The Secret to Finding Cheap Insurance Quotes

Fran
Dani Milton
April 16, 2021

For most Americans, getting a car provides enormous convenience and freedom to explore the world. Drivers can use their vehicles to travel across town to their favorite restaurants, or they can stop by a relative's house for a Sunday afternoon dinner. They can use it to take their spouse for a cozy date night at a local theater. Or, they can travel with friends to the downtown arena to cheer from the courtside as their favorite basketball players shoot hoops.

Although using a vehicle is fun, it’s also expensive. According to AAA’s 2020 Your Driving Cost study, the average cost to own and operate a 2020 vehicle per year is $9,561. The average price for median sedans was $1,245, down from $1,251 in 2019. These estimates were for a 65-year-old suburban driver with over six years of experience and no claims filed.

Owning a car comes at a price; however, it’s possible to get cheaper car insurance rates and by shopping around for the best coverage. For example, you can find cheap car insurance quotes by using SmartFinancial’s online tools. They’ll provide you with a list of auto insurance quotes and coverages from local agents in your area. It’s free to use. Just enter your zip code to get started.

Cheap Car Insurance Company Rates Very Based on Driver Profile

Insurance companies use several factors to calculate your auto insurance rate. Your rates with the cheapest car insurance companies may not be so cheap, depending on your profile. Even drivers with the same auto insurance company may have a different price because of several important factors. Insurance companies use specific factors when calculating a driver’s premium. Several research industry studies show it accurately predicts which customers will likely file a claim in the future. According to the Insurance Information Institute, these factors include:

  • Your driving record: You’ll pay a lower average price if you have a spotless driving history. Drivers with a clean driving record. Individuals with traffic violations like speeding tickets, accidents, or DUI convictions will pay a higher price because they are at higher risk and more likely to file a claim.
  • Your mileage: Drivers who use their vehicles more often have higher rates than those who don’t drive a lot. For instance, an insurance company will charge you more expensive rates if you commute long distances to work.
  • Your zip code: Insurers will also calculate your average car insurance premium based on which state you live in the country. Furthermore, urban residents get higher auto insurance quotes and spend higher rates per year than individuals in small towns or rural areas.
  • Your age – Insurers use this metric to determine your annual rates. As people age, they usually have fewer accidents because they are more responsible on the road. Mature drivers have fewer accidents than their younger counterparts. On average, drivers younger than 25 years old pay the highest premiums.
  • Your gender: Women have fewer DUIs and other accidents compared to their male counterparts. Men usually pay higher annual rates on average when they are younger. These rates equalize as people age.
  • Your vehicle’s make and model: Another factor that determines your annual insurance quote is the type of car you drive. Your vehicle will be less to insure if it has a better safety record and the cost to make repairs is lower than other vehicles.
  • Your credit score: Insurance companies use credit scores as a factor to determine your average rates. They predict your likelihood of getting into a mishap and filing a claim. Those individuals with lower credit scores typically pay higher monthly insurance bills. Additionally, people with good credit pay cheaper rates, because insurers consider them more responsible. Whenever possible, take steps to improve your credit score. A few states like California do not use credit scores, but most do.
  • Your auto insurance coverage: Your policy’s limits and deductible will also affect your premium. A higher deductible means you’ll pay a lower premium, but higher shared insurance costs if you file a claim. Liability-only coverage is usually cheap auto insurance.

Insurers don’t use metrics like a driver’s race or religion to set annual average car insurance rates.

Do you want to get an insurance quote from a cheaper car insurance company that’s right for you? Comparing average rates from different companies can help you get the lowest possible car insurance prices. SmartFinancial can help you save up to 40 percent on your policy. It’s simple and free. Enter your zip code on this page to get an insurance quote and average rates from different insurance companies in your state.

Who Is the Cheapest Car Insurance Company?

Most vehicle owners want to buy a policy that provides excellent coverage at an affordable price. Unfortunately, there is no definitive answer about which carrier will offer the cheapest car insurance rates. A driver’s rates and auto insurance quotes partly depend on their characteristics. Even when a carrier provides affordable rates, some drivers do not meet the qualifications to sign up with the insurer.

According to Quadrant Information Services, USAA had the cheapest car insurance rates, on average, of all national companies. The company’s average premium was $121 per month.

Several auto industry studies have also found USAA also provided excellent service to its members. It also had high levels of customer satisfaction. In its Best Cheap Car Insurance study, Forbes Magazine rated the company as “Excellent” in the categories of Price Competitiveness and Customer Happiness.

USAA provides discounts in several categories: family, vehicle storage and military installation. The company also has an accessible online site and mobile app.

Although USAA serves its policyholders well, it has one significant drawback. It restricts its membership to military members, veterans and their families. These stringent requirements mean that non-qualifying drivers cannot sign up for USAA’s cheap auto insurance.

Drivers have another way to find cheap coverage options if they don’t qualify for USAA coverage: Geico, the nation’s second-largest car insurance company after State Farm.

Geico also boasts the second-cheapest average prices in the nation. Forbes magazine rated Geico as “Very Good” in the category of Price Competitiveness.

Geico provided cheap insurance rates for many driver profiles, including individuals with low credit scores, claims-free drivers and individuals with traffic violations on their records. The company takes a tech-first approach to customer service and is well-known for its creative marketing campaigns and its animated Gecko spokesperson. Geico also has a highly rated, award-winning Geico Mobile app that customers have favorably reviewed. It is the most popular insurance app in the nation, and is currently ranked at #20 in Apple’s App Store in the Finance Category. Geico’s website is also accessible and easy-to-use.

Geico’s auto insurance policies are also available to most drivers in all 50 states, where it provides the most affordable car insurance coverage options for a low price. Additionally, Geico’s customers also receive numerous discounts based on group affiliations, safety equipment, driving habits, defensive driver, education level, good driver and driver’s education courses.

The Cheapest Car Insurance Companies Among National Carriers

Although USAA and Geico lead the pack for the cheapest policies, they are not the only insurers who provide affordable car insurance coverage. SmartFinancial has identified other national insurance companies that provide affordable rates.

In our survey, we analyzed the average insurance costs of eight leading national car insurance companies. We compared each one to determine who offers the cheapest rates. Our researchers studied the rates from Allstate, American Family, Farmers, Liberty Mutual, Nationwide, State Farm, Travelers and USAA.

State Farm had the second-lowest premiums in our study at $162 per month. It is the nation’s largest auto insurance company. The carrier provides some of the cheapest auto insurance rates. They also supply their customers with various discounts. The insurer is available in 48 states, except Massachusetts and Rhode Island. Forbes magazine gave State Farm a Fair score for Price Competitiveness, and a rating of Good in the Customer Satisfaction category.

The carrier has earned high marks for its customer care from its network of local agents. Most cities have a State Farm agent who can speak to you about cheap insurance coverage and find a policy that’s right for you.

State Farm also provided its customers with several discounts, such as Safe Driving, Teen Driver and combining home and auto policies. It also has a simple, intuitive online site.

Another low-cost auto insurance company option is American Family (AmFam). Our study found this private mutual company offered the lowest rates of any national insurer in the country. A recent Forbes magazine study awarded the company a “Very Good” score in the category of “Price Competitiveness.”

The auto insurance company provides several car insurance discounts in several categories, including safety, age, family, policy, multi-vehicle, multi-product, Early Bird, loyalty and Steer Into Savings.

Find Cheap Car Insurance Rates with the Top 8 Insurers

Carrier Insurance Premium
USAA $121/month
State Farm $162/month
American Family $171/month
Travelers $179/month
Nationwide $213/month
Allstate $237/month
Farmers $282/month
Liberty Mutual $314/month

These average car insurance rates will depend on a risk assessment based on your driver profile. You can compare and get an accurate insurance quote online using SmartFinancial.

Just enter your zip code online, and we’ll connect you with local agents and provide you with car insurance quotes within your area. You could save up to 40 percent on your car insurance bills.

Who Has the Cheapest Car Insurance Rates from Small Insurance Companies?

You don’t have to get coverage from a big company. In many cases, you can get lower premiums from a smaller or local insurer whose insurance quotes are often cheaper. If you raise your deductible, you’ll spend even less!

SmartFinancial has compiled a list of the smallest, cheapest car insurance companies in the country. Here is a list of their representative rates.

Carriers Companies Rates
American National P&C $51.54/month
Concord Group $68.91/month
Countryway Insurance $76.57/month
North Carolina Farm Bureau $86.44/month
Bear River $92.64/month
Buckeye Insurance Group $92.69/month
Pekin Insurance $96.62/month
Virginia Farm Bureau $96.69/month
MMG Insurance $96.91/month
Utica National Ins Group $99.06/month
PEMCO $100.79/month
Co-Operative Ins Companies $100.88/month
SECURA Insurance $102.69/month
Clearcover $105.84/month
General Casualty $107.76/month

These average rates may vary in your car insurance quotes depending on your driver's profile and how much risk you may pose of filing a future claim.

Who Has the Cheapest Car Insurance Company In Each State?

Every carrier uses your zip code to determine what rates they charge. Rates differ in each state. Some auto insurance companies charge cheaper rates (or more expensive ones) depending on where you live. SmartFinancial has conducted a study to identify which insurance companies charge the cheapest rates based on your area.

State Auto Insurance Company
Alabama USAA
Alaska Liberty Mutual
Arizona Safeco
Arkansas USAA
California Esurance
Colorado USAA
Connecticut USAA
Delaware USAA
District of Columbia USAA
Florida State Farm
Georgia USAA
Hawaii USAA
Idaho American National P&C
Illinois SECURA insurance
Indiana USAA
Iowa USAA
Kansas USAA
Kentucky USAA
Louisiana USAA
Maine USAA
Maryland USAA
Massachusetts State Farm
Michigan SECURA Insurance
Minnesota USAA
Mississippi Direct Auto
Missouri USAA
Montana SAFECO
Nebraska American National P&C
Nevada USAA
New Hampshire Concord Group
New Jersey New Jersey Manufacturers
New Mexico USAA
New York USAA
North Carolina Direct Auto
North Dakota USAA
Ohio USAA
Oklahoma USAA
Oregon USAA
Pennsylvania USAA
Rhode Island State Farm
South Carolina American National P&C
South Dakota State Farm
Tennessee Direct Auto
Texas Direct Auto
Utah USAA
Vermont Concord Group
Virginia USAA
Washington USAA
West Virginia State Farm
Wisconsin USAA
Wyoming SAFECO

Getting Cheap Auto Insurance Quotes

Do you want to find coverage that fits your lifestyle and budget? Shopping around getting auto insurance quotes from different companies could help you get the most affordable car insurance premiums.

Using an insurance tool like SmartFinancial can help you get an insurance quote online. We’ll connect you with insurers that provide affordable rates for you. It’s easy and free. Enter your zip code to get started.

Who Has Cheap Car Insurance Quotes for Minimum Coverage?

Two national insurance companies – USAA and Geico – provide the cheapest rates and auto insurance quotes, on average, for minimum coverage in the nation.

Every region has different requirements; however, all areas usually require all drivers to carry minimum coverage to prove their financial responsibility.

In most states, a liability-only policy has the following components:

• Bodily Injury Liability: It pays for another driver’s injuries if you have an accident.

• Property Damage Liability: If you have an at-fault claim, this coverage pays for another driver's vehicle damages.

• Personal Injury Protection/Medical Payments: It pays for accident-related healthcare expenses.

• Uninsured Motorist or Underinsured Motorist: This insurance provides coverage for medical expenses and property damages caused by a driver with inadequate coverage.

Most states represent minimum coverage limits as a series of numbers for bodily injury liability coverage per person, per accident, and total property damage liability coverage. Auto insurance companies can note them as $25,000/$50,000/$20,000 or 25/40/20. These car insurance policies would offer customers the following minimum coverage limits:

• Bodily Injury Liability - $25,000 per person/$50,000 per accident

• Property Damage Liability - $20,000 per accident

Some drivers opt for minimum auto insurance coverage to save money on their auto insurance policy. Unfortunately, this coverage may not provide enough protection. Opting for cheap car insurance coverage with little coverage comes with a real financial risk. Drivers who don't have enough protection could pay out-of-pocket if their claims or damages exceed the policy’s limits. So purchase enough to protect yourself and your assets.

Which Car Insurance Companies Have the Cheapest Full Coverage?

SmartFinancial’s research has found that companies that provided the cheapest full coverage insurance were Geico and Nationwide.

Some lenders and finance companies require drivers to carry full car insurance coverage for their vehicles. There is no standardized definition for this term. It is usually a combination of insurance coverages used to protect an asset. Lenders, banks, and finance companies require this coverage until a person pays their vehicle in full. This car insurance policy includes:

• Collision – This auto insurance coverage pays for your vehicle damages after an collision, regardless of fault.

• Comprehensive: - Also called other than collision. It covers damages to your property in non-collision incidents.

If you own an inexpensive model, you will get a cheaper car insurance quote and pay lower rates on average. Your insurance may cost as little as $400 for six months of coverage.

Who Has the Cheapest Car Insurance for Good Drivers?

On average, three companies that charged cheap auto insurance rates for good drivers were USAA, Geico and State Farm.

Good driving discounts are one of the most common ones that insurance gives to their customers. If a person has a clean driving history, an insurer will reward them with a car insurance discount. These individuals pose less of a risk of filing a claim compared to other drivers. There are two types of discounts that insurance companies offer

• Accident-Free Discount – Insurers give this saving to individuals who had a clean claims history in the past three to five years.

• Violation Free Discount – Car insurance companies hand out this reward to customers without a history of speeding tickets or other traffic offenses in three to five years.

Are you a good driver? Take a few minutes to compare rates from your current insurance company with others in your area. Using SmartFinancial’s search engine to comparison shop will help you find out if you’re paying too much money for your auto insurance rates.

Enter your zip code and answer a few questions to get started. You’ll get car insurance quotes from several auto insurance companies in your area. To see who has the best car insurance quote and the cheapest rate for your budget.

The Cheapest Car Insurance for Drivers with a Single Accident

The car insurance companies that provide the lowest premiums on average for drivers with an at-fault accident were State Farm, USAA, Nationwide and Geico.

Drivers who caused a collision may see their premiums rise following these unexpected incidents. If you had an at-fault accident, ask your insurance company how long this incident can affect your rates. Usually, it will appear on your record anywhere between three and five years. But you may be able to find cheaper car insurance.

Several types of accidents won’t increase your auto insurance rates. These include rear-ending, collisions with animals, flying object damages, and cars struck in a hit-and-run scenario.

Has your driving history impacted your car insurance rates?.

Who Sells the Cheapest Car Insurance Rates for DUI Drivers?

Driving under the influence (DUI) is a traffic offense. A person operates a vehicle while impaired by alcohol or drugs. Since the driver is incapable of driving, the person puts other drivers at risk on the road. Each state has an established intoxication level. They use either blood alcohol content or breath alcohol content (BAC) to gauge impairment.

Most legal limits are .08 BAC for individuals 25 and older. Some states have a zero-tolerance policy for any young person driving with alcohol or drugs in their system. Convicted drivers may have to pay giant fines or face jail time. They can also have their license suspended by a court.

Some states require convicted drivers to sign up for DUI insurance policies called SR-22 or an FR-44 before they'll reinstate their suspended licenses. DUI-convicted drivers must purchase these required car insurance certificates of financial responsibility (CFRs). It shows they are high-risk drivers. Additionally, these documents prove that you have adequate car insurance. Convicted drivers must carry an SR-22 insurance policy for three years. They have expensive premiums and individuals must pay a deductible before the insurer will pay. Your rates will decrease after the violation falls off of your record.

State Farm is a national auto insurance company that provides the cheap car insurance with SR-22 and FR-44 policies. Smaller car insurers Direct Auto and The General Car Insurance also have a lower premium for people who need the certificate.

If you have a DUI conviction on your driving record, consider using SmartFinancial's tools to get cheap car insurance quotes from high-risk insurance companies who specialize in DUIs and imperfect driving records. When you shop around and compare rates, you can spend less on your car insurance premium.

The Cheapest Car Insurance Rates for Drivers with a Poor Credit Score

Another issue that can raise your rates is your credit score. Individuals who miss or make late payments usually pay higher rates than their counterparts. A poor credit score falls between the range of 300 and 579

.

Most insurers use this information differently when calculating a person’s insurance rates and car insurance quotes. There are only four states – California, Hawaii, Massachusetts and Michigan – that don’t allow insurers to use someone’s credit score when determining car insurance rates.

If you’re a driver with a poor credit score, you could get cheap insurance rates by signing up with three national companies: USAA, Geico, Farmers and State Farm.

When you’re ready to compare car insurance quotes, visit SmartFinancial for the most affordable insurance quote.

Remember These Six Pro Tips When Shopping for Cheap Car Insurance

Are you searching for affordable car insurance for your vehicle? If so, experts have six pro tips you can follow to help you save money on your auto insurance policy.

Purchase enough car insurance coverage to protect yourself. Although you may want cheap car insurance, consider buying enough coverage to protect yourself if an accident occurs. If you need cheap car insurance, consider raising your deductible to lower your premiums.

When you have insufficient car insurance, it places you at risk. Not enough protection is almost as bad as having none. For example, if you are at-fault for an accident, the damages and injuries you caused can exceed your policy’s limits. You would have to cover any claims out of your pocket.

Identify personal factors that can raise your car insurance premium. Before you shop for a new policy, you should consider your characteristics that could affect your car insurance rates. These factors may include your age, zip code, vehicle make and model, driving record and credit score. If possible, use a trusted agency to get your recent credit score. A poor financial history can cost you hundreds of dollars per year. Clean up your credit score and clean it up if you have a low credit score.

Next, find out about your past driving traffic violations. Most offenses remain on your driving record for three to five years. If you’re shopping for a new car, select a model that has a lower car insurance rate. After narrowing down your profile, search for insurance companies that provide cheap insurance rates for your demographic.

Bundle your policies with your current auto insurance company. Another way to get cheap car insurance and lower insurance quotes is to combine your policies. Do you have an insurance company that you use for homeowners or renters coverage? If so, you could get a significant discount on your car insurance quotes and by bundling.

Ask the auto insurance company about discounts that they provide. Many businesses offer car insurance discounts to their policyholders because these cost-cutting measures help them keep customers. Consider speaking with your insurance carrier to see what car insurance discounts they offer. They may provide discounts for your place of work, military status, and group membership affiliations (like the AARP, AAA and other organizations).

Retain as much coverage as possible on your policy. After you pay off your car insurance loan, you can cut comprehensive and collision coverage; however, experts advise against this action. It’s safer to keep as much car insurance as possible. Although it costs more money now, it will be cheaper in the future if you file a claim or have an at-fault accident that results in expensive damages and medical bills.

Compare rates to get the lowest premiums possible. When searching for cheap car insurance, keep all of your options open. You could save a lot of money on your premium by comparison shopping online for the best rates. Thanks to the internet, people can shop for insurance using tools like SmartFinancial. These search engines can save you up to forty percent on your car insurance rates. Additionally, they allow you to compare insurance quotes and coverages.

Do you need car insurance that fits your budget? Shopping around for cheap car insurance quotes can help you find cheap auto coverage at a better price. Using online insurance comparison tools like SmartFinancial can help lower your insurance costs. Research studies have shown that individuals who use these research tools can save up to 40 percent on their car insurance rates per year.

It’s free and easy to get started. Enter your zip code on this page, and SmartFinancial will provide you with cheap car insurance quotes from local agents within your area.

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.