How to lower your car insurance costs

At minimum, you must meet your state’s liability requirements. But minimum coverage might not be enough. If you cause a serious accident, costs can easily exceed your state’s minimum limits.

This is why many drivers choose higher liability limits that reflect their current financial situations, and they add collision and comprehensive coverage for more well-rounded protection. The right amount depends on your financial situation, vehicle value, and risk tolerance.

If you cause a car accident without insurance, you could very well be responsible for paying for repairs, medical bills, legal costs, and other damages out of pocket. You might also face additional penalties from your state and could have a harder time finding affordable insurance later. Don’t risk it by driving without appropriate insurance.

In many states, yes. Many insurance companies are allowed to use a credit-based insurance score to calculate your premiums. This isn't exactly the same as your credit score, but it’s calculated using similar factors like payment history, debt levels, and credit usage.

Shopping around is often one of the fastest ways to lower your premium. Car insurance companies all price risk differently, so rates for very similar coverage can vary more than you might think. You could also ask about discounts, raise your deductible, or update your annual mileage if your driving habits have changed.