How Can You Find Budget Auto Insurance?

Last Updated on December 15, 2025

Auto insurance prices vary wildly — and many drivers pay more than they need to for the same level of protection.

In 2025, national “average” premiums are well into the thousands per year for many drivers, but your price depends on your state, vehicle, driving record, credit (where allowed), and the coverages you choose. The good news: with a little strategy, you can usually find budget-friendly car insurance that still protects you financially.

Below are 13 practical tips to lower your premium without accidentally leaving yourself exposed.

Key Takeaways

• Auto insurance rates can differ by hundreds (or thousands) per year for the same driver — so comparing quotes across multiple companies is the fastest way to find budget coverage.
• Stacking discounts (bundling, multi-car, good student, pay-in-full, safe driver) can lower premiums significantly, but you often need to ask for every discount you qualify for.
• Raising your deductible or dropping collision/comp on an older car can reduce premiums — but only if you can afford the higher out-of-pocket risk.
• Low-mileage drivers may save with usage-based or pay-per-mile insurance, while safe drivers may benefit from telematics programs that reward good driving habits.

Top 13 Tips for Getting Auto Insurance on a Budget

There are dozens of ways to get auto insurance on a budget. We’ve covered some of the best and most effective tips below.

1. Understand How Insurers Calculate Rates

Insurers use a long list of factors to set your premium. Some are “baked in” (you can’t change them quickly), while others are within your control.

Factors You Cannot Change (or can’t change easily)

These tend to have a big impact, but they’re hard to adjust in the short term:

• Age
• Driving history
• City and ZIP code
• State insurance laws and requirements
• Vehicle make and model

Factors You Can Change

You can often lower your rate by adjusting these items (and by avoiding coverage lapses):

• Credit score (where allowed)
• Coverage options
• Coverage limits 
• Deductibles
• Insurance company  (rates can vary dramatically for the same driver)

Focus on what you can control, and remember: each insurer weighs these factors differently — that’s why shopping around can produce huge savings.

2. Start Your Search with State Farm, GEICO, or USAA (Then Branch Out)

State Farm and GEICO are two of the largest auto insurers in the U.S., and they often price competitively for many driver profiles.

USAA is frequently a strong value if you qualify (active duty, veterans, and certain eligible family members). If your parent was a member of the military, then you could qualify for USAA membership — and membership can extend to certain family members.

But don’t stop there. In many states, regional insurers and smaller companies can beat the big names — so use these as a starting point, not the finish line.

3. Compare Quotes Across Multiple Companies (Same Coverages Each Time)

There’s no single “cheapest car insurance company” for everyone. The only reliable way to find budget auto insurance is to compare quotes from several insurers using the same deductibles and coverage limits.

Tips for cleaner comparisons:

• Quote the same coverages, limits, and deductibles across every company
• Ask about fees (installment fees, processing fees, and down payments can change the “real” cost)
• Try both: direct-to-consumer quotes and an independent agent (some regional carriers only sell through agents)

4. Take Advantage of Discounts (And Ask What You’re Missing)

All car insurance companies offer discounts, but they don’t always apply them automatically. Asking the right questions can save you real money.

Some of the best discounts to look for include:

• Bundling discounts (auto + home, renters, or condo)
• Multi-vehicle discounts
• Good student discounts
• Paid in full discounts (and avoiding monthly installment fees)
• Group affinity discounts
• Clean driving record or safe driving discounts

Also ask about: autopay/paperless discounts, homeowner discounts (even without bundling), low-mileage discounts, and “student away at school” discounts.

5. Sign Up for Telematics / Driver Tracking Programs (If You’re a Safe Driver)

Many insurers offer telematics/driver tracking programs that use a smartphone app or plug-in device to measure driving behavior. In return, you may earn a discount — especially if you drive safely and/or don’t drive much.

These programs can track things like:

• Hard braking and rapid acceleration
• Speeding
• Time of day (late-night driving can rate higher risk)
• Phone use while driving
• Overall mileage

Important: telematics isn’t for everyone. If you regularly drive at high-risk times, commute long distances, or worry about privacy, a telematics program may not be a good fit. But for cautious drivers, it can be a meaningful savings lever.

6. Improve Your Credit Score (Where It’s Used)

In many states, insurers consider a credit-based insurance score when pricing car insurance. If your credit improves, your insurance rate may improve over time as well.

Practical ways to strengthen credit include paying every bill on time, reducing credit card balances, keeping older accounts open, and checking your reports for errors.

Note: rules vary by state, and some states restrict or limit how insurers can use credit information when setting rates.

7. Drop Collision and Comprehensive Coverage on Older Vehicles (Sometimes)

Collision and comprehensive coverage are optional in all states. They cover your own vehicle against accident damages and non-accident damages.

On an older vehicle, you can drop collision and comprehensive coverage to save money — but only if you can afford to repair or replace the car yourself.

Collision Coverage: Collision coverage helps pay to repair your vehicle after an accident (or things like hitting a curb or pothole), minus your deductible.

Comprehensive Coverage: Comprehensive coverage protects your car from theft, vandalism, hail, fire, falling objects, and animal strikes, among other non-collision losses.

A common rule of thumb: if your annual premium for collision/comp plus your deductible is close to (or exceeds) what the car is worth, it may be time to reconsider those coverages. Just understand the tradeoff: if you drop them, you’re on the hook for damage to your own vehicle.

8. Adjust Your Deductible (But Keep an Emergency Fund)

Adjusting your deductible can lower your premium. You’ll pay more out of pocket if you file a claim, but you’ll pay less each month.

Many drivers choose a $500 deductible, while $1,000 deductibles are also common. Raising your deductible can reduce your premium — but only do this if you can comfortably cover the higher deductible at any time.

Before you increase a deductible, ask yourself: “If I had a claim tomorrow, could I pay this amount without taking on debt?”

9. Consider Insurance Before Buying a Car

Some cars have surprisingly high insurance premiums, while others are cheap — and it’s not just about sticker price.

Insurance pricing also depends on repair costs, theft rates, safety features, crash performance, and how likely the vehicle is to be involved in expensive claims.

Consider insurance premiums before buying a car. Getting a few quotes using the VIN can prevent sticker shock later.

Take a look at our lists of cheap used cars to insure, cheap cars to insure for teens, and fast cars with cheap insurance to get a better idea of which cars tend to have lower premiums.

10. Compare Insurance Quotes Annually and After Major Life Events

Many people buy insurance and never compare quotes again — even as rates change. Shopping at least once a year (and before each renewal) helps you avoid “set it and forget it” overpaying.

Also check insurance quotes after major life events, like:

• Getting married
• Buying a home
• Having a child
• Buying a second or third vehicle
• Getting divorced

Shopping early helps too. Start comparing quotes a few weeks before renewal so you have time to evaluate options without rushing.

11. Take a Driver Safety Course (Especially Over Age 55)

Many insurers offer discounts for completing an approved defensive driving or driver safety course — and in some states, mature drivers may qualify for additional savings after completing a state-approved course.

Even if your insurer doesn’t advertise it, it’s worth asking whether a driver safety course discount is available and what course providers they accept.

12. Use Usage-Based Insurance for Low Mileage Driving

The average American drives thousands of miles per year. If you drive significantly less than average — for example, you work from home or don’t commute daily — you may be able to save with usage-based insurance.

Usage-based insurance generally comes in two flavors:

• Pay-per-mile: your bill is tied directly to the miles you drive
• Behavior-based: your price reflects driving habits (often through an app)

Usage-based insurance isn’t ideal for everyone, but it can be a strong option for low-mileage drivers looking for budget auto insurance.

13. Adjust Liability Coverage to Ensure Limits Match Your Financial Picture

Some drivers carry too much liability coverage. Others carry too little. In both situations, you’re risking your financial future — either by overpaying or by leaving your assets exposed.

If you have too little liability coverage, a serious accident can put your savings and future income at risk if you’re sued for damages above your policy limits.

At the same time, if you have minimal assets and a tight budget, you may be paying for limits you don’t truly need. The goal is to carry enough liability coverage to protect what you own (and what you could reasonably be sued for) without buying coverage blindly.

When in doubt: prioritize adequate liability limits first, then decide whether collision/comp make sense for your vehicle.

FAQs on Budget Auto Insurance

Final Word on Budget Auto Insurance

Finding cheap car insurance isn’t always “easy” — especially with rising repair costs — but it is doable if you shop strategically.

You can usually find budget auto insurance by comparing quotes, stacking discounts, using the right deductible, and tailoring coverage to your vehicle and finances.

Start by quoting at least three to five insurers, verify you’re comparing the same coverages, and don’t be afraid to switch if another company offers the same protection for less.