How Can I Get Cheap Car Insurance?

Lucy Lazarony
November 3, 2020

If you own a vehicle you must make sure that you have car insurance that protects you and others on the road in case of a costly car accident. Car insurance can make up a large portion of the cost of owning a car. You need to make sure you meet your state’s minimum coverage requirements, but you should also compare car insurance rates to make sure you’re getting the lowest rate available in your area. Here are some ways to get the cheapest possible car insurance premium.

Who Has the Cheapest Auto Insurance Rates?

Most people make the assumption that there is a certain company that provides the cheapest prices. In reality there is not a single insurance company that has the cheapest prices for all drivers because every driver poses different risks and has a different driving record. One insurance company may be the cheapest for one driver but it may be the most expensive for another driver. For this reason it is best to make sure that you are getting the best value by comparing quotes with different insurance companies. With SmartFinancial, you can find the most affordable rates in your area by simply entering some basic information such as your location, car model and driving history. Make sure to be honest. Most companies can trace back accidents and other information. They will raise your rate if you lie.

Which Auto Insurance Company Has the Lowest Rates?

Many of us know the bigger insurance companies like Allstate, Geico, Progressive and State Farm. These four insurance companies insure and control more than half of the country’s auto insurance but there are also smaller insurance companies that may offer even lower prices. These regional insurance companies may even have higher customer ratings than the big insurance companies. They may not offer the highest level of coverage, however, and usually have only a select number of consumers. Insuring your car with a smaller car insurance company may be more convenient for some drivers too, because they may provide more specialized policies.

Again, remember that some insurance companies are much cheaper for some drivers but more expensive for others. This is why it is important that you compare quotes from various insurance companies to make sure that you're receiving the lowest possible premium price.

Discounts from Auto Insurers

Insurance companies offer a variety of discounts which can lower the cost of monthly premiums. The most common discounts for customers are bundle deals for insuring a car along with other assets (home insurance, business insurance, multiple cars, etc.). You can also score a discount for having a clean driving record, if you own a car with certain anti-theft features or if you belong to certain professional groups or organizations.

Looking for Cheap Car Insurance?

Examples of Discounts by Companies

Allstate offers more discounts to drivers with a good driving record and customers who have been with the company for a long time. Some of the top discounts include:

  • Up to 45% off for safe driving
  • Up to 35% off for 5 years without an accident
  • Up to 35% off for students attending a college or university that is at least 100 miles away from home

Certain members of groups or teams or even alumni from certain schools can get discounts for their affiliation. On average there is a 25% discount on being affiliated with an affinity group. A veteran or active member of the military can also receive a discount from various car insurance companies. These military discounts are applied to military members and their families so it is not just for the person serving. The average discount for these families is around 15% for those who have a military member on base. Those who are deployed can get up to a 90% discount. Military discounts are offered by many car insurance companies but according to the Quadrant Information Services, the best insurance companies for military discount asre USAA, Geico and Allstate

What About Credit Scores?

One important factor that can affect your car insurance is your credit score. Only in the states of California, Hawaii and Massachusetts is it illegal to consider someone’s credit score when calculating their insurance premium cost. Insurance companies look at credit scores because there is a correlation between credit scores and the insured’s chances of filling a claim. A poor credit score can increase your insurance premium by a few hundred dollars compared to someone who has a good credit score. In order to get a good credit score you should pay your bills on time and reduce your debt.

When purchasing a vehicle look at several aspects of car ownership such as the fuel efficiency and repair costs of the car you buy. Another thing that you should consider when purchasing a vehicle is the insurance premium. Insurance premiums are determined by many factors such as the car model (the value of the car). For example, in 2020 the cheapest car to insure was the Mazda CX-3 with an average insurance cost of $1,324 per year.

The Cheapest Cars to Insure:

  • Mazda CX-3
  • Honda CR-V LX
  • Jeep Wrangler JL Sport S
  • Subaru Outback 2.51
  • Fiat 500X
  • Honda Odyssey LX
  • Subaru Forester 2.5i
  • Mazda CX-5 SUV
  • Jeep Renegade Sport
  • Honda HR-V LX

What’s Usage Based Insurance?

Some drivers do not drive an extended amount of miles and should definitely consider a usage based insurance program. Usage based insurance is insurance the driver pays for as they drive, based on how safely they drive.

Allstate’s Drivewise, Progressive’s, Snapshot or Statefarm’s Drive Safe and Save are usage based insurance programs that let the insurer track your driving so that they can offer discounts based on how much you drive and how well you drive. For drivers who drive less than 10,000 miles, insurance programs such as Metromile, Allstate’s Milewise, or Nationwide’s Smartmiles may save lots of money. To find out which insurers are cheapest in the state where you live visit here. Otherwise, begin comparing quotes by entering your zip code below.

Get a Free Auto Insurance Quote Online Now.

Related Articles

Auto Insurance How To Find Insurance for Low-Income Drivers in 2021

The cost of car insurance is rising at an annual rate of up to 12 percent. Your income isn’t technically a factor in setting your car insurance rates.

Auto Insurance All You Need to Know About Rebuilt Title Insurance

Once a salvaged title is rebuilt and passes all requirements, it can be registered. Once the car is registered, you can buy rebuilt title insurance.

Looking for Auto Insurance?

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