Are you looking for dirt cheap car insurance that offers the coverage you need at a price you can afford? Below are 15 tips designed to help you easily and quickly find affordable rates that provide you with maximum savings.

  1. Opt for an older vehicle.

The older the vehicle, the less you’ll pay for car insurance. In fact, premiums are around 50% higher for cars less than five years old. After 10 years, rates drop even more. There are several reasons that newer vehicles require higher insurance rates. First, they tend to be more expensive to replace or repair. Second, they are more likely to be stolen.

Here’s an example. If you have a brand new car valued at $40,000 you can expect to pay significantly more for your insurance than a 6-year-old car valued at $8,000.

For the cheapest insurance, select a car that is a minimum of five years old and has low mileage.

dirt cheap car insurance

  1. Spend less time on the road.

The less you drive, the lower your chances are of being involved in an accident. This is why many insurance companies offer lower rates for anyone who drives less than 1,000 miles per month.

You may want to opt for a pay-per-mile policy or usage-based policy. With this type of policy, the amount you pay is solely based on the number of miles you drive.

Drivers who drive 100 miles or less each week can expect to save as much as 40% when compared to standard policies.

  1. Pay your premium in a single lump sum.

Most insurance companies will give you a discount if you pay your premium in one lump sum instead of in monthly installments. This is referred to as a paid-in-full discount and could result in a discount of 6 to 14%.

  1. Pay attention to your credit score.

When determining your premium, insurance companies take a look at your credit history and score. Studies have shown that drivers with a credit score of 700 or lower are more likely to make their premium payments late, have and cause more traffic accidents, change insurance companies frequently, and file false claims. As a result, companies charge higher rates for anyone with a credit score below 700.

According to a 2020 study, drivers with low credit scores pay, on average, 75% more for their car insurance than drivers with good credit.

Take the time to request a credit report and look at your credit score. If your score is low, work on improving it. Be sure that the charges on your report are correct and work on paying them off.

  1. Opt for liability-only coverage.

To get the cheapest possible rate, opt for a liability-only policy that meets your state’s minimum requirements. However, there is one thing to consider. A liability-only policy may not provide the protection you need. There is a chance that any accident you are in will exceed the policy limits. In most states, this means that the at-fault party will be responsible for any costs outside the limits. If this is a major concern, you can choose to purchase a liability-only policy with higher limits. 

  1. Don’t finance or lease your vehicle.

In most cases, vehicles that are leased or financed are required to have a full coverage policy. These policies are pricey. On average, a liability-only policy is around 64% cheaper than a full coverage policy. As a result, it is better to own your car outright if your goal is to get the lowest insurance premium policy. 

  1. Be a smart, safe driver.

It should come as no surprise that your driving history has a huge impact on your insurance premium. Drivers with no history of at-fault accidents and no traffic tickets will pay significantly lower rates. These two things indicate that you are a safe driver and are less likely to be involved in an at-fault accident.

If you have received a ticket, you may qualify for “ticket buster” services. This allows your ticket to be handled for you. Some states will allow you to defer your payment

Simply put, the safer you drive, the less you’ll pay for your car insurance.

  1. Opt for a higher deductible.

The deductible refers to the amount of money you are expected to pay out of pocket toward a claim. The higher your deductible, the lower your insurance premium. Of course, you’ll want to be certain this is an amount that you can pay in the event you must file a claim.

Selecting a deductible between $1,000 and $1,500 should decrease your insurance premium by 15% or more.


  1. Consider the state you live in.

What state you live in impacts your car insurance costs. Certain states are just more expensive, including Michigan, Delaware, Louisiana, New York, New Jersey, and California. On the other hand, there are states known for having much more affordable car insurance, such as Maine, New Hampshire, Virginia, Vermont, and Hawaii.

Obviously, you don’t want to move to states based on the price of car insurance, but it is something you should know.

  1. Live in a rural area.

Regardless of what state you live in, living in a highly-populated area with lots of traffic is going to send your cost of car insurance up. Rural areas see fewer car accidents, as well as fewer vehicle thefts than their big-city counterparts. In one study, rural drivers were found to pay 39% less for their car insurance than urban drivers.

  1. Bundle your insurance policies.

In addition to car insurance, you most likely pay homeowners’ or renters’ insurance. Choosing the same company and bundling these policies together can save as much as 5%. This also applies if you have multiple vehicles on the same policy. The more policies you bundle together, the more you’ll save.

  1. Tie the knot.

Believe it or not, tying the knot can decrease your car insurance costs by around 2%. This is because married drivers are shown to be less likely to take risks on the road and are more responsible overall. In fact, studies show that married drivers have fewer accidents than single drivers.

  1. Get together with others for a group plan.

Group insurance policies allow you to get together with friends, relatives, and/ or coworkers and take out a policy with the same company. Insurance companies provide discounts when they have multiple people in the same contract. You could save 10% or more. Allstate and State Farm are two companies, in particular, that are known for offering group insurance deals.

  1. Take a defensive driving course.

Insurance companies see anyone that has completed a defensive driving course as better and safer drivers than those who have not. Thanks to the skills they learn, these drivers are less likely to be involved in an accident. As a result, most companies offer a discount of 10% or more for anyone who has completed the course.

  1. Shop around.

Be sure to shop around when you are looking for the cheapest car insurance rates. Go online to get quotes from various companies and see how their rates compare. Be sure that you are comparing similar policies.

Finding dirt cheap car insurance is possible, but you have to be willing to shop around for the best deal. Use the tips above to help you get the car insurance policy you need at a price you can afford.