How to Find Cheap Auto Insurance Companies

Fran
Jessica Nguyen
February 5, 2021

If you’re on this page, you’re probably looking for cheap auto insurance companies. Companies charge very different rates when factoring in details like driving records, credit scores, and age, so shopping around to get the best deal can potentially save you hundreds a year. It’s important to note that ‘cheap’ doesn’t have to mean ‘bad.’ You can still get quality auto coverage at an affordable price fit for your budget.

Going back in time to avoid an accident or going forward to become eligible for certain discounts may be impossible, but it is possible to find companies that offer affordable rates and discounts for your particular driving history and profile.

Cheap Car Insurance Companies

SmartFinancial also does research on auto insurance companies. Here are the average auto insurance rates offered per month by eight of the biggest car insurance companies.

Liberty Mutual comes in at at $313, followed by Farmers at $282 and Allstate at $237. Nationwide is next at $213 and Travelers follows at $179. American Family is next at $171. State Farm follows at $162. And USAA has the cheapest rates at $121.

10 Cheapest Auto Insurance Companies

Need even lower insurance rates? All the companies below offer average monthly rates below $100 per month and you can compare them all with SmartFinancial. Here are the Top 10 Cheapest Car Insurance Companies from SmartFinancial:

The top company is American National P&C with an average monthly rate of $51.54 per month.

The second place company is Concord Group with an average monthly rate of $68.98 per month.

In third place is Countryway Insurance with an average monthly rate of $76.65 per month.

In fourth place is North Carolina Farm Bureau with an average monthly rate of $86.42.

Bear River comes in fifth place with a rate of $92.56.

In sixth place is Buckeye Insurance with a rate of $92.70.

Pekin Insurance is in seventh place with a rate of $96.75.

Virginia Farm Bureau is close behind with a rate of $96.85.

MMG Insurance Company is in ninth place with a rate of $97.

Rounding out the top 10 is Utica National Insurance Group with a rate of $99.09.

The Big 3: Cheapest Auto Insurance Companies

In general, insurance companies consider age, location, make and model of a car in order to set rates based on how likely they think you are to file a claim in the future. An insurance company’s ideal driver is experienced, has a clean driving record, and has a car that’s inexpensive to insure.

These factors are reflected in the baseline driver profile below. Fixing the factors for an ideal driver, here’s a comparison of some auto insurance quotes offered by the four insurance companies in the country:

USAA offers cheap car insurance company starting at $895 a year, however their customers are limited to members of the military, veterans, or the spouses or children of a USAA member. USAA can be exclusive in that sense, but it’s large enough to make USAA the fifth largest auto insurer. So, if you’re shopping for car insurance and have a connection to the military, you should definitely look more into USAA.

State Farm comes in third with a rate of $1260, but for those with a DUI, State Farm comes in first. On the flip side, their premiums more than double to $2745 for drivers with poor credit. A profile with a clean record gets the lowest rate no matter which company it's insured with, but on average, State Farm's rates and premiums don’t jump as high as some other insurance companies do after getting a point on their record.


How to Compare All of the Cheap Auto Insurance Companies in One Shot

SmartFinancial works with the aforementioned insurance companies and 200+ others, all of them reputable carriers, with reputations for fairly paying claims and offering top-notch customer service. All you have to do is fill out one form to find the best match for you. No more sitting on hold waiting for an agent and comparing apples to oranges.

Discounts That Can Lower Your Rates

Your rate may start high but trickle down as you apply discounts. All insurance companies offer discounts, but not all of them offer the same ones. Take for example being a homeowner. Most insurance companies offer bundle insurance packages, such as home and auto insurance, to help you save. It’s best to make sure you know all the discounts that you are eligible for and compare insurance quotes across different companies.

Insurers provide car insurance discounts for customers who:

  • Have a clean driving record.
  • Be a good student.
  • Qualify for a good driver’s discount.
  • Agree to receive documents online.
  • Insure multiple cars with one policy.
  • Bundle car insurance with other policies.
  • Own a car with certain anti-theft or safety features.
  • Pay their entire annual or six-month premium at once.
  • Are members of particular professional organizations or affiliate groups.

More Discounts and Ways to Save

And there are even more discounts to consider. For example, some auto insurance companies offer discounts to students and veterans. So if you are a member of either of these groups it is worth reaching out for a discount from car insurance companies. Ask them when you first reach out for a quote. You want that discounted savings from the first moment you become a customer.

Cheap Auto Insurance Companies and How They Rate Age

Age plays a factor in auto insurance rates. Drivers who are under 25 and over 65 have more serious accidents and pay higher insurance rates. Drivers of the ages in-between pay less on their car insurance premiums. So if you are 23 or 24, hang in there, cheaper car insurance is on its way. Just make sure to have a clean driving record in the meantime. You don’t want a speeding ticket to boost up your insurance premium.

Your annual mileage impacts car insurance rate. If you have a heavy commute and rack up a lot of miles, you’ll pay more for your car insurance. If you are a low-mileage driver, you’ll pay less for car insurance. So drive less and pay less for insurance. It is that simple.

Cheap Auto Insurance Companies Look at Where You Live

Where you live affects your car insurance rates as well. If you live in a neighborhood with high accident claims and a high rate of auto theft, you will pay more for your car insurance. If you live in a neighborhood with low accident claims and low theft then you will pay much less for your insurance. So choose a safe neighborhood and save money on your car insurance.

Cheap Auto Insurance Companies Love Homeowners

Being a homeowner can save you money on your car insurance. Statistics show that people who own homes drive more safely. So let a car insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Cheap Auto Insurance Companies Love Good Students

Are you a student with a grade average of a “B” or higher? You may qualify for a good student discount from car insurance companies. So if you’ve got the grades, reach out to car insurance companies and ask for a discount. You’ve earned it with your good grades and you might as well scoop up the discount.

Cheap Auto Insurance Companies Raise Rates for Lapses in Insurance

Sticking with your insurance coverage will save you money on your insurance premium. If you don’t maintain continuous coverage with your auto insurance, you’ll pay more when you start up your insurance coverage again. So stick with your insurance coverage and save money on your premium.

What Is a Deductible?

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible will help to lower your auto insurance premium. So choose a $1,000 deductible and save money on your car insurance.

Driving Records Matter to Cheap Auto Insurance Companies

Your driving record comprehensively influences the cost you end up paying for auto insurance. For example, drivers with a clean driving record have an average rate of $1,415 per year in car insurance premiums because safe drivers are less likely to get into an accident and make a car insurance claim. As a result, they get charged lower rates than drivers who routinely get speeding tickets or get into minor/major accidents in their recent record. Drivers with just one speeding ticket may see a $300 increase, and drivers with just one accident may see a $600 increase. Knowing that, there’s no faster and easier way to raise your auto insurance rate than to get a DUI. Drivers with one DUI conviction will have the highest representative rates of all coming in at $2,464, or an extra $1,000 per year over the driver with a clean record. Being a safe, experienced driver with no accidents or citations on your record is the simplest way to get cheaper car insurance. It’s important to note that accidents do not affect your insurance rate forever. Most insurance companies will generally only look back at the last three to five years of your driving history when calculating your premium.

If you have a clean record, all companies will most likely offer you a discount, but for driver’s with not so clean records, USAA is the cheapest option if you have military affiliation and State Farm is the next cheapest since they have the smallest increase in premiums. Your best bet is to compare rates, without making assumptions.

Credit Score Matters

Along with maintaining your driving record, your credit score also plays a big role in determining how much you pay for insurance in most states. Drivers with a good credit score pay an average rate of $1,400 per year, those with a fair credit score have a rate of $1,666, and then drivers with a poor credit score will have an average representative premium of $2,353. Having poor credit can potentially raise up your insurance rates 71% higher than those with good credit.

Allstate’s rate with poor credit can be around $3,000, while State Farm will offer you an average of $2,745 as an annual rate. There are other carriers that may fit your profile better if you have a low credit score.

Fixing your credit will save you on interest rates and on car insurance premiums, and you can do this through things like refinancing your car loan, paying all bills on time, or paying off any outstanding debts.

Don’t Compare Apples to Oranges

When you’re shopping for cheaper insurances, make sure to judge the rates according to the level of coverage you need. By getting multiple insurance quotes, you’ll see which company can save you the most money. The easiest option is to get an insurance quote online, which you can do either directly through a company's website, or on a site like SmartFinancial. With SmartFinancial’s help you’ll be getting the insurance quotes from companies near you in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and the price that you want.

Get a Free Auto Insurance Quote Online Now.

Related Articles

Auto Insurance Do You Need Car Insurance?

Most U.S. states require proof of insurance for drivers to operate a car. However, each state comes with its own set of rules.

Auto Insurance SR22 Insurance: Texas Laws and Requirements

SR-22 insurance policies give Texans with not-so-perfect driving records a second chance to get back on the state’s highways.

Looking for Auto Insurance?

Compare rates from dozens of companies in less than 3 minutes.