Best Cheap Car Insurance Companies
How to choose the best cheap car insurance companies? In finding the best cheap car insurance companies, we have taken out the guesswork by analyzing important factors that will be beneficial to your customer experience. Which car Insurance company provides the best comprehensive car insurance? Let’s find out the best cheap insurance companies for you.
The top Insurance companies hardly ever segment themselves into either type of Insurance coverage.
We compared large auto insurance companies based on average rates for different types of drivers, coverage features available, levels of complaints, grades for collision claims from auto body repair professionals, and how easy the insurers’ websites are to use. See our top recommendations below.
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What is insurance and how does it work?
Essentially, insurance is a situation in which a company or a state agrees to compensate a person for damages, loss, or death. Furthermore, this compensation is provided in exchange for the payment of a set fee.
In layman’s terms, insurance means that such a person will pay an agreed sum of money in advance to the company or state. This money will cover any future damage to assets covered by the insurance policy.
Essentially, the company achieves this by compensating such individuals following the loss of the asset. Therefore, insurance is like putting money aside for rainy days.
Summary Of The Best Cheap Car Insurance Companies
- Geico – Best Rates Overall
- Erie – Best for Budgeting
- Nationwide – Best for Adding a Teen Driver
- Travelers – Best Price for Gap Insurance
- USAA – Best for Military Members & Veterans
- Auto-Owners Insurance – Best Discount for Paying in Full
- State Farm – Best Rates for Drivers Who Have Caused an Accident
- Allstate – Best Discount for Advance Purchase
Best Cheap Car Insurance Companies
Below are the best insurance companies in 2022:
Cheap Car Insurance Companies; #1. Geico Car Insurance Company
Geico has very competitive car insurance rates for many different types of drivers. This makes it worth looking for if you want cheap auto insurance. Another reason to consider Geico is its low number of auto insurance complaints. The complaint level is very low compared to its competitors.
- The average annual rate for good drivers is $1,182
- The average annual rate for drivers with a speeding ticket is $1,579
- Complaint level: Low
- This insurance company is the best Rates Overall.
- Excellent auto insurance rates for good drivers as well as those with a speeding ticket, bad credit, or who were caught driving without insurance.
- Allows for accident forgiveness.
- Also provides low rates for seniors and young drivers, who can be difficult to insure.
- Provides a usage-based insurance program (DriveEasy) for safe drivers who want to lower their auto insurance rates based on their driving habits.
- Geico’s auto insurance has received few complaints from state insurance departments.
- High average rates for DUI drivers.
- Geico’s rates for adding a teen driver are mediocre at best.
- Geico’s average discount for bundling auto and home insurance is only 8%.
- More so, you’ll have to look elsewhere, if you want coverage features like a new car replacement, a vanishing deductible, or rideshare insurance.
Best Cheap Car Insurance Companies #2. Erie Car Insurance Company
Erie has good coverage options and receives high marks for its collision repair claims processes. These benefits offset Erie’s car insurance rates, which vary depending on your driving record.
Erie Insurance has rates that are lower than the national average for good drivers. Among the companies we looked at, only Geico and State Farm had lower average rates for those drivers.
Good drivers typically pay the lowest rates because they incur the fewest claim payments. You should take advantage of your spotless driving record. By obtaining car insurance quotes from at least a few companies, you can make multiple insurers compete for your business. Make sure to inquire about good driver discounts as well.
This company is rated best for Budgeting.
The average annual rate for good drivers is $1,419
Average annual rate for drivers with a speeding ticket is $1,600
Complaint level: Higher than the industry average
- Average rates are reasonable for people who have had an accident or received a speeding ticket.
- With Erie’s Rate Lock, you can easily budget your costs because your rate remains the same year after year unless you make certain changes to your policy, such as adding or removing a car.
- It is beneficial to new car owners because it provides gap insurance and new car replacement coverage.
- Erie also offers accident forgiveness and vanishing deductibles as add-on coverage options.
- Its claim process received a high rating from collision experts.
- It is costly to add a teen driver to your policy.
- Has high average rates for bad credit drivers.
- Has a higher-than-average number of complaints filed with state insurance departments about its auto insurance. Surcharges are the source of the majority of Erie’s complaints.
Cheap Car Insurance Companies; #3. Nationwide Insurance
This insurance company is best for Adding a Teen Driver.
Nationwide provides reasonable car insurance rates for certain types of drivers as well as a variety of helpful add-on coverages. The number of complaints filed against it for auto insurance is extremely low, making it a company to consider if you’re looking for auto insurance.
Notably, Nationwide provides a usage-based insurance program as well as a pay-per-mile option for drivers who want to lower their rates based on actual driving potentially.
- The average annual rate for good drivers is $1,540
- Average annual rate for drivers with a speeding ticket is $1,970
- Complaint level: Very low
- Premiums are relatively low for drivers with bad credit.
- Excellent car insurance rates when adding a teen driver to an existing policy, which is typically very expensive for parents.
- Optionally adds accident forgiveness, new car replacement, and vanishing deductibles to your policy.
- SmartMiles is a pay-per-mile insurance program for low-mileage drivers who want to save money.
- SmartRide is a usage-based insurance program for good drivers who want to lower their car insurance rates based on their driving habits.
- High auto insurance rates for drivers who cause an injury accident.
- High car insurance rates for DUI drivers.
- There is no insurance coverage for ridesharing.
Best Cheap Car Insurance Companies #4. Travelers Car Insurance Company
Travelers have reasonable rates for a variety of drivers. The company also has many optional offerings that can provide you with better insurance protection, making it a good option to consider when shopping around.
When compared to top competitors, Travelers has middle-of-the-road average car insurance rates for good drivers. If there have been no accidents, violations, or major comprehensive claims in the household for three to five years, safe drivers are eligible for a Travelers discount.
- Best Price for Gap Insurance
- The average annual rate for good drivers is $1,435
- Average annual rate for drivers with a speeding ticket is $1,828
- Complaint level: very low
- Provides accident forgiveness as well as minor violation forgiveness.
- At around $39 per year, loan/lease gap insurance is an excellent value.
- Provides a usage-based insurance program (IntelliDrive), which may result in a significant discount for safe drivers.
- When compared to top competitors, average auto rates for drivers with a DUI are favorable.
- It has received very few complaints from state insurance departments.
- Provides rideshare insurance, but only in a few states.
- Rates for adding a teen driver to your policy is on the high side.
- Travelers’ bundling discount for purchasing both auto and home insurance is on the low side, at 10%.
Best Cheap Car Insurance Companies #5. USAA Car Insurance Company
When compared to top competitors, USAA has the lowest average car insurance rates for good drivers. When it comes to the cheapest rates for safe drivers, only Geico comes close.
USAA has reasonable rates for drivers with various types of driving records, making it a good company for a variety of driver profiles. You must be a military member, veteran, or military family member to be eligible for USAA insurance.
Best for Military Members & Veterans
- The average annual rate for good drivers is $1,141
- Average annual rate for drivers with a speeding ticket is $1,381
- Complaint level OK
- Low rates for good drivers as well as those with an accident, ticket, or DUI on their record.
- Also provides competitive rates for seniors and young drivers, two age groups that can be costly to insure.
- Provides accident forgiveness as well as a new car replacement.
- Provides rideshare insurance coverage.
- Has a usage-based insurance program (SafePilot) that good drivers can take advantage of to potentially lower their car insurance costs.
- The average bundling discount offered by USAA is only 6%.
- Everyone is not eligible for coverage. Only veterans and active military personnel, as well as their immediate families, are eligible for policies.
- It does not provide gap insurance.
- The average USAA rate for adding a teen to a policy is mediocre.
Cheap Car Insurance Companies; #6. Auto-Owners Insurance
When compared to top competitors, Auto-Owners Insurance offers slightly better-than-average car insurance rates for good drivers. Both Geico and State Farm have lower average rates for good drivers, but Auto-Owners outperforms Progressive, Allstate, and Farmers.
Good drivers are preferred by insurance companies because they are less likely to file auto insurance claims. You can still save money by shopping around for car insurance at renewal time to see if you can find a better rate.
READ ALSO: 10 best life Insurance Companies
Auto-Owners Insurance distinguishes itself through its optional coverage options, claims process, and low level of complaints, allowing it to overcome only average rates.
- Best Discount for Paying in Full
- The average annual rate for good drivers is $1,532
- Average annual rate for drivers with a speeding ticket is $2,024
- Complaint level: Low
- Provides new car replacement coverage as well.
- Paying in full for an auto insurance policy results in a 14 percent discount on average.
- Provides coverage add-ons such as accident forgiveness and a decreasing deductible.
- There is gap insurance available.
- To possibly lower their car insurance rates, good drivers can try Auto-Owners’ usage-based insurance program (TrueRide).
- High average rates for DUI drivers.
- The companies we studied had the highest auto insurance rates for drivers with bad credit.
- When adding a teen to a policy, the average increase is nearly $3,580.
Best Cheap Car Insurance Companies; #7. State Farm
For good drivers, State Farm offers very competitive auto insurance rates. Among the top competitors we looked at, only Geico has lower national average rates for good drivers. If you have a clean driving record and want to compare quotes from multiple insurers, those two insurance companies are a great place to start.
State Farm’s highly competitive auto insurance rates and low complaint rate make it worthwhile to investigate.
- Best Rates for Drivers Who Have Caused an Accident
The average annual rate for good drivers is $1,402
- Average annual rate for drivers with a speeding ticket is $1,607
Complaint level: Low
- Excellent rates for people who have had an accident or received a speeding ticket. (USAA is slightly less expensive, but eligibility is limited to military families and veterans.)
- Rates are very competitive for senior drivers, who may see rate increases as they age.
- Excellent average rates when adding a teen driver to an existing policy.
- Has reasonable rates for DUI drivers and will file SR-22 forms for those who need them.
- A low number of complaints about car insurance were filed with state insurance departments.
- Provides a usage-based insurance program (Drive Safe & Save) for drivers who are willing to be tracked in order to receive a discount based on driving habits.
- Rates are high especially for drivers with bad credit.
- It does not provide gap insurance.
- If you want coverage options like accident forgiveness, new car replacement, or a vanishing deductible, you’ll have to look elsewhere.
Best Cheap Car Insurance Companies #8. Allstate
Allstate car insurance company provides an excellent range of coverage options, from accident forgiveness to disappearing deductibles. It also has a track record of submitting a few auto insurance complaints to state insurance departments, which helps to offset rates that are typically higher than those of its top competitors.
- Best Discount for Advance Purchase
The average annual rate for good drivers: is $2,022
Average annual rate for drivers with a speeding ticket: is $2,301
- A good discount of around 10% is available for purchasing a policy 10 days before the start date.
- Good drivers can try Allstate’s usage-based program (Drivewise) for a potential discount.
- Those who drive less frequently can save money by tying the number of miles driven to the amount paid through Allstate’s pay-per-mile program (Milewise).
- Gap insurance and new car replacement coverage are optional extras for new car owners.
- Accident forgiveness and a disappearing deductible are available as add-ons.
- There have been few complaints about Allstate’s car insurance filed with state insurance departments.
- Average rates are high for drivers who have received a speeding ticket or have poor credit.
- The companies we looked at had the highest average rates for drivers who had been in an accident or had a DUI.
- Rates are higher than average for young drivers, seniors, and when adding a teen to a parent’s policy.
Factors That Influence the Cost of Car Insurance
The cost of your car insurance will vary depending on several factors, which typically include the following:
- Your age and years of driving experience
- Your driving record
- Where you live
- Vehicle Model
- Car insurance coverage selections
- Deductible amount (if you buy collision and comprehensive coverage)
- Your credit-based insurance score (use of credit in calculating car insurance costs is banned in California, Hawaii, Massachusetts, and Michigan)
- Your car insurance histories, such as whether you’ve had continuous coverage or lapses
How To Find the Best Price on Car Insurance
When you’ve determined how much car insurance you require, it’s time to start looking for a policy. Rates for the same coverage can vary greatly between companies, so it’s a good idea to compare car insurance quotes from multiple insurers.
Here’s what you should do to get the best deal on car insurance.
1. Look/shop around:
shopping around will help you know whether your rates are on the high end or the cheapest.
2. Inquire about discounts
When getting car insurance quotes, inquire about car insurance discounts.
3. Select a higher deductible
There is a deductible for collision and comprehensive coverage. The deductible is the amount of money deducted from an insurance claim check by a car insurance company. Note that the higher your deductible, the lower your insurance premium.
4. Inquire about usage-based auto insurance:
Usage-based insurance (UBI), also known as telematics, may sound similar to pay-per-mile, but it is not. With a usage-based insurance policy, your car insurance company closely monitors your driving and assigns you a driving score.
5. Ask about the pay-per-mile policy if you don’t drive much
If you own a car but take public transportation to work and don’t drive it often, look into pay-per-mile auto insurance policies.
These policies charge a monthly base rate as well as a per-mile rate. If you don’t spend much time behind the wheel, they may be a more affordable option.
Which company has the best car insurance Policy?
According to Forbes Advisor’s analysis, Geico, Nationwide, Travelers, and USAA have the best cheap car insurance companies.
“These companies score the highest based on low rates, coverage selections, collision repair, complaints, and website readability”.
How can I get the Cheap car insurance deal?
Getting car insurance quotes from several companies is the key to finding a good deal. That is the only way to know what companies will charge and which companies will offer the best rates.
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