Beware These 6 Habits That Can Raise Your Car Insurance Premiums

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Many Americans might feel helpless against rising car insurance prices. Average car insurance rates went up 22% in 2024, and 23% in 2023. Faced with double-digit price hikes, what can people realistically hope to do differently to get cheaper car insurance?Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. It’s true that some reasons for higher car insurance prices are beyond anyone’s control. Cars are getting more expensive, car repairs cost more money, and insurance companies are facing bigger, more expensive natural disasters that wreck people’s cars as well as buildings.But a few everyday habits make car insurance more expensive. Many people might not know this, but it’s important to take control of what can be changed.Let’s look at a few little-known habits and lifestyle choices that drive up car insurance premiums — and see how drivers can fight back against rising prices.1. Parking locationWhen signing up for car insurance, insurance companies always ask where the car will be parked. Cars that are parked inside of garages tend to get lower-cost car insurance, while vehicles parked on the street might cost more to insure.That’s because parking on the street is riskier. A car parked on the street is more likely to get stolen, vandalized, or side-swiped at night by a hit-and-run driver. Insurance companies charge extra for all of these extra risks.Anyone who has a garage or dedicated secure parking space should use it. People who park their car on the street instead of in a safer space are more likely to get hit with higher car insurance premiums.2. Staying with the same car insurance company year after yearNo matter where drivers park their cars, everyone deserves a chance to save money on car insurance. Shopping around for price quotes on car insurance can be a great way to save money. But surprisingly: most people don’t do this! Motley Fool Money research found that 74% of people do not shop for new auto insurance every year.By staying with the same car insurance company for too long, drivers might miss out on discounts. Want to see what else is out there? Click here to see our picks for the best cheap car insurance companies — and get fast, easy price quotes online.3. Miles driven per yearCar insurance premiums are based in part on how much the car is driven. People who have longer commutes and who drive 15,000 miles or more per year are likely to pay higher car insurance rates than people who drive 12,000 miles or less.But some companies offer pay-per-mile car insurance that charges drivers based on how much they drive. People who work from home, or who have short commutes, or who have a lifestyle that doesn’t involve lots of driving could save money by paying only for the miles driven per month. Based on a driver’s age and other risk factors, pay-per-mile insurance can be 30%-50% cheaper than a standard car insurance policy.4. Credit scoreOne of the biggest reasons why car insurance can be so expensive is something that has nothing to do with people’s performance behind the wheel: credit scores. People with higher credit scores tend to get much cheaper car insurance. Motley Fool Money research found that as of 2023, people with poor credit paid more than twice as much for car insurance as people with good credit.People often suffer downgrades in credit score due to temporary financial trouble or lost jobs. Having bad credit doesn’t mean that someone is an unsafe, irresponsible driver. But even if it’s not “fair,” insurance companies in most states are allowed to check credit history before offering insurance rates. Anyone who wants cheaper car insurance should try to boost their FICO® Score before shopping for car insurance price quotes.5. Marital statusAccording to Experian, married people tend to get 5% to 15% cheaper rates on car insurance than single people. For some reason, married people tend to be less likely to file claims for auto insurance coverage.Don’t get married just to get cheaper auto insurance. That’s not a good enough reason to commit to such a serious, long-term life partnership. (Unless insurance rates keep getting much more expensive…) But it’s good to know that married drivers are likely to get a little extra discount; cheaper auto insurance could be another financial benefit of married life.6. Unsafe driving habitsPeople with unsafe driving habits — speeding, aggressive driving, distracted driving — are much more likely to get in car crashes and get hit with higher car insurance premiums. Want cheaper car insurance? Consider signing up for special car insurance plans that reward safe driving.This type of insurance is called “telematics” or usage-based insurance. Some of the best car insurance companies offer plans that let customers share their driving data (with permission in advance) via mobile app or other device attached to the vehicle.By showing safer driving behaviors like obeying the speed limit, avoiding rapid acceleration and hard braking, and putting down the phone while driving, many people can qualify for lower rates on car insurance.Bottom linePeople can’t always control where they live, where they park, or their credit score — but every driver is legally responsible for controlling their behavior behind the wheel. Anyone who wants cheaper car insurance in 2025 should shop around for price quotes and consider telematics insurance that uses data to reward safe driving behaviors.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Many Americans might feel helpless against rising car insurance prices. Average car insurance rates went up 22% in 2024, and 23% in 2023. Faced with double-digit price hikes, what can people realistically hope to do differently to get cheaper car insurance?

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

It’s true that some reasons for higher car insurance prices are beyond anyone’s control. Cars are getting more expensive, car repairs cost more money, and insurance companies are facing bigger, more expensive natural disasters that wreck people’s cars as well as buildings.

But a few everyday habits make car insurance more expensive. Many people might not know this, but it’s important to take control of what can be changed.

Let’s look at a few little-known habits and lifestyle choices that drive up car insurance premiums — and see how drivers can fight back against rising prices.

1. Parking location

When signing up for car insurance, insurance companies always ask where the car will be parked. Cars that are parked inside of garages tend to get lower-cost car insurance, while vehicles parked on the street might cost more to insure.

That’s because parking on the street is riskier. A car parked on the street is more likely to get stolen, vandalized, or side-swiped at night by a hit-and-run driver. Insurance companies charge extra for all of these extra risks.

Anyone who has a garage or dedicated secure parking space should use it. People who park their car on the street instead of in a safer space are more likely to get hit with higher car insurance premiums.

2. Staying with the same car insurance company year after year

No matter where drivers park their cars, everyone deserves a chance to save money on car insurance. Shopping around for price quotes on car insurance can be a great way to save money. But surprisingly: most people don’t do this! Motley Fool Money research found that 74% of people do not shop for new auto insurance every year.

By staying with the same car insurance company for too long, drivers might miss out on discounts. Want to see what else is out there? Click here to see our picks for the best cheap car insurance companies — and get fast, easy price quotes online.

3. Miles driven per year

Car insurance premiums are based in part on how much the car is driven. People who have longer commutes and who drive 15,000 miles or more per year are likely to pay higher car insurance rates than people who drive 12,000 miles or less.

But some companies offer pay-per-mile car insurance that charges drivers based on how much they drive. People who work from home, or who have short commutes, or who have a lifestyle that doesn’t involve lots of driving could save money by paying only for the miles driven per month. Based on a driver’s age and other risk factors, pay-per-mile insurance can be 30%-50% cheaper than a standard car insurance policy.

4. Credit score

One of the biggest reasons why car insurance can be so expensive is something that has nothing to do with people’s performance behind the wheel: credit scores. People with higher credit scores tend to get much cheaper car insurance. Motley Fool Money research found that as of 2023, people with poor credit paid more than twice as much for car insurance as people with good credit.

People often suffer downgrades in credit score due to temporary financial trouble or lost jobs. Having bad credit doesn’t mean that someone is an unsafe, irresponsible driver. But even if it’s not “fair,” insurance companies in most states are allowed to check credit history before offering insurance rates. Anyone who wants cheaper car insurance should try to boost their FICO® Score before shopping for car insurance price quotes.

5. Marital status

According to Experian, married people tend to get 5% to 15% cheaper rates on car insurance than single people. For some reason, married people tend to be less likely to file claims for auto insurance coverage.

Don’t get married just to get cheaper auto insurance. That’s not a good enough reason to commit to such a serious, long-term life partnership. (Unless insurance rates keep getting much more expensive…) But it’s good to know that married drivers are likely to get a little extra discount; cheaper auto insurance could be another financial benefit of married life.

6. Unsafe driving habits

People with unsafe driving habits — speeding, aggressive driving, distracted driving — are much more likely to get in car crashes and get hit with higher car insurance premiums. Want cheaper car insurance? Consider signing up for special car insurance plans that reward safe driving.

This type of insurance is called “telematics” or usage-based insurance. Some of the best car insurance companies offer plans that let customers share their driving data (with permission in advance) via mobile app or other device attached to the vehicle.

By showing safer driving behaviors like obeying the speed limit, avoiding rapid acceleration and hard braking, and putting down the phone while driving, many people can qualify for lower rates on car insurance.

Bottom line

People can’t always control where they live, where they park, or their credit score — but every driver is legally responsible for controlling their behavior behind the wheel. Anyone who wants cheaper car insurance in 2025 should shop around for price quotes and consider telematics insurance that uses data to reward safe driving behaviors.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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