Cheap auto insurance refers to car insurance policies that offer lower premiums and deductibles than standard policies. This type of insurance is particularly beneficial for individuals who want to save money on their car insurance premiums. However, it is important to note that cheap auto insurance policies may come with limited coverage and higher out-of-pocket expenses in case of an accident.
Finding the best cheap auto insurance company is important because it allows you to save money on your car insurance premiums without compromising on the coverage you need. The best cheap auto insurance companies offer policies that strike a balance between affordability and coverage. By doing your research and finding the right company, you can rest assured that you are getting the best deal on your auto insurance.
In the following sections, we will discuss the different types of cheap auto insurance, the factors that affect auto insurance premiums, and tips for finding the best cheap auto insurance company. We will also highlight some of the top cheap auto insurance companies in the market and provide a comparison of their policies. By the end of this article, you will have a better understanding of cheap auto insurance and the steps you can take to find the best deal on your car insurance premiums.
Factors to Consider When Choosing Cheap Auto Insurance
When it comes to choosing cheap auto insurance, there are several factors that you should consider to ensure that you are getting the best value for your money. Here are some key factors to keep in mind:
A. Coverage options: The first thing you should consider when looking for cheap auto insurance is the coverage options that are available. You will want to make sure that the policy you choose provides adequate coverage for your needs, including liability coverage, collision coverage, and comprehensive coverage. It is also important to consider any additional coverage options that may be available, such as roadside assistance or rental car coverage.
B. Customer service: Another important factor to consider when choosing cheap auto insurance is the quality of customer service provided by the insurance company. You will want to choose a company that is responsive to your needs and provides excellent customer service, including easy access to customer support and timely claims processing.
C. Financial stability: It is also important to choose an insurance company that is financially stable and has a strong reputation for reliability. You can check the financial strength ratings of insurance companies through independent rating agencies, such as A.M. Best, Standard & Poor’s, and Moody’s.
D. Discounts and savings: When shopping for cheap auto insurance, it is important to look for discounts and savings that can help you save money on your premiums. Many insurance companies offer discounts for safe driving, good grades, multiple vehicles, and other factors.
E. User-friendly website and mobile app: Finally, it is important to choose an insurance company that offers a user-friendly website and mobile app. This will make it easier for you to manage your policy, file claims, and access important information about your coverage.
By considering these factors when choosing cheap auto insurance, you can find a policy that provides the coverage you need at a price that fits your budget.
10 cheapest car insurance companies
State Farm is the cheapest national car insurance company, at $41 per month for liability-only coverage.
Geico also has cheap quotes, averaging $52 per month. USAA has the most affordable liability-only rates at $31 per month, but only military members, veterans or their families can qualify.
Cheap liability-only quotes
Cheap full coverage quotes
| National companies | Monthly rate | |
|---|---|---|
| 1. | State Farm | $41 |
| 2. | Geico | $52 |
| 3. | American Family | $53 |
| 4. | Progressive | $63 |
| 5. | Travelers | $63 |
| 6. | Nationwide | $69 |
| 7. | Allstate | $79 |
| 8. | AAA | $87 |
| 9. | Amica | $92 |
| 10. | USAA* | $31 |
Car insurance companies with the best discounts
| Company | Discounts |
|---|---|
| American Family | 18 |
| Geico | 16 |
| Liberty Mutual | 13 |
| Travelers | 12 |
| Allstate | 11 |
| State Farm | 11 |
| Progressive | 10 |
| Nationwide | 9 |
AmFam offers several discounts to help young drivers save on car insurance when you are a good student or safe teen driver. You can also save money with AmFam if you:
- Bundle home and auto insurance policies
- Insure more than one car with AmFam
- Get a quote seven days before your old policy expires
- Switch to American Family from a competitor
- Have certain safety equipment installed in your car, like airbags
- Take a defensive driving course
- Avoid accidents, tickets and claims
- Drive fewer than 7,500 miles per year
- Enroll in KnowYourDrive telematics, and practice safe driving habits
- Pay your balance in full, or make automatic payments
Cheap liability-only rates for new drivers
| Company | Monthly rate |
|---|---|
| Allstate | $100 |
| State Farm | $129 |
| Geico | $131 |
| Nationwide | $280 |
| Farmers | $375 |
| USAA* | $116 |
*USAA is only available to members of the military, veterans and their families.
In addition to cheap rates, Allstate offers lots of discounts for new drivers, including an automatic payments discount, paperless discount and smart student discount.
However, drivers aren’t very happy with the service they receive from Allstate after an accident. The company scored below average on J.D. Power’s claims satisfaction survey, which means it may take longer for Allstate to get you back on the road after a crash.
Cheapest car insurance with a bad driving record: Erie
Erie has some of the most affordable car insurance quotes for drivers with a ticket, accident or DUI on their driving records. For example, drivers with a single speeding ticket pay around $112 per month for full coverage from Erie. That’s 39% cheaper than the national average.
Erie also increases auto insurance rates the least after a driving incident.
It will only raise your rates by an average of 11% if you get a ticket, while most companies increase quotes by 23% or more. For an at-fault accident, Erie will only raise your rates by 27% instead of the average 49%. And Erie’s average quote with a DUI is $169 per month for full coverage, an increase of 67%. Other companies increase rates by an average of 83% after a DUI.
Cheapest car insurance quotes after a driving incident
| Company | Ticket | Accident | DUI |
|---|---|---|---|
| State Farm | $110 | $125 | $277 |
| Erie | $112 | $128 | $169 |
| Auto-Owners | $130 | $154 | $243 |
| Farm Bureau | $148 | $177 | $252 |
| American Family | $168 | $214 | $229 |
| Geico | $178 | $238 | $354 |
| Travelers | $185 | $203 | $218 |
| Progressive | $201 | $238 | $197 |
| Nationwide | $208 | $253 | $309 |
| USAA | $109 | $125 | $170 |
Erie customers who are eligible for its Rate Lock program can avoid rate increases that could cause insurance costs to creep up over the years. This is a unique program where customers won’t see their rates increase except for three reasons: you change where you park your car, add or remove someone from your policy or add or remove a car.
That means your car insurance costs won’t go up if you get a ticket or file a claim.
Erie also offers the same car insurance discounts as larger national companies, including bundling multiple insurance policies, having a vehicle equipped with anti-lock brakes or anti-theft equipment or driving safely as a young or senior driver. Erie also has a reputation for excellent customer service.
Cheapest quotes for drivers with poor credit: Geico
Geico has the cheapest car insurance quotes for drivers with poor credit scores. At $212 per month, a full coverage policy from Geico is 16% cheaper than the national average for drivers with poor credit.
Cheap full coverage insurance for drivers with poor credit
| Company | Monthly rate |
|---|---|
| Geico | $212 |
| Farm Bureau | $217 |
| Erie | $232 |
| American Family | $233 |
| Nationwide | $236 |
| State Farm | $241 |
| Progressive | $259 |
| Travelers | $268 |
| Auto-Owners | $290 |
| Allstate | $303 |
| Farmers | $356 |
| USAA | $162 |
Drivers with poor credit typically pay 70% more for car insurance compared to drivers with good credit. Improving your credit score is a great way to get cheaper auto insurance quotes.
Geico also offers lots of discounts to help lower your rates, including usage-based discounts, safe driver discounts and discounts for bundling home and auto insurance.
Best cheap car insurance for military members: USAA
USAA is available in all 50 states and Washington, D.C. As the fifth-largest auto insurance company in the country, it serves almost as many drivers as other big names like Progressive and Allstate.
Cheap companies for liability-only insurance
| Company | Monthly cost |
|---|---|
| USAA | $31 |
| Auto-Owners | $36 |
| Erie | $39 |
| State Farm | $41 |
| Farm Bureau | $43 |
| National average | $58 |
USAA stands out for more than just affordable rates: It also has one of the best customer service reputations in the industry. The company takes the top spot in J.D. Power’s Auto Insurance Claims Satisfaction Study every year. That means drivers can expect USAA to help get things back to normal quickly after an accident. USAA also has a low complaint index from the NAIC, which means customers don’t have many complaints about support or claims.
Cheapest car insurance by state
State Farm is the cheapest widely available insurance company in 25 states.
USAA is almost always the cheapest car insurance company in every state, but its eligibility requirements mean most people won’t qualify.
In some states, a smaller, local company might have the least expensive car insurance for you. For example, Erie has the cheapest insurance in North Carolina, Ohio, Pennsylvania and Washington, D.C. While local companies might have cheaper rates and more personalized service, national companies often have better online features and bundling options.
Best cheap car insurance near you
| State | Cheapest company | Monthly rate |
|---|---|---|
| Alabama | State Farm | $38 |
| Alaska | Geico | $27 |
| Arizona | Travelers | $39 |
| Arkansas | State Farm | $25 |
| California | Geico | $31 |
| Colorado | State Farm | $34 |
| Connecticut | State Farm | $49 |
| Delaware | State Farm | $51 |
| Florida | Geico | $28 |
| Georgia | Auto-Owners | $30 |
| Hawaii | Geico | $30 |
| Idaho | State Farm | $16 |
| Illinois | State Farm | $30 |
| Indiana | Auto-Owners | $22 |
| Iowa | State Farm | $14 |
| Kansas | State Farm | $23 |
| Kentucky | Farm Bureau | $38 |
| Louisiana | State Farm | $54 |
| Maine | State Farm | $26 |
| Maryland | Geico | $55 |
| Massachusetts | Hanover | $32 |
| Michigan | Progressive | $91 |
| Minnesota | State Farm | $29 |
| Mississippi | Progressive | $31 |
| Missouri | State Farm | $35 |
| Montana | State Farm | $20 |
| Nebraska | Farmers Mutual | $21 |
| Nevada | State Farm | $46 |
| New Hampshire | State Farm | $26 |
| New Jersey | Geico | $44 |
| New Mexico | State Farm | $25 |
| New York | Progressive | $47 |
| North Carolina | Erie | $26 |
| North Dakota | American Family | $24 |
| Ohio | Erie | $23 |
| Oklahoma | State Farm | $23 |
| Oregon | State Farm | $39 |
| Pennsylvania | Erie | $26 |
| Rhode Island | Travelers | $42 |
| South Carolina | Auto-Owners | $37 |
| South Dakota | Auto-Owners | $16 |
| Tennessee | State Farm | $22 |
| Texas | State Farm | $29 |
| Utah | Auto-Owners | $41 |
| Vermont | State Farm | $19 |
| Virginia | State Farm | $30 |
| Washington | Pemco | $26 |
| Washington, D.C. | Erie | $43 |
| West Virginia | State Farm | $28 |
| Wisconsin | State Farm | $22 |
| Wyoming | Geico | $18 |
Which drivers can get cheap car insurance quotes?
A variety of factors affect your car insurance quotes, including your location, age, driving history, vehicle, credit score and coverage.
Having more driving experience and no tickets or accidents helps make car insurance cheap. Drivers who opt for minimum coverage policies can get cheaper auto insurance quotes, though they risk not being fully covered after a major accident.
Full coverage quotes for different drivers
| Driver | Monthly rate |
|---|---|
| Clean record | $148 |
| One ticket | $183 |
| Poor credit | $254 |
| Teen driver | $458 |
Tips for Finding Cheap Auto Insurance
If you’re looking for ways to save on your auto insurance premiums, there are several strategies you can try. Here are some tips for finding cheap auto insurance:
A. Shop around and compare quotes: Don’t settle for the first auto insurance policy you come across. Shop around and get quotes from multiple insurers. By comparing prices and coverage options, you can find a policy that fits your budget and provides the coverage you need.
B. Increase your deductible: A deductible is the amount you pay out of pocket before your insurance coverage kicks in. By increasing your deductible, you can lower your monthly premiums. Just make sure you can afford to pay the higher deductible if you need to make a claim.
C. Maintain a good credit score: Believe it or not, your credit score can impact your auto insurance rates. Insurers use credit-based insurance scores to help determine rates. By maintaining a good credit score, you may be able to qualify for lower premiums.
D. Drive safely and avoid accidents: Your driving record plays a big role in determining your auto insurance rates. If you have a history of accidents or traffic violations, you may pay more for insurance. On the other hand, if you have a clean driving record, you may be able to qualify for discounts.
E. Take advantage of discounts and savings: Many insurers offer discounts and savings for things like bundling your home and auto insurance, taking a defensive driving course, or having safety features on your car. Make sure you ask about any discounts you may be eligible for.
By following these tips, you can find affordable auto insurance coverage that meets your needs and budget.
How to get cheaper car insurance with discounts
Once you know how much coverage to buy, it’s time to compare car insurance companies.
Even when you opt for the exact same coverage levels with two different insurance companies, one could be much cheaper for you than another based on how it calculates its rates.
It’s easier than ever to compare cheap auto insurance quotes using online quote tools. But you may want to talk to an insurance agent so you get the most accurate quote possible.
By talking to an agent, you can see if you qualify for discounts that may not be applied in the online quote tool process which can help you get the most affordable car insurance. Car insurance discounts are generally broken into four categories:
- Driver safety discount: Cheaper rates for having a safe driver history or taking defensive driving courses.
- Driver discount: Discounts lifestyle elements that insurance companies reward with cheaper rates. These can range from incentives — such as a student getting savings for getting good grades — to elements you can’t control, such as a senior discount for those of a certain age.
- Policy discount: Savings offered for buying more products or coverage from a particular company. The most common discount of this type is a home and auto bundle, in which you get big savings from buying home and auto insurance with the same company.
- Safe car discount: If your car has safety features, such as anti-theft technology or automatic braking, you may qualify for a discount.
Frequently asked questions
Who has the cheapest car insurance?
State Farm has the cheapest liability-only car insurance rates among national companies, at $41 per month. The cheapest local company is Auto-Owners, at $36 per month.
What’s the cheapest online car insurance?
Geico, Progressive, USAA and State Farm are some of the cheapest companies that let you get quotes and buy a policy online. It’s often cheaper to buy car insurance online than it is to work with an agent, since some agents charge you an extra fee, and you can often get discounts for buying online.
How can I save money on car insurance?
The best way to save on auto insurance is to compare quotes from multiple companies. Consider every factor that goes into your quote, such as your coverage amounts, deductibles and discounts. Don’t just get quotes from big national companies — regional companies like Erie, Farm Bureau and Auto-Owners could have some of the cheapest rates if you live in a state they serve.
What’s the cheapest type of car insurance?
State-minimum liability coverage is the cheapest type of car insurance. Liability-only insurance is $90 per month cheaper on average than a full coverage policy. Switching to a liability-only policy could help you save if your car isn’t worth much and you don’t have a car loan or lease.
Is it a good idea to get the cheapest car insurance?
It depends on what you’re giving up in exchange for the cheapest rate. If you raised your deductible or lowered your coverage, for example, consider how much extra you’d have to pay out of pocket after an expensive accident. Or, if you choose a company known for a slow claims process, consider how long you could afford to be without a car or pay for a rental car while you wait for the repair check in the mail.
What credit score do I need to get the cheapest car insurance?
Typically you can get the cheapest auto insurance rates if you have good to excellent credit, which means having a credit score of at least 700. But not every state allows car insurance companies to base your quotes on your credit-based insurance score.
When does car insurance get cheaper for young drivers?
Car insurance for young drivers costs up to three times more on average. Teen drivers can expect car insurance rates to go down with each year of driving experience, with significant drops when they turn 21 and 25.
Conclusion
Finding the best cheap auto insurance can be a daunting task, but with the right information, it can be made easier. It is important to compare rates and coverage options from multiple companies, read customer reviews, and check the financial stability of the insurer. It is also important to consider any discounts or special offers that may be available.
We encourage readers to take action and start their search for cheap auto insurance. Don’t wait until you have an accident or a ticket to start shopping for insurance. By taking the time to research and compare options, you can save hundreds of dollars per year on your auto insurance premiums. Remember to consider factors such as coverage limits, deductibles, and customer service when choosing the best cheap auto insurance for your needs.
