Want to make certain the company with the cheapest rates insures your automobile? Me, too! To discover the answer,we went straight to the source looking at drivers in all zip codes in all 50 states and Wash D.C. to discover the lowest average rates.
NerdWallet, a reputable personal finance company, has recently released an exhaustive study to discover the companies with the lowest average car insurance rates in a number of categories.
The most affordable car insurance is generally the minimum coverage required by your state. This type of insurance, also known as liability insurance, covers property damage and medical expenses for other people in an accident you caused—where you were found to be at fault.
As you peruse what follows, understand thatyour car insurance premiums will vary depending on your location and driving history, among other factors. The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers. With that, let’s get right into the cheapest car insurance out there.
- Geico: This company offers an average rate of $29 per month for the minimum coverage.
- Central Insurance: This regional company has an average rate of $21 per month for the minimum coverage.
- Geico: If you have had an accident, this company offers an average rate of $48 per month for the minimum coverage.
- American Family: If you have a DUI, this company offers an average rate of $60 per month for the minimum coverage.
- Geico: If you have poor credit, this company offers an average rate of $42 per month for the minimum coverage.
Cheapest Overall: Geico
According to NerdWallet’s analysis, Geico is the cheapest car insurance company in the country. On average, their annual rate is $354, or around $29 per month.
Additionally, NerdWallet in another rating report gives Geico a 4.5 rating (on a scale of 1 to 5). Geico enjoys anA++ (Superior) rating for financial strength from AM Best, the company’s highest ranking. Geico offers a wide range of discounts available for auto insurance to help lower rates. Finally,Geico holds the top spot on J.D. Power’s 2021 U.S. Insurance Digital Experience Study.
Cheapest Regional: Central Insurance
Central Insurance offers even cheaper rates than Geico, but only in a number of states. It’s also worth noting that smaller insurers may have excellent customer service. This company’s averageannual rate is $257, or about $21 per month.
Keep in mind that the availability of coverage through Central Insurance and other small regional companies like MMG and Securamay be limited.
Cheapest after an Accident: Geico
Depending on your driving record, the most affordable car insurance company varies. The subject analysis found thatGeico has on average the lowest average rate for drivers with one at-fault accident, at $577 per year, or $48 per month.
Cheapest after a DUI: American Family
If you have a DUI on your driving record, your car insurance premiums are likely to be significantly higher. However, it is still possible to find affordable options. NerdWallet’s analysis found that American Family Insurance is the cheapest car insurance company for drivers with a DUI, with an average annual rate of $716, or approximately $60 per month.
Cheapest for Poor Credit: Geico
If you have poor credit, your car insurance premiums will be higher than good credit drivers. On average, drivers with poor credit can expect to pay around $400 more annually for auto insurance than those with good credit.
When shopping around for car insurance, consider Geico as an option—the analysis reveals they have the lowest average rates for drivers with bad credit at approximately $42 per month and $501 yearly. Nonetheless, it is essential to research different options before deciding on a provider as rates may vary significantly.
A credit-based score considers factors such as debt and payment history but assigns different weights than a traditional credit score.
It is worth noting that California, Hawaii, Massachusetts, and Michigan do not allow insurance companies to use credit when determining car insurance rates.
How to get cheap car insurance
Consider these tips to reduce your auto insurance rates.
Ask for discounts. There could be savings from car insurance discounts you’re not taking advantage of, but you need to ask. Example: You are driving fewer miles each year because you ow work from home. Mention that when it’s time to renew, you might be eligible for a low-mileage discount.
Accept a higher deductible.A higher collision and comprehensive deductible might make sense if you are willing to take on a larger financial risk. That is a surefire way to get cheaper car insurance. Just know you will owe more out of pocket if you have to file a comprehensive or collision claim.
Know when to cut coverage. Don’t strip away coverage just for the sake of cheap auto insurance. But if you drive an older car, consider dropping comprehensive and collision coverage. Typically these coverage types pay out but only up to your car’s current value, minus the deductible.
Report life changes. Certain life events, such as getting married, your youthful driver just made the Dean’s List for outstanding grades, you added a security system to your vehicles, you moved to a less expensive area for car insurance, or other such changes in your life. Many companies offer a lower rate for such life events. That means shopping around for insurance could help you get cheaper coverage.
Get quotes every three years. That is about the time it takes for accidents and tickets to fall off your driving records. It makes sense to shop for cheap car insurance quotes three to five years after any accidents, tickets, or other moving violations.
Methodology: NerdWallet averaged rates based on public filings obtained by pricing analytics company Quadrant Information Services, examining rates for 40-year-old men and women for all ZIP codes in all 50 states and Washington, D.C. Although it’s one of the largest insurers in the country, Liberty Mutualhas not included in its rates analysis due to a lack of publicly available information.
