How to afford car insurance on a tight budget

Every state sets its own rules about the minimum car insurance drivers must carry. In most cases, that includes liability coverage, which may help pay for damage or injuries you cause to others in an accident.

Liability coverage won’t pay for repairs to your own car—but it’s often the most affordable way to stay compliant with state laws. Some states may also require:

• Bodily injury liability—May help cover medical expenses for others if you're legally responsible for an accident.

• Property damage liability—May help pay for damage to another person’s vehicle or property.

• Uninsured/underinsured motorist protection—May help if you're hit by a driver without insurance or with too little coverage. In some states, this coverage is included unless you opt out in writing.

Dairyland^®, a brand of the Sentry Insurance Group, offers flexible payment options that can help make this essential coverage more accessible.

When money’s tight, it can be tempting to skip optional coverages like comprehensive or collision. These types of coverage can help pay for damage to your own car, which can be especially useful if you drive a newer vehicle.

If your car is older and paid off, focusing on liability coverage—the kind that helps with damage or injuries you cause to others—might be a more practical place to start.

Take a moment to think about your situation. If replacing your car would be a financial burden, adding comprehensive or collision could offer some peace of mind. But if covering those costs wouldn’t strain your budget, choosing a simpler policy may help lower your monthly premium.

Choosing affordable coverage doesn’t mean sacrificing opportunities to save. Depending on where you live and your insurance provider, you may qualify for one or more car insurance discounts. Common examples include:

• Driver education—Some states offer discounts for completing approved defensive driving courses.

• Bundling policies—If you also insure a motorcycle or rent your home, combining policies may lower your total cost.

A licensed agent can help you navigate these options and confirm which discounts apply to your policy.

Your car insurance deductible is the amount you pay out of pocket before your insurance begins covering a claim. If you're able to set aside some savings, choosing a higher deductible could reduce your monthly premium.

Just make sure the deductible you choose is one you could realistically afford—so if you ever need to file a claim, it won’t create more financial strain.

Auto insurance rates vary based on several personal factors, including your location, driving history, vehicle type, and the coverage limits you choose.

Here are recent national averages to give you a general idea:

• Minimum liability coverage: Around $600–$700 per year, notes NerdWallet*. Typically better suited for older vehicles with low resale value.

• Full coverage (liability + collision + comprehensive): Around $2,400–$2,600 per year, according to Bankrate*. Typically required by lenders if you lease or finance your car.

Note: These are national estimates provided for informational purposes only. Actual premiums vary based on location, vehicle, driving history, and other factors. The best way to understand your cost is to request a personalized quote.

Budgeting for car insurance isn't always easy, but it’s an important way to help protect your future. Dairyland specializes in helping drivers find:

• Coverage that meets your state’s legal requirements

• Discounts based on your driving habits

• Flexible policy options that can adapt over time

Even if you’ve had past coverage gaps or driving challenges, we’ll work with you to help you stay protected. Our goal is to focus on where you're going—not where you’ve been.