Who Are The Cheapest Auto Insurance Providers in the U.S.?
If you have a car, getting auto insurance is a necessary expense and one you will want to keep as low as possible while still getting the insurance coverage that you need for your car. Who are the cheapest auto insurance providers? We’ll look at the top five and see what they have to offer and offer advice on different insurance coverages, too.
Top 5 Cheapest Auto Insurance Providers
Here are the top five cheapest car insurance companies, according to a 2020 study by U.S. News.
1. USAA. USAA is the cheapest car insurance company in the country. Its auto insurance rate is $300 cheaper than the next cheapest company, Geico. USAA has the lowest premiums for every driver profile used in the study. So if you are looking for cheap car insurance this is a good place to start. Just make sure you qualify. Only active military members, veterans and their families qualify for a policy with USAA.
2. Geico. Geico’s insurance rate is 17 percent cheaper than the national average. Geico offers low rates for nearly every driver profile used in the study except for the one with a DUI. Geico is another company that should be on your list for low-rate auto insurance. Geico is the second largest auto insurance company in the country.
3. State Farm. State Farm offers the third cheapest car insurance in the United States. State Farm offers car insurance rates below the national average and is a good option for drivers with less-than-perfect driver records. This carrier offers rates below the national average for driver profiles with a speeding ticket and an accident. And State Farm was the cheapest insurance company for driver profiles with a DUI. So put State Farm at the top of your list, if your driving record is a little banged up. State Farm is the largest auto insurance company in the country, offering policies nationwide.
4. Travelers. Travelers rates were a bit below average and made it to fourth in the U.S. News study. Across a range of driver profiles and regardless of age, gender, credit score or driving history, Travelers delivered rates that were just a bit below average, making it to fourth in the study. Not first or second or third but worth checking out. What kind of rate will you get from Travelers? There’s only one way to find out (enter your zip code below).
5. Progressive. Progressive is the fifth cheapest auto insurance company with rates a bit below average. For driver profiles as well the rates were close to average. Progressive is a great choice for driver profiles that include a DUI, offering a much lower than average rate. But Progressive wouldn’t be a good choice for a driver profile with an accident, with rates being among the most expensive. If you have a DUI on your driving record, Progressive and State Farm are both worth checking out. Definitely look into Progressive’s rates if you have a clean driving record. But if you have an accident on your record, stay clear or else you’ll pay a big price.
How Much Auto Insurance Should You Buy?
How much auto insurance that you are required to buy varies from state to state. But these minimum requirements are just minimums, you’ll want to buy much more to protect you and your family at the time of an accident.
Liability insurance pays for other people’s injuries and property damage up to your liability limit. Most states have minimum liability requirements for the drivers in their states. Experts recommend getting much more than the minimum.
The Insurance Information Institute recommends $100,000 bodily injury liability coverage per person, $300,000 bodily injury liability coverage per accident and $100,000 property damage liability coverage. We recommend more if you can afford it. Cars are expensive to fix nowadays.
Other insurance coverage required by your state could include uninsured and underinsured motorist coverage. Uninsured motorist coverage helps pay for damages caused by a driver who doesn’t have insurance. Uninsured motorist coverage protects you in the event of an accident where the other party doesn’t carry enough insurance.
Same states require you to get no-fault insurance. Just what is no-fault insurance? If you happen to get into a car accident, no-fault insurance will reimburse you for any hospital and medical expenses and wage loss from an inability to work. No-fault insurance will cover these expenses regardless of who is responsible for the accident.
Got a loan on your car? Your lender may require you to get collision coverage and comprehensive coverage for your car. Collision insurance is coverage that helps to repair or replace your car if it is damaged in an accident with another vehicle or object such as a fence or a tree. Comprehensive insurance covers events not covered by collision insurance. These events include fire, theft and vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.
With collision and comprehensive coverages, you don’t get to choose how much coverage to buy, that is based on the market value of your car and the costs of repairing it. But you do get to choose how big a deductible to take. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. The bigger the deductible the lower your insurance premium. Whatever the deductible you choose, it is a good idea to put the deductible amount in a small emergency fund. This way the money will be there should you need it to make an insurance claim.
Shop Around for Insurance
Once you know which insurance coverages you are looking for, you can start shopping around for auto insurance rates. Definitely, hit the top five cheapest car insurance companies as mentioned above but why not broaden your search as well? SmartFinancial can do the work for you and very fast! Just input zip code to get started. Next, answer a few, quick questions and you’ll be comparing auto insurance rates in no time--for free!
SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and price that you are looking for. So shop smart for your auto insurance, save money and drive safely!
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