Key insights 💡
When it comes to finding cheap car insurance in the United States, there are a few key insights to keep in mind. According to NerdWallet’s June 2024 analysis of large insurers, the top five cheapest car insurance companies are Geico, Travelers, State Farm, American Family, and Progressive. Geico offers the cheapest minimum coverage, with an average rate of $355 a year, while American Family offers the cheapest full coverage, with an average rate of $1,279 a year.
It’s important to note that every company is different, and what’s cheapest for one driver may not be cheapest for you. That’s why NerdWallet did the legwork for you, analyzing minimum and full coverage auto insurance rates from 138 car insurance companies across the country to find cheap car insurance across several categories.
NerdWallet’s team of experts has over 60 years of combined experience covering insurance, analyzing 1.5 billion+ auto insurance rates from 700+ companies in over 29,000 U.S. cities. Their writers and editors follow strict editorial guidelines to ensure fairness and accuracy in their writing and data analyses.
How NerdWallet Found the Cheapest Car Insurance Companies
NerdWallet’s editorial team analyzed minimum and full coverage car insurance rates from pricing analytics company Quadrant Information Services. Their analysis looked at 35-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 2021 Toyota Camry LE.
Full coverage can cost significantly more compared to minimum coverage, as it includes 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.
Most of the rates analyzed are based on state-mandated minimum coverage limits, which tend to be very low. While going with minimum car insurance is legal, it may leave you financially vulnerable if you’re in a serious accident. To find cheap companies with more coverage, check out NerdWallet’s list of cheap full coverage insurance.
Cheap Car Insurance Companies
Geico is the cheapest large auto insurance company in the nation for good drivers, with an average annual rate of $355 for minimum coverage. Here are the cheapest large insurers for minimum coverage:
– Geico
– Travelers
– State Farm
– American Family
– Progressive
Cheap Car Insurance by State
Car insurance rates vary from state to state, so what counts as cheap auto insurance will be different depending on where you live. NerdWallet found the cheapest car insurance company for minimum coverage, on average, in each state and Washington, D.C. State averages can only tell you so much, so NerdWallet also analyzed rates for some of the largest cities in the U.S.
Cheapest Car Insurance by Driving Profile
Different driving profiles, such as having a speeding ticket, an accident, a DUI, poor credit, being a young driver, or a senior driver, can impact your car insurance rates. NerdWallet’s analysis found the cheapest auto insurance companies for each of these driving profiles, providing valuable insights for drivers looking to save money on their car insurance.
How to Get Cheap Car Insurance
To get cheap car insurance, it’s important to compare quotes from multiple insurers, ask for discounts, cash in on major life changes, raise your deductible, and revisit quotes after your driving record improves. Reconsidering the car you drive can also impact how much you pay for auto insurance.
Risks of Getting Cheap Auto Insurance
While getting cheap car insurance may save you money upfront, it can leave you financially vulnerable in the event of a serious accident. State minimum requirements may not provide enough coverage, and opting for the cheapest liability insurance might not be the best option. It’s important to consider optional coverage types that can help cover your own injuries or property damage.
Frequently Asked Questions
– How do you get cheap car insurance?
– What cars are cheaper to insure?
– How can you find the best car insurance?
– At what age does car insurance get cheaper?
– Is minimum coverage enough?
In conclusion, finding cheap car insurance requires careful consideration of various factors, including the company, coverage type, driving profile, and state regulations. By following NerdWallet’s key insights and tips, drivers can make informed decisions to save money on their car insurance while ensuring they have adequate coverage.