6 Best Cheap Car Insurance Companies 2024







 Thankfully, there are insurance companies that offer a mix of great service and affordable rates. Here’s our list of the best cheap car insurance companies of 2023.

Our Top Picks for Best Cheap Car Insurance Companies

Best for Veterans and Military Families: USAA
Best for Teen Drivers: Erie Insurance
Best for Multiple Coverage Options: State Farm
Best for High-Risk Drivers: Geico
Best for Poor Credit: Nationwide
Best for Rideshare: Allstate

Best Cheap Car Insurance Companies Reviews

Best for Military Members, Veterans and Their Families: USAA
Why we chose it: USAA is one of the few auto insurance companies exclusively offering affordable rates to military members, veterans and their families. They offer the military community competitive rates, easy-to-understand policies, 24/7 customer service and excellent claims service.

The company offers some of the lowest rates for military members and it claims you can save 30% or more on your car insurance premiums compared with other insurers.

Some discounts that are specific to the military community include one which saves you up to 15% on comprehensive coverage if you garage on a military installation. Another option is a discount if you’re deployed, which can save you up to 60% on your premium.

The company also has an excellent customer satisfaction track record. While USAA doesn’t meet the criteria to officially rank in the J.D. Power Auto Customer Satisfaction Surveys, it did outscore companies in nine out of ten markets in 2022. The survey is based on auto insurance aspects that are most critical to customer satisfaction, such as cost and fulfillment of claims.

While USAA products are only available to military members, veterans and their families, it’s worth noting that the latter include the adult children of those who served or are serving.

Also, USAA has fewer of the coverage options that are standard with other insurance providers. You can’t find options like gap insurance, which covers the difference between how much you owe on your auto loan and how much your insurer pays out if your car is totaled or stolen. It also doesn't offer coverages like accident forgiveness or vanishing deductibles.NOTE

Discounts offered

USAA SafePilot Program: Telematics safe driving program
MyUSAA Legacy Discount: If your parents were USAA members, you can save on your own policy for continuing the legacy
Safe driving
New car
Anti-theft device
Garaging on a military installation
Deployment
Good student
Multi-vehicle
Defensive driving or basic driver training course
Coverage offered

Comprehensive
Collision
Liability
Uninsured and underinsured
Rental assistance
Rental reimbursement
Best for Teen Drivers: Erie Insurance
Why we chose it: Erie Insurance is the best auto insurance company for teen drivers, offering low premiums and various opportunities to save.

Since teen drivers are still gaining experience behind the wheel, they’re more likely to make some mistakes while driving. Erie Insurance offers the Erie Rate Lock program which it claims will keep premiums from rising.

Another option is the Youthful Driver Discount, which is for unmarried drivers under 21 years old who live with their parents. The Youthful Driver Longevity Discount is similar in that it’s for unmarried drivers who were previously insured under a different Erie auto policy, usually their parents.’

The Driving Training Discount is another opportunity for teens to save. While many insurers offer a similar discount for completing a driver training program, this one is specifically for drivers under 21 years old. Drivers under 21 years old who complete an accredited driver training course can save on their premium. This is helpful for not just saving money but also reinforcing the need to stay safe behind the wheel.

Erie ranked number one in 2022 in the J.D. Power Auto Customer Satisfaction Study for the Mid-Atlantic and North Central markets. That marks the second year in a row that the company hit the top spot in the latter region.

With all of the advantages of choosing Erie auto insurance, you’ll miss out if you don’t live in one of the 37 states where it offers coverage. Erie isn’t available in Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, Wisconsin or Washington D.C.

If you use the mobile app often, you might also find that it has bugs. These glitches can make it inconvenient to access your information.

Discounts offered

Erie Rate Lock: Freezes your insurance premium even if you file a claim or get a moving violation. Not available in all states and Virginia residents are only eligible for three years
First accident forgiveness
Diminishing deductible
Youthful driver
Youthful driver longevity
Driver training
Vehicle storage
Safety features
College student
Safe driving bonus
Coverage offered

Bodily injury liability coverage
Personal injury protection (PIP)
Comprehensive coverage
Property damage liability
Underinsured or uninsured motorist coverage
Collision coverage
Gap insurance
Windshield repair
Pet injury coverage
Travel expenses if your vehicle is disabled due to a covered loss
New car replacement
Rental car coverage
Roadside and rentals bundle
Compare Rates with Erie Insurance
Best for Drivers Who Want Multiple Coverage Options: State Farm
Why we chose it: State Farm is our top choice for drivers who want multiple coverages with one company, because it offers a variety of bundling choices. You can combine your car, motorcycle, boat, homeowners, renters or small business insurance coverages, just to name a few.

As with some other insurance companies, when you bundle multiple coverages under the same policy, you can earn a multi-policy discount. Bundle auto and renters insurance and State Farm claims you can save up to $684 annually on your policy. Also, if you have two vehicles covered under the same policy, you can save up to 20% with the multi car discount.

Along with helping you save if you bundle your policies, State Farm offers the Drive Safe & Safe telematics program which it claims can save you up to 30% on your insurance premium for practicing safe driving. The Steer Clear telematics program is similar, but it’s specifically for drivers under 25 years old. It’s a great way for younger drivers to gain insight into safe driving habits.

Discounts offered

Drive Safe & Save: Telematics program that tracks your driving habits
Steer Clear: Telematics program specifically for drivers under 25 years old
Teen driver
Multi-policy
Good driver
Defensive driving course
Vehicle safety
Accident-free
Passive restraint
Anti-theft device
Multi-vehicle
Coverage offered

Collision
Comprehensive
Rental and travel expenses insurance Liability
Rideshare driver
Underinsured or uninsured motorist
Medical payments
Emergency road service
Compare rates with State Farm

Which company offers the cheapest car insurance?

USAA offers the least expensive full coverage auto insurance policy, with an average annual premium of $1,209 -- but it’s available only to military service members, veterans and their families. The runner-up is Geico, which offers full coverage for $1,297 per year.

Are your children covered under your car insurance?

If your child lives under your roof and is driving one of your vehicles, you’ll need to add them to your car insurance policy.

What factors influence car insurance rates? Can you get discounts?

Auto insurance rates may ultimately be determined by personal factors, such as where you live, your driving record, your credit score and the type and age of vehicle you drive. However, insurance companies offer numerous discount options that you can take advantage of if you qualify.

For example, you may lower your insurance coverage costs if you maintain a safe driving record or work on your credit score. Bundling your car insurance policy with life, homeowners or renters insurance is another great way to save money. Young drivers might save money on their higher premium costs by demonstrating good grades.

What kind of car insurance coverage does your state legally require you to have?

In most states, bodily injury liability coverage and property damage liability are necessary to drive, but you’ll want to check the specifics of insurance premiums with auto insurance providers where you live. An insurance agent can help guide you through this process so that you know exactly what coverage you may need.

How Does Car Insurance Work?

When you get car insurance, you’re entering into a contractual agreement with your insurance company.

In exchange for you paying a monthly or annual premium, the insurer offers financial protection in case you’re in an accident or your vehicle is damaged or stolen. Auto insurance is required in every state but Virginia and New Hampshire. (Those states have alternative requirements such as paying an uninsured motorist fee.)

Depending on your policy, your insurer may pay for medical bills, legal fees and lost wages due to an accident or other covered events. How much you pay for your auto insurance will vary based on numerous factors, including your driving history, vehicle and the level of coverage you select.

Check out our guide on how to buy car insurance for more information.

Factors that can impact your car insurance quote

How much you pay for auto insurance will vary based on numerous factors. Here are some things insurers consider before setting your rate.

Credit score

In many states, insurers use your credit score as a factor in determining your auto-insurance premiums. According to the insurance industry, data shows that drivers with lower credit scores are more likely to file claims, and vice versa. However, California, Hawaii, Massachusetts and Michigan don’t factor in your credit score. More states are considering banning this practice as well.

At-fault accidents

Causing an accident indicates to insurance companies that you’re a higher risk to insure and your rates will often rise accordingly. If you’ve been in an at-fault accident be sure to disclose this to your new insurance company when signing up.

Driving habits

Maintaining a clean driving record and avoiding accidents is one of the easiest ways to save on car insurance. Insurance companies see you as a low risk driver if you exhibit safe driving habits. The more points you accumulate on your license, the higher your rates will be.

Coverage level

You have many coverage options to consider when getting insurance. State minimum coverage is typically the most inexpensive because it’s a liability only policy, and even then usually provides less protection than experts recommend. The more coverage you choose from there (i.e. additional liability, comprehensive, collision, roadside assistance and/or medical coverage) the more expensive your premium will be.

Gender

Men are more likely to participate in dangerous driving behaviors like speeding, so insurance companies tend to set their rates higher than those for women. The younger the driver is. As a rule, the bigger the difference in premiums due to gender. Seven states (California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania) don’t allow the use of gender as a factor when setting auto insurance rates.

Age

Teen drivers and young adults under 25 years old will pay the most for auto insurance compared to other age groups. That’s because they have limited experience behind the wheel and are more likely to engage in risky driving behavior. Rates tend to decline and eventually even out from ages 25 to 65, and then may increase again due to age-related health changes that can impact driving.

Permanent residence

Geographic location is one of the most influential factors when it comes to insurance rates. Cities with low crime rates and less dense populations tend to have lower insurance rates than those in which the opposite holds true. That said, rural states and regions,too, can have high insurance rates, because their less crowded roads can encourage driving at high speed, which also correlates with higher accident rates. .

How to lower your car insurance

If you’re currently paying more for auto insurance than you did or can now afford, you may be able to lower your car insurance premiums. Here are a few steps you can take to get cheaper rates.

Look into driver discounts

Most insurance companies offer a slew of discounts that can save you between 5% and 30% or so on your premium.

You may be eligible for a safe driver discount if you haven’t had accident or moving violations in the last 3-5 years. The multi-car discount is a common way to save if you insure more than one vehicle on the same policy. Be sure to ask insurance companies about any discounts they have. Some don’t list every option on their website.

Consider usage-based insurance

Usage-based insurance uses smartphone apps or sensors installed in the vehicle to track your driving habits. Those devices record such data as your braking and acceleration pattern, how many miles you drive, the time of day you drive and more. This information allows the insurer to determine whether you’re a safe driver or not. Drivers with safer driving habits will save on their premium.

Improve your driving skills with a defensive driving class

Defensive driving classes are designed for drivers to learn safe driving practices. They’re typically available for teens, seniors and other high-risk drivers, but you can still take them if you don’t fit these categories. Before you enroll, check with your insurance company to see if an accredited course will qualify for a discount.

Types of coverage for cars

When choosing your auto insurance coverage, you want to ensure it not only meets state minimum standards and requirements but those of your lender, if you have a lease or loan.

Liability

The coverage that’s most widely mandated by law, liability insurance covers damages you cause to another person's property while at the wheel. If you’re at fault in an accident, your liability coverage will pay for costs associated with fixing or replacing the other person's car, along with any medical bills they incur as a result of the accident, up to the policy limits.

Comprehensive

Comprehensive coverage protects your car when you’re not driving. This includes protection for everything from fire to theft and vandalism to a tree limb falling on your vehicle during a storm. This is a great option for protecting your investment, and all but those with an older vehicle of minimal value should, and do, carry it.

Collision

Collision insurance, also known as a physical damage policy, will cover any repairs to your car that occur while it’s in motion. With the exception, again, of owning an older vehicle of minimal value, you should carry this coverage; the vast majority of car owners do.

Personal injury protection

If you're in an accident and you or your passengers are injured, personal injury (PIP) protection can cover the cost of their medical expenses, lost wages and other related costs. Some state laws require that all vehicles carry this type of coverage (including Hawaii, Kansas, Michigan, Delaware, Florida, Massachusetts, North Dakota, Utah, New York, Oregon, New Jersey and Minnesota).

Gap coverage

Gap insurance is essential if you lease a car or have a loan. It will cover the difference between what you owe on your vehicle and its value in case your vehicle is totaled or stolen. This is beneficial because it keeps you from having to pay out of pocket for a vehicle you can no longer drive after an accident or other covered event.

How do I find cheap car insurance?

One of the best ways to find cheap car insurance is to compare rates between different insurance companies. Get quotes from at least 3 different insurers to see which company can offer the best rates for similar coverage.

Which cars are cheap to insure?

Crossover SUVs are typically cheap to insure because their comprehensive and collision claims are less expensive than larger and heavier vehicles. Some examples of these small SUVs include the Honda CR-V, Subaru Forester and Ford Escape.

How do you get cheap car insurance quotes?

Many car insurance companies offer discounts for things like taking a defensive driving course, having an alarm system, being a good driver with no accidents or tickets in the past three years and more. The key is to shop around and compare rates with different providers to find cheap online auto insurance quotes.

How We Chose the Best Cheap Car Insurance Companies

Here are some of the factors we used to choose the best cheap car insurance companies.

Coverage options

We looked for companies that offered a range of coverage options at a low price.

Discounts

We looked for companies offering numerous discounts that can save you a lot on your premium.

Customer service

We looked at reports and studies from industry experts like J.D. Power to see which companies offer customer service that is well-regarded.

Price

Price is one of the most critical factors in choosing a cheap car insurance company. We looked at national averages for car insurance rates for both good drivers and if you've had an accident to give you an idea of how much you may be paying with each company.

Summary of Best Cheap Car Insurance Companies

Best for Veterans and Military Families: USAA
Best for Teen Drivers: Erie Insurance
Best for Multiple Coverage Options: State Farm
Best for High-Risk Drivers: Geico
Best for Poor Credit: Nationwide
Best for Rideshare: Allstate


تعليقات