ATLANTA — If your car insurance rates remain high, comparison shopping, choosing the right vehicle and adjusting your deductible could help lower your bill.
The average annual cost of full-coverage car insurance increased by more than 40% from 2021 to 2025, according to Insurify.
Although rates vary by state and driver, some consumers continue to face high premiums, even without accidents or tickets.
Driver Keltrus Lindsey said his rate increased despite having a clean driving record.
“They had me low the first year. And then next year, no tickets, no accidents, nothing. And it goes up,” Lindsey said. “I’m like, why does it keep going up?”
Channel 2 consumer adviser Clark Howard said drivers don’t have to simply accept higher renewal rates. Instead, he recommends shopping around to see whether another insurer can offer a better deal.
“The auto insurance industry makes it hard for you to comparison shop one company to another,” Howard said. “But the more you push through and compare, the better you’re going to do in your wallet.”
Research insurance costs before buying a car
One factor that can have a major impact on your insurance bill is the vehicle you drive.
According to Insurify figures, full-coverage auto insurance for a Tesla Model 3 costs around $300 per month, compared with $168 for a Ford Explorer and $138 for a Subaru Crosstrek.
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Electric vehicles can save drivers money on gasoline and routine maintenance, but higher repair costs can lead to more expensive insurance premiums.
That’s why Howard recommends researching insurance rates before buying any vehicle, rather than waiting until after the purchase to find out what it will cost to insure.
Don’t automatically accept your renewal rate
Drivers also shouldn’t assume the premium listed on a renewal notice is the best rate they can get.
Driver Donna Panter said she contacted her insurance company after seeing a significant increase.
“I called them and asked them what’s going on because it was like a big jump,” Panter said.
Howard said drivers should compare quotes from several companies. He also warned that some websites promoted as comparison-shopping tools may steer shoppers toward one insurance company instead of providing a complete comparison.
That may mean contacting insurers individually or visiting each company’s website to get quotes using the same coverage limits and deductibles.
Consider using an independent insurance broker
For drivers who find that process overwhelming, an independent insurance broker can do some of the legwork.
Independent brokers can search among multiple insurers to find policies that fit a customer’s needs.
Elaine Jones, owner of Atlanta Premier Insurance Agency, said insurers can’t arbitrarily increase premiums simply because they failed to meet their profit goals.
Raising your deductible could lower your premium
Another way to potentially lower your premium is to raise your deductible, which is the amount you must pay before insurance covers a claim.
“If you’re willing to take on more of the financial risk, then raising your deductible is a good thing,” Jones said.
While a higher deductible can lower a driver’s premium, it also means paying more out of pocket after a crash or another covered loss. Drivers should make sure they have enough savings to cover the higher deductible before making the change.
Drivers who are still making car payments should also check with their lenders. Auto lenders may limit the maximum deductible allowed under a loan agreement.
A higher deductible can also make drivers less likely to file smaller claims.
Look for defensive-driving discounts
If comparison shopping doesn’t produce a better rate, drivers can check whether their state offers an approved defensive-driving course that qualifies them for an insurance discount.
Requirements and discounts vary by state, so drivers should confirm that a course qualifies before enrolling.
Check your credit reports for errors
Drivers should also review their credit reports and dispute any inaccurate information.
In states where the practice is permitted, insurers may use credit information to estimate how likely a customer is to file a claim. An error on a credit report could therefore affect the rates a driver is offered.
For consumers such as Lindsey, finding any opportunity to cut costs can make a difference.
“Everybody’s trying to save money,” Lindsey said. “Everybody needs auto insurance.”
Howard said the key is not to assume your current insurer is offering the best price. Comparing insurers individually and requesting quotes based on the same coverage can give drivers a clearer picture of whether they can save.
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