There are Auto Insurance Near me at every state. Are you aware that the same driver could be charged $25 each month by particular insurance company and $120 per month by another for the same services? From all the car insurance analysis gathered from hundreds of thousands of quotes analyzed across the country supports the claim.
Keep reading to find out the cheapest companies in the United States, in each state and for some categories of drivers.
Apart from the data collected, it has been suggested that one of the best advice to give to drivers looking for their best car insurance rates is to go around. There is no specific insurer that will be the cheapest for every driver, but the following analysis and research will give you a good place to start your search.
In this article we will be discussing:
1. What is the cheapest car insurance for you?
2. The cheapest car insurance companies.
3. The cheapest car insurance companies by state.
4. How to get the right amount of cheap car insurance.
What can you say that is the cheapest car insurance company?
According to certain research that has been conducted, it has discovered that USAA and State Farm are the cheapest major insurers in the Nation. USAA cost an average of $215 for a six-month policy, 55% less than the national average. State Farm cost $356 (24% less than the national average) for a six-month policy.
Event USAA is obviously the cheapest option among major insurers, only active military members, veterans or their families will qualify for a policy.
Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $218 for a six-month policy, and Erie, at $226, rank as the cheapest.
Note however that these insurers don’t have the same name recognition as some of the companies you may recognize from national television campaigns, but could help you find savings if you’re looking for the cheapest rate.
The Three Cheapest Major Car Insurance Companies
State Farm is the biggest auto insurance company in the country, providing policies nationwide and rates that beat the average in 48 states. A minimum coverage auto insurance policy with State Farm costs $356 for six months. Additionally, this company has an enormous network of local agents. This means there is likely a State Farm agent in your city who can help you with a policy.
Geico is the second largest auto insurance company in the USA and operates in all 50 states and D.C. A minimum coverage auto insurance policy with Geico costs $409 for six months. Geico also has one of the auto insurance market’s best quote tools, so it’s easy to get an instant rate online and comparison shop.
USAA is actually the least expensive of these three insurers and, like Geico, operates in all 50 states and D.C. A Minimum coverage auto insurance costs $215 for a six-month policy, on average, which is the lowest rate by far.
We list USAA last of these three insurers as only active military members, veterans and their families will be eligible. But as the fifth largest auto insurance company in the country, it’s serving almost as many customers as other big names like Allstate and Progressive.
Below are the average six-month rates for 13 of the biggest auto insurers in the country.
Rank
Company
Six-month Rate
1
USAA*
$215
2
Farm Bureau Mutual (IA Group)
$218
3
Erie
$226
4
Auto-Owners Insurance
$324
5
State Farm
$356
6
American Family
$405
7
Geico*
$409
8
Progressive*
$462
9
Metropolitan*
$486
10
Nationwide*
$502
11
Allstate*
$695
12
Travelers*
$706
Insurers with an asterisk offered quotes in at least 20 states.
Quotes were collected from 51 insurance companies across hundreds of ZIP codes (or more) in every state. Major insurers are noted with an asterisk, with major being defined as those who offered quotes in at least 20 states.
Ways through which the cheapest insurer’s rates can change depending on your driver profile.
So many factors can affect your car insurance rates, like your age, vehicle, driving history, location, vehicle, financial profile and, maybe most importantly, elected coverage. The rates above were for a sample 30-year-old driver with a clean driving history.
Young drivers and those with an accident history are charged higher amount compared to older drivers and drivers with good driving record. Those who opt for a minimum coverage policy can get considerable savings on their premiums, though they might not being fully covered in the event of a major accident.
The cheapest insurers by state
The price of car insurance can vary greatly between states. One company may be expensive in Utah but inexpensive in New York. Although State Farm did not rank as our cheapest car insurance company overall, it was the cheapest widely available and accessible insurer, meaning it operates in more than 40 states and there are no eligibility requirements.
Though USAA is often the cheapest option in any given state, its eligibility requirements makes it restrictive. If you are eligible, you should probably get a quote with USAA because it is available across the country.
Below is a list of the average cheapest insurers in each state based on some research.:
State
Cheapest insurer
Arkansas
State Farm
Colorado
State Farm
Connecticut
State Farm
Florida
State Farm
Idaho
State Farm
Alaska
Geico
Arizona
Geico
California
Geico
Delaware
Geico
Alabama
Nationwide
Georgia
Georgia Farm Bureau
Hawaii
Island Insurance
Show All Rows
What is the cheapest car insurance company for you?
Auto insurance companies with the cheapest rates have been identified depending on age, location, driving history, financial profile and some other factors — some insurers may be cheaper for certain types of drivers than others.
The cheapest car insurance companies.
1. Erie Cheapest overall company.
2. USAA Cheapest company for military families.
3. State Farm: Cheapest company after getting into an accident.
4. Metromile: Cheapest company for low-mileage drivers.
5. Farm Bureau Insurance: Cheapest company for those with a poor credit history.
Below are recommendations for the average cheapest companies, which will guide you if you’re just looking to get the lowest price.
Cheapest companies for a minimum coverage policy.
1. USAA.
2. Farm Bureau Insurance.
3. Erie.
4. Auto Insurance Co.
5. State Farm.
Cheapest companies for a full coverage policy.
1. USAA.
2. Erie.
3. State Farm.
4. Farm Bureau Insurance.
5. American Family.
A full coverage policy protects against damage to your car, not just the legal liability of injuring other drivers. Thus, it includes both collision and comprehensive insurance.
Overall cheapest car insurance company : Erie
Considering the fact that USAA has eligibility restrictions and Farm Bureau Insurance is super expensive when you add more coverages, Erie is rated as the cheapest insurance company. Plus it is reliable too given its good reputation with customer service. The main disadvantage with Erie is that it’s only available in 12 states and D.C.
Erie is also well-known for it’s policy options: It offers free accident forgiveness, free vanishing deductibles, pet coverage and roadside assistance, thereby providing its customers a level of flexibility not offered by even the largest insurers.
Erie has a unique program called the rate lock program through which eligible customers avoid premium hikes that could cause rates to climb higher over the years.
Thus, customer’s rates won’t increase except for three reasons:
1. You move to a different area or change where you park your car
3. Add or remove someone from your policy. a
3. Add or remove a car.
Despite its smaller size, Erie also offers the same types of discounts that larger national insurers provide like premium reductions for having multiple policies, a vehicle equipped with anti-lock brakes or anti-theft equipment, as well as savings for young and senior drivers.
The biggest downside to Erie is that it is only available in:
Wisconsin
West Virginia
Virginia
Tennessee
Pennsylvania
Ohio
North Carolina
New York
Maryland
Kentucky
Indiana
Illinois
District of Columbia
Cheapest auto insurance company after an accident: State Farm.
If you’re not eligible for USAA and some of these smaller insurance companies are not offered in your state, State Farm is regarded as the cheapest overall insurance company and a great place to start your comparison shopping.
It has been discovered that State Farm raises car insurance rates the least after a driver is in a recent at-fault accident, compared to the many auto insurance companies we surveyed. State Farm’s average rates after an accident increased by 19%, from $869 to $1,038, the smallest rate increase that has been seen of any company. On average, insurers increased rates by 41%.
Even though Erie raised rates by 26% after an accident, a bigger penalty than State Farm, it is still the cheapest insurer for a driver with an at-fault accident on his record. But car insurance rates are highly variable, and the fact that State Farm penalizes drivers the least indicates that it is the best starting point for shoppers with an accident history looking for cheap insurance.
Other advantages of State Farm include its positive marks for customer service and claims handling. Survey of current customers revealed that most customers are happy with the way they are treated by State Farm. And 73% of respondents reported they were extremely satisfied with their most recent claims process with the insurer.
Cheapest car insurance company for military members: USAA
USAA is the cheapest insurer in the country on average for service members, veterans or family members of one. So if you’re any of the above, you could be eligible for USAA auto insurance. In fact, USAA is the cheapest company by quite a wide margin. While the average cost of minimum coverage only beats Farm Bureau Insurance by $3 for a six-month policy, Farm Bureau policies often require membership dues, which can range from $20 to $50 annually.
USAA stands out for more than just its affordability: It also has one of the best customer service reputations in the industry. According to survey of current insurance customers, 62% of respondents rated its customer service as excellent and 78% were extremely satisfied with their most recent claim.
Cheapest car insurance for low-mileage drivers: Metromile
If you stay away from the wheel more often than not, a pay-per-mile auto insurance company such as Metromile may be the best company to go with.
Metromile was one of the first companies in the U.S. to determine the bulk of a driver’s premium based on how much they drive. Generally, for Metromile to be a good deal, drivers should only drive fewer than 7,500 miles per year.
The biggest disadvantage of Metromile is that it is only available in eight states:
Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia and Washington.
Cheapest car insurance for those with a poor credit history: Farm Bureau Insurance.
Farm Bureau Insurance rates are particularly cheap for drivers with a poor credit history.
Insurers often use your credit score to calculate your rates- this practice is banned in some states like California, Hawaii, Massachusetts and Michigan.
Poor credit scores can result in much higher car insurance rates.
Company
Rates with excellent credit
Rates with poor credit
% difference
USAA
$162
$215
33%
Nationwide
$378
$502
33%
Farm Bureau Insurance
$160
$218
36%
Erie
$163
$226
39%
Travelers
$484
$706
46%
Geico
$260
$409
57%
Progressive
$291
$462
59%
American Family
$248
$405
63%
Allstate
$422
$695
65%
Auto-Owners Insurance
$174
$324
87%
State Farm
$188
$356
90%
Farmers
$346
$735
112%
Finding the cheapest car insurance coverage for you
Broadly speaking, you should take two key steps to find the cheapest car insurance for you.
Make sure to shop for the appropriate level of car insurance coverage.You don’t want to overpay for unnecessary coverage but you do want to purchase enough coverage to fulfill legal requirements and to appropriately cover your risk.
Shop for quotes between multiple insurers. You’ll have to define your appropriate coverage limits to make fair price comparisons across insurers. When shopping, ensure to take advantage of all available discounts.
Determining how much auto insurance you need comes down to understanding your current economic circumstances, how the different types of coverage work together and your state requirements.
How much coverage limits you should buy will depend on your economic situation. For instance, high-net-worth individuals should get liability limits equal to their net worth, which will probably exceed the state-required minimums.
When you’ve determined how much car insurance you need, then you can shop around between insurers and apply all discounts possible. Even when you opt for the exact same coverage levels with two different insurers, one company could be cheaper than the other based on how it calculates its rates.
It’s much more easier to compare insurance quotes using online quote tools. But you probably want to consult an insurance agent to ensure you get the most accurate quote possible
When you consult an agent, you can ascertain whether you qualify for discounts that might not be applied in the online quote tool process.
Car insurance discounts are broadly categorized into four:
1. Policy discount:
These are savings offered for buying more products or coverage from a specific insurer. The most common discount of this type is a home and auto bundle, through which you get a lot of savings as a result of buying both home and auto insurance with the same company.
2. Vehicle discount:
If your vehicle possess certain features which helps to increase its safety, such as anti-theft technology, you may qualify for a discount.
3. Driver status discount:
Insurers award this type of discounts with cheaper rates. These can range from incentives — such as a student getting savings for obtaining good grades — to elements you can’t control, such as a senior discount for those of a certain age.
4. Driver safety discount:
These are cheaper rates that are awarded for having a clean driving history or taking defensive driving courses.
Chances are you’re overpaying for your insurance policy
Nationwide insurance rates have been analysed and it has been discovered that a driver looking for a state-mandated insurance policy, ie, the minimum coverage required, overpays by an average of $330 per year. This means Americans are overpaying for car insurance by almost $37 billion per year.
Once you ascertain much coverage you need, the best way to find cheap car insurance is to compare quotes from different companies.
You can do this online as most companies have quote tools which can be used to get car insurance rates. But then, if you prefer to work with an actual person when looking for car insurance, you could talk to an insurance expert who will help you compare rates from multiple companies.
In conclusion, all age groups looking for cheaper car insurance could benefit from comparing quotes. Seventy percent of drivers would be willing to switch insurance companies if they can save $25 to $200 per year. The difference between the second cheapest insurer in the analysis (State Farm) and the cheapest insurer (Erie) is over $200 annually, showing how even switching between two comparably affordable insurers can result in big savings.