Your Guide To Finding the Cheapest Car Insurance

This guide can give you an overview of what to look for when shopping for the cheapest car insurance, what factors can affect your premium, and how you can save on your auto insurance with a few simple tips.

Автор Hearst Autos Research Опубликовано: 23 июня 2020 г.

If you’re a daily driver, chances are you’re looking for the most affordable insurance policies with top-quality coverage. You’ll need to compare quotes and shop for the best choice, though, especially if you want to find the cheapest car insurance for your coverage needs. You might even find that your current carrier offers discounts and more affordable policy options than what you have presently, so it can be worth it to check the varying rates at least once or twice a year.

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What Car Insurance Companies Can Offer the Cheapest Rates?

According to The Zebra, there are seven commercial insurance companies that take up to 65 percent of the United States market for individual insurance policies:

Фермеры
Совхоз
Свободный взаимный
прогрессирующий
Geico
Allstate
USAA

USAA makes the list of the seven companies within that 65 percent, but it only provides insurance to active and retired military members and their families. The national averages for these seven companies’ insurance rates include:

Farmers: $1865 per year
Совхоз: 1511 долларов в год
Liberty Mutual: $1778 per year
Прогрессивный: $1766 в год
Geico: $1198 per year
Allstate: 1834 долларов в год
США: 1023 доллара в год.

USAA actually happens to be the cheapest car insurance among these seven companies, but again, it comes with its military limitations. Additionally, it’s important to note that these averages contain data from all states, so individual rates can vary depending on where you live.

Factors That Can Affect Your Insurance Premium

According to Compare.com, there are several factors that can affect how much you end up paying for your yearly premium:

Age and location
История вождения
Financial history
Coverage package

That said, the average costs indicate what the average premiums might be for a driver who is 30 years old with a clean driving record. Typically, young drivers and drivers with a history of accidents in their records pay higher insurance premiums than older drivers with clean driving histories. The type of coverage you get can also affect your car insurance rates. Minimum coverage is usually cheaper, but it doesn’t fully cover you in case of a major collision.

Where you live can factor into the price tag on your yearly premium, too. Sometimes, companies can differ substantially between states in what rates they offer, but others, like State Farm, operate across more than 40 U.S states and don’t have an eligibility requirement.

The type of car you drive can also affect your insurance rates. For instance, a turbocharged sports car can cost a lot more to insure than an older, fuel-efficient minivan. Similarly, a local or independent car insurance agency can sometimes be the best option for the cheapest car insurance with the best coverage packages, so it can be worthwhile looking into the little guys.

What Types of Auto Insurance Are There?

According to Value Penguin, no matter the coverage you choose to buy, there are several insurance types that most states require drivers to have. Furthermore, different companies may offer cheaper car insurance, even when comparing the exact same policies between the different companies. Value Penguin outlines some of the insurance types you’ll need to consider before you can shop around for the cheapest car insurance rates:

Bodily injury liability: This is a requirement in all states except in Florida.
Property damage liability: This is a requirement in all 50 states.
Uninsured motorist coverage: This is a requirement in only 22 states, with per accident limits approximate to your net worth only if you don’t possess both collision and personal injury protection insurance.
Collision and comprehensive coverage: This isn’t a requirement of state law, but if you finance or lease your car, it may be a lender requirement, and you should consider it if your car is worth more than $2000.
Personal Injury Protection (PIP) insurance: This is a requirement in only 14 states, but if you don’t have a health insurance plan that covers car accident-related injuries, PIP can be worth the peace of mind.

How To Find the Cheapest Car Insurance

To find the cheapest car insurance available to you, U.S. News suggests you take the first step and determine exactly how much insurance you need and what kind of policy will cover those needs. While you obviously don’t want to end up overpaying for coverage you don’t need, you’ll want a policy that offers substantial coverage that fulfills your state’s requirements and adequately covers accident risk.

Unless you live in California, Hawaii, or Massachusetts, insurance providers can use your credit score to calculate your policy rate. Consequently, if drivers have poor credit, they usually end up with higher insurance premiums. Otherwise, here are some cost-saving strategies for finding the cheapest car insurance:

Look for a policy that provides only the coverage that you need.
Look between multiple insurance providers and take advantage of free quotes to compare your options.
Ask about discounts that can help reduce your premium, like safe driver discounts, premium discounts for college drivers, or bundled policy discounts.
Improve your driving record by avoiding speeding and limiting distractions in the car.
Take steps to improve your credit score so you can save on your insurance premiums in the long run. One step to take now is to make sure you pay your debts on time.

With this insight into car insurance, what’s required, and what it covers, you’ll have a solid foundation for shopping for the best coverage for the cheapest car insurance. With the right policy, you’ll cover everything you need at a price you can easily afford.

Информация и исследования в этой статье проверены сертифицированным ASE мастером-техником. Дуэйн Сайалун of YourMechanic.com. Для любых отзывов или запросов на исправление, пожалуйста, свяжитесь с нами по адресу research@caranddriver.com.

Hearst Autos Research, издаваемый независимо от редакции Car and Driver, публикует статьи об автомобилях и автомобильной промышленности, чтобы помочь читателям сделать осознанный выбор при покупке.