Car insurance costs vary for each person based on many factors. Your age, the kind of car you drive, your credit and driving records, and where you live all play a big role in deciding how much you’ll pay for insurance. Simply put, the amount you pay may be different from the numbers we show for comparison—they’re just there to help you understand.
There are many of the cheapest car insurance choices out there, UsNews.com looked into which insurance companies offer the most affordable rates. Based on their research, USAA, Geico, and State Farm tend to have the lowest average yearly rates. You can compare rates by getting free quotes for your specific location.
Your Best Cheapest Car Insurance Company
Welcome to your best cheapest car insurance company guide – your go-to destination for finding the cheapest car insurance options. We understand the importance of saving money while ensuring you have reliable coverage. Let’s explore budget-friendly choices together!
USAA car insurance
In the examination of cheapest car insurance providers, USAA emerges as the most economical choice. However, it’s important to note that USAA exclusively provides car insurance policies to members of the U.S. military, pre-commissioned officers, veterans, and their spouses and children.
Besides featuring the lowest average annual rates, USAA also offers the most affordable rates for both low- and high-mileage drivers, excelling in various other categories analyzed in our insurer assessment. For individuals lacking a connection to the U.S. military, the two most cost-effective alternatives are Geico, ranked second in a survey, and State Farm, positioned third.
- Advantages
- USAA car insurance is recognized as the top-rated customer service provider in the survey of the best car insurance companies.
- Offers coverage in all 50 states and Washington, D.C., providing extensive accessibility.
- Advantages
- Limited eligibility, as coverage, is exclusively available to military members, veterans, and their families.
- Prospective policyholders should carefully consider these factors to make an informed decision aligning with their specific needs and circumstances when selecting car insurance coverage.
Geico car insurance
Apart from USAA, Geico stands out as the most affordable choice for car insurance, especially for drivers with clean records, individuals seeking minimum coverage, and those covering higher mileage. Geico also presents the most budget-friendly average rates for male teenage drivers.
- Advantages
- Geico boasts some of the lowest annual rates on average when compared to other companies in our rating.
- The company receives high commendations for its customer service, and efficient claims handling, and maintains strong customer loyalty, as reported by surveyed policyholders.
- Geico offers an extensive range of discounts, providing additional opportunities for policyholders to save on their premiums.
- Disadvantages
- Geico’s sample rates for drivers with a DUI are slightly above the average when compared to other insurers in our rating.
- Prospective policyholders need to consider these pros and cons, assessing their individual needs and circumstances, to make an informed decision when selecting car insurance coverage.
State Farm car insurance
State Farm stands out as the provider offering the cheapest car insurance across various categories. Specifically, it provides the cheapest rates for senior drivers, female teenagers, low-mileage drivers, and individuals seeking full coverage. Even for motorists with a speeding violation, traffic accident, or DUI on their record, State Farm consistently offers the most budget-friendly rates on average.
The rates considered in our analysis are derived from information submitted by car insurers to state regulators, making them public and accessible. This analysis encompasses rates from the majority of the largest national insurers.
Despite commonly held misconceptions about how car insurance rates are determined, such as the impact of credit history, State Farm’s rates reflect below-average annual premiums in many categories according to our analysis. A notable positive is the high customer service ratings reported by surveyed policyholders.
- Advantages
- Receives high marks for customer service from policyholders surveyed.
- Offers below-average annual premiums in numerous categories, making it an economical choice for various demographics.
- Disadvantages
- Features relatively high annual rates, on average, for drivers with poor credit.
- Requires the completion of the policy purchase with a local agent, even if an online quote is obtained.
Prospective policyholders should weigh these factors carefully to make an informed decision aligned with their specific needs and preferences when selecting car insurance coverage.
Securing the Cheapest Car Insurance Quotes: A How-To Guide
We’ve done the hard work to figure out which big car insurance companies might give you the best prices. But, you won’t know the exact cost until you get quotes.
Insurance companies look at information that suggests older and married drivers make fewer claims, affecting the rates. You don’t need to get married just for insurance savings, and you can’t change your age. However, you can take these steps to save on car insurance and get the cheapest rate possible:
- Shop Around: Start by comparing quotes from different companies to find the cheapest car insurance. Ask each insurer about adjusting your coverage to match your current needs.
- Ask for Discounts: Many insurance providers offer discounts, such as lower rates for customer loyalty, a clean driving record, and good student discounts.
- Switch to Pay-Per-Mile Insurance: Consider pay-per-mile insurance, where you pay based on the number of miles you drive. If you don’t drive much, this switch could lead to significant savings.
- Improve Your Driving Record: Safe drivers with clean records often enjoy lower rates because they are less likely to file a claim.
- Improve Credit Rating: In many states, a poor credit score can result in higher insurance rates. Maintaining good credit or improving your credit score can help you secure a better rate.
- Understand State Requirements: Be aware of your state’s auto insurance requirements to determine the minimum coverage needed. Consider your assets and finances when deciding on the appropriate coverage.
- Increase Your Deductible: Opt for a higher deductible to lower your insurance costs. The deductible is the amount you agree to pay if you need to file a claim.
- Look for Local Insurers: Explore smaller insurers or consult with a local agent, as they might offer better or more affordable coverage than larger companies.
- Bundle Your Insurance: Take advantage of discounts by purchasing multiple policies from the same company, such as bundling your car insurance with renters or homeowners policies.
- Review Coverage Annually: Periodically review your policy at renewal time. Adjust your coverage, including your deductible and mileage, to align with your current needs.
- Pay Premiums Annually: While insurers often allow monthly or biannual payments, paying your premiums annually usually results in cost savings.
- Decrease Your Limits: Assess your finances and consider lowering your coverage limits. While this may increase out-of-pocket expenses after a claim, it can also lead to lower annual premiums.
In Conclusion
USAA secures the top spot in our comprehensive rating, boasting the most affordable average annual insurance rates across a wide array of categories. It consistently stands out for offering budget-friendly coverage, particularly excelling in providing economical options.
However, it’s important to note that access to USAA’s coverage is exclusive to members of the military community. Geico and State Farm, positioned as the second and third in our rating, also demonstrate commendable competitiveness in all evaluated categories.
They present compelling alternatives for a diverse range of drivers, including those with exemplary driving records, senior drivers, and individuals with less-than-ideal credit histories. These companies are recognized for consistently delivering competitive rates and comprehensive coverage options.
FAQs
Who Has the Cheapest Car Insurance?
USAA provides the cheapest car insurance rates in our analysis. Their insurance products, however, are limited to members, including U.S. military personnel, pre-commissioned officers, veterans, and their spouses and children.
For individuals who do not qualify for USAA membership, Geico and State Farm offer the lowest rates among the companies we examined.
What is the Cheapest Car Insurance Policy?
For many drivers, the most economical car insurance option is a minimum-coverage policy that fulfills their state’s auto insurance requirements. However, certain individuals, especially those who don’t drive frequently, might discover that a pay-per-mile plan offers a more cost-effective alternative compared to a traditional minimum-coverage policy.
What is the Cheapest Type of Car Insurance?
Typically, the cheapest car insurance option is a basic policy that fulfills the minimum insurance requirements in your state. It’s important to note that maintaining a clean driving record is crucial for securing the lowest rates.
What is the Cheapest Car Insurance for Members of the Military?
Individuals eligible for USAA membership have the opportunity to benefit from some of the most competitive annual rates on average, particularly for teen and senior drivers. USAA stands out with an average annual rate of $1,022 for good drivers, the lowest among the companies analyzed. This rate is $526 less than the national average, resulting in a significant savings of 34%.
It’s important to note that USAA membership, granting access to its car insurance products, is exclusively available to members of the U.S. military community.
How Can I Find the Cheapest Car Insurance Quotes?
To secure the cheapest car insurance quotes, it’s crucial to ensure that you’re not purchasing more coverage than necessary. Use this guide to determine the appropriate coverage amount for your specific needs. Afterward, broaden your search by obtaining quotes from multiple sources. The more quotes you gather, the higher the likelihood of finding the most economical car insurance policy for your requirements.
Is it a Good Idea to Get the Cheapest Car Insurance?
While being budget-conscious, opting for the absolute cheapest car insurance might not be the wisest decision. Choosing the lowest quote may mean settling for a basic policy that lacks the comprehensive coverage needed to safeguard your assets.
Additionally, the company providing the cheapest quote may not offer satisfactory customer service. It’s essential to strike a balance between affordability and the level of coverage and service that adequately meets your needs.
How Can I Get Cheaper Car Insurance?
As per the Insurance Information Institute (III), a highly effective method for saving money on car insurance is to obtain quotes from at least three different companies. This is because various insurers may offer different premiums for the same level and types of coverage.
Another cost-saving strategy is bundling your car insurance policy with another policy from the same insurance provider. For instance, if you choose to purchase both your homeowners or renters insurance and car insurance from the same company, many insurers typically offer a bundling discount.
You can find more details on the advantages of bundling home and car insurance policies in our evaluation of The Best Home and Auto Insurance Bundles. Maintaining a clean driving record is another way to secure better rates.
When reviewing the rates in our sections on Cheap Car Insurance After an Accident or Cheap Car Insurance After a Speeding Ticket, you’ll notice that most companies in our rating tend to have higher rates after such events than before. Additionally, maintaining a good credit rating is generally associated with receiving a more favorable premium compared to individuals with poor credit.
With a keen eye for detail and a commitment to accuracy, Akinpedia ensures his articles are thoroughly researched and fact-checked. His dedication to providing reliable information shines through in every piece he writes.
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