[ad_1]
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
USAA, Nationwide, Travelers, Erie, Geico and Progressive are the cheapest car insurance companies nationwide, according to our analysis.
Car insurance increases are expected to continue this spring. We evaluated which companies are the cheapest for a variety of driver profiles and ages to help you narrow your search.
Here is the cheapest car insurance of April 2024, according to our analysis:
In some instances USAA was the cheapest but the next cheapest company is listed because USAA auto insurance is only available to veterans, military members and their families.
Cheapest Car Insurance Rates
How much you pay for car insurance will depend on a number of factors, including your age, claims history and driving record. The company that offers the cheapest car insurance for you can vary depending on the class of driver you fall into.
The Cheapest Car Insurance for Good Drivers: Nationwide
Nationwide is the cheapest company for good drivers that is available to the general public. USAA auto insurance is a bit cheaper but only available to those with a military connection.
We found the average rate for good drivers is $2,026 a year among the companies we evaluated.
*Average rates are based on good drivers with a clean driving record, meaning no at-fault accidents or traffic violations.
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After a Speeding Ticket: Nationwide
Our analysis found the cheapest car insurance after a speeding ticket is from Nationwide, followed by Erie, Travelers and Geico. USAA is a top choice for people who qualify for USAA auto insurance.
Our analysis found that having a speeding ticket on your driving record means an average insurance increase of 26%.
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance After an Accident Causing Injury: Erie
Erie and Travelers have the cheapest rates if you have caused an accident that injured someone else. Erie is a regional insurer that serves 12 states in the East and Midwest. USAA offers excellent rates to military members and veterans.
Nationally, the average increase after an accident is 49% compared to a driver with a clean record.
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance After a DUI: Progressive
Progressive has the cheapest rates in our analysis for drivers with a DUI, with USAA a good option for military members and veterans who qualify. A DUI conviction leads to an average increase of 71%.
Car insurance companies usually pull motor vehicle records before your policy renewal time to check for tickets and convictions such as DUIs.
*USAA is available only to the military, veterans and their families.
The Cheapest Car Insurance for People With Bad Credit: Nationwide
Nationwide and Geico have relatively cheap car insurance for drivers with bad credit, among the companies we analyzed. USAA is a good bet for military members and veterans.
Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record. Average auto insurance costs go up 94% for drivers with poor credit compared to those with good credit.
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance for Seniors: Nationwide
Nationwide has the best rates for senior drivers ages 65 and 80, according to our analysis. The best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
We found that senior drivers see an average increase of 6% from age 60 to 70. By age 80, your rates may have increased 23% above the rate you were paying at age 70 and 31% more than your car insurance cost at age 60.
*USAA is only available to military members, veterans and their families.
The Cheapest Car Insurance for Young Drivers: Erie
Erie, Travelers, Geico and Nationwide are the cheapest car insurance companies for young drivers buying their own policies. USAA is also usually a top choice if you qualify.
It’s typically cheaper for a young new driver to remain on a parent’s policy if they’re still living at home, whether they’re an 18-year-old or 25-year-old.
*USAA is only available to military members, veterans and their families.
The Cheapest Car Insurance for Teens: Nationwide
Nationwide has the lowest rates for teen drivers in our analysis. Other cheap companies include Erie, Progressive and Geico. USAA also has low rates for adding a teen if you qualify.
It can be hard to find cheap car insurance for teens because young new drivers pose a large risk to insurers. We found that adding a teenage driver to a parent’s policy results in an average increase of $4,362 a year.
This amount typically doubles the parent’s auto insurance bill. But it is still usually less expensive to add a young driver to a parent policy rather than for the teen driver to get their own.
*USAA is only available to military members, veterans and their families.
States With the Cheapest Car Insurance
Vermont is the cheapest state for auto insurance for good drivers. Idaho, Maine, Hawaii and New Hampshire round out the top five.
Rates are based on a 40-year-old female driver with a good driving record. Averages are based on coverage with $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 for property damage (known as 100/300/100), uninsured motorist coverage, and collision and comprehensive insurance with a $500 deductible.
Source: Quadrant Information Services.
Cheapest Car Insurance by Age
Erie has lowest-cost insurance for drivers age 16, 18 and 20, based on our analysis of auto insurance rates by age. Nationwide is the cheapest option for drivers at many other ages.
In some cases, USAA is the cheapest company but membership is limited to military personnel, veterans and their families.
The Cheapest Car Insurance Companies of 2024
*USAA auto insurance is available only to the military, veterans and their families.
The Cheapest Car Insurance Companies in More Detail
Our analysis for April 2024 finds that the cheapest auto insurance companies are:
Nationwide
Why we picked it: Nationwide earned five stars in our analysis because it has some of the cheapest rates for most driver types, from those with a pristine driving record to those with an issue, and for a variety of ages. In some instances, USAA has better rates, but to be eligible for USAA you must have a military connection.
Discounts Available
Nationwide has a decent variety of possible discounts.
USAA
Why we picked it: We have USAA five stars in our analysis because it has the lowest insurance costs for military members and veterans with many driver profiles, including good drivers and those with spotty driving records.
Discounts Available
USAA offers a wide variety of discounts.
Discount availability can vary by state.
Erie
Why we picked it: Erie offers the best rates(after USAA) for certain types of drivers, which helped it earn 4.5 stars in our evaluation. Erie also stands out for its low level of complaints and a great grade (A-) from repair professionals for its collision claims process.
Discounts Available
Erie offers a variety of ways to save money on car insurance costs.
Discount availability can vary by state.
Travelers
Why we picked it: We like Travelers for its competitive rates for many types of drivers. Although it doesn’t always have the absolute cheapest costs, it earned 4.5 stars in our analysis because it is consistently one of the top three to five cheapest companies. Travelers has decent customer service, based on its low level of complaints.
Discounts Available
Travelers Insurance offers a wide array of car insurance discounts for its customers, including:
Discount availability can vary by state.
Geico
Why we picked it: Geico earned four stars in our evaluation thanks to its low costs for many driver types. Its C- grade from collision repair specialists isn’t a plus. Still, those on the hunt for cheap car insurance should take a look at Geico.
Discounts Available
Geico offers a wide range of discounts.
Discount availability can vary by state.
Progressive
Why we picked it: We gave Progressive four stars because of its competitive rates for a broad range of driver profiles. It also has a low level of complaints against it with state insurance departments, reflecting good customer service.
Discounts Available
Progressive offers its customers a good variety of discounts.
Discount availability can vary by state.
Methodology
To identify the cheapest car insurance companies we evaluated each insurer based on its average rates for a variety of drivers, complaints against the company and collision repair grades from auto body professionals.
Auto insurance rates (80% of score): We used data from Quadrant Information Services to find average rates from each company for good drivers, drivers who have caused an accident, drivers with a speeding ticket, drivers with a DUI, drivers with poor credit, drivers caught without insurance, adding a teen driver, senior drivers and young drivers.
Unless otherwise noted, rates are based on a 40-year-old female driver insuring a new Toyota RAV4 and coverage of:
- $100,000 for injuries to one person, $300,000 for injuries per accident and $100,000 of property damage (known as 100/300/100).
- Uninsured motorist coverage of 100/300.
- Collision and comprehensive insurance with a $500 deductible.
Complaints (10% of score): We used auto insurance complaint data from the National Association of Insurance Commissioners.
Collision repair (10% of score): We incorporated grades of insurance companies from collision repair professionals. We used data provided by CRASH Network, a weekly newsletter covering the collision repair and auto insurance market segments. CRASH Network’s Insurer Report Card used grades from more than 1,000 collision repair professionals to gauge auto insurers on the quality of their collision claims service.
How to Find Cheap Car Insurance Coverage
Comparison shopping is the most effective way to find cheap car insurance.
First identify the coverage you need. You want to shop for comparable policies with the same coverage, limits and deductibles. Otherwise, the policy you find that is super cheap may have only minimum coverage levels or high deductibles.
Get Quotes From Multiple Car Insurance Companies
You could possibly save hundreds of dollars a year by shopping around, so it’s worth the time to go online or call an independent insurance agent for car insurance quotes.
Even if your driving record isn’t perfect—such as a record with a speeding ticket or accident—it’s smart to comparison shop to see if there are better prices than what you’re currently paying.
The auto insurer that offers the best rates when you have a great driving record may not be the cheapest when you have a driving violation or at-fault accident on your record.
Review Your Auto Insurance Coverage
It’s wise to regularly review your coverage types, limits and deductibles to verify they fit your current situation.
You may be contemplating cutting back on coverage to save money in the short term, but doing so can leave you open to large repair bills and lawsuits against you. Before lowering coverage limits, look for other ways to save—such as cutting coverage you don’t need.
If you have coverage that you don’t use, such as roadside assistance or rental reimbursement insurance, determine if you should drop them to save money.
Related: Calculate Auto Insurance
Reconsider Your Deductible
A deductible is the amount your auto insurance company deducts from a settlement check if you make a collision or comprehensive insurance claim. Raising your deductible can lower your collision and comprehensive coverage costs. Our analysis found that you could save 9% on average by raising your deductible from $250 to $500 and 18% if you raise it to $1,000.
Review Car Insurance Discounts
Capturing every discount you’re eligible for can help you reduce your insurance bill.
Many auto insurance discounts are automatically applied to a policy when you obtain a quote but there are some you need to ask about. For example, if you now drive fewer miles annually because you have retired or work from home, you may qualify for a low-mileage discount.
Don’t hesitate to ask your insurance agent about other discounts you can earn by making changes. For instance, you may be able to get a small discount for going paperless. Your agent may also have other tips to lower car insurance costs beyond discounts.
Look for a Good Bundling Discount
You can normally obtain a bundling discount by buying auto insurance and another type of insurance from the same company.
Bundle auto and home insurance typically leads to a good discount. The average bundling discount is 14%, according to our analysis. You can bundle car insurance with condo or renters insurance if you don’t own a home.
Change the Way You Pay for Car Insurance
Paying for your car insurance policy in full upfront often results in a discount. If you cannot pay in full, you may still be able to nab small discounts by paying your monthly bill through an electronic payment transfer.
If your insurance company doesn’t offer many discounts, or the ones they provide don’t apply to you, it may be a good time to shop around for a new insurer and switch car insurance companies.
Compare Car Insurance Quotes
Get Auto Quotes As Low As $63/month, Compare Rates For Free, and Pay Less For Car Insurance
Cheap Car Insurance Frequently Asked Questions
Who has the cheapest car insurance?
Nationwide, Travelers and Geico have the cheapest car insurance in our analysis of rates for good drivers. USAA also has very good rates but offers auto insurance only to military members, veterans and their families.
Car insurance costs vary greatly based on personal factors like your location, the vehicle you drive and your driving record. Compare car insurance quotes with multiple insurers to find the cheapest car insurance for your particular situation.
What is the cheapest type of car insurance?
The cheapest type of car insurance is a state-minimum policy, sometimes referred to as liability-only auto insurance. It provides the minimum car insurance required by your state to drive legally. A state-minimum car insurance policy costs an average of $638 per year, based on our analysis. That’s nearly $1,400 cheaper than the average annual cost of a full coverage policy ($2,026).
A state-minimum policy is cheap because it generally has low limits of liability car insurance, which pays for injuries and property damage you cause others in an auto accident. Once accident costs pass your liability limit, though, you’ll be personally responsible for any remaining expenses. For better financial protection, it’s wise to raise your liability limits if possible in case you cause an expensive car accident.
Related: Car Insurance Rates by State
Should I drop collision and comprehensive coverage to get cheap car insurance?
If you drop collision and comprehensive coverage you’ll get cheaper car insurance—but you’ll lose the ability to make a claim with your insurer if your car is stolen, totaled or severely damaged in an accident you cause.
The value of your vehicle can help determine if removing comprehensive and collision is a good idea or not:
- If your car’s value is low and the most you can get from an auto insurance payout—the value of the car minus your deductible—would result in a small claim check, consider dropping the coverage if you own the car outright.
- A vehicle with a lease or loan must keep comprehensive and collision coverage no matter the value because the lessor or lender mandates it.
If you decide to keep collision and comprehensive insurance but need cheaper rates, shop around to see if another company has a better deal for the same amount of coverage.
How do I get cheap car insurance for a teenager?
Comparison shopping with multiple insurers is the best way to find cheap car insurance for teen drivers. Auto insurance for teenagers is quite pricey—parents can expect their policy costs to double—because of the inexperience and immaturity that these novice drivers.
It costs an average of $2,359 more per year for parents to add a 16-year-old to their car insurance policies, according to our analysis. Adding a teen to a parent’s policy is typically the best way to get a teen insured. It costs an average of $8,572 per year for a 16-year-old to purchase an auto insurance policy on their own.
How can I find the cheapest car insurance quotes?
You can find the cheapest car insurance quotes by comparing rates from multiple insurance companies. Insurers have different formulas for calculating rates, so you’ll often find a wide range of prices for the exact same coverage.
If you’re looking for the cheapest car insurance quotes possible, also look for a policy that provides only the minimum liability coverage required in your state. Liability insurance pays for damages or injuries you cause to others or their property. If you have a car with a loan or lease, the lender or leasing company will usually require that you have a policy that includes comprehensive and collision coverage, which will raise the cost.
Do teachers get cheaper car insurance?
Teachers may be able to score cheaper car insurance rates from insurers that offer affiliate group discounts for educators or certain occupations, such as teachers or school administrators. For instance, if you’re part of a national educational association—such as the Association of American Educators—ask your insurance company if you can get a price break on car insurance for teachers.
Companies that offer discounts for teachers include Country Financial, Geico, and Liberty Mutual. While a discount for teachers is nice, the final price you pay is most important. Be sure to shop around with multiple auto insurance companies to find out which ones have the best rates for you.
Next Up In Car Insurance
[ad_2]
Source link