Are you tired of paying exorbitant amounts for car insurance? Look no further! We’ve got you covered with information on the cheapest car insurance companies in the market. In this article, we will provide you with valuable insights on how to find the most affordable car insurance rates while still ensuring you have adequate coverage. Let’s dive in!
The Cheapest Car Insurance Companies
When it comes to finding the cheapest car insurance company, Auto-Owners takes the lead at the national level. Their average rate estimates for minimum coverage and full coverage are $39 per month and $142 per month, respectively. These rates are substantially lower than the national averages of $78 and $210 per month. However, it’s important to note that the cheapest car insurance company may vary depending on your specific circumstances. Several other top providers offer national rate estimates within $25 per month of Auto-Owners.
Remember that car insurance rates are personalized based on various factors such as your location, age, driving record, and more. In the following sections, we will delve deeper into these factors and how they impact your rates. We will also provide you with a list of the cheapest providers based on these factors, along with estimated rates.
Cheapest Car Insurance by State
Average car insurance rates can vary significantly between states due to varying state insurance requirements and local risk factors. To find the cheapest car insurance in your state, hover over your state name to see its average rate estimate, along with the cheapest provider and their estimated rate. We’ve also included a table below with average rates and cheapest providers for your reference.
Cheapest Car Insurance by Age
Age plays a significant role in determining car insurance rates. Young drivers typically pay much more for coverage compared to older drivers. For instance, teen drivers can cost more than three times as much to insure as a 30-year-old driver. However, rates tend to decrease as drivers get older and tend to level out around the age of 35. It’s important to consider these factors when looking for the cheapest car insurance rates.
Cheapest Car Insurance by Driving Record
Maintaining a clean driving record can help you access the cheapest auto insurance rates. Any accidents or violations, such as speeding tickets, can increase your premiums. Based on our data, average rates can increase by certain percentages compared to rates for drivers with clean records. Navigate the tabs below to see rate estimates for drivers with clean records, a recent accident, two speeding violations, and a DUI.
Cheapest Car Insurance by Credit Score
In most states, your credit score can significantly impact how much you pay for car insurance. Drivers with good credit scores often get access to the cheapest rates, while those with lower scores tend to experience higher premiums. Our data shows that people with poor credit scores pay an average of 77.2% more for minimum coverage and 75.8% more for full coverage. However, it’s important to note that regulations in certain states have outlawed the use of credit scores in determining insurance rates.
What Is the Cheapest Car Insurance for Me?
The cheapest car insurance is typically a liability policy that meets your state’s minimum insurance requirements. However, it’s essential to evaluate your coverage needs carefully. The majority of people in the U.S. opt for additional coverage beyond the minimum requirements. Assess your financial situation and the level of risk you’re comfortable with to determine the right coverage for you. In the following sections, we will provide you with more information to help you make an informed decision.
Premiums on the Rise: Why Even the Cheapest Car Insurance Seems Expensive
Car insurance costs have been on the rise, with premiums increasing by 42.8% since 2020, according to the Bureau of Labor Statistics. Several national and local factors have contributed to this trend. Climbing used car prices, rising accident rates, and increasing costs of car repairs have all influenced the cost of car insurance. These factors have led to insurers raising rates to compensate for the additional risk. Understanding these factors can help you make sense of why even the cheapest car insurance may seem expensive.
Should You Get the Cheapest Car Insurance?
While getting the cheapest car insurance may save you money initially, it’s important to consider the potential risks. Cheaper providers may offer poor customer service, slower claims processing, and fewer resources and tools compared to more established companies. When selecting car insurance, it’s crucial to find a balance between affordability and quality of service.
Best Cheap Car Insurance Companies: Six Under $66
We’ve compiled a list of six auto insurance providers charging a national average of $66 per month or less. These companies have not only affordable rates but also scored above 9 out of 10 in our 2024 auto insurance study. Erie Insurance emerges as our top pick overall, named “Best for Basic Insurance Coverage” in our study. USAA also received high scores in all our review categories, but keep in mind that it’s available only to military members and their families.
How To Get the Cheapest Car Insurance Rates
Finding the cheapest auto insurance rates requires time, effort, and a well-thought-out strategy. By following a few simple steps, you can increase your chances of getting the best rates on auto coverage.
1. Determine Your Coverage Needs
Assessing your coverage needs is crucial in determining the type of policy that makes sense for you. Consider factors such as your financial situation, location, and driving habits to determine how much coverage you need. If you’re looking for the cheapest car insurance available, a minimum policy may be sufficient. However, if you want to protect yourself from financial risk, consider opting for full coverage.
It’s also important to familiarize yourself with additional coverage options offered by car insurance companies, such as roadside assistance, rental car reimbursement, and gap insurance. These add-ons can provide extra protection and peace of mind.
2. Gather Your Information
To streamline the car insurance shopping process, gather all the necessary information upfront. This includes your ZIP code, vehicle identification number (VIN), car mileage, make, model, and trim level, coverage needs, approximate miles driven per month, and any other insurance products you’re considering.
3. Gather Quotes from Multiple Providers
Shopping around and comparing quotes from multiple providers is key to finding the best rates. You have several options for obtaining quotes, including reaching out to insurance companies individually via phone, online, or in person, or using an insurance broker. Alternatively, you can use aggregator tools that allow you to source quotes from multiple providers simultaneously. These tools can save you time and effort in finding the best and cheapest options available.
4. Compare the Rates You Receive and Their Providers
When comparing quotes, it’s essential to consider not only the price but also the coverage offered and the reputation of the insurance providers. Look for providers that offer competitive rates, reliable customer service, and efficient claims processing. Take the time to review the quotes and research the providers before making a decision.
5. Ask for Discounts
Before finalizing your policy, inquire about available discounts that can further reduce your premiums. Most insurance providers offer discounts such as military discounts, senior discounts, good student discounts, homeowners discounts, and more. Don’t hesitate to ask for a full list of available discounts and take advantage of any that you qualify for.
Using Car Insurance Discounts To Get a Lower Premium
Car insurance companies offer various discounts that can significantly lower the cost of your policy. Bundling discounts, which allow you to combine multiple policies, are common and can save you up to 30%. Additionally, many providers offer discounts for specific demographics or affiliations, such as military members, seniors, or good students. Explore the discounts available from different providers to maximize your savings.
More Ways To Save on Car Insurance
In addition to utilizing discounts, there are a few other strategies you can employ to save on car insurance:
- Increase your deductible: Opting for a higher deductible can lower your premium, although you will have to pay more out of pocket in the event of a claim.
- Lower coverage limits: While it’s important to have adequate coverage, adjusting your coverage limits can help lower your premium without compromising your protection. Evaluate your needs carefully to find the right balance.
By implementing these strategies and following the steps outlined in this article, you can increase your chances of finding the cheapest car insurance rates while still ensuring you have adequate coverage. Don’t settle for expensive premiums when affordable options are available. Start your search for the cheapest car insurance today!
Q: What factors determine car insurance rates?
A: Car insurance rates are determined by various factors, including but not limited to your location, age, driving record, credit score, and the type of coverage you choose.
Q: Are cheap car insurance companies reliable?
A: While cheap car insurance companies may offer lower rates, it’s important to consider factors such as customer service, claims processing, and overall reputation. Make sure to research the company and read reviews before making a decision.
Q: What is the minimum car insurance coverage required?
A: The minimum car insurance coverage required varies by state. Familiarize yourself with your state’s insurance requirements to ensure you meet the legal obligations.
Q: Can I change my car insurance provider?
A: Yes, you can change your car insurance provider at any time. However, it’s important to consider any cancellation fees or penalties that may apply.
Q: How often should I review my car insurance policy?
A: It’s recommended to review your car insurance policy annually or whenever there are significant changes in your circumstances, such as moving to a new state or purchasing a new vehicle.
Finding the cheapest car insurance rates doesn’t have to be a hassle. By understanding the factors that impact your rates, comparing quotes from multiple providers, and utilizing discounts, you can save money without compromising on coverage. Remember to assess your coverage needs carefully and research insurance providers before making a decision. Don’t let expensive premiums weigh you down. Start your journey towards affordable car insurance today!
