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There’s no question that adequate car insurance is a necessity, but you shouldn’t have to pay an arm and a leg to get it. If you know what factors determine auto coverage rates and some tips for shopping around, you can find the most affordable car insurance policy for your situation.

In this article, our Home Media reviews team will highlight a few proven strategies for saving money on car insurance. We’ll also discuss the average costs of auto coverage and what goes into the price you pay. Once you’re ready to explore your options, check out our rankings of the best car insurance companies to further inform your decision.

It’s good to know what people typically pay for car insurance before you start your search for the best possible rates. According to our cost estimates, the average 35-year-old U.S. driver with good credit and a clean driving record pays about $1,730 per year or $144 per month for full coverage car insurance. When it comes to minimum liability coverage, the national average rate is $635 per year or $53 per month.

It’s good to know what people typically pay for car insurance before you start your search for the best possible rates. According to our cost estimates, the average 35-year-old U.S. driver with good credit and a clean driving record pays about $1,730 per year or $144 per month for full coverage car insurance. When it comes to minimum liability coverage, the national average rate is $635 per year or $53 per month.

There’s a lot that goes into the price you pay for car insurance, and knowing which factors are in your control can help you find more affordable rates.

Here’s a look at some of the key factors insurance providers consider when setting coverage rates:

You can choose the level of insurance coverage you want as long as you meet your state’s minimum requirements. Most states require liability car insurance for personal injury and property damage, which covers the cost of damages and injuries from accidents you cause. Some states mandate underinsured or uninsured motorist coverage , which helps cover medical expenses and repair costs when an at-fault driver lacks sufficient insurance.

Full coverage car insurance includes collision protection and comprehensive coverage in addition to liability coverage. Collision insurance covers damage to your vehicle from collisions with other cars, objects or buildings. Comprehensive insurance protects your car from environmental damage, vandalism and collisions with animals or parked cars. 

In our 2022 car insurance survey that polled 1,000 drivers, two-thirds of the respondents said they usually buy full coverage insurance. If you finance a vehicle, lenders typically require you to maintain full coverage until you pay off the loan.

When it comes to finding cheap car insurance , comparing quotes from multiple providers is a proven strategy that’s tough to beat. But that doesn’t mean it’s the only way to lock in lower rates. Here are a few more ways you can reduce your car insurance bill without compromising quality vehicle protection:

Even though many factors influence how much you pay for coverage, you can find an affordable auto insurance policy if you know where to look. One of the best ways to save is to compare car insurance quotes from multiple providers to find the best choice for your needs.

When starting your search for affordable car insurance, we recommend checking out State Farm, Geico and USAA.

As the largest insurer in the U.S. , State Farm has an excellent industry reputation and great customer service record. It’s typically one of the most affordable insurers and offers especially low rates for student and teen drivers. State Farm policyholders can save with the company’s Drive Safe & Save™ usage-based program, which offers discounts for safe driving habits.

Keep reading: State Farm insurance review

In our industry-wide review, our team recognized Geico as one of the top choices for the average driver. Geico has some of the lowest average rates for a wide range of drivers, and policyholders can take advantage of numerous discounts. The company’s extensive selection of add-on coverage options, including mechanical breakdown insurance, is a significant draw as well. 

Keep reading: Geico insurance review

Although USAA coverage is limited to military members, veterans and their immediate families, it’s an excellent choice if you qualify for coverage. USAA members get the best of both worlds: cheap car insurance and quality customer service. Reviews from customers consistently give the company high marks, and the insurer scores well in many J.D. Power customer satisfaction studies. It tends to be the cheapest car insurance provider for those who qualify.

Keep reading: USAA insurance review

The simplest way to save on car insurance premiums is to compare quotes from multiple providers. You can also ask your current provider about discounts you might be eligible for, and bundle policies if possible. Raising your deductible is another good way to bring your premiums down, but you need to make sure you can pay higher out-of-pocket costs before doing so.

Yes, many auto insurance companies offer discounts for paying annual insurance premiums up front rather than on a monthly or bi-monthly basis.

The type of vehicle you drive, your location, your age and your driving record all significantly impact the price you pay for car insurance. The coverage options and deductible you choose also play major roles in determining car insurance costs. In many states, your credit history can affect how much you pay for coverage as well.

Our cost estimates show that 35-year-old married drivers with good credit and clean driving records pay an average of $144 per month for car insurance. Paying around $100 per month for quality auto coverage is a good deal.

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.

In this article, we selected companies with high overall ratings and cost ratings. The cost ratings were informed by auto insurance rate estimates generated by Quadrant Information Services and discount opportunities.

*Data accurate at time of publication.

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