How to Choose the Best Car Insurance
The best auto insurance for you balances adequate protection with cost. In 2025, premiums remain elevated after double‑digit year‑over‑year CPI increases for motor vehicle insurance during 2024, so maximizing value means stacking dependable savings and shopping broadly. Consider state‑anchored discounts like California’s minimum 20% Good Driver discount and New York’s defensive driving reduction of at least 10% for three years, and evaluate usage‑based/telematics programs that many large carriers advertise as offering up to about 30% potential savings for safe, low‑risk driving—while noting that some programs can raise rates for risky behavior in certain states (BLS CPI; CA Good Driver; NY PIRP; Liberty Mutual RightTrack; State Farm Drive Safe & Save; USAA SafePilot; Progressive Snapshot).
Take a look at these tips to help you choose the right auto insurance based on your needs, and verify state rules and recent updates through authoritative trackers such as IIHS and NCSL.
Determine the amount of coverage you need
State minimums are legal floors, not recommendations. Serious crashes can exceed low limits quickly, so many drivers choose higher liability (e.g., 100/300/100) and add UM/UIM where optional. Be aware of recent changes: California increased its minimum liability to 30/60/15 effective Jan 1, 2025, with a second increase to 50/100/25 scheduled for Jan 1, 2029 (California AB 331). In no‑fault states, Personal Injury Protection (PIP) is required; Michigan also mandates $1,000,000 of Property Protection Insurance (PPI) and lets drivers select a PIP medical coverage level instead of a single fixed amount (Michigan DIFS). Lenders/lessors typically require physical damage coverage (comprehensive/collision) regardless of state minimums, and many consumers opt to match UM/UIM to their liability limits (NCSL).
Consider your state’s minimum requirements
Before choosing a car insurance policy, you should check your state’s car insurance requirements. Minimums vary and are periodically updated. Typical patterns include 25/50/25 or 30/60/25 liability, with higher baselines in states like Maine and Alaska (often 50/100/25). Notable updates and nuances: California’s new 30/60/15 minimums began Jan 1, 2025 (with a 2029 step‑up), Virginia ended its uninsured motor vehicle fee on July 1, 2024—making insurance effectively mandatory—and New Jersey offers Basic vs. Standard policy frameworks with different coverages. New Hampshire generally does not mandate insurance but imposes financial-responsibility rules in certain circumstances (IIHS; NCSL; AB 331; Virginia DMV).
Look for discounts
Insurers file many discounts, but availability and amounts vary by state and carrier. Foundational savings include multi‑policy/bundling, multi‑vehicle, safe/good driver, good student, defensive driving, vehicle safety/anti‑theft, and payment/account options like pay‑in‑full or auto‑pay (State Farm; GEICO). State‑mandated programs create predictable baselines where eligible: California’s Good Driver policy must be at least 20% lower than otherwise charged and New York’s PIRP provides at least a 10% base‑rate reduction for three years on applicable coverages (CA Good Driver; NY PIRP). Telematics programs (e.g., RightTrack, Drive Safe & Save, SafePilot) commonly advertise up to about 30% potential savings for safe driving, but in some states/programs risky driving can increase your rate (Progressive Snapshot explicitly notes this)—confirm your state’s terms before enrolling (RightTrack; Drive Safe & Save; SafePilot; Snapshot).
Compare quotes
You can get car insurance quotes online or from an agent; either way, answer questions accurately so insurers can assess risk. A best practice is to get quotes from at least 3 different providers—ideally 3–5—including a direct writer (e.g., GEICO or Progressive), an agent‑centric national carrier (e.g., State Farm or Allstate), and at least one strong regional insurer in your state. Compare identical limits/deductibles and check service and strength: review your region’s 2025 J.D. Power satisfaction results, each company’s NAIC Complaint Index, and financial strength from AM Best (A‑ or better is typically considered strong) (J.D. Power 2025; NAIC Complaint Index; AM Best ratings guide; NAIC market share).
How much you drive
Annual miles and driving patterns influence price. Longer commutes raise exposure; low mileage can help. Many carriers now refine mileage and behavior through telematics at point‑of‑quote or after binding, rewarding consistent, daytime, low‑risk driving and flagging risky patterns in participating programs (LexisNexis 2025 Trends; J.D. Power 2025). Have an accurate commute estimate ready when you quote.
You can get more tips and tricks in our guide for car insurance buyers. For deeper context on repair costs and weather risks that affect pricing, see CCC Crash Course 2025 and NOAA’s Billion‑Dollar Disasters.
Factors that affect your auto insurance cost
State’s minimum requirements
Every state sets minimum coverages. Higher required limits generally raise base premiums. Notable updates: California’s minimum liability limits are 30/60/15 as of Jan 1, 2025, with a scheduled increase to 50/100/25 on Jan 1, 2029; Virginia ended its uninsured motor vehicle fee on July 1, 2024, so drivers must carry insurance. No‑fault states require PIP in addition to liability, and Michigan’s system uniquely adds mandatory $1,000,000 PPI with consumer‑selectable PIP medical tiers (IIHS; NCSL; AB 331; Virginia DMV; Michigan DIFS).
Financial situation
Deductibles trade off premium vs. out‑of‑pocket risk: lower deductibles cost more; higher deductibles cost less. Many insurers also offer savings for paying in full, enrolling in auto‑pay, or going paperless where permitted—ask what applies in your state (State Farm discounts; GEICO discounts).
Vehicle
What you drive influences both frequency and severity. Advanced driver‑assistance systems can reduce certain crash types, but repairs often require diagnostics and calibrations, raising costs; EVs add specialized parts and labor complexity. Theft risk by make/model and region also affects comprehensive premiums (IIHS on ADAS; CCC Crash Course 2025; NICB theft trends).
Driving record
Before you can buy car insurance, the company reviews your driving record and often your recent claims to gauge risk. Violations (e.g., speeding, DUI) and at‑fault accidents typically increase premiums. In programs that use telematics, measured behaviors like hard braking, speeding, phone handling, and nighttime driving can influence price in addition to your formal record (LexisNexis 2024 Trends; LexisNexis 2025 Trends).
How much coverage you need
Buying higher limits (e.g., raising liability from state minimums to 100/300/100 or beyond) and adding endorsements increases your premium. Conversely, choosing higher deductibles can reduce physical damage costs. Financing or leasing usually requires comprehensive and collision and may call for gap/loan‑lease coverage (NCSL).
Credit score
In most states, insurers use credit‑based insurance scores that can materially affect price. Recent analyses show drivers with poor credit often pay roughly 80%–100% more for full‑coverage auto insurance than those with excellent credit, though impacts vary by state and carrier. Three states—California, Hawaii, and Massachusetts—prohibit credit use in auto rating, so there is no direct credit impact in those states (NAIC; Bankrate 2025; Forbes Advisor 2025; Washington OIC).
Location
Car insurance prices vary by region. According to the Insurance Information Institute, local crash density, medical/legal costs, and theft patterns matter—and 2024 brought another year of severe weather losses and elevated price pressure. The CPI for motor vehicle insurance posted sustained double‑digit increases in 2024; NOAA tracked a record pace of U.S. billion‑dollar disasters, and NICB reported more than 1 million vehicle thefts in 2023, all of which translate into higher comprehensive and liability costs in affected areas (BLS CPI; NOAA; NICB; III overview).
Marital Status
Marital status can influence premiums in many states, with married drivers often rated lower risk. However, some states restrict or prohibit marital status in auto rating; for example, Hawaii bars use of marital status alongside age and sex, and Michigan’s reform prohibits several non‑driving factors, including marital status (Hawaii Insurance Division; Michigan DIFS). Married households also may qualify for multi‑vehicle or multi‑policy discounts where offered (State Farm discounts).
Gender
Gender is another factor that can affect your car insurance rate in many states. Some media coverage described currently seven states, but as of 2025, official sources identify four states that prohibit gender‑based pricing in private‑passenger auto: California (gender‑neutral rating effective 2019), Michigan (2019 reform), Hawaii (statutory prohibition), and Montana (statewide unisex rating law) (CA DOI; Michigan DIFS; Hawaii Insurance Division; Montana CSI). Where gender is permitted, younger males often face higher premiums than similarly situated females due to observed risk differences (III).
Claims history
More prior at‑fault claims generally signal higher risk and increase premiums; claims‑free drivers often qualify for safe‑driver or accident‑free discounts where available (State Farm discounts; GEICO discounts).
Discounts
Most insurance companies offer discounts, and stacking eligible ones can meaningfully lower your rate. Concrete anchors include California’s Good Driver discount (at least 20%) and New York’s defensive driving/PIRP reduction (at least 10% for three years). Telematics remains a major lever—RightTrack, Drive Safe & Save, and SafePilot advertise up to about 30% potential savings for safe driving—but note that some programs (e.g., Progressive Snapshot) can apply surcharges for risky driving in certain states. Traditional savings like bundling, multi‑vehicle, good student, safety/anti‑theft features, and payment‑method discounts remain widely offered; not all discounts stack, so clarify eligibility and stacking rules at quote time (CA Good Driver; NY PIRP; RightTrack; Drive Safe & Save; SafePilot; Snapshot; State Farm; GEICO).