If you’re looking for cheap auto insurance, you’ll need to know what your policy’s limits are and what types of coverage are included.
Once you have a better understanding of how auto insurance works, you can make the right decisions about what kind of coverage to get and when to buy it. Here are some tips on finding cheap auto insurance:
The most affordable auto insurance policy for young drivers is the safe driver discount. This discount is available to those who have no speeding tickets, no accidents, and no moving violations within the last two years.
The safe driver discount is an excellent way to save money on your auto insurance premiums, but it doesn’t come without its drawbacks. If you’re driving a car that’s more than 10 years old, or if you’re a new driver, then you may want to consider another policy instead of this one.
Most people who are eligible for this discount choose to purchase their coverage through their employer or through a third-party provider like Progressive or Allstate. These companies will offer a temporary policy that covers up to six months of driving while they get their own coverage set up through an agent or broker in your area.
If you’re an average driver, the best way to save money on auto insurance is to shop around.
If you’re in good health, make sure your insurance company has a good record of paying claims and keeping premiums low. If your coverage lapses or lapses frequently, you may want to consider switching insurers.
If you have a history of accidents or tickets, you should also look at the potential cost of coverage before buying it. The best way to see how much your insurer will pay out is by being an “informant” for someone else who was in an accident like yours. This gives you an idea of what your own claim would be worth in dollars and cents.
Look at the annual premium.
The cheapest car insurance companies charge their customers the highest rates in each state — even if they’re charging less than other insurers in that state. So if you live in a state where the average annual premium is $2,500, and another company is offering an annual rate of $1,200 — that company may be able to offer you even cheaper coverage than your current insurer.
Check out all options before shopping around for cheap auto insurance.
Most companies give discounts for having multiple cars insured with them or for being married or living with your parents. If these factors apply to you and your spouse or parent lives within 50 miles of your home, consider switching from one company to another just so that both of you can qualify for a discount without having to pay full price for two policies from two different companies!
Auto insurance is a necessity for many drivers, especially those who have expensive vehicles or have multiple policies on their cars. However, many people are not aware that there are some steps they can take to reduce their auto insurance premiums.
Here are some tips on how to lower your auto insurance premium:
Keep a clean driving record. This is one of the most important things you can do if you want to lower your premiums. It’s also important not only to avoid accidents but also to keep your car in good condition by keeping it clean and maintained regularly.
Pay on time. By paying bills on time, you will be able to avoid late charges and penalties that can increase your premiums significantly. If possible, try to pay more than one bill at once so that you don’t have to pay late fees on each transaction.
The cheapest car insurance
The cheapest option will likely be your state’s minimum car insurance requirements, so we focused our analysis on those minimums. In many states, this is liability-only auto insurance, which pays for property damage and others’ medical bills from accidents you cause.
Everyone who owns a car should get some type of auto insurance policy. You never know when it may be needed for you to claim. Having a policy will help you purchase additional coverage at affordable prices.
Auto insurance policies are meant to protect you, your car, and its insured value from losses due to accidents or theft. With the help of auto insurance, you can be sure that your vehicle and yourself are safe
The cost of auto insurance is one of the most common topics discussed by drivers. Auto insurance is a necessity and a requirement for driving in many states, but it’s also one of the most confusing aspects of owning a car.
The first thing to understand about auto insurance is that it’s not something you’re required to buy. In fact, you may be able to get away with not having any coverage at all! If you do choose to purchase insurance, there are several different types available, each with its own set of benefits and drawbacks.
Costs vary widely from state to state, so it’s important to shop around before buying coverage. Most companies will offer discounts if you let them know that you have good driving records or live in an area with high rates.
Our expert says
“Car insurance is a necessity, but paying over the odds for cover isn’t – comparing quotes is always a quick and easy way to see what your options are. This way you’ll be able to find the right policy that offers all the cover you need, for the best price available.”
– Sara Newell, Motor and Van Insurance Lead
The most important aspect when determining auto insurance rates is knowing what coverage profile your state requires. You can get an auto insurance quote online right now!
What information do I need to get a car insurance quote?
To get your free, personalized car insurance quote faster make sure to have:
- A valid driver’s license
- Your vehicle identification number (VIN)
- The physical address where your vehicle is stored
- During your quote:
You’ll learn about coverage options, including state minimums, to help you choose the best car insurance for you and your family.
We’ll also ask you some questions so we can help find you all the savings you may qualify for.
Then, you’ll get your personalized rate. From there you can purchase directly online. It’s that easy.
How we found the cheapest companies
NerdWallet’s editorial team analyzed minimum coverage car insurance rates from pricing analytics company Quadrant Information Services. Our analysis looked at 40-year-old drivers in all ZIP codes across the 50 U.S. states and Washington, D.C., with a variety of driving and credit histories. All drivers had a 2019 Toyota Camry L.
Another alternative is full coverage, but it can cost over $1,000 more a year on average than an annual minimum policy. That’s because it comes with additional coverage like uninsured/underinsured motorist protection and comprehensive and collision insurance.
If you have a car loan or lease, your lender will likely require you to buy comprehensive and collision coverage. These coverage types pay out if your car is stolen or damaged in an accident you cause, among other scenarios.
The first thing that you need to do is go online and look at what other companies are offering their customers. You can also get quotes from different companies by visiting their websites and contacting them directly through email or phone call.
Once you have found out what type of coverage and discounts are offered by different auto insurance companies, then it is time for you to compare all these offers and select one that has the best deal for your needs. You can also ask some friends or family members who have used these services before if they would recommend any particular company to you.
You will also want to do some research on how long these companies have been around and how many years they have been providing good service to their clients in order to make sure that they are reliable when it comes down to saving money on your car insurance policy costs each month!
How to compare car insurance quotes.
To best compare car insurance quotes from different companies, make sure to select the same:
Coverages: Although some are required, make sure you pick the same amounts for each quote.
Policy limits: There are minimum amounts, but using our coverage calculator can help you determine the amount you may want higher.
Deductible amount: Depending on the coverage, you should think about how much you’re able to pay to help repair your vehicle. In most cases increasing your deductible could lower your bill.
That way, you’ll get a full picture of what each insurer is offering.
The absolute cheapest rate we found for minimum car insurance was an average of $29 per month, or $354 per year. But how much you pay for car insurance will vary depending on which state you live in and how clean your driving history is, among other factors.
Here are the cheapest car insurance companies overall, plus the cheapest options for several driver types:
- The cheapest car insurance company overall: Geico at $29 per month, on average.
- The cheapest regional car insurance company: Central Insurance at $21 per month, on average.
- The cheapest car insurance after an accident: Geico at $48 per month, on average.
- The cheapest car insurance after a DUI: American Family at $60 per month, on average.
- The cheapest car insurance for poor credit: is Geico at $42 per month, on average.
The cheapest car insurance company overall: Geico
Geico is the cheapest major auto insurance company in the nation, according to NerdWallet’s most recent analysis of minimum coverage rates. Geico’s average annual rate was $354, or about $29 per month. The company also earned a 4.5-star rating from NerdWallet, and you can read our Geico auto insurance review to learn why.
Cheapest auto insurance from the largest companies
|Company||Average annual rate||Average monthly rate|
|2. State Farm||$452||$38|
|*USAA auto insurance is available only to military, veterans, and their families.|
The cheapest regional car insurance company: Central Insurance
Finding affordable car insurance doesn’t mean you have to stick with large insurance companies. Central Insurance, MMG, and Secura, smaller insurers that offer coverage in multiple states, have even cheaper car insurance rates than Geico.
While availability can be limited, regional and small insurers may beat the cheapest auto insurance prices from larger carriers. Plus, they often have great customer service.
|Company||Average annual rate||Average monthly rate|
|1. Central Insurance||$257||$21|
|4. Hastings Mutual||$428||$36|
|5. Mutual of Enumclaw||$499||$42|
We chose these companies because of their low rates and availability in multiple states. But there may be more affordable auto insurance options where you live. For example, many Farm Bureau insurance companies are available only in a single state, but they were often among the cheapest in our analysis.