insurance department’s website. Many states publish consumer guides on discounts. New York and Michigan both maintain detailed lists.

Frequently Asked Questions

Do I have to ask for discounts, or does my insurer apply them automatically?

Not always. Whether a discount is automatic depends on state rules and the insurer. In New York, the Department of Financial Services says auto insurers must automatically apply discounts for specified features and qualifying courses, including anti-theft devices, VIN-etched window glass, anti-lock brakes, daytime running lamps, front-seat belts and airbags, and approved accident-prevention courses. Ask your insurer to confirm which discounts apply to your policy.

How much can I save by raising my deductible?

Savings vary by insurer, state, and coverage. Raising a deductible from $500 to $1,000 can reduce collision and comprehensive premiums, but the exact amount depends on your policy. Ask your insurer to quote both deductible options before changing coverage, and compare the premium reduction with the larger amount you would pay after a covered claim.

The Bottom Line

You can lower your auto insurance premium by asking for every discount you qualify for, raising your deductible if you can afford the risk, bundling policies, and shopping around. Start with a phone call to your current insurer today. Remember: an estimate is not a quote, and your final price depends on the insurer.

Premiums and discounts are typically reviewed at each renewal, usually every six or twelve months. A driver who takes action now can see the effect at the next renewal. Some discounts, like completing a defensive driving course, may require completion before they apply.