By comparing quotes and switching providers, I slashed my yearly premium by thousands. Here’s how you can reduce your rate too.
Surprise doesn’t quite capture how my husband and I felt last spring when our auto insurance renewal landed in his inbox.
To be honest, my husband used a much stronger word — and for good reason. Our annual premium was set to jump from $4,983 in 2024 to $6,374 in 2025, a staggering increase of nearly 28 percent.
Car insurance costs are climbing across the country, so we expected some increase. Covering three vehicles isn’t cheap. Still, there was no way I was going to accept a nearly 30 percent hike without pushing back.
By “pushing back,” I mean calling our insurance broker and asking her to look for a better deal.
“That’s exactly what consumers should do,” says Laura Longero, editor-in-chief of CarInsurance.com, a car insurance comparison site. “Getting quotes from multiple insurers is the smartest move.” According to her, drivers who re-shop their policies save an average of $694 per year.
Our savings were even higher. By switching insurers, we reduced our car insurance costs by $2,680 this year.
If your auto insurance premium is rising — or if you simply want to check whether you could get a better price — the steps below can help you save significantly.
Understand the reason behind the increase
Before shopping for new coverage, it helps to know why your rate went up. That insight can tell you whether switching insurers is worth the effort. The first question I asked our broker was what caused our premium to spike. She pointed to a windshield replacement claim my husband filed in August 2024.
However, the biggest factor was our location. Due to multiple issues — including severe weather events that caused extensive damage across Kentucky — insurance rates have surged statewide. According to data from Quadrant Information Services cited by Insure.com, the average cost of full coverage in Kentucky increased by 34 percent between 2023 and 2025. Full coverage includes liability, collision, and comprehensive insurance.
Compare multiple insurers
Even if your current insurer is raising rates, others may not be. Some companies might keep premiums steady or even lower them. That’s because each insurer uses a different formula to calculate risk and pricing, explains Diana Moinot, founder of Moinot Insurance Group in Houston. A factor that hurts your rate with one company may matter less to another, potentially saving you hundreds of dollars per year.
For more than 10 years, my husband and I have relied on an independent insurance broker to compare options for us. Brokers represent their clients, not insurance companies, and they gather and analyze quotes from multiple insurers. Most brokers don’t charge clients directly, since they earn commissions from the policies they sell, says Erika Tortorici, owner of Optimum Insurance Solutions near Boston.
If you’d rather shop on your own, online comparison platforms like Insure.com, NerdWallet, or Policygenius allow you to compare quotes from several insurers at once. The process usually takes under 10 minutes, according to Longero. Before starting, have your Vehicle Identification Numbers (VINs) and the driver’s licenses of everyone you want to insure.
Make sure you’re comparing equivalent coverage
Cost alone shouldn’t drive your decision. It’s essential to ensure that each quote includes the same level of coverage you currently have. Otherwise, you could save money by giving up important protections, Moinot warns. Our broker handled this comparison for us.
If you’re doing it yourself, use your policy’s declarations page — often called the “dec page” — to compare coverage side by side. Pay close attention to the following details:
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Types of coverage: Do you carry only liability insurance, or do you also have collision, comprehensive, personal injury protection, and uninsured or underinsured motorist coverage?
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Coverage limits: Collision and comprehensive coverage typically cap at your car’s cash value. Liability limits are usually shown as three numbers, such as 100/300/100. This means coverage of up to $100,000 per person for bodily injury, $300,000 per accident, and $100,000 for property damage. Moinot recommends this as a minimum but suggests increasing limits as you get older. For drivers over 45, she often advises limits of 250/500/100 to better protect personal assets.
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Deductibles: This is what you pay out of pocket before insurance applies. According to Kelley Blue Book, $500 deductibles are most common, but choosing higher deductibles can lower your premium. Moinot also advises requesting a verified quote, which uses your driving record and claims history. Without it, the final bill may be higher than the initial estimate.
If a comparison site doesn’t ask for personal information, the price shown is only an estimate — not a guaranteed rate.
Take advantage of every discount
When reviewing quotes, confirm that all eligible discounts are included. Your current policy’s declarations page lists the discounts you’re already receiving.
Discounts vary widely between insurers, which means switching companies can unlock additional savings. For example, with teen drivers on our policy, one insurer offered a larger discount for good grades or for students attending college without a car.
When working with a broker, Tortorici recommends asking, “How can I qualify for every possible discount?”
Common discounts include:
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Bundling policies: Combining auto and homeowners insurance often reduces premiums by 5 to 25 percent.
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Safe driving: A clean driving record can earn discounts of up to 10 percent.
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Paying in full: Paying your annual premium upfront instead of monthly can save 5 to 10 percent.
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Defensive driving courses: Completing one may reduce your rate by 10 to 15 percent.
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Low mileage: Driving fewer than 7,500 miles per year can qualify you for discounts of up to 20 percent.
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Vehicle safety features: Cars equipped with alarms, airbags, or anti-lock brakes may receive discounts of up to 30 percent.
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Usage-based programs: Allowing insurers to monitor your driving can lower rates by 10 to 15 percent if you drive safely.
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Good student discounts: Students with a B average or higher may reduce premiums by 5 to 25 percent.
Check insurance company ratings
Independent organizations such as AM Best, S&P Global Ratings, and J.D. Power evaluate insurers based on financial stability and customer satisfaction. The National Association of Insurance Commissioners also tracks consumer complaints. Websites like Insure.com, Insurance.com, and NerdWallet use this data, along with pricing analysis, to rank insurance companies.
Choosing a company with strong ratings increases the likelihood of reliable service and prompt claim payments, Longero says.
Don’t hesitate to consider a well-rated insurer even if you’re unfamiliar with the name. Large insurers are often more recognizable due to advertising, Tortorici notes, while smaller companies may simply spend less on marketing.
Switching smoothly
We moved both our auto and homeowners insurance to a new provider that offered better pricing — even before applying a multi-policy discount. Our 2025 auto insurance premium dropped to $3,694, saving us $2,680, and our homeowners policy costs $175 less for the same coverage.
The entire process took our broker about three weeks, including gathering quotes, answering our many questions through calls and emails, and finalizing the new policies.
One final reminder: If you decide to switch insurers, never cancel your current policy before the new one takes effect, Longero advises. Driving without insurance is extremely risky, and auto liability coverage is required in nearly every state.
