Shopping for the best car insurance company with the cheapest rate seems to be more complicated than it used to be. With all the added features and gimmicks, it is difficult to know which one is really the best. To better inform the consumer, it is good to have reliable information on the top companies you would do business with.
Find the Best Cheap Car Insurance
Tip: Get Quotes from 2 or 3 companies to Find the Best Rate
As you probably already know, a simple Google search blasts out a vast variety of insurance companies. Advertisements on television all promise savings. Their gimmicks attempt to grab your attention and win your business, which, all too often, can leave you confused.
The Best Cheap Car Insurance:
- Best for Bundling: State Farm
- Cheapest: Progressive
- Best for Military Families: USAA
- Cheapest for Safe Drivers: Root
Car Insurance Tips
The best way to get pricing on car insurance is to use tools that allow you to compare multiple companies at once. You can’t always go by what advertisers tell you, as situations vary driver to driver.
You need to be educated as to what options are out there and how your unique situation will affect what you will pay advertised pricing is most likely not the best estimate of the actual insurance cost.
Asking friends, family, and reading reviews is a smart way to get insight into an insurance company’s customer service.
Once you’ve found a rate you are satisfied with, read up on how to contact your agent, the process for filing a claim, and additional perks you may
Car Insurance Cost: What Affects Car Insurance Rates?
How much you will pay for auto insurance will depend on many factors. While your insurer may consider more criteria than listed, here are 6 factors that are always considered.
Where you live: Premiums differ from state to state, county to county, and even the zip code you live in could mean a higher rate than another. If you are considering moving and are weighing the pros and cons of different areas, then this could be one of the things you would want to consider.
Age and Gender: Young males will tend to pay the highest rates. Even your marital status could determine your insurance rate.
Driving Record and Experience: The longer you have driven without any moving violations or accidents, the better rate you will receive.
Driving Habits: How often you drive your vehicle can determine your insurance rate. The more miles you drive to work, or if you are a frequent traveler, can mean higher premiums.
Past Claims History: If you have a history of filing claims against past insurance policies, you could pay more when you renew or switch companies.
Credit Score: Your credit report can have a significant effect on your rate. Typically people who maintain an above-average credit score are less likely to file a claim. The insurer also assumes customers with a high credit score are less likely to default on their policy before the end of the customer’s insurance term.
There are a few additional things to consider when shopping for the best rate:
Companies do not have a standard rule as to what is considered high risk. If you have had an accident or moving violation the variance in premium will differ from company to company. You may have to get several quotes before finding the company that will work with a poor driving record. If you are diligent, then you should be able to find a rate you can live with.
The type of car you drive matters. If you drive a vehicle that is listed as high theft, or more likely to be involved in an accident, expect to pay higher premiums. Even cars that have collision protection can actually drive up the price due to the cost of repairs. Other things that will drive the cost of repairs up is after-market installs. Things like rims, spoilers, and exterior lighting can be costly to repair. You will want to make sure that you have the right coverage to cover damage to after factory installs.
The perks. Some companies offer add-ons at no additional cost, while others only offer them at an increased premium. These perks vary from safe driving discounts to pet coverage if they are injured in your incident.
Types of Car Insurance
Insurance terms can be confusing. Not knowing what each coverage does can mean you pay out of your pocket for injuries or accidents. Here are a few things to know before you begin looking for a quote:
Bodily Injury/Property Damage: When you are in an accident, this coverage pays for the other vehicle in the accident if you are found at fault. It does not cover you or your vehicle. The other party’s coverage does that.
Deductible: This is the amount you have to pay out of pocket before your insurance will kick in.
Uninsured and Underinsured Motorist: In the event of an accident where the other party is at fault and they do not have insurance, this coverage will help you and your vehicle. It will also help you if they do not have enough coverage to cover the damages they caused to your car.
Comprehensive: This coverage is for your car in the event of cases such as vandalism, natural disasters, theft, fire, and impacts with animals. The easy way to remember is that comprehensive covers when something other than a car hits your car.
Collision: This coverage is for your car as well, only it’s for when you hit something. If you hit a tree, guardrail, or even another vehicle, it will pay, after your deductible, to have your vehicle repaired.
Custom Parts/Equipment: This coverage is not used by everyone. But if you have after-market installations that are permanently attached to the vehicle you may want to consider this to cover your additions. The most important thing to know about this is that if you do have after-market installations, notify your insurance company or they may not be covered if you are in an accident.
How To Get Car Insurance in 6 Easy Steps
Auto Insurance is not uniform. Rates will differ from company to company, policy to policy, and person to person. With a little research and shopping around, you can find the best rate that fits your current situation.
After running multiple surveys, we came up with six steps for you to easily find the cheapest auto insurance. Here they are:
Step 1: Gather your information. To obtain a quote you will need:
- Your driver’s license
- Social Security Number
- Bank account number
- Type of car you are driving. This is more than make and model. Know the VIN number, trim package, engine type, etc. These little things do matter.
- E-mail address
- If you are currently insured, have your current policy handy
Step 2: Start getting online quotes. Do not make a decision with fewer than three quotes from different companies. The more you have, the better idea you will have of the range of prices you face. Remember, when requesting your quote, make sure you are comparing similar insurance packages. Select the same amount of coverage from each company.
TIP: Don’t be afraid of brokers. They do tend to be on the higher end, mainly due to their fees. They could possibly do your work for you with getting quotes from multiple sources, maybe even ones you do not have access to.
Step 3: Review what you found. Make sure all the information is accurate and comparable. See if there are any differences with added no-cost features. These may be the ultimate thing that you base your decision on. Also, check on the policy exclusions (items that are not covered under the policy).
Step 4: Narrow the field. As you examine each quote, go back online and read customer reviews of the company. If ratings matter to you, check rating companies like J.D. Power and A.M. Best.
They can give you a good idea of what other customers have gone through when dealing with filing claims and customer service. Once you have looked over everything, narrow down your decisions. Eliminate one or more of your quotes.
Step 5: Re-examine your options. As you continue your filtering process, you may come up a couple you can’t choose between. This is when you look at what other benefits will open up you in the future, like loyalty discounts. Look at the long-term customer experience. Look at the negative reviews and see why a former customer switched companies.
Step 6: Make your choice. Now that you have weighed your choices, make your purchase. Be sure to select the same options you chose when you ran your quote. Choose your payment option, most of the time you can choose monthly, or bi-annually payments.
Bi-annually payments typically offer a decent discount. Prepare for any hardware you may receive that will affect your policy later on in your policy life, such as signing up for a safe driving tool that would give you a discount at a later date. Remember, your unique situation will determine which company is best for you.
Most Affordable Car Insurance
Based on insurance ratings, the three best cheap auto insurance companies. We took into account their affordability, customer satisfaction rating, and claims payment likelihood.
1. State Farm
State Farm has consistently had a slightly higher premium than GEICO. While higher, State Farm makes up for personalized service and 24/7 customer service.
State Farm is best for owners of new vehicles and rideshare drivers.
State Farm offers a lengthy list of discounts for multiple cars, accident-free, and even good grade discounts. Be sure to see where you qualify for extra annual savings.
State Farm has been around since 1922 and is the largest auto insurer in the U.S. State Farm rate high in customer service surveys conducted by J.D. Power.
Progressive has a good handle on giving discounts to its drivers and has the most of the companies surveyed.
Progressive’s options have affordability and flexibility rolled into one.
While they don’t have the highest J.D. Power ratings, they are competitive in pricing compared to other insurers.
We have included USAA because oftentimes, the most obvious option for individuals goes overlooked.
If you are a member of the armed forces, you, your spouse and your children are eligible for membership to USAA.
Around since 1922, USAA has more to offer than just auto insurance. With top ratings from J.D. Power, it is by far the most advantageous for those who qualify for their services.
4. Cheapest for Safe Drivers: Root
Root is a unique new car insurance provider that offers policies based on your driving habits. You’ll install an app on your phone that monitors your speed, how often you make sudden turns and stops and mileage.
Then, the app creates a custom quote for you based on how well you drive.
Root doesn’t offer policies to everyone — the company avoids reckless drivers and those who have a long history of driving infractions so the company can keep premiums low. You may be able to save more when you switch to Root.
Saving Money While Still Being Protected
If you’ve looked at different rates and still are not satisfied, there are a few final things you can do to help save money on that monthly premium.
First, you can play with your deductible. We all like to have the least amount of out of pocket expense if we are involved in an accident. However, the lower the deductible, the higher your premium will be. Select a higher deductible amount. If you have chosen a $500 deductible, rerun your quote with a $1,000 or higher deductible. This will assuredly lower your overall premium.
Second, research your car. If it is an older model, then you may not need some of the add-ons such as comprehensive or uninsured motorist. It is not recommended to omit these coverages, but if your ultimate goal is to save money on your monthly payment, then you may want to consider it. Keep in mind that you will have to pay out of pocket later if you have an accident with an uninsured driver or if a tree falls on your car.
Finally, talk with the insurance company. They may be able to find you discounts you may be unaware of. Things like anti-theft devices, an automobile club membership, or military discounts. There are many out there and it doesn’t hurt to ask if the end result is you saving money.
While it may require a little bit of research, in the long run, you’ll be happier that you took the time ask questions and do your homework.
Want to learn more about how to find the best affordable insurance? Check out Benzinga’s guides to the best moving insurance companies, the best temporary car insurance companies and the best high-risk auto insurance companies.
Frequently Asked Questions
1) Q: How do I bundle my car insurance with another policy, and should I?
2) Q: Is there any way I can lower my insurance premiums?
3) Q: How much is my car insured for?
With a standard auto insurance policy, your vehicle is insured using actual cash value, which means that a deduction may be taken for depreciation based on age or usage. As your vehicle ages, it’s worth less money which reduces the insurable value. If you own a collectible or classic car, you’ll want to consider a specialized classic car insurance policy that insures your vehicle to its full value without a deduction for depreciation.
*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners’ secure websites.