Shopping Your Car Insurance Once a Year: A Calm Step-by-Step Guide
Car insurance is one of the bigger bills many households pay. Before you build a side income to cover it, it is worth seeing whether you can make the bill itself smaller. Every dollar you trim is a dollar you don’t have to earn.
Shopping your car insurance once a year is one of the simplest ways to do that. It takes an afternoon, a few phone calls or websites and some patience. Here is a calm way to go about it.
How Big Is This Bill?
According to Insurify’s 2026 mid-year report, as covered by Repairer Driven News in August 2026, the average full-coverage car insurance policy cost about $2,237 a year. That works out to roughly $186 a month. Your own cost may be much higher or lower, depending on your state, car, driving record and coverage.
Why Shop Once a Year?
The National Association of Insurance Commissioners (NAIC) suggests reviewing your policies at least once a year. Prices change, and so do your needs.
An AARP article, updated in August 2025, cites Consumer Reports research that found drivers who switched insurers in the past five years saved a median of $461 a year. That is about $38 a month, which could be close to the cost of a phone plan or a couple of streaming services. Results vary, and some people find their current insurer is already a good deal. Even then, you will know for sure.
What to Have Ready
The NAIC suggests gathering these before you ask for quotes:
- Your current policy, especially the page that lists your coverages (often called the declarations page)
- The driver’s license for every driver in your household
- Your car’s registration
- Your driving and claims history for about the last three years
The NAIC also suggests checking your credit reports for errors first, since most states allow insurers to use credit information in pricing.
Step by Step: Comparing Quotes Fairly
- Look at your current coverage and decide what you need. Check your state insurance department’s website for the minimum coverage your state requires.
- Ask two to four companies or agents for quotes with the same coverages, limits and deductibles as your current policy. If a quote doesn’t match, ask for a revised one.
- Include every driver in your household. The NAIC warns that leaving someone off can lead to cancellation or higher costs later.
- Write the quotes side by side on one sheet of paper, so you can compare them easily.
- Don’t automatically choose the lowest price. Check that each company and agent is licensed in your state and look at its complaint record. Your state insurance department can help with both.
- If you switch, wait to cancel your old policy until the new one has a confirmed start date and you have your temporary ID card. The NAIC notes that some online purchases don’t take effect right away, even after you pay.
Discounts Worth Asking About
The same AARP article lists many discounts. Amounts vary by company and state, so treat these as examples:
- Paperless billing: about 4% to 10% with some carriers
- Automatic payments: about 5% with some insurers
- Insuring more than one car with the same company: about 10% to 25%
- Bundling home and auto insurance with one company
- Low-mileage or pay-per-mile policies, which can suit people who drive less in retirement
- Membership discounts, such as through AARP or AAA
- A defensive driving course, which can earn a discount of up to 15% in many states
You can also ask about raising your deductible. The AARP article cites the Insurance Information Institute: raising it from $200 to $500 can lower collision and comprehensive costs by 15% to 30%. Only do this if you could comfortably pay the higher amount after an accident.
If you drive an older car that is worth little, ask whether collision and comprehensive coverage still make sense for you.
A Word About Scams
Be careful with unexpected calls or messages offering “cheap” insurance. Contact insurers yourself using a phone number or website you looked up. Never pay by gift card. The Federal Trade Commission says no real business or government agency will ask you to pay with a gift card.
What the Savings Mean for Your Plan
Once you know your new bill, write it down. If you saved money, the side income you need to cover car insurance just got smaller. Then you can decide whether to keep working on this bill or move on to the next one.
More on Replace a Bill
- A Driving Course That Could Lower Your Car Insurance After 55
- Lowering Your Cell Phone Bill After 55: A Step-by-Step Guide
- Your First Bill Is Covered. Now What? Tracking Progress and Picking the Next One
