You can almost always cut a car insurance bill without touching your liability limits. The savings hide in three places: the company you buy from, the discounts nobody applied for you, and the deductible you set once in 2019 and never looked at again. Dropping collision or shrinking your liability limits is the lazy version of saving money, and it is the version that bankrupts people after a bad Tuesday.
Here is the number that explains why this feels urgent. The National Association of Insurance Commissioners, in its 2023 Auto Insurance Database Average Premium Supplement, put the national average expenditure per insured vehicle at $1,281.60, a 19.21 percent increase since 2019. Rates went up roughly a fifth in four years. Your driving did not get 19 percent worse.
Shop the policy every renewal, because loyalty is not priced
Comparison shopping is the single biggest lever on your premium, and it costs you about fifteen minutes. Insurers do not price your loyalty, they price their own book of business, and that book changes constantly. Pull fresh quotes from several carriers with identical limits and identical deductibles, then compare. If you keep the coverage columns identical, the only thing that moves is price, which is the entire point. Start with our car insurance quotes page, and if you want to size up carriers first, read our car insurance company comparison.
Ask for the discounts, because most are opt-in
Discounts are rarely applied automatically, so your job is to name them out loud when you get a quote. The Insurance Information Institute lists low-mileage discounts for drivers who cover fewer than average miles per year, and group discounts for people who buy through an employer, a professional association, or an alumni group. Neither shows up unless you mention it. Same story with bundling, paperless billing, paying in full, defensive-driving credits, and good-student credits for a teen on your policy. If you now work from home three days a week, tell your insurer your annual mileage dropped. That is a real change in exposure, and it is a real change in price.
Where the money actually is
The table below ranks the common levers by how much they move a bill and what they cost you in protection. Notice that the biggest wins sit at the top, and none of them reduce what your policy pays out.
| Lever | Typical impact | What it costs you |
|---|---|---|
| Re-shop with identical limits | Often the largest single change | Nothing, coverage is unchanged |
| Raise deductible to $1,000 | III: 40 percent or more off collision and comprehensive | More cash out of pocket per claim |
| Unclaimed discounts | Stacks, several small credits | Nothing, you just have to ask |
| Improve credit (most states) | Slow but durable | Nothing, takes months |
| Cutting liability limits | Small savings | Your personal assets. Do not do it |
Raise the deductible, keep the coverage
Raising your deductible lowers the premium while leaving your coverage types fully intact, which is exactly the trade this article is about. The Insurance Information Institute states that increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent, and that going to a $1,000 deductible can save 40 percent or more. The catch is honest and simple: III also warns you should have enough money set aside to pay that deductible if you have a claim. So do not take the $1,000 option unless $1,000 is genuinely sitting somewhere you can reach this week.
Credit quietly sets your price in most states
Your credit history feeds your car insurance rate in most of the country, and improving it pays twice. III puts it plainly: establishing a solid credit history can cut your insurance costs, because most insurers use credit information to price auto policies. A handful of states have shut this door for auto insurance. Per Experian, California insurers do not use credit-based scores or credit history for rating auto policies, Hawaii bans auto insurers from using credit ratings in underwriting standards and rating plans, Massachusetts forbids using credit information when setting rates or renewing an auto policy, and Michigan auto insurers cannot use a credit score to determine rates. If you live anywhere else, treat your credit file as part of your insurance strategy. Our guide on car insurance with bad credit covers what to do while you rebuild.
What you should refuse to cut
Liability limits are the one line item worth protecting at almost any premium, because they are the only thing standing between a serious at-fault crash and your savings. State minimums are political compromises, not risk assessments, and a single hospital stay can blow through them before lunch. Uninsured motorist coverage belongs in the same protected category, and comprehensive is usually cheap relative to what it covers. If you are unsure which pieces you actually have, our liability versus full coverage explainer lays it out, and requirements by state are in our state coverage guide.
One more case worth knowing: if you sell the car and keep driving other people’s vehicles, the cheapest way to stay insured is a liability-only policy in your own name, which we break down in non-owner car insurance, who needs it and what it costs.
Frequently asked questions
How often should I compare car insurance quotes?
Compare at every renewal, so once every six or twelve months depending on your policy term. Also re-shop after any life event that changes your risk profile: a move to a new ZIP code, a marriage, a new car, a teen driver added or removed, or a violation that finally aged off your record.
Will shopping around hurt my credit score?
Insurance quote checks generally use a soft inquiry, which does not affect your credit score the way a loan application can. Confirm this with each carrier before you apply, since practices can differ when you actually purchase a policy.
Is a higher deductible worth it if I drive a lot?
A higher deductible is worth it only if you can pay it on short notice, regardless of mileage. Heavy drivers face more claim opportunities, so compare your annual premium saving against the extra amount you would owe per claim.
Does dropping collision save more than switching insurers?
Switching insurers usually saves more and costs you nothing in protection, while dropping collision leaves you paying for your own repairs. Drop collision only when the car’s value has fallen far enough that the payout would be trivial, and even then, price the switch first.
This guide is general information, not personalized insurance advice. Coverage rules and pricing factors vary by state and by carrier, so confirm details with a licensed agent or your state insurance department before you change a policy.