Insurance » Auto Insurance » The Cheapest Car Insurance Companies
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The Cheapest Car Insurance Companies

Compare between cheap auto insurance companies that offer quality customer service ,affordable rates and variety of insurance options

You will need to do some research in order to find the best car insurance rates for you. Based on data from across the country, we have made recommendations for the best car insurance companies. These can be a good starting point. Car insurance quotes are determined by many factors, including your location, driving record, driving record, and vehicle type. It's now easier than ever for you to get car insurance online. To get the best rates, make sure that you get a customized quote.

When calculating your rates, a major factor that car insurance companies take into consideration is where you live. Different states have different insurance regulations. This means that prices can vary greatly between states. The price of insurance can also be affected by where you live in a state. Different cities and towns might have different risks for theft and car accidents.

Based on our research, here are The Smart Investor Select’s picks for the cheapest car insurance companies:

State Farm

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  • Overview
  • Coverage
  • Pros & Cons

State Farm is one of the largest auto insurance providers in the US. The company has a history dating back to 1922 and it is often ranked as one of the best insurers in the marketplace. Initially, State Farm only offered auto insurance, but over time, its product line has expanded to cover over 100 products and services. Now, State Farm offers banking, investments and insurance through its team of 19,000 agents, the company has issued over 83 million policies.

State Farm offers a variety of car insurance products, which are the focus of this review. The company aims to provide sufficient options, so you can tailor your car insurance to your specific needs. However, the coverage options can vary according to your state.

  • Liability coverage
  • Collision and Comprehensive Coverage
  • Uninsured motorist protection
  • Underinsured motorist protection
  • Rental Car and Travel Expenses
  • Rideshare Insurance
  • Emergency Road Service
  • Affordable rates
  • Attractive Discounts
  • Great App
  • Large Network of Agents
  • Lacks Specialized Coverage
  • Some Coverage Options Not Available in All States
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GEICO

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  • Overview
  • Coverage
  • Pros & Cons

GEICO provides lots of car insurance coverage options and is popular for its great customer service, as well as its great mobile app for customers. GEICO focuses on online sales to customers rather than the use of agents, which has given the company the ability to keep low rates coupled with providing similar products of other big insurers. Due to its pricing and convenience, it is known as the best option for consumers that are cost-conscious.

GEICO may come with some cons such as gap insurance absent, difficult getting a local agent, accident forgiveness not available in all states, and some coverage options missing. Overall, the company boasts to offer some of the best services such as excellent 3rd-party ratings, great mobile app, multiple Policy discounts, and new cars having mechanical breakdown insurance.

  • Liability coverage
  • Collision and Comprehensive Coverage
  • Medical Payments
  • Emergency Road Service
  • Personal Injury Protection
  • Rental Reimbursement
  • Mechanical Breakdown Insurance (MBI)
  • Affordable rates
  • Multiple Policy discounts
  • Great Mobile App
  • Mechanical Breakdown Insurance
  • No Gap Insurance
  • difficult to Get a Local Agent
  • Accident Forgiveness Not Available in All States
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Progressive

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  • Overview
  • Coverage
  • Pros & Cons

Low prices are one of the things that made Progressive so popular among Americans that the company even encourages you to compare its rates with other insurance providers right on its website with a price comparison tool.

You will find the company provides standard car coverage options other insurers offer (like liability, personal injury protection, medical payments, etc.) and perks (like accident forgiveness, deductible reduction, etc.) when Progressive covers you. Of course, Progressive offers other insurance products like home, life, and renters through third party companies.   

  • Liability coverage
  • Comprehensive coverage
  • Collision coverage
  • Personal injury protection
  • Uninsured/underinsured motorist coverage
  • Medical payments coverage
  • Encourages safe driving
  • Accident forgiveness
  • Competitive rates and discounts
  • Name your Price
  • No safety equipment discount
  • Below average customer service score
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Nationwide

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  • Overview
  • Coverage
  • Pros & Cons

You can take advantage of quite a lot of bundling options with Nationwide that you won’t easily find with other insurance firms. Nationwide is great for you if you have a spotless driving record as you will be treated to some of the cheapest rates available.

However, if your driving history has some blemish, you might want to look elsewhere for coverage. Seniors will find this company more appealing than youngers as rates tend to get cheaper the older you get.

  • Liability coverage
  • Collision coverage
  • Comprehensive car insurance
  • Medical payments
  • Uninsured motorists’ coverage
  • Personal injury protection
  • Property damage liability
  • Roadside and accident assistance
 
  • Financial capability
  • Educational resources
  • Well-designed website
  • On your side auto repair network
  • Well-crafted mobile app
  • Unattractive prices for certain folks
  • Inconsistency in support
  • No ride-sharing protection
  • Credit score checking
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Erie Insurance

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  • Overview
  • Coverage
  • Pros & Cons

Erie insurance offers low and discounted prices as well as low premiums. The company provides discounts for seniors, youngers, and safe drivers to keep prices affordable.  It has all the expected auto insurance standard plans and extra coverage loaded with various benefits specific to each state.

The company has a series of unique extras and discounts which are largely unavailable in other insurance operations.

  • Liability coverage
  • Collision and Comprehensive Coverage
  • Uninsured motorist protection
  • Underinsured motorist protection
  • Personal Injury Protection
  • Affordable rates
  • Attractive Discounts
  • Customer satisfaction
  • Lock-in feature
  • Lack of a Mobile app
  • It only operates in a few states
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USAA

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  • Overview
  • Coverage
  • Pros & Cons

USAA offers car insurance policies in the U.S. to military personnel and veterans as well as eligible family members. USAA members have many benefits. The company's SafePilot program allows members to use the designated app to earn safe driving rewards. USAA policies are able to cover you for deployment and offer discounts for garaging on military bases. USAA is the only auto insurance company that offers military and veteran-specific coverage. 

USAA has the highest customer satisfaction scores in every part of the U.S. and policyholders love its outstanding customer service and claims processing. USAA is available only to veterans, active military personnel, and their families.

  • Liability coverage
  • Collision coverage
  • Comprehensive car insurance
  • Car Replacement Assistance coverage
  • Accident Forgiveness
  • Rental Reimbursement
  • Rideshare Gap Protection
  • Glass coverage
  • Affordable Rates
  • Customer Satisfaction
  • Fewer than the expected number of complaints
  • Must be a USAA member - active military members, veterans and their families
  • No agent access
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Getting The Cheapest Car Insurance

Why There is No “Cheapest Car Insurance Company”

When calculating the auto insurance rates to charge car owners, insurers use different methodologies to determine a fair rate depending on various parameters. Some of the parameters that car insurance companies use to justify their numbers include credit score, vehicle model, type of coverage, driving record, driver demographics, etc.

Therefore, it is impossible to get the cheapest auto insurance rates without going through the insurance approval process to determine if you meet the insurer's requirements.

However, different auto insurers charge different rates for the same type of coverage, and it is possible to get a cheaper rate for your car. Compare insurance quotes to know where you get the highest benefits and savings without compromising on the amount of coverage you get for each insured peril.

You can also reduce the amount you pay for auto insurance by offering to pay a higher deductible. If you have shorter commutes to and from work, find pay-per-mile coverage to get a cheaper rate depending on the number of miles you commute annually.

Largest Auto Insurance Companies (Market Share)

How To Save on Your Car Insurance?

Car insurance is essential to ensure your financial security behind the wheel. It doesn't matter if you only have basic liability insurance, or if you have complete auto coverage. You need to make sure you get the best deal. Are you looking for ways to lower your car insurance . Here are 15 ways to save on car insurance.

1. Shop Around

One of the first things you need to do in order to save money when you’re buying car insurance is to shop around.

Don’t just get a quote from one company and assume that’s the best you’re going to get. Instead, look at several different insurance companies and get a quote from each.

You may have a preference for which insurance company you think you want to work with because of commercials that you’ve seen. You may have seen several commercials that claim they offer the lowest rate. In fact, insurance companies go to a lot of trouble to convince you that the rates they’re offering are the lowest. But the truth is that different people are going to pay different rates for car insurance. Even with the same company and the same policy it could cost something different. That means there’s no one company that’s lowest for everyone.

2. Know Your Policy

You need to understand what your policy actually says before you can pick it up. It is important to be able to comprehend all technical terms and jargons. It's not easy. You must know their opinions. Talk to someone to learn more.

  • Who is covered?
  • What is covered?
  • What is not covered?
  • What coverage limitations are there?
  • When coverage begins
  • After coverage ends
  • What coverage do you get?
  • What is the cost of coverage
  • How to report a claim or loss

The most important step in the process is talking to your insurance agent or the person who helped you sign up for the policy. This will allow you to find out more about the policy and the options that may be available to you. Everything you don't know will be explained to you.

3. Ask for Discounts

You may think that the insurance company will offer you discounts if you qualify for them but that's absolutely not the case. You won't get anything for free. So, make sure you ask.

You should definitely ask if you're new to the insurance company but if you've been there a while check to make sure of any discounts you may not know about.

  • Student discounts
  • New driver discounts (with training course)
  • Multiple vehicle discounts
  • Defensive driving course discounts
  • Online paperwork discounts
  • Clean driving record discounts
  • Affinity group discounts
  • Pre-pay discounts

4. Reduce Mileage

Driving less can help reduce your insurance premiums. Your insurance company will ask you how many miles you drive each day, including the commute. You will save money if you drive less than the average. It is important to mention this to your insurance company.

Metromile, and other insurance companies, offer lower insurance rates if you drive a low amount of miles. If you don't cover all the distance, you will pay less.

Look for a house or job with a shorter commute if you are looking for a new job. Because you are reducing your mileage, you will be able save lots of money. Working from home may be an option, which could reduce the commute even further.

5. Keep Your Credit Score up

Did you know your credit score can have an impact on the amount of payments you make? It can. You can improve your premium by maintaining a good credit rating.

Ask your insurance company about how they use your credit score. Then work to improve it. To ensure a positive impact on your premium, you should make sure that your bills are paid on time.

6. Protect Your Car

If you take steps to protect your vehicle, your premiums will be lower. You can save money by installing a car alarm and a tracking device so that your vehicle is easier to locate in case it is stolen or lost. This means that your insurance company will be less likely to take action.

Talk to your insurance company about what you should do.

How to Check an Insurer's Complaint Record?

Before buying car insurance coverage, you should check the insurer’s complaints record. The National Association of Insurance Commissioners (NAIC) is responsible for collecting and sharing complaints against the different types of insurance companies.

This association collects complaints about insurance companies from state regulators and publishes this information on its website.

To check an insurer's complaints on NAIC's website, go to the NAIC's Consumer Information Source page and search the insurance company by name or NAIC Company code, the state where you live, and the type of insurance. The search will show a list of the insurance company’s closed complaints. Click on report options to check the complaints about each subsidiary.

The subsidiary you are looking for should have the same address as the one indicated on your policy document. Click on the correct subsidiary’s name and filter the closed complaints by the complaints code, complaint index, state, licensing, or financial data.

For example, use the “complaint code” filter to see a list of all close complaints and the reason for each complaint.

J.D. Power U.S. Consumer Satisfaction Study 2020

What Information Do You Need to Compare Auto Insurance Rates?

Although online auto insurance quotes are convenient, it is still necessary to collect paperwork and other information. To get accurate quotes, it is crucial that you provide accurate information. You may discover that the actual cost of your insurance is higher if you give estimates to questions.

You will need the following information:

  • Your basic personal information – Typically, you will need to enter your name, birthdate and occupation.
  • Your current auto insurance company – You may be required to give your provider information if you have auto insurance.
  • Information about driver's license – You will need to give your driver's license information for yourself and any other person you wish to include in the policy.
  • Vehicle Information – To determine the price of your insurance, you need to provide accurate information about your vehicle. You can often use the VIN number. Please provide all basic information about the vehicle. Then, you can confirm the vehicle's current and annual mileage, safety features and whether the vehicle is leased or owned.
  • Your driving habits:You will need to provide additional information, such as your annual mileage.
  • Driver history – Before issuing a policy, insurance companies will verify your driving record. It is crucial to disclose all information upfront in order to receive a quote. You must disclose any tickets, driving violations or accidents that you have had in the past five years to your insurance company and all other drivers.
  • Your preferred coverage – The final step is to determine the coverage you require. You have two options: you can either look at your current policy to determine what coverage you need, or you can choose your preferred coverage. This will allow you to get a quote for a similar policy that suits your needs.

How do I Compare Car Insurance Plans?

It is important that you carefully compare your insurance plans once you have received your quotes. It can be difficult to read through all the technical and legal jargon included in each quote. It is easy to follow.

  • Get your quotes together – If you don't have all the relevant information, it is difficult to compare different insurance products. Do not assume you will remember every detail for each quote. Comparing quotes online is easy. However, you can print each quote so that you can compare them.
  • See what the Quotes Are Like For Like – It is crucial to determine the coverage you require and make sure all quotes are accurate. It is not a good idea to compare a basic liability policy with a comprehensive coverage quote and assume that the cheaper one is better. Make sure you get the coverage that you want from all of your quotes.
  • Take a look at the Deductibles – Your overall insurance cost can be affected by the amount of your deductible. You should ensure that the deductible is the same for both types of insurance. You will have to decide whether you are willing or not to pay a higher deductible if there is a claim.
  • Get eligible discounts – You should also check to see if there are any discounts that you may be eligible for. Although discounts may vary between insurers, it is not uncommon to receive discounts for vehicles that have anti-theft or safety features, good drivers, or students. Bundling your insurance policies may be eligible for a discount.

Which States have the Lowest Car Insurance Rates?

According to Zebra research Maine has the lowest car-insurance rates at $935 per annum, according to the Zebra research . North Carolina, Virgnia and New Hampshire are also among the states with the lowest car insurance rates. Ohio, Idaho and Vermont are the top ten most expensive car insurance states.

It is important to remember that even within these states, your zip code and other factors can have a significant effect on your insurance rates. If you are a new driver, have a poor driving record, or drive a bigger vehicle than you should, your insurance rates may be higher than if you're a safer driver in a cheaper state.

The states with the lowest car insurance rates tend to have lower populations and are more likely to be sued or involved in accidents. The chart below shows the Zebra data for the average annual premium cost. It is clear that Maine has the lowest car insurance. Virginia and North Carolina closely follow.

There is a difference of only 25% in the cost of Maine and Indiana, which is the 10th most expensive state. This is a significant difference from the most expensive states for car insurance, where the cost can vary significantly.

Typically, the states with the most inexpensive car insurance rates have lower population densities and less costly lawsuits and accidents. This chart showing The Zebra data on the average annual premium costs, shows that the state of Maine offers the least costly car insurance. This is closely followed by North Carolina and Virginia.

However, there is only a 25% difference in cost between Maine and the 10th least expensive state, Indiana. This is a different trend compared to the most expensive car insurance states, where the cost can be significantly different.

10 Most Inexpensive States for Car Insurance in 2020

Car Insurance Companies Review – Methodology

Our expert review team gathers data from many auto insurance providers in order to create rankings of the top insurers. Each company receives a score from each category, along with a overall weighted score of 5.0 stars.

Financial Stability: The highest score in this category goes to insurers with high financial ratings and customer-first practices. Although insurance marketplaces do not have financial strength ratings they can still be useful tools for drivers who are looking for premiums at competitive rates. If you are looking for an insurer that doesn’t underwrite your policies, be sure to check the rating of the partner company.

Coverage: The rating is based upon the types of insurance that are available, their maximum coverage limits and any add-on policies. We also consider exclusions that are applicable to certain drivers.

Cost and Discounts: We review auto insurance rates estimates for many drivers across every state. The best scores are awarded to companies that offer lower rates and have many discount options for car insurance. You can lower your insurance premium by qualifying for any driver discounts. Car insurance companies often offer discounts up to 25%-35% for eligible policyholders. 

The discount percentages offered vary depending on where you live and some companies restrict the amount of discounts that can be applied to your premium. We looked at the discounts offered in the various companies that we reviewed. Many allow you to combine different insurance policies to save on premiums. There are many savings options for drivers shopping for car insurance. These include discounts based on the type of car, profession, driving record, and other factors. Companies that offer a variety of options could lead to a lower premium for drivers were favored by us.

Customer Service: We review customer feedback and reviews from J.D. Power. Data such as market share, complaints to the National Association of Insurance Commissioners for private passenger car insurance (2020) and overall ratio of those complaints to the industry average. We took into account parameters such as companies mobile apps, advanced online services, and telematics make it easier for auto insurers to respond to consumer needs. 

Many providers offer support via phone, email and agents. Some even offer live chat and 24/7 support via phone, email, or mobile app, while some provide social media responsiveness during weekends and after-hours hours.