Which of the top cheap car insurance companies offers the best coverage at the price you want?

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Everyone wants to save money. One way to do this is to shop for cheap auto insurance. Still, there are numerous factors to consider when looking for cheap car insurance. We have evaluated the top providers to help you find the low cost provider that will meet your needs. Not only will we help you find the most affordable auto insurance plans, but we can steer you toward companies that offer exceptional coverage and customer service.

Among the top providers that we have already researched, we discovered that USAA, Erie Insurance, State Farm, American Family, and Geico provide the cheapest car insurance. Let’s dive deeper into the average rates and coverage options to help you find a provider that fits your needs.

 

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What Determines The Cost Of Car Insurance Rates?

The Insurance Information Institute details all of the factors that go into determining your rates. While a few of these seem obvious, it might come as a shock to see a couple of them.

  • Driving Record: The better you drive, the lower your car insurance rates will be. If there are serious traffic violations or accidents on your record, you will pay more.
  • Use of Vehicle: The more you drive, the more you will pay, because your risk is increased. If you do a lot of commuting or traveling, insurance companies will give you a higher rate. If you don’t spend a lot of time driving, you can sign up for what’s known as a “pleasure” rate.
  • Location: Urban drivers can expect to pay more because of the increase in vandalism, accidents, and theft. Furthermore, where you park your car can have an impact on the bottom line as well. Parking in a garage might lower your rates. You can research the highest cost and cheapest auto insurance by state.
  • Age: Once you hit 25 years old, you will notice your insurance premiums begin to decrease. That’s because you aren’t as much of a risk as a young driver. As you become a senior, the rates will once again start to rise.
  • Gender: Statistics show that women get into fewer car accidents than men. As a result, women will pay less for car insurance than men, on average.
  • Vehicle Type: Some cars are known to be expensive to insure, while others are rated as the cheapest. The companies consider the cost of your vehicle, as well as the likelihood of theft, the price of repairs, and overall safety record.
  • Credit History: Credit scores designed specifically for insurance purposes are usually always taken into account as a way to examine your reliability. A poor credit history indicates a higher likelihood of filing a claim.
  • Auto Insurance Coverage: The limits you choose, the amount of your deductible, and policy options affect the price you pay for coverage.

How To Find Cheap Auto Insurance

You can’t just search “cheap car insurance near me.” That’s not going to tell you anything other than there are a lot of companies fighting for your business.

If you want affordable car insurance, you need to know how to shop. Because of the factors listed above, what might be considered low-cost car insurance for you, might not be the same for the next person. 

  • Shop: Don’t just go with the first company you land on; shop around. Each car insurance company will often have its own discounts and rates.
  • Don’t assume one company is the best: Just because you see a lot of commercials for a provider, doesn’t make them the cheapest. Do your own research to determine who deserves your business.
  • Check local insurers: While many of the big companies can provide low cost auto insurance, you don’t want to neglect the local companies too. Call a local broker to see what’s offered in your area.
  • Consider pay-per-mile or usage-based insurance: If you don’t drive a lot, you might be better off using a specialized program. There are many options, such as Allstate’s Drivewise or State Farm’s Drive Safe & Save. These let the insurer track how many miles you drive and how well you do on the road in exchange for a discount.

Cheap Car Insurance Provider Comparison

In our study into the most affordable car insurance companies, we found several companies that provide low rates. Here are some of the benefits of using the cheapest insurance companies.

Company Benefits Overall Star Rating

USAA

  • Usage-based insurance
  • Accident forgiveness
  • New car replacement

5.0

Erie

  • Usage-based insurance
  • Accident forgiveness
  • New car replacement

4.0

State Farm

  • Usage-based insurance
  • New car replacement

4.5

American Family

  • Usage-based insurance
  • Accident forgiveness
  • New car replacement

4.0

Geico

  • Usage-based insurance
  • Accident forgiveness

4.5

 

Top Providers For Cheap Car Insurance

While our graphs highlighted several companies you can get cheap car insurance quotes from, we are going to focus our attention on five. These five have the lowest rates for minimum coverage, as well as full coverage with no other factors involved. In our review, however, we won’t focus solely on price, we’ll also evaluate the customer service, ease of filing a claim, and company reputation.

Cheap Auto Insurance From USAA

Not only does USAA provide low-cost liability insurance, but also full coverage. The organization also made it to the top of our other charts. The only trouble with USAA is that not everyone will qualify for coverage. In fact, USAA is designed to cover only military members, veterans, and their families.

If you fall into one of those categories, then you will likely find lower rates than you can with companies such as Liberty Mutual or Progressive. Aside from that, USAA also provides further perks, such as roadside assistance, accident forgiveness, rental car coverage, and Car Replacement Assistance (CRA).

We are fond of the USAA Mobile App, which makes filing a claim simple. In addition, the organization is known for its superior customer satisfaction. Throughout our research, we found two studies on auto insurance, both done by J.D. Power. Both the Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study indicate that this provider is among the best.

USAA might be right for you if:

  • You are part of the military, are a veteran, or family member
  • Want the lowest cost coverage available

Best for Military Families

★★★★★

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Our best overall pick: Offers great customer service to military members and their families.

 

Cheap Car Insurance From Erie

Another provider that shows up in three out of our four lists is Erie Insurance. This company provides cheap car insurance quotes online and is also known for customer service. The downside with Erie Insurance is that the coverage isn’t available in every state. You can only get a policy if you live in these regions.

  • District of Columbia
  • Illinois
  • Indiana
  • Kentucky
  • Maryland
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Tennessee
  • Virginia
  • West Virginia
  • Wisconsin

Looking at the Better Business Bureau (BBB) ratings for Erie Insurance, you also see that this provider has an A+ score. Furthermore, Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study suggest that this company is a leader wherever coverage is sold.

Erie Insurance might be right for you if:

  • You live in a covered state
  • You have had one accident
  • Your credit score is excellent

Inexpensive Option With Limited Availability

★★★★☆

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A relatively inexpensive option for those who live in the covered states.

State Farm Low-Cost Auto Insurance

State Farm is another one of the cheapest car insurance company options. It showed up on all of our lists, whether you are looking for simple liability coverage or comprehensive. Furthermore, the company boasts an A+ rating from the BBB.

The company also offers Drive Safe & Save Discounts to help you keep more money in your pocket. By participating in the program, you can save up to 30 percent. The program is simple to use and can be performed from OnStar or your smartphone.

In addition, State Farm is a provider that shows up on both the Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study, although some regions rank it slightly lower than others

State Farm might be a good fit for you if:

  • You want to participate in the safe driving program
  • You have poor credit
  • Your driving record shows an accident

Most Popular Car Insurer in the U.S.

★★★★★

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Most popular auto insurance company that services over 83 million policies.

American Family Low-Cost Car Insurance

American Family also showed up on every chart of car insurance quotes. This leader isn’t available in every area, so you will have to see if you can receive coverage first. To do this, the website allows you to enter your zip codes to determine if the policy will cover you.

The BBB rates American Family with an A. The two rankings from J.D. Power, both the Auto Claims Satisfaction Survey and the 2019 Auto Insurance Study, list the provider in decent spots, while not as high as some others.

If you qualify for American Family, you might be interested in the exclusive coverage this provider has. These plans include Rideshare Insurance, boat insurance, and snowmobile insurance. Not every company offers these policies, plus you can often bundle them for additional savings.

American Family might be a match for you if:

  • You live in a participating state
  • You have had an accident or low credit score

Low Cost Option With Limited Availability

★★★★☆

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A low-cost option for those who live in the 19 available states.

 

Affordable Auto Insurance From Geico

Geico isn’t just well-known because of its commercials, but also one of the cheapest providers you can choose. While Geico might not be the best choice for someone with a spotty record, safe drivers find a lot of benefits to using the provider. Some additional perks offered by Geico include roadside assistance, Ridesharing insurance, and Mechanical Breakdown Coverage.

In addition, the company has an A+ rating from the BBB, plus it scored highly on the 2019 Auto Insurance Study and Auto Claims Satisfaction Survey. When you use the organization’s website, you will also find that the quote process is simple and you can track claims with ease. You can find a variety of plans covering property damage, bodily injury, as well as comprehensive plans. No matter what type of coverage you opt for, you are likely to get one of the lowest rates through Geico.

Geico might be for you if:

  • You want to customize coverage
  • You don’t have infractions on your driving record

Best Company Overall

★★★★★

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Best for those ineligible for USAA Offers competitive pricing and great coverage.

 

Tips For Finding Affordable Car Insurance

If you have speeding tickets or accidents on your record, or you suffer from poor credit, you might need to pay a higher insurance premium. Still, there are some ways to save money on your insurance premiums, according to the Insurance Information Institute.

  • Consider what car you buy: Before you purchase a vehicle, get a quote on insurance. You might be surprised at what models raise your rates.
  • Reduce comprehensive coverage: If you have an older car, you might consider removing the collision and comprehensive coverage. Just make sure you have the money to replace the vehicle if something should happen. Not every state requires you to carry personal injury protection either. Play with the plans to see what makes the most sense for your financial situation.
  • Increase deductibles: If you have some money in your savings, you can increase the deductible to lower the premium.
  • Maintain a good credit score: This is an automatic way to get bigger savings.
  • Ask about the discounts: You might find a lower rate for safe driving, bundling your policies, and having new safety features.
  • Look for low-income car insurance: Some states have government-sponsored programs that help families without money afford car insurance. While not everyone qualifies, it might be something to look into if you are struggling to make ends meet.

With a little work and some patience, you will find the car insurance provider with the best rates for your situation.

Cost Isn’t Everything

While we all want to save money, we have to remember that the cost of insurance isn’t the only factor to consider. After all, if you decide to go strictly with state minimums and you cause an accident, you might be liable for the additional damages out of pocket. This expense is something to consider when trying to save a dollar on coverage terms. Sometimes, more is better.

On top of that, when choosing a provider, you can’t strictly assess your options based on price. Otherwise, you might get the lowest rate but have a company that drags its feet when it comes time to pay. In the meantime, you are left without a vehicle and in worse shape than if you had paid more for your car insurance.

When you do your online comparison shopping between providers, take into account the price, but also look at other factors. Evaluate the customer satisfaction scores, reliability ratings, financial reputation, and ease of filing a claim. All of these factors put together will help you to find the provider that fits your needs, and you can save money in the process.