U.S. drivers pay an average of $841.23 a year on car insurance, according to the most recent data from the Insurance Information Institute. No matter where you live, car insurance companies want your business, and they fight for it by offering deals and discounts on auto insurance policies. You can get liability coverage, comprehensive coverage and more as part of a low-cost auto insurance policy — but you’ll have to do some comparison shopping.
How much is car insurance? It varies widely and depends not only on your location but many other factors including your age, the car you drive and how many miles a year you put on it. No matter what your circumstances are, however, you can find cheap auto insurance if you do your homework. Start searching now so you can switch to a lower rate for your current car or so that you’ll be ready when you get a great deal on a new car.
Who Has the Cheapest Auto Insurance?
Whether you’re getting car insurance for the first time or searching for a better deal, you might be overwhelmed by the number of insurers. To help you compare options more easily and decide which insurance could work for you, GOBankingRates compiled a list of well-known, cheap car insurance companies’ free auto insurance quotes using the same driver persona factors. Here are the best options for cheap car insurance.
|Insurance Provider||Monthly Rates|
Monthly rates: $88 to $105
Coverage: Liability, uninsured motorists, comprehensive, collision, emergency road service, rental reimbursement and medical payments
The nation’s second-largest auto insurer, GEICO boasts a customer satisfaction rate of 97 percent and promises customers they can buy cheap auto insurance online. GEICO claims it has the financial strength to deliver the best cheap car insurance to drivers, without compromising on quality or service.
If you insure more than one vehicle with the company, you save up to 25 percent; bundle your homeowners insurance with your auto policy and you can save even more. As a customer, you’ll have access to a locator that helps you find the cheapest gas, and a car-buying tool, as well as special discounts if you’re in the military, older than 50, a member or employee of certain groups, or a federal worker or student.
Monthly rates: $141 to $179
Coverage: Collision, comprehensive, liability, car rental and travel expenses, uninsured and underinsured motorists, medical payments and emergency road service
State Farm is the largest auto insurance provider in the U.S. Like Geico, it utilizes its financial strength to offer discounts and maintain its service quality.
Allstate’s Drive Safe & Save program uses your smartphone or the car’s OnStar or SYNC system to calculate added savings, and the Steer Clear program offers cheap car insurance for young drivers with good records. You can also save by bundling policies or insuring multiple vehicles, participating in safe-driving programs, being away at school or earning good grades.
Monthly rates: $51 to $133
Coverage: Liability for at-fault repairs and medical care, medical payments for post-accident medical care, uninsured and underinsured bodily injury for not-at-fault medical care and collision
Progressive claims customers could save as much as $620 when they request a free quote, and that its car insurance quotes reveal average savings of 7 percent. You can save another $50 if you electronically sign documents, insure multiple vehicles or have no tickets or at-fault accidents in three years.
Progressive’s Name Your Price tool builds a policy around your budget, and you might be able to save an extra 5 percent if you bundle your auto and property policies. If you plug a Snapshot device into your car to prove you have safe driving habits, you’ll save even more.
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Monthly rates: $100
Coverage: Liability, collision, comprehensive, medical, personal injury, and uninsured and underinsured motorists
Mercury claims it’s able to provide the best car insurance because it employs local agents to deliver personalized service to their customers. It also claims that switching to Mercury can save you hundreds — or even thousands — of dollars.
You might be able to save at Mercury by installing an antitheft device in your car, being a member of a trade association, maintaining a good driving record, insuring multiple vehicles or getting good grades in school. The company also educates customers about how driving habits and where they park their cars can impact their insurance premiums.
Monthly rates: $143 to $198
Coverage: Collision, comprehensive, liability, medical, personal injury, uninsured and underinsured motorists, rental reimbursement, sound system, towing and labor and personal umbrella
You can get 3 percent off your rate if you sign up for and remain active in Allstate’s Drivewise program, which measures your safe driving behaviors and rewards you for it with cash back. You can also accumulate Allstate Rewards points — redeemable for merchandise and gift cards — by successfully completing safe driving challenges.
Safety features like factory-installed airbags and motorized seat belts could lead to savings of as much as 30 percent, and antilock brakes will save you 10 percent. Allstate also offers new car, green car, utility vehicle, farm vehicle, good payer, early signer and full-pay discounts.
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Methodology: Results are based on insuring a non-hybrid, 2017 Toyota Camry owned by a single, female driver with a bachelor’s degree who lives in ZIP code 90245 and got her license when she was 16. She uses the vehicle to commute to work and travels eight miles each way, five days a week, putting between 12,001 and 13,000 miles on the car each year. She’s gainfully employed and has had no accidents, traffic violation tickets or citations for driving under the influence in the last seven years. All insurance companies’ quote forms were not identical, and some asked questions unique to the specific insurer.