Are you looking for the cheapest car insurance? However, one of the accurate means to get the cheapest car insurance is by comparing car insurance quotes and knowing the companies offering them.
Cheapest Car Insurance
But when it has to do with auto insurance, you want more than just the cheapest rates. The best cheap car insurance companies provide affordable rates without giving up quality customer service.
The Cheapest Car Insurance Rates From The Best Companies
Looking for a cheap car insurance company that puts customers first? We compared rates among the best car insurance companies in 2021 for which we have complete pricing data. We looked at average rates in every ZIP code in all 50 states and Washington, D.C. Not all companies offer insurance in every state.
For example, Liberty Mutual and USAA is often the cheapest, but it isn’t available to everyone. If you’re not in the military or a veteran, Erie has the most affordable car insurance rates on average among companies we analyzed, but it’s available in only 12 states, and Washington, D.C. Geico has the cheapest rates on average among the nation’s largest insurers.
List of Cheap Car Insurance Companies
if you have an accident or DUI on your driving record, these insurance companies may be the right one for you.
- Geico: Best cheap car insurance for good drivers, drivers with poor credit, and cheapest minimum coverage.
- Progressive: Cheapest car insurance after a DUI.
- State Farm: Cheapest car insurance after an at-fault accident.
Geico has the cheapest car insurance rates on average out of the largest auto insurers in the nation. Just seven car insurance companies make up more than 65% of the U.S. market for individual auto policies. They are Allstate, Farmers, Geico, Liberty Mutual, Progressive, and State Farm, which are available to anyone, and USAA, the insurer for active military members, veterans, and their families.
Although Liberty Mutual is one of the largest insurers, it does not provide rate information and isn’t included in our rate analysis.
Cheap Car Insurance Rates From Small Insurers
Finding cheap car insurance doesn’t mean you have to stick with big insurance companies. Regional and small insurers may beat the lowest car insurance prices from larger carriers and often have great customer service.
We chose these companies because of their low rates and availability in multiple states, but there may be cheaper options where you live. For example, there are many Farm Bureau insurance companies available only in a single state — and they were often among the cheapest in our state-by-state analysis this year.
Cheapest Car Insurance Rates by Driving Record
Depending on your driving record, the most affordable car insurance company varies. The table below shows average auto insurance rates for additional driver profiles from the largest companies.
Although Geico has the best average rate for good drivers, State Farm has the cheapest rates on average for drivers with one at-fault accident, while Progressive is cheapest, on average, for drivers with a DUI.
Among smaller insurers, drivers with one at-fault accident or a recent DUI can find the best rates with MMG per year on average.
Rates vary depending on many personal factors, so compare car insurance quotes from at least three insurers to find the best rates for you.
Cheap Auto Insurance Rates for Drivers With Poor Credit
Your driving record isn’t the only factor that can increase your rates. Many insurers also look at credit-based insurance scores to help calculate your car insurance rates. This score looks at the same factors as a regular credit score but weighs them differently. California, Hawaii, Massachusetts, and Michigan don’t allow insurers to use credit scores when calculating car insurance rates.
Credit can have a shocking impact on insurance premiums. Out of the large insurers, on average, drivers with poor credit pay over $1,200 more per year than drivers with good credit.
If you’re looking for the best cheap car insurance rates and have poor credit, Geico might be a good place to start if you want a large company. Based on our analysis, the company has the lowest average rates per year for good drivers with poor credit. In the smaller company group, on average, Hastings Mutual is the cheapest annually for good drivers with poor credit. Still, shopping around is always the best way to get the cheapest car insurance rates, no matter your credit history.
Cheapest of The Cheap: Minimum Coverage Car Insurance
The cheapest car insurance, period, will likely carry the minimum coverage required in your state. In most states, this is liability insurance only, which covers property damage and medical bills for others due to accidents you cause. Some states also require uninsured and underinsured motorist coverage, which pays for your injuries or damage if an at-fault driver doesn’t have enough insurance.
Policies with comprehensive and collision coverage are pricier but cover you in case your car is stolen or damaged, no matter who (or what) caused it.
The cost difference between buying the minimum car insurance required and additional coverage, like comprehensive and collision, is enough to make many drivers buy a bare-bones policy. Excluding USAA and smaller insurers, Geico was the best car insurance company in our analysis for both cheap liability insurance and policies with additional coverage. Allstate had the largest average annual price difference between buying the minimum amount of insurance and adding other coverage policies.
How to Get Cheap Car Insurance Quotes
If you’re looking for the cheapest car insurance you can get, it’s essential to shop around with multiple insurers. You may find that your current insurer is the cheapest, but that can change, so check roughly once a year.
No matter who your insurer is, these tips could help you save on your policy:
Look for discounts — even ask for them. There could be discounts you’re not taking advantage of. For instance, maybe you retired and are driving less than when you bought your policy. Mention that and you might get a low-mileage discount. Ask for all available discounts when you’re trying to get cheap car insurance quotes.
Rethink your deductible. A higher collision and comprehensive deductible might make sense if you rarely drive or are comfortable with the financial risk. Raising your deductible means you’d owe more out of pocket if you had to file a comprehensive or collision claim, but it’s a surefire way to get cheaper car insurance.
Know when to cut coverage. Don’t strip away coverage just for the sake of cheaper insurance. You’ll need full coverage car insurance to satisfy the terms of an auto loan, and you’ll want it as long as your car would be a financial burden to replace. But for older cars, you can drop comprehensive and collision coverage, which pays out only up to your car’s current value, minus the deductible.
Cash in on major life changes. Certain life events could translate to cheaper car insurance. So, shop for quotes whenever something major changes in your life. For instance, many companies offer a lower rate for married couples or domestic partners. Or perhaps you moved to a suburb with lower accident and crime rates. If your risk for accidents goes down, your rates just might, too.
Revisit quotes after your driving record improves. Shop for cheap car insurance quotes just after the three- and five-year anniversaries of any accidents, tickets, or moving violations. After which they may be dropped from your driving record. For further reading visit here.
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