When it comes to car insurance, choosing the right policy can be challenging, especially when you’re looking for the cheapest and best option that suits your needs.
In this blog, we will give you complete information about ‘Best Car Insurance’ and ‘Best Cheap Car Insurance Companies’. Whether you are a good driver, a senior citizen, or looking for insurance after a speeding ticket, this guide will help you.
Plus, we’ll also explain what factors affect your insurance rates and tips to lower your premium. Read the article for complete information!
Top Cheap Car Insurance Companies by Category
It is important to identify the cheapest car insurance options based on individual needs and situations. Whether you’re a good driver, a senior citizen, or one with a bad credit score, companies like Erie, USAA, and Progressive offer affordable and friendly policy options for you.
Best Overall Car Insurance Company: Erie
If you’re looking for the best and cheapest car insurance overall, Erie Insurance is a great choice. Erie not only offers competitive rates, but its customer service and policy features are also highly regarded.
This company offers customizable policy options that include a variety of discounts and additional protection. Additionally, Erie’s coverage area spans multiple states, making it a reliable and comprehensive option.
Best Car Insurance for Good Drivers
If you are a good driver and have a clean driving record, Erie is the most affordable and beneficial insurance option for you. Erie offers especially low premium rates for good drivers and includes features like no-claim bonuses.
| Company | Annual Rate ($) | Savings ($) |
|---|---|---|
| USAA | $1,335 | $733 |
| Erie Insurance | $1,532 | $536 |
| Auto-Owners | $1,619 | $449 |
| Nationwide | $1,621 | $447 |
| Geico | $1,778 | $290 |
| Progressive | $1,848 | $220 |
| National Average | $2,068 | – |
| State Farm | $2,150 | -$82 |
| American Family | $2,170 | -$102 |
| Farmers | $3,253 | -$1,185 |
| Allstate | $3,374 | -$1,306 |
Best Car Insurance for Senior Drivers
Senior drivers typically face higher premiums due to their age. But Erie Insurance offers special discounts for senior citizens. Their services are not only affordable but also include health and lifestyle protection options.
Annual Rates for Senior Female Drivers
| Company | Annual Rate ($) | Savings ($)* |
|---|---|---|
| USAA | $1,125 | $631 |
| Erie Insurance | $1,277 | $479 |
| Nationwide | $1,321 | $435 |
| Auto-Owners | $1,339 | $417 |
| Progressive | $1,480 | $276 |
| National Average | $1,756 | – |
Annual Rates for Senior Male Drivers
| Company | Annual Rate ($) | Savings ($)* |
|---|---|---|
| USAA | $1,131 | $682 |
| Erie Insurance | $1,224 | $589 |
| Auto-Owners | $1,359 | $454 |
| Nationwide | $1,423 | $390 |
| Progressive | $1,503 | $310 |
| National Average | $1,813 | – |
Best Car Insurance for the Military Community: USAA
USAA is a premier choice for military personnel and their families. This company offers affordable rates and excellent service specifically tailored to the needs of the military community. Additionally, it offers features like toll-free service, accident assistance, and vehicle repair cover.
Best Car Insurance After a Speeding Ticket
Insurance rates increase after a speeding ticket, but Erie Insurance offers affordable rates and favorable policy options even in this situation. Additionally, Erie also gives you additional discounts for attending safe driving courses.
| Company | Base Rate ($) | Rate After Ticket ($) | Increase ($) |
|---|---|---|---|
| USAA | $1,335 | $1,623 | $288 |
| Erie Insurance | $1,532 | $1,765 | $233 |
| Auto-Owners | $1,619 | $1,937 | $318 |
| Nationwide | $1,621 | $2,032 | $411 |
| Geico | $1,778 | $2,299 | $521 |
| National Average | $2,068 | $2,503 | $435 |
Best Car Insurance After an Accident
Finding an affordable accident insurance policy can be difficult, but Erie Insurance is a strong contender in this category as well. Its Accident Forgiveness feature ensures that your premium rates do not increase after the first accident.
| Company | Base Rate ($) | Rate After Accident ($) | Rate Increase ($) |
|---|---|---|---|
| USAA | $1,335 | $1,908 | $573 |
| Erie Insurance | $1,532 | $1,964 | $432 |
| Auto-Owners | $1,619 | $2,246 | $627 |
| Nationwide | $1,621 | $2,425 | $804 |
| State Farm | $2,150 | $2,526 | $376 |
| National Average | $2,068 | $2,940 | $872 |
Best Car Insurance After a DUI
Progressive Insurance is an ideal option in DUI (Driving Under Influence) cases. This company offers policies specifically designed for customers who are facing higher premium rates due to a DUI.
| Company | Base Rate ($) | Rate After DUI ($) | Rate Increase ($) |
|---|---|---|---|
| Progressive | $1,848 | $2,296 | $448 |
| State Farm | $2,150 | $2,762 | $612 |
| Erie Insurance | $1,532 | $2,541 | $1,009 |
| USAA | $1,335 | $2,567 | $1,232 |
| Auto-Owners | $1,619 | $3,244 | $1,625 |
| National Average | $2,068 | $3,538 | $1,470 |
Best Car Insurance With Poor Credit
If you have a low credit score, Nationwide Insurance is a reliable and affordable option. This company offers favorable rates and comprehensive coverage even to customers with low credit scores.
| Company | Base Rate ($) | Rate with Poor Credit ($) | Rate Increase ($) |
|---|---|---|---|
| Nationwide | $1,621 | $2,268 | $647 |
| USAA | $1,335 | $2,521 | $1,186 |
| Geico | $1,778 | $2,878 | $1,100 |
| Progressive | $1,848 | $3,191 | $1,343 |
| Erie Insurance | $1,532 | $3,515 | $1,983 |
| National Average | $2,068 | $4,381 | $2,313 |
Best Car Insurance for Minimum Coverage
If you’re looking for the cheapest option for minimum coverage, Erie Insurance is ideal for you. Erie offers the protection you need at the lowest premium rates, making it suitable for customers with limited budgets.
| Company | Base Rate ($) | Low Coverage Rate ($) | Savings ($) |
|---|---|---|---|
| Geico | $1,778 | $1,644 | $134 |
| USAA | $1,335 | $1,272 | $63 |
| Erie Insurance | $1,532 | $1,483 | $49 |
| Auto-Owners | $1,619 | $1,614 | $5 |
| Nationwide | $1,621 | $1,658 | -$37 |
| National Average | $2,068 | $1,997 | $71 |
Best Car Insurance for High Coverage
Erie Insurance is also an excellent choice for customers who need comprehensive coverage. It offers competitive rates with a high level of security and features many optional add-ons.
| Company | Base Rate ($) | High Coverage Rate ($) | Increase ($) |
|---|---|---|---|
| Erie Insurance | $1,532 | $1,574 | $42 |
| Auto-Owners | $1,619 | $1,661 | $42 |
| USAA | $1,335 | $1,402 | $67 |
| Nationwide | $1,621 | $1,621 | $0 |
| Geico | $1,778 | $1,926 | $148 |
| National Average | $2,068 | $2,150 | $82 |
This guide will help you choose the right insurance company, no matter your situation or preferences. Compare the options as per your needs and decide wisely.
Best Car Insurance Companies by State
Every state has different insurance requirements and recommendations. For example, Progressive is a popular choice in California, while Allstate is considered reliable in New York.
The table below lists the best insurance providers for each state, so you can make the right choice for your needs.
| State | Recommended Insurer |
|---|---|
| Alabama | Travelers |
| Alaska | Geico* |
| Arizona | Root |
| Arkansas | Travelers* |
| California | Progressive |
| Colorado | American National |
| Connecticut | Geico |
| Delaware | Travelers |
| Florida | Travelers* |
| Georgia | Auto-Owners* |
| Hawaii | Geico |
| Idaho | State Farm* |
| Illinois | Travelers |
| Indiana | Travelers* |
| Iowa | Travelers* |
| Kansas | Travelers* |
| Kentucky | Travelers |
| Louisiana | Farm Bureau* |
| Maine | Travelers |
| Maryland | Geico* |
| Massachusetts | Geico |
| Michigan | Geico |
| Minnesota | Auto-Owners* |
| Mississippi | National General |
| Missouri | Auto-Owners* |
| Montana | State Farm* |
| Nebraska | American National |
| Nevada | Nationwide |
| New Hampshire | Geico* |
| New Jersey | New Jersey Manufacturers |
| New Mexico | Geico* |
| New York | Allstate |
| North Carolina | Erie |
| North Dakota | Nationwide |
| Ohio | Erie* |
| Oklahoma | Geico* |
| Oregon | Travelers |
| Pennsylvania | Auto-Owners |
| Rhode Island | State Farm* |
| South Carolina | American National |
| South Dakota | Nationwide* |
| Tennessee | Travelers* |
| Texas | Farm Bureau |
| Utah | Nationwide |
| Vermont | Progressive* |
| Virginia | Travelers |
| Washington | American Family* |
| Washington, D.C. | Progressive* |
| West Virginia | AAA |
| Wisconsin | Travelers* |
| Wyoming | American National |
How to Choose the Best State-Specific Insurance
Choosing state-specific car insurance can be a challenging task because each state has different rules, minimum coverage requirements and insurance rates. Here are some important points that will help you take the right decision:
- Understand your state’s minimum coverage requirements: Every state has its own minimum coverage requirements. For example, liability insurance is mandatory in some states, while uninsured motorist coverage may also be required in others.
- To find out your state’s specific requirements, visit your local insurance department’s website.
- Example: States like California and Texas have different coverage minimums.
- Compare local and national insurance companies: Some states prefer local insurance providers, while in other states national insurance companies may be a better option.
- Local providers: These often keep up better with state regulations.
- National Providers: Larger companies, such as Geico, USAA, and Erie Insurance, offer more competitive rates and comprehensive coverage.
- Evaluate your driving habits: Depending on the state, your insurance rates may also depend on your driving habits.
- City vs Rural areas: Premiums may be higher in cities as the chances of accidents are higher here.
- Weather: Insurance rates may be higher in snowy states like Minnesota because the risk is higher here.
- Check out the discounts and benefits: Insurance companies may offer state-specific discounts and benefits.
- Driver’s record: Companies like Erie Insurance and USAA offer discounts if you have a clean driving record.
- Multi-policy discounts: Many companies, like Nationwide, offer additional discounts if you combine home and car insurance.
- Focus on Reviews and Customer Experience: Check customer reviews and ratings of companies available in the state.
- Platforms like JD Power and AM Best can provide you with detailed information on the reliability and customer service of insurance companies.
- Example: USAA has the highest ratings among military families.
- Use available tools and resources: Many insurance companies offer online tools for comparing state-specific plans.
- Websites like MoneyGeek and ValuePenguin also provide information on affordable and reliable insurance plans by state.
Understanding Car Insurance Rates
Car insurance rates depend on several factors, such as driving record, type of vehicle, location, and level of coverage. Understanding these factors can help you choose the right insurance policy for your needs and control your premiums.
Major Factors Affecting Your Car Insurance Rates
Your car insurance premium depends on many factors. Knowing and understanding these factors can be helpful in choosing the right policy for you and saving money:
- Driving Record
- If you have a clean driving record, you will pay a lower premium.
- Accidents, speeding tickets, and DUIs can increase your premiums.
- Vehicle Type
- Luxury and sports cars are expensive to insure because they have high repair costs.
- Safer and cheaper vehicles (such as sedans) lead to lower premiums.
- Place
- Insurance rates are higher in urban areas because there is a higher risk of accidents and theft.
- Insurance rates are lower in rural areas.
- Age and Experience
- Young and new drivers have to pay higher premiums.
- Premium may decrease as experience increases.
- Credit Score
- Individuals with poor credit scores have to pay higher premiums.
- A good credit score increases your chances of getting a discount.
- Type and Extent of Coverage
- Minimum coverage is cheaper, but comprehensive coverage is more expensive.
- Additional coverages such as rental reimbursement and roadside assistance may increase the premium.
Tips to Reduce Car Insurance Premium
If you want to reduce your car insurance premiums, consider these helpful tips:
- Choose a Higher Deductible
- Choosing a higher deductible (such as $500 or $1,000) may lower your premium.
- Get Into The Habit of Safe Driving
- Avoid accidents and speeding tickets.
- Many insurance companies offer safe driving discounts.
- Buy Bundle Policy
- Get home and car insurance from the same company.
- This can get you multi-policy discount.
- Improve Vehicle Safety
- Installing anti-theft devices and other security features may provide discounts.
- Check Discount
- Special discounts are available for students, military personnel, and senior citizens.
- Low-mileage drivers can also benefit from lower premiums.
- Annual Review of Insurance
- Review your policy every year and compare rates.
- Switch to another company if you find a better option.
Conclusion
Choosing the right and affordable car insurance is an important decision, depending on your needs, driving record, and budget.
In this blog we discuss the ‘Best Cheap Car Insurance Companies’ and the factors that affect your rates. Whether you are a good driver, a senior citizen, or in a special situation, the information provided by us will help you make the right choice.