Cheap car insurance

by Stable MARK | Updated: August 13, 2022
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If you're looking for cheap car insurance, look no further than Geico. Our analysis of average minimum coverage rates shows that they offer the best rates, starting at just $29 per month.

In this article you’ll find out if are there any risks in choosing the cheapest car insurance, ways to get one, what are the benefits of the cheapest car insurance and how to save some money. Let’s start!

Cheap car insurance
Image 1: 10 cheapest auto insurance companies. USAA auto insurance is available only to the military, veterans, and their families

Cheap auto insurance saves money

Although the cheapest option may be your state’s minimum car insurance requirements, we focused our analysis on those minimums. Liability-only auto insurance is a good idea for many reasons. It pays for property damage and others’ medical bills from accidents you cause, which can save you a lot of money in the long run. Additionally, it gives you peace of mind knowing that you are covered in case of an accident. While this option is less expensive upfront, it may not provide the best coverage in the long run.

When it comes to finding cheap car insurance, quality is important. Other insurance companies focus on giving you the bare minimum coverage you need to drive legally—bodily injury and property damage liability with the minimum limits—along with a claims process that's spotty at best. You don't have to take a chance on a cheap car insurance company in order to get quality coverage. You can find affordable options that will still give you the protection you need.

Be careful if your car insurance rate looks too good to be true

Although it may be tempting to go with the cheapest car insurance rate you can find, it's important to make sure that you're getting quality coverage. If you don't have good car insurance, you could face financial hardship if you get into an accident. It's better to pay a little bit more for coverage that will actually protect you than to go with a cheap option that might not do anything if you need it. Low cost is not equal cheap and cheap usually means low quality.

The cheapest car insurance may seem like a good deal at first, but it could end up costing you a lot more if you get into an accident. Make sure you choose a reputable, reliable car insurance company that will take care of you financially if you need to make a claim.

The cheapest car insurance usually comes at some risks

You might be sacrificing important coverage options. Or you might have to pay higher deductibles. And if you need to make a claim, you might not be happy with the customer service you receive.

Just because you're looking for cheap car insurance rates doesn't mean you should have to sacrifice quality or important features.

There are also benefits of low-cost car insurance

Just because you're looking for cheap car insurance rates doesn't mean you should have to sacrifice quality or important features.

Low-cost car insurance provides many benefits, including fast and fair claims service, outstanding 24/7 customer service, and flexible payment options. You can tailor your coverage to meet your personal insurance needs, making it an affordable and convenient option for everyone.

How to get cheap car insurance

If you want to get cheap car insurance, it's essential to compare quotes from multiple insurers. You may find that you already have the most affordable insurance, but prices can change, so it's a good idea to check roughly once a year.

  • You could be missing out on car insurance discounts that you're entitled to. For instance, if you now work from home and drive less than when you first bought your policy, mention that to your insurance company. Maybe you would be able to qualify for a low-mileage discount.
  • If you're comfortable with the financial risk, you should consider raising your collision and comprehensive deductible. This will mean you have to pay more out of pocket if you need to file a claim, but it's a great way to get cheaper car insurance.
  • It's important to know when to cut the coverage on your car insurance. Don't sacrifice coverage just to get cheaper rates. However, if you drive an older car, you can probably drop comprehensive collision coverage. These types of coverage only pay out up to the current value of your car, minus the deductible. So, if your car isn't worth much, it might not be worth paying for this extra coverage.
  • There are certain life events that can lead to cheaper car insurance rates, so it's always worth shopping around for new quotes whenever something major changes. Many companies offer special rates for married couples or domestic partners, so it pays to be in a committed relationship. Or if you move to a suburb with lower accident and crime rates, you could qualify for a cheaper policy. Even if you move to a more expensive area for car insurance, there may still be some cheaper options available. So, it's always worth doing some comparison shopping before you make a final decision.
  • If you've been driving without any accidents, tickets, or moving violations, now is a good time to shop around for cheaper car insurance. Insurance companies will likely offer you a lower rate now that your driving record has improved. Check for quotes online every three to five years to make sure you're always getting the best deal.

What can I do to lower my car insurance rates?

By shopping around and comparing rates, you can find the most affordable premiums for your needs. However, there are also many ways you could get cheaper car insurance with your existing policy. Here are a few tips:

  • The kind of car you drive has a direct impact on your insurance rates. If you have a more expensive or stylish vehicle, your rates will be higher. However, older cars tend to be cheaper to insure.
  • If you have an older car with high mileage, you might want to think about dropping collision or comprehensive coverage in order to keep your premiums low.
  • If you are willing to pay more out-of-pocket in the event of an accident, you can significantly lower your car insurance premiums by opting for a higher deductible. This may mean more upfront costs, but it could also mean big savings in the long run.
  • Where you keep your car can impact your car insurance rates. If you live in and park your car in a high-crime area, you may pay higher rates than someone who lives and parks in a safe neighborhood.
  • The number of drivers on your policy is a factor that affects your insurance rates. If you add another driver to your policy, your rates will go up, especially if that driver is a teenager. This is because, statistically, teenagers are more likely to get into accidents, and therefore are more expensive to insure.
  • Though your insurance rates may go up after an accident or moving violation, you may eventually qualify for a discount if you have a clean driving record.

You can save money by combining your auto and home policies, paying for your policy in full, or taking a defensive driving course. Additionally, it's important to keep a clean driving record and update your policy information regularly. When choosing a car, be sure to consider which type of vehicle will get you the best insurance rate.

Discounts that could reduce your rates

Multiple policies discount – If you carry various types of insurance policies from one and the same insurance company (car insurance, home insurance, life insurance, motorcycle insurance, etc.), you could qualify for lower premiums on each policy than if you had separate policies from different insurers.

Sign up for automatic bill pay and you'll save money on stamps and avoid late fees. If you agree to receive your policy documents electronically, you may be eligible for a recurring discount. Going paperless is a win-win - you'll save money and help the environment.

If you're a member of any professional or alumni organizations, you could be eligible for a discount on your car insurance rates. There are hundreds of organizations that have partnered with insurance companies to offer this benefit to their members. So, check with your organization to see if you could be saving money on your car insurance.

If you're on active duty, in the guard or reserve, or a retired military member, you could be eligible for car insurance discounts with any of these companies. Federal employees may also be able to get a special discount.

If you insure more than one car, you could save up to 25% on your policy.

As a senior, you could be eligible for a guaranteed renewal program and other perks that could help reduce your car insurance rates.

Cheap car insurances from selected companies

Company
Average monthly cost
Average annual cost
Central Insurance
$21
$257
MMG
$24
$287
Secura
$27
$319
Geico
$29
$354
USAA *
$30
$356
Hastings Mutual
$36
$428
State Farm
$38
$452
Mutual of Enumclaw
$42
$499
Progressive
$52
$619
Farmers
$52
$620
Allstate
$55
$666
 
* USAA auto insurance is available only to the military, veterans, and their families

Cheap auto insurance for poor credit score

Good credit is important, but you shouldn't have to pay more for car insurance just because your credit score isn't perfect. Many insurers use credit-based insurance scores to help calculate rates, which can make it harder to get cheap car insurance if you have poor credit. But there are still ways to get the coverage you need at a price you can afford. Talk to an agent about your options and see if you can get a better deal.

If you have good credit, you may be surprised to learn that it can have a significant impact on your auto insurance rates. In fact, drivers with good credit may pay over $400 more per year on average than those with poor credit. This is because a credit-based score includes the same factors as a regular credit score, such as debt and payment history, but weighs them differently. However, there are some states that have outlawed this practice, including California, Hawaii, Massachusetts, and Michigan.

Cheap auto insurances after DUI or an accident

Insurance companies
Average annual cost
USAA *
$535
Geico
$577
State Farm
$618
Travelers
$634
American Family
$651
Nationwide
$901
 
* USAA auto insurance is available only to the military, veterans, and their families

Takeaway

When it comes to car insurance, you want to find a policy that is affordable without skimping on coverage. Luckily, there are plenty of cheap car insurance options available that can give you the protection you need without breaking the bank. Just be sure to do your research and compare rates before buying a policy to ensure you are getting the best deal possible.

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