In today’s world, finding cheap car insurance is key for many. It doesn’t matter if you are a very good driver or someone who is seen as risky. Many insurance companies have affordable options to cover you. NerdWallet has checked and found the cheapest companies. This helps everyone, based on how they drive and their situation.
Key Takeaways
- Geico is the cheapest large auto insurance company for good drivers, with an average annual rate of $355.
- USAA, Nationwide, Travelers, and Erie are other large insurers with affordable minimum coverage rates.
- Midsize insurers like Erie and Virginia Farm Bureau also provide potential for inexpensive car insurance options.
- Factors like age, driving record, and credit score can significantly impact car insurance rates.
- Comparing quotes from multiple insurers is crucial to finding the most budget-friendly policy.
Understand the Factors Affecting Car Insurance Rates
Car insurance costs are influenced by several important factors. It’s key to know these factors to find the best-priced coverage. The main things affecting rates are your age, how well you drive, and your credit score.
Age, Driving Record, and Credit Score
Age is a big part of how much car insurance you pay. People under 25 often have to pay more. This is because they’re seen as likely to have accidents or violate traffic rules. Data shows that teens are three times likelier to be in a deadly crash than adults.
How you drive matters a lot too. If you speed a lot, have had accidents, or break traffic rules, your insurance will be pricier. Studies say even a small speeding ticket can raise your yearly payment by $409 for full coverage. Three accidents could mean you pay $3,620 more every year.
Credit scores can also change how much you pay for insurance. If your credit is bad, you’ll likely pay more. But in some places, like California, using credit scores to set insurance prices is not allowed.
Knowing how these things affect your insurance costs is helpful. When you’re looking for insurance, keeping your age, driving history, and credit score in mind can help. This way, you might be able to save some money.
“Younger drivers, those with violations like speeding tickets or accidents, and individuals with poor credit tend to pay higher premiums compared to older, safer drivers with good credit.”
Comparing Quotes from Multiple Insurers
Finding cheap car insurance involves comparing quotes from various companies. Rates differ a lot. Thus, it’s vital to look at different options. This allows you to find the best price and coverage.
To get started, collect your car’s details, your driving history, and the coverage you want. Then, contact multiple insurers for estimates. This step is crucial to see the price range available to you.
| Driver Age | Median Full Coverage Rate | Median Minimum Coverage Rate |
|---|---|---|
| 20 years old | $3,576 | $1,023 |
| 30 years old | $1,769 | $502 |
| 35 years old | $1,718 | $488 |
| 40 years old | $1,676 | $477 |
| 50 years old | $1,570 | $452 |
| 60 years old | $1,507 | $445 |
| 70 years old | $1,607 | $493 |
By looking at quotes from multiple sources, you can find the best deals. This method can lead to significant savings on your insurance. You might save a lot per year just by comparing.
“Shopping around and comparing quotes is the best way to find the cheapest car insurance that still provides the coverage you need.”
Geico: Cheapest Large Insurer for Good Drivers
Geico leads in affordable car insurance. NerdWallet’s analysis shows Geico is the lowest priced among major insurers. For good drivers, the average annual cost is just $355. This is roughly $30 a month for basic coverage. Geico stands out with its Geico cheap car insurance and best rates for good drivers.
Geico is renowned for large insurer affordable premiums. It’s not just good drivers who benefit. Almost everyone can find a great deal here, including those with accidents and DUIs.
- Drivers with one at-fault accident: Travelers is lowest at $565 per year.
- Drivers with a DUI: Progressive’s average is $589 yearly, the cheapest.
- Drivers with poor credit: Geico has the best rates for large insurers at $481 yearly.
Geico offers great rates, but prices change by city. It’s smart to compare quotes from different insurers. This ensures you get the best deal for your car insurance.
Besides low premiums, Geico is praised for its service. Their app and online tools help manage policies easily. Policyholders can file claims and find discounts without hassle.
“Geico offers the cheapest car insurance rates for good drivers, with an average annual premium of just $355. This makes it a top choice for those looking to save on their car insurance.”
Geico’s mix of Geico cheap car insurance, best rates for good drivers, and large insurer affordable premiums is impressive. It’s a top choice for affordable, quality car insurance.
Midsize Insurers: Potential for Affordable Rates
Finding cheap car insurance doesn’t always mean choosing big national companies. Smaller insurers that operate in several states can have good deals. For example, companies like Erie and Virginia Farm Bureau offer budget-friendly insurance, especially if you have a clean record or live in a specific area.
Erie and Virginia Farm Bureau: Affordable Options
Erie Insurance is known for its low prices. NerdWallet’s research showed Erie among the lowest-priced car insurance providers. They offer full coverage for an average of $1,187 a year in California. This is great news for those looking to cut costs.
Virginia Farm Bureau is also worth looking at. It provides affordable full coverage, costing around $1,638 yearly in California. This option is less expensive than many big national brands. It’s a good choice for safe drivers or people with state-specific insurance needs.
“Midsize insurers like Erie and Virginia Farm Bureau can provide cheaper rates than the big national carriers, particularly for drivers with good records or specific state-based considerations.”
Looking beyond large insurance companies opens up more affordability. Options from midsize companies like Erie and Virginia Farm Bureau can suit many different budgets and situations.
inexpensive car insurance companies for High-Risk Drivers
Finding affordable car insurance for high-risk drivers can be tough. But, some companies offer good deals. Bankrate’s research points to Plymouth Rock, Geico, and Erie as top choices for low prices. This is especially true if you have a record of violations, accidents, or other risks.
Companies like Nationwide, Travelers, and Progressive are good choices too. They often provide better rates for drivers with violations. The cost for high-risk drivers can be anywhere from $644 to $2,314 per year, depending on coverage. So, comparing quotes from different companies is key.
Affordable Options for High-Risk Drivers
- Plymouth Rock: Minimum coverage around $411, full coverage around $1,353
- Geico: Minimum coverage around $459, full coverage around $1,741
- Erie: Minimum coverage around $557, full coverage around $1,693
- Nationwide: Minimum coverage around $644, full coverage around $2,314
- Travelers: Minimum coverage around $644, full coverage around $1,649
Remember, insurance prices can change based on your driving record, where you live, and your credit score. In places like California, high-risk drivers might pay even more. Annual rates there can be $3,000 to $11,000, depending on the company.
“Finding the right car insurance policy can be challenging for high-risk drivers, but there are still affordable options available if you shop around and compare quotes from multiple providers.”
Knowing what affects insurance rates and checking out various options can help high-risk drivers find cheap car insurance. It can be both budget-friendly and offer the coverage needed.
Discounts and Ways to Save on Car Insurance
Finding affordable car insurance is easier than many think. You can pay less by using various discounts and strategies. These can help cut your costs and keep your savings high. Here are some top ways to reduce your car insurance bills.
Bundle Policies for Maximum Savings
Combining your car insurance with another type, like home or rent insurance, is a smart move. Doing this can lead to discounts up to 25% from some insurers. It’s a major way to save money, appealing to a lot of drivers.
Low Mileage Discounts
Driving less could win you a significant discount. If you drive under 12,000 miles a year, you might save more. Simply show your insurer proof of your light driving for possible savings.
Other Discounts to Explore
- Keeping a clean driving record can win you a discount
- Good grades can also mean a sizeable discount for students
- Installing a security system in your car can give you a break
- Opting for digital policies rather than paper can save you money
- Some insurers offer discounts for paying your premium in full
- Sticking with the same insurer year after year can reduce your rates
- Members of certain groups may qualify for special discounts
If you take the time to look into discounts from your insurance company, you might find some great deals. Be sure to check what’s available because discounts can differ between companies and states. Always ask about your possible savings.
“Leveraging discounts and bundling policies can save drivers hundreds of dollars on their car insurance each year.”
To sum up, being proactive in finding car insurance discounts and using saving strategies is key. With a bit of effort, it’s possible to get great coverage at a low price. So, take advantage of these opportunities to save and ensure your peace of mind.
Balancing Coverage and Cost
Finding the right balance between enough coverage and low cost is important when looking for car insurance. While choosing the lowest coverage can save money, it might not offer enough protection if something goes wrong. It’s essential to balance your budget with the protection you need.
Each driver should think about what coverages they require. Look for affordable car insurance that still gives good protection. This way, you can feel secure when driving, knowing you’re well covered without overpaying.
Consider these key points to get the best policy for you:
- Coverage Levels: Check what insurance your state needs. Then decide if you should add more coverage, like for accidents or if your car gets stolen or damaged.
- Deductibles: Choosing a high deductible can lower your monthly costs. But, make sure you could pay that deductible if you had to.
- Discounts and Savings: Look for deals on safe driving, combining different policies, and having a good credit score to save money on your insurance.
By wisely picking your coverage levels and considering protection versus price, you can get an insurance plan that’s affordable and meets your needs.
| Insurer | Minimum Coverage Average Annual Premium | Full Coverage Average Annual Premium |
|---|---|---|
| Geico | $465 | $1,782 |
| Nationwide | $698 | $1,564 |
| Auto-Owners | $415 | $1,631 |
| Amica | $673 | $2,662 |
| USAA | $435 | $1,709 |
The data proves there are affordable car insurance choices out there. With the right search and comparing different companies, finding a policy that fits your needs and budget is possible.
“The key is to find the sweet spot between the coverage you need and the premiums you can comfortably afford. With some research and comparison shopping, you can get the protection you deserve at a price that fits your budget.”
State-Specific Considerations
Looking for the cheapest car insurance means understanding that prices change by state. This happens because each state has its own rules and factors that affect costs. Population density and other influences also play a big part.
The best car insurance companies for low rates vary from state to state. Pekin gives the lowest prices in Illinois. Minimum liability insurance costs an average of $22 a month. For full coverage, it’s $66 a month.
New York is at the high end, with an average yearly insurance cost of $4,769. Check out Idaho for the lowest cost, at $1,021 a year. When it comes to minimum coverage, Florida tops the list at $1,286 while Hawaii offers the lowest, just $376.
| State | Average Annual Cost for Full Coverage | Average Annual Cost for Minimum Coverage |
|---|---|---|
| New York | $4,769 | $1,276 |
| Idaho | $1,021 | $376 |
| Florida | $3,629 | $1,286 |
| Hawaii | $1,396 | $376 |
These differences in state-based car insurance regulations and how location impacts rates show the need to know your state’s specifics. This is key to finding the best and cheapest car insurance.
“Car insurance rates can vary significantly across different states due to variations in regulations, population density, and other factors. Drivers should research the specific requirements and average costs in their state when searching for the most inexpensive car insurance options.”
To get the best car insurance deal, know what your state requires. Then, look at specific plans in your area. This will help in finding affordable and suitable car insurance.
Review and Adjust Coverage Regularly
It’s critical to keep the right car insurance but your needs might change. You should look over your car insurance often and make changes when needed. Things like how you drive, the cars you have, or big life changes can make you rethink your policy. This makes sure you’re still getting the best deal.
Looking at different insurance quotes and checking out new ways to save or get more can lower your costs. By tweaking your policy when necessary, you make sure it fits your current needs and budget. This keeps you protected without breaking the bank.
- Review your coverage yearly or when big changes happen.
- Get quotes from various insurers to find the most affordable and fitting coverage.
- Use all possible discounts, like for low mileage, safe driving, or combining policies.
- Change your coverage or deductibles to balance protection with cost.
- If possible, raise your deductibles to lower your insurance cost.
By adjusting your coverage as needed, your policy stays just right for you. Regular changes help you save more while staying well-protected.
| Statistic | Value |
|---|---|
| Auto insurance providers reviewed | 130 |
| Data points analyzed | 8,500 |
| Research hours invested | 800 |
| Customers surveyed | 12,500 |
By staying on top of things and making sure to check your car insurance a lot, you get the best deal and the protection you need.
“Looking over your car insurance often and making adjustments keeps your prices low and your protection good.”
Conclusion
Getting cheap car insurance takes some smarts. You need to compare lots of quotes. This means looking at what different companies will offer you. It’s also smart to check out any deals they might have for you. Knowing what makes your insurance cost more or less can help a lot too.
Big companies and smaller ones both have good deals sometimes. For instance, USAA is often the cheapest of the big companies. It usually charges less than the others. For a 35-year-old with a good driving record, their average yearly cost is $1,054. This is 39% cheaper than usual.
Companies like Nationwide and Country Financial might be better for those who face more risk. They could save you about 25-26% compared to others. You can save even more by combining different policies or by driving less. Always look for ways to get discounts on your insurance.
The bottom line to find cheap car insurance is straightforward:
- Look at what many companies offer
- Know what makes your insurance cost more or less
- Use any discounts you can get
- Keep checking your policy to make sure it still fits your needs
Sticking to these steps can help you find the right insurance without paying more than you need to. Make wise choices, and you’ll end up with a good deal.
| Insurer | Market Share | Premiums Written | Average Annual Cost (35-year-old driver) | Percent Cheaper than National Average |
|---|---|---|---|---|
| USAA | 5.92% | $16.4 billion | $1,054 | 39% |
| Erie Insurance | 1.30% | $3.6 billion | $1,238 | 28% |
| Nationwide | 1.99% | $5.5 billion | $1,281 | 26% |
| Country Financial | 0.44% | $1.2 billion | $1,295 | 25% |
FAQ
According to NerdWallet’s analysis, Geico is the cheapest large auto insurance company, with an average annual rate of $355. This is for minimum coverage, about $30 monthly. Other budget-friendly choices include USAA, Nationwide, Travelers, and Erie.
What is the cheapest car insurance company?
To find the cheapest car insurance, compare quotes from several insurers. Make sure to look for available discounts. Factors like your age, driving record, and credit score influence your rates. Check out both national and regional companies. This helps in finding the best-priced coverage.
How can I get the cheapest car insurance?
Saving on car insurance is possible several ways. Bundle your auto policy with another insurance, like home or renters insurance. Insure all your vehicles together and get low-mileage discounts if you drive less. Also, always look for new discount options to reduce costs over time.
What are some ways to save on car insurance?
To save on car insurance, bundle your auto policy with other insurances. Insure all your cars with one policy. If you don’t drive much, look for low-mileage discounts. Always check for new discounts and review your coverage. This ensures you’re getting the best deal on your insurance.
