How to Save Big on Your Car Insurance in 2026: Tips for the Raymarts

In 2026, the car insurance market is finally stabilizing after years of double-digit hikes. While national average increases are projected to be less than 1% this year, many drivers in states like Iowa, Minnesota, and Arkansas are actually seeing their rates drop by 4-6%.

To take advantage of this shift and "Save Big," use this strategic 2026 playbook.

1. Shop the "2026 Rate Correction."

Many major insurers (like State Farm) are projected to decrease rates by roughly 4% in 2026 to stay competitive, while midsize carriers may still be raising them.

·         The Move: Don't just auto-renew. Use a comparison tool to get 3–5 "apples-to-apples" quotes.

·         Pro Tip: If you find a better rate, call your current insurer. They often have "retention" discounts they only offer when you're halfway out the door.

2. Leverage High-Tech Discounts

In 2026, cars are "data centers on wheels," and insurers are hungry for that data.

·         Telematics (Usage-Based): Programs like Progressive’s Snapshot or Allstate’s Drivewise now offer discounts up to 40% for safe driving habits (smooth braking, low mileage).

·         Safety Tech: Check if your car’s Advanced Driver Assistance Systems (ADAS)—like automatic emergency braking or lane-keep assist—qualify for specific 2026 safety credits. read more

·         EV Incentives: If you drive an Electric Vehicle, the "insurance gap" between EVs and gas cars is narrowing. Look for insurers offering specific "Green Vehicle" discounts, which can save you up to 10%.

3. "Right-Size" Your Policy

The value of your car changes every year, but your policy often doesn't.

·         The 10% Rule: If your car is worth less than 10 times your annual premium, consider dropping Collision and Comprehensive coverage.

·         Raise Your Deductible: Moving from a $500 to a $1,000 deductible can cut your premium by 15–30%.

Note: Only do this if you have the $1,000 tucked away in an emergency fund.

4. Stack Your Savings

Most drivers leave money on the table by not "stacking" smaller discounts that add up. | Discount Type | Typical Savings | Requirement  Bundling | 15–25% | Multi-policy (Home + Auto) | | Paid-in-Full | 6–10% | Pay 6 or 12 months upfront | | Good Student | 10–15% | B-average or higher (under age 25) | | Paperless/Auto-Pay | 3–5% | Digital docs and automatic EFT |

What to Watch Out For

·         Credit Score: In most states, your credit score is a major factor. Even a small bump in your score can lower your premium by 5–15%.

·         Distracted Driving: In 2026, many states have increased "phone-in-hand" penalties. One violation can now spike your rates by 50% or more for up to five years.