Key takeaways
- The average full-coverage policy cost about $2,237 a year in mid-2026, according to Insurify.
- Shopping around, raising deductibles and claiming discounts are the biggest levers.
- Don't cut liability coverage; state minimums are often too low.
Car insurance prices rose sharply from 2022 to 2024, eased in 2025, and started inching up again in 2026. Insurify reported the average full-coverage premium was about $2,237 a year in the first half of 2026, up 1% from the end of 2025, with rate increases projected in 32 states by year-end.
1. Compare quotes at every renewal
Each insurer weighs your age, location, car, driving history and (in most states) credit differently. Get quotes from at least three companies with the exact same coverage.
2. Raise your deductible
Moving from a $500 to a $1,000 deductible on collision and comprehensive can lower your premium. Make sure you can comfortably pay the deductible from savings.
3. Ask for every discount
- Multi-policy (bundling with home or renters)
- Multi-car
- Safe driver or claims-free
- Good student or student away at school
- Defensive driving course
- Low mileage
- Paperless, autopay and paid-in-full
- Anti-theft devices and safety features
4. Try usage-based insurance carefully
Programs that track your driving through an app or device can lower premiums for safe, low-mileage drivers. They can also raise them if you brake hard or drive late at night.
5. Drop collision on an older car
If your car is worth a few thousand dollars, compare its value to what you pay for collision and comprehensive each year. If the coverage costs more than a big share of what you’d get after the deductible, it may be time to drop it.
6. Improve your credit
In most states, a better credit-based insurance score can lower your premium. See our guide to raising your credit score.
Coverage you shouldn’t skimp on
- Liability: Pays for injuries and damage you cause to others. State minimums are often far too low to protect your savings. Many experts suggest at least 100/300/100 if you can afford it.
- Uninsured/underinsured motorist: Covers you if the other driver can’t pay.
For the full list of insurance savings steps, see our guide to lowering insurance costs.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
