The cost of auto insurance varies by state. One company may be costly in Utah but cheap in New York. USAA is almost always the cheapest company in every state, but because of its eligibility requirements, most drivers are unable to obtain quotes from USAA. State Farm was the most affordable, widely available, and accessible company in the majority of states.
In some states, a small, local company or affiliate may be able to provide you with the cheapest car insurance. Farm Bureau, for example, offers the most affordable insurance in Arkansas, Georgia, Kentucky, Louisiana, and Nebraska.
Which drivers can obtain the most affordable auto insurance quotes?
Your location, age, driving history, vehicle, credit score, and, perhaps most importantly, coverage all influence your car insurance quotes.
Having more driving experience and not having any tickets or accidents can help you save money on car insurance. Drivers who choose a minimum-coverage policy can save money on auto insurance, but they risk not being fully covered in the event of a major accident.
How to Find the Most Affordable Auto Insurance
To find the cheapest car insurance for you, you should follow a few simple steps.
- Look for the best level of auto insurance coverage.
- Request quotes from several companies.
- Use all of the available discounts.
Knowing how much car insurance you require is essential for locating the best cheap car insurance. You don’t want to overpay for coverage that isn’t necessary, but you do need enough coverage to meet state requirements and protect your finances. To make fair price comparisons, compare the same coverage limits when getting quotes from multiple companies.
The amount of auto insurance you require is determined by your budget, your state’s insurance requirements, and how coverage works.
|Coverage||Required?||Do I need it?|
|Bodily injury liability||Yes except FL, NH & VA||Yes; get much as you can afford|
|Property damage liability||Yes except NH & VA||Yes; get as much as you can afford|
|Uninsured motorist||In 22 states||Match liability limits if you don’t have PIP and collision|
|Collision and comprehensive||Only for car loans or leases||Ideal for cars worth $10,000+|
|PIP or medical payments||In 14 states||Ideal if your health insurance has high copays or deductibles|
Your financial situation will determine how much coverage you require. For example, high-net-worth individuals should have liability limits proportionate to their net worth, which should be higher than the state-mandated minimums.
How to Save Money on Car Insurance with Discounts
Once you’ve determined how much car insurance you require, obtain quotes from several companies and apply for all available discounts.
When you’ve determined how much coverage you need, it’s time to shop around for car insurance companies. Even if you choose the same coverage levels with two different insurers, one company may be much cheaper for you based on how its rates are calculated.
Comparing cheap insurance quotes online is now easier than ever. However, you should consult with an insurance agent to ensure you get the most accurate quote possible.
You can find out if you qualify for discounts that aren’t available through the online quote tool by speaking with an agent. Car insurance discounts can include the following:
- Safe driver discount: Receive a lower rate if you have no tickets, accidents, or claims.
- Defensive driving discount: Enroll in a driver safety course to receive a discount on car insurance while also having points removed from your driving record.
- Student discounts: Get discounts for things like good grades or leaving your car at home while you’re at school.
- Mature driver discount: More driving experience may result in lower car insurance rates.
- Sign up for home and auto insurance from the same company to save money on both policies.
- Safe car discount: Anti-theft technology or automatic braking may help you save money on car insurance.
You’re probably overpaying for your insurance policy.
According to ValuePenguin, a driver looking for a state-mandated insurance policy — the minimum coverage required — overpays by an average of $384 per year. When extrapolated across the country, this means that Americans overpay for car insurance by nearly $41 billion per year.
Once you’ve determined how much coverage you require, comparing quotes from multiple companies is the best way to find cheap car insurance.
This can be done online because most companies have quote tools for getting car insurance rates. If you prefer to work with a live person when shopping for car insurance, you could speak with an independent insurance agent who can help you compare rates from various companies.
Commonly Asked Questions
Who has the most affordable auto insurance?
USAA has the lowest rates among national insurers, at $36 per month, with State Farm coming in second at $44 per month. Farm Bureau is the most affordable local provider, charging $39 per month.
What is the most affordable online car insurance?
Geico, Progressive, USAA, and State Farm are some of the cheapest companies that offer online quotes and policy purchases. Because you won’t have to pay agent fees and you can often get a discount for buying online, buying car insurance online is often less expensive than working with an agent.
How can I cut my car insurance costs?
The most effective way to save money on auto insurance is to compare quotes from various companies. Consider every aspect of your quote, such as coverage amounts, deductibles, and discounts. And don’t just get quotes from large national companies; regional companies such as Erie, Farm Bureau, and Auto-Owners may have some of the best rates if you live in a state they serve.
What is the most affordable type of car insurance?
The cheapest type of car insurance is state-minimum liability coverage. On average, liability-only insurance costs $1,333 less than a full-coverage policy. If your car isn’t worth much and you don’t have a car loan or lease, switching to a liability-only policy could help you save money.
Is it a good idea to shop around for the cheapest car insurance?
It all depends on what you’re willing to give up in exchange for the lowest price. Consider how much extra you’d have to pay out of pocket if you raised your deductible or reduced your coverage, for example.
Alternatively, if you choose a company with a reputation for slow claims processing, consider how long you can afford to be without a car or pay for a rental car while you wait for the repair check to arrive in the mail.
What is the minimum credit score required to get the cheapest car insurance?
Auto insurance rates are typically the lowest if you have good to excellent credit, which means a credit score of at least 700. However, not all states permit car insurance companies to base their quotes on your credit-based insurance score.
When will young drivers’ car insurance become more affordable?
Car insurance for young drivers can cost up to three times as much. Teen drivers can expect their car insurance rates to decrease with each year of driving experience, with significant reductions when they reach the ages of 21 and 25.
Methodology: Where did we get our information?
We obtained quotes from 37 insurance companies for thousands of ZIP codes across the United States. Our sample driver was a single 30-year-old man with a clean driving record who drives a 2015 Honda Civic EX. The only variable that changed was his ZIP code in the United States. These are the rates for this specific driver profile; your results may differ. The amount of coverage we chose provided us with driver the state minimum required coverage, which varies by state but is typically:
|Coverage type||Study limits|
|Bodily injury liability||$20,000 per person/ $50,000 per accident|
|Property damage liability||$25,000 per accident|
|Uninsured/ underinsured motorist BI||$50,000 per person/ $100,000 per accident|
|Personal injury protection||Minimum when required by state
These figures were then averaged across all 50 states and the District of Columbia to arrive at a national average. This average was multiplied by the most recent figure from the Federal Highway Administration for the number of registered automobiles in the country to determine the total amount drivers overpay for insurance.