What Is the Cheapest Car Insurance in the U.S.?

Lucy Lazarony
December 4, 2020

According to U.S. News, USAA has the cheapest car insurance in the United States. With a low rate of $885 per year, this rate from USAA is $300 cheaper than the nearest competitor, which is Geico. Geico comes in second with a rate of $1,168 per year. The next nearest competitor is State Farm with an annual insurance rate of $1,234. Not far behind State Farm is Travelers with an annual rate of $1,267. Progressive comes in as the fifth-cheapest auto insurance company with an annual rate of $1,373. And American Family comes in sixth with an annual insurance rate of $1,391.

What else did the U.S. study find? Geico offers excellent deals for 25-year-old drivers, hundreds of dollars less than other competitors. State Farm is a good insurer for people with less than perfect driving records. So if you have an accident, speeding ticket or DUI on your driving record, check out State Farm. You may find lower rates than at your current insurance company.

One more bit of advice: You’ll still want to compare rates because several factors affect your rate. Here’s some more information for you while you shop.

About USAA

USAA offers its rock bottom car insurance rates to U.S. military members and their spouses, veterans and their spouses, and to the children of USAA members. USAA offers insurance, banking and investment advice to its members. The great car insurance rate at USAA is reserved for military members and their families.

See if You Can Find a Cheaper Car Insurance Rate

For an excellent insurance rate that is open to everyone, you’ll need to check out the number two company on the list, Geico or any of the other top six cheapest car insurance companies.

Geico, State Farm, Travelers, Progressive and American Family made the cheapest auto insurance list for U.S. News. So if you are shopping for cheap car insurance, put these companies at the top of your list.

Shopping Around for Car Insurance

To get the best auto insurance rate, you’ll want to compare offers from several competitors. SmartFinancial makes this easy to do. With the help of SmartFinancial, you’ll be comparing the auto insurance rates from companies in your area in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the auto insurance coverage and the price that you are looking for.

Ways to Save on Car Insurance

Looking for ways to get that car insurance premium lower? Check out these money-saving tips and strategies. Use as many as you can to save money on car insurance.

Pay Once or Twice a Year. Rather than sign up for monthly payments, pay the annual amount or six-months amount. Auto insurance premiums are lower when you pay just once or twice a year.

Bundle Your Payment. Bundle your auto insurance policy with another policy such as a homeowners insurance policy and save money on your auto insurance policy.

Get a Multi-Car Discount. Got more than one car to insure? Insure them both with the same insurance company and save with a multi-car discount.

Follow the Rules of the Road. Be a safe and responsible driver, no speeding tickets, no accidents, no DUIs and you’ll save money on your car insurance. Be good for a while and you’ll earn a good drivers discount from your car insurance company.

Check Safety Features. Having certain anti-theft or safety features on your car will lower your car insurance premium. So be sure to check with your insurance company about the safety and anti-theft features on your car. They may warrant a discount.

Review Memberships. Members of particular professional organizations and affiliates get discounts on car insurance. Do your memberships or alumni status qualify you for a discount on car insurance?

Insure Less on Older Cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision coverage and comprehensive coverage any longer.

Maintain a Good Credit Score. In most states, insurance companies use consumer credit data when assigning risk pools and setting rates for auto insurance. As a result, drivers with excellent credit scores pay much less for insurance than drivers with poor or no credit scores.

Credit score need a boost? Pay off all past due items, pay down debt and avoid taking on new debt. All these things will help to improve your credit score.

Keep Your Insurance Coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance coverage. So keep your auto insurance coverage current and save on your auto insurance.

Choose a High 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. Opting for a high deductible will help to lower your auto insurance premium. So choose a $1,000 deductible or higher and save on your car insurance monthly payments. It is a good idea to put the deductible amount in a small savings account so the money will be there if you need to make an auto insurance claim.

Be a Low-Mileage Driver. If you are a heavy commuter, you will pay more for car insurance. If you are a low-mileage driver, you will pay less on your car insurance. So drive less and pay less on your car insurance premium. If you drive 5,000-6,000 miles or even less, you pay rock-bottom prices.

Check Your Age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for their auto insurance. Drivers of the ages in-between pay less.

Be a Married Motorist. If you’re married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Reach Out for Discounts. In addition to good drivers, students and veterans are eligible for discounts on car insurance. So be sure to reach out to your car insurance company if you qualify.

Choose a Safe Neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your auto insurance. If you live in a neighborhood with low accident claims and low theft, you will pay less for your auto insurance. So choose a safe neighborhood and save money on your auto insurance.

Get a Free Auto Insurance Quote Online Now.

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