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It can be difficult to shop for car insurance. Between comparing car insurance quotes, providers, and coverage options, you must consider a lot of information. This article will help you navigate the important details and explain how to find the lowest car insurance quotes for the coverage you need.
Our review team has researched dozens of providers and compiled a list of the best car insurance companies in the business, ranking insurers based on price, customer service, and financial stability. When you’re ready to shop for car insurance and start comparing options, this list is a good place to start.
If you’re looking for a step-by-step walkthrough on purchasing a car insurance policy, check out our nine easy steps on how to buy car insurance.
Cheapest Car Insurance Companies
Below are the 10 cheapest car insurance providers, according to average costs from Quadrant Information Services.
Cheapest Car Insurance Providers
|Car Insurance Provider||Average Annual Cost Estimate|
|American Family Insurance||$1,537|
Best Car Insurance Coverage
The best car insurance coverage may not necessarily be the cheapest. While cost is an important factor to consider, you should also make sure your insurer offers the coverage you need and has an excellent reputation for meeting customer claims obligations. Compare car insurance companies on more than price to find the best option.
Car Insurance Coverage
One of the first things you need to decide when shopping for car insurance is the type and amount of coverage you’ll need. While each state except Virginia and New Hampshire has minimum coverage requirements, most people purchase more than the minimum for adequate financial protection.
Below is a breakdown of the main types of car insurance:
- Liability coverage is a combination of bodily injury liability (BI) and property damage liability (PD). This type of insurance covers you against costs associated with damages to other people and their property. It’s also an insurance requirement in most states.
- Collision insurance covers the cost of damages to your car in the event you get into a collision with another car or an object. Some lenders may require that you carry collision insurance before financing your vehicle.
- Comprehensive coverage protects your car against damages that aren’t from a collision. Examples include theft, vandalism, natural disasters, and civil disturbances. Some lenders may require you to carry comprehensive insurance before financing the car.
- Medical payments insurance (MedPay) covers the costs of vehicle-related medical treatments for you and your passengers, regardless of who was at fault in the case of an accident (not available in all states). Some no-fault insurance states require this coverage.
- Personal injury protection (PIP) covers medical treatments similarly to MedPay but also covers other injury-related losses, such as lost wages from days you couldn’t work. Some no-fault insurance states require this coverage.
- Uninsured/underinsured motorist coverage (UM/UIM) covers you when you get into an accident with a motorist who doesn’t have sufficient insurance and can’t cover your expenses. This coverage is mandatory in some no-fault insurance states.
Car Insurance Add-Ons
While you shop car insurance, you may also see coverage for roadside assistance plans, accident forgiveness insurance, gap insurance, and rental car reimbursement. Not every insurer offers these types of coverage, but no reputable insurance company will sell you a policy that doesn’t meet your state’s minimum insurance requirements.
Comprehensive and collision coverage are not required but are a good idea for most drivers. These policies are worth the cost if you can’t afford to replace your car in the event of a worst-case scenario. When you compare car insurance quotes, you can see a price breakdown for each type of coverage.
If your vehicle is not especially valuable, the cost of comprehensive and collision insurance may not be worth it. Generally, you should consider skipping this coverage if the amount you pay for coverage each year exceeds 10 percent of your car’s total value.
Car Insurance Quotes
An auto insurance quote is an estimate of what you will pay for a car insurance policy with a carrier. Car insurance quotes are based on several factors related to the driver, the vehicle, and the location. Pricing differs among providers and is subject to change based on the information you choose to share.
When shopping for car insurance, you’ll want to compare quotes from several providers to see which offer the best deals for your state, vehicle, and driver profile. You can request a quote in the following ways:
- Contact an independent insurance agent. This is a good idea if you have questions about the process or want assistance. A local agent can also make sure you’re getting all the discounts possible. An agent can work for one company or be a broker and connect you with several insurance companies. If you use an insurance broker, you might have to pay a brokerage fee when you buy a policy.
- Use an online quote comparison tool. This option is great for anyone who wants to compare multiple quotes. These quote forms give you insurance rates from providers in your area.
- Go to the provider’s website. If you already have a provider in mind, you can go directly to the provider website and use its quote form. For example, if you’re interested in Progressive car insurance or Esurance auto insurance, both companies have comparison tools on their sites, allowing you to compare the provider’s quote to competitors’ prices.
What Information Do You Need When Getting A Quote?
As mentioned, you will need to provide some personal information to compare car insurance quotes. The more information you provide during the quote process, the closer the estimate will be to your actual car insurance premium. Here’s what you’ll need to shop car insurance:
- Information about you: You’ll need to supply your date of birth, address, and driver’s license number. You’ll answer questions about your driving record and your insurance history. You might be asked about your military service, student status, and corporate affiliations for discount purposes.
- Information about other drivers: On your policy, you’ll have to list family members who live with you, including spouses, partners, and teenagers. You’ll also have to provide their date of birth, driver profile, and insurance history.
- Information about your vehicle(s): You’ll need to provide vehicle information, including your car’s vehicle identification number (VIN) and the address where you keep it. For discount purposes, you’ll also answer questions about safety and anti-theft features on the vehicle.
How To Calculate Car Insurance
When shopping for car insurance, it pays to understand average prices as well as how insurance costs are calculated. Car insurance rates vary widely based on many factors related to the driver and vehicle being insured. Every company uses a different formula to calculate rates, meaning car insurance quotes won’t be the same from insurer to insurer. Different drivers will find the lowest rates with different companies, which is why it’s important to compare car insurance quotes before purchasing a policy.
Let’s take a look at some factors that car insurance providers commonly consider when setting rates.
Teen drivers and young drivers under the age of 25 typically get charged more for auto insurance. Drivers will start to see lower rates after the age of 25. Rates tend to decrease until around age 50.
A better credit score can net you better car insurance quotes in most states. California, Hawaii, Massachusetts, Michigan, and New Jersey have banned the practice of using credit scores to determine auto insurance rates.
Every state has minimum coverage requirements, but drivers can always purchase more than the state-required coverage. Higher policy limits and more add-ons will increase your premiums compared to basic liability insurance.
Collision and comprehensive car insurance policies typically come with a deductible you must pay before the insurer will reimburse claims. The higher this deductible, the lower your monthly premiums will be.
Drivers with clean driving records receive the lowest rates. Speeding violations, at-fault accidents, and DUIs can drastically increase your rates. However, your rate won’t increase the same amount with every provider, so compare car insurance to find the best option.
In some states, men pay more for car insurance than women. In other states, women pay more than men. California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania have banned insurers from setting rates based on gender.
Every state has different insurance regulations and requirements. Premiums are also different from city to city. If you live in a ZIP code with high car accident or theft rates, expect the auto insurance rates to be higher.
The more you drive, the higher your rates may be. People who don’t drive often are typically eligible for low-mileage discounts. You may see a low-mileage discount on a car insurance quote, or you may need to call an agent and submit an odometer statement.
The value, safety ratings, and theft rates for your vehicle may influence your rates. Expensive cars are more costly to replace and therefore will have higher collision and comprehensive premiums. Cars more commonly involved in accidents or that have high theft rates are also more costly to insure.
Use A Price Comparison Tool For The Best Rates
The quickest way to compare car insurance from several insurers is to use a price comparison tool like the one below. A price comparison tool will only provide estimates, but it’s a good way to begin shopping for car insurance.
Car Insurance Rates By State
The table below shows average auto insurance cost data from Quadrant Information Services. It includes average premiums for both minimum liability and full coverage in all 50 states and Washington, D.C.
|State||Liability Average Premium||Full Coverage Average Premium|
Your rates may vary depending on your driver profile. Use the table above to find average rates you can compare to car insurance rates you may receive. Keep in mind that if you live in a densely populated city with a lot of traffic, your rates are likely to be higher than the state average.
Auto Insurance Discounts
While car insurance can seem expensive, many insurance providers offer extensive insurance discounts, which help lower the cost of your insurance premium. Discounts vary among companies, but here are a few common ones:
|Common Car Insurance Discounts|
|Safe driver||Military||Usage-based||Good student|
|Paid in full||Paperless billing||Student away at school||Company loyalty|
|Safety features||Multi-policy||Autopay||New car|
|Anti-lock brakes||Anti-theft device||Multi-car|
The next time you look at your insurance documents, see if you can find your original price before discounts. It might surprise you. If you’re looking for cheap car insurance, it’s always best to leverage discounts.
Keep in mind that the cheapest car insurance is not necessarily your best option. Be sure to pick a provider that has a proven history of paying customer claims.
How To Keep Car Insurance Rates Low
The best ways to keep your insurance rates low are to keep a clean driving record and not file claims. You can also reduce your car insurance rates by regularly shopping around and considering other providers, especially after a change in your location, marital status, or credit score.
While you can’t control everything that affects your rates, the following strategies can help you find the best price when you shop car insurance.
|Shop around||The more quotes you get, the better you can compare them and see a realistic picture of what you should be paying.|
|Be a good driver||Auto insurance companies like to see that you are a responsible driver and have little to no at-fault claims or tickets. Claims will raise your rates, while a clean driving record will lead to a lower premium.|
|Work on your credit||Many states allow credit scores to influence car insurance rates. A poor credit history can increase your rate, while a good credit score can lower it.|
|Increase your deductible||A higher deductible will lower your insurance premiums but make sure your deductible is something you can afford to pay.|
|Bundle if you can||Depending on your situation, you could save by bundling your auto policy with a renters or homeowners policy.|
|Don't move to the big city||If you’re looking to move somewhere new, consider a suburb or metro area away from downtown. Drivers in middle-class suburbs usually get better rates.|
|Choose the right car||If you’re looking to buy a car, find out which cars are the cheapest to insure. Insurance companies often prefer family-oriented SUVs.|
|Choose the right provider||Some providers offering cheaper premiums may offer poor customer service or have a weak financial reputation.|
|Avoid a lapse in coverage||Prevent a lapse in coverage by always being enrolled in an auto insurance policy and paying your insurance premiums on time.|
|Don't write off the little guys||While there are many large, national providers, countless small, local insurance providers offer great auto insurance coverage at affordable prices.|
|Take a defensive driving course||Many insurers offer a discount if you complete an approved defensive driving class. In some states, insurers are required to provide such a discount. A defensive driving class is an especially good idea if you've recently gotten a speeding ticket or committed another violation.|
How Often Should You Shop For Car Insurance?
You can shop car insurance as often as you want but be aware that your existing insurer might charge a fee if you cancel your policy during your term. Unfortunately, it’s somewhat common for insurance companies to raise rates after the first term. If your premium is going up next term and you haven’t filed any claims, you should shop car insurance and drop your current insurer if needed.
It can also be a good idea to shop car insurance every six months even if you’re happy with your policy. Who knows? Maybe a competitor just lowered its prices or a new company recently entered your local market. While you can get a loyalty discount for being with the same insurance company over a long period, you might save more by switching.
How Many Quotes Should You Compare?
There’s no limit to the number of quotes you can compare. Getting more quotes gives you a better idea of what’s available. We wouldn’t recommend buying a policy without comparing at least three providers. You should shop for car insurance from multiple sources and compare car insurance rates rather than buying the first policy you see.
Comparing car insurance quotes from insurers in your area gives you a good idea of what’s out there, though you could compare more. If you’re feeling energized, try to go for five to seven providers. Remember, try to compare apples to apples. Don’t compare auto insurance with $25,000 in property damage coverage to a policy with $100,000 in coverage.
Shop Auto Insurance: Conclusion
Comparing rates is very important when shopping for car insurance. We think it is best to look at multiple providers and pick which is best for your needs.
Providers To Consider When Shopping For Car Insurance
When you’re ready to shop car insurance, we recommend getting a quote from each of our top car insurance providers. State Farm, USAA, and Geico came out on top when we compared over 30 of the best car insurance companies.
State Farm Car Insurance: Best Overall
State Farm is the largest auto insurance provider in the U.S., with over 16 percent of the market share, according to the National Association of Insurance Commissioners (NAIC). State Farm can be an excellent option for many kinds of people, especially students. If you’re a good student, you could get up to 25 percent off your premium with State Farm. You won’t come across a discount on student car insurance that big when shopping for car insurance elsewhere. Also, you get to keep that discount until you’re 25 years old, even after you graduate college.
State Farm has four apps that make claims easier and help people save money. One app, Steer Clear®, is for drivers under 25 to hone their skills. Drivers take in-app courses and log driving hours. Drivers who complete the program get another discount on their premiums.
State Farm has a financial strength rating of A++ from AM Best, along with an A+ rating from the BBB. In our August 2022 nationwide auto insurance survey of nearly 7,000 respondents, State Farm policyholders gave the company a solid 4.2 out of 5.0 stars for overall customer satisfaction.
Find out more by reading our State Farm auto insurance review.
USAA Auto Insurance: Best For Military
USAA is our top overall pick for car insurance, although you’ll need to meet certain criteria for eligibility. The following types of people can get USAA:
- United States military members who are active, enlisted, honorably separated, or retired
- Commissioning program members
- Spouses and children of people who have had a USAA auto or home policy
USAA tends to be one of the cheapest options overall. It’s a great idea to include it when you shop car insurance if you’re eligible. The company gives you a 15 percent discount if you keep your vehicle on base and a 60 percent discount during deployment. That’s important, as you still need car insurance during deployment if you own a car.
The company has an A++ financial rating from AM Best. USAA also performed very well in the J.D. Power 2022 Auto Insurance StudySM and its 2022 Insurance Shopping StudySM. USAA policyholders gave the company 4.3 stars out of 5.0 for overall customer satisfaction in our August 2022 nationwide survey.
Learn more by reading our full USAA auto insurance review.
Geico Car Insurance: Best Discount Availability
Many people find that Geico offers the cheapest rates when they shop car insurance. Geico has many discounts based on your driving history, your car, and your situation. The company’s full name is Government Employees Insurance Company, and it still gives a discount to federal government employees.
Geico is the second-largest car insurance company in the U.S. and has a financial strength rating of A++ from AM Best. The company has an A+ rating from the Better Business Bureau (BBB), and it has above-average customer service ratings online. Geico also did outstanding in both the J.D. Power Insurance Study and Shopping Study. Policyholders gave Geico 4.1 out of 5.0 stars for overall customer satisfaction in our 2022 nationwide auto insurance survey.
With Geico, you can also get mechanical coverage for your car, which is rare among insurance companies. The program is called mechanical breakdown insurance, and it’s similar to an extended car warranty.
Read more about the provider in our Geico auto insurance review.
Below are some frequently asked questions about shopping for car insurance:
FAQ: Compare Car Insurance
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews sample quotes for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services, and telematics are more likely to meet consumer needs.