Stressed by the price of car insurance? These tips can help lower costs

Driving a car can really leave a dent in your wallet.

The average new car price hovers around $50,000 and the average gallon of gas costs close to $4. Then you have to add insurance to the total, and those prices have increased by 18% between 2026 and 2025, according to data from car insurance comparison site The Zebra.

Car insurance is essential if you're driving. Some level of car insurance is required to drive legally in all states except New Hampshire, where you'll still be held liable for the cost of damages.

Despite this fact, the number of uninsured drivers has been growing. Data from the Insurance Research Council found that 15.4% of drivers nationwide were uninsured in 2023, an increase from 11.6% in 2019.

Without insurance, you put yourself at risk of serious financial damage if you're held liable during an event like an accident. Depending on state laws, you could also face fines or even license suspension.

If you want to keep your car insured while lowering the costs, there are steps you can take without compromising on coverage.

If you're having trouble staying on top of your car insurance bill, your first strategy should be checking whether other insurers offer lower rates.

Oftentimes, insurance prices vary widely for the same individual between companies. That means that the insurance company that's cheapest for a friend or neighbor may not be the most affordable for you.

In our research of the most affordable car insurance companies, we found that Geico, Nationwide and Travelers tend to have consistently affordable coverage.

Comparing rates between several companies used to require a few hours of filling out quote forms and comparing the best terms. Now, it just requires a few minutes with the help of AI.

CNBC Select likes two useful platforms for this kind of shopping: Jerry and the ChatGPT add-on from Insurify.

With Jerry, you download the app and share information about your car, driving history, address and name. Then, it gathers quotes from more than a dozen insurers for you and can alert you later to any price drops.

For Insurify, you'll need to use the ChatGPT app or website and add the app. Then start a conversation with ChatGPT and provide relevant information, like your ZIP code, car type, driving history, and annual mileage.

Out of the dozens of insurers that these apps can help you search, there might be a lower rate out there.

If shopping around hasn't helped you find coverage you can afford, lowering your limits could bring your costs down. To be sure, doing this will mean you have less coverage if you're involved in an accident, but it's better than dropping it altogether and being uninsured.

Each state sets a limit on the minimum amount of liability insurance per driver, as well as requirements for additional coverage plans like personal injury protection (PIP). Here's how much each state requires:

However, if you have a loan or a lease on your car, you may also be required to carry comprehensive and collision coverage. While these do add to the cost of your policy, they pay to repair or replace your car after damage occurs.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every car insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.

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