Car insurance might seem like a pretty expensive task, but it can save you some money if you know where to go and what to look for. There are many different auto insurance companies out there that can help you save hundreds of dollars with the right tactics. Discounts are offered by most of the larger companies based on your location and other factors.
Who Has The Cheapest Auto Insurance? Enter Your Zip Code Below to Find Out
There is no such think. Every company will be the “cheapest” for someone else. Since each insurance company offers unique discounts applicable to a few people.
What is the Cheapest Car Insurance Discount Plan?
There is no such thing as an overall cheap car insurance discount or policy. Your insurance premiums are based on a large number of factors. Each person sees different rates on their policies at different times. Because of this, you should never engage in a policy agreement with a company simply because your friends said it was the cheapest for them. If you shop around, you’re more than likely to find a different company that is cheaper for you for the same coverage. While you’re at it, here are some of the discounts you must keep an eye out for when looking for the cheapest car insurance companies in your area.
- The Multi-policy Discount
This is a pretty well-known fact – when you insure more than one of the vehicles you own with the same company, you get to save some of your money. However, did you know that you can also get a discount if you have multiple insurance policies of different types at the same company? Getting an insurance policy for your car at the same company that insured your home will make you eligible for discounts.
- The Loyalty Discount
Loyalty savings are a real thing with many of the high-ranked insurance companies. The larger providers offer pretty good incentives to keep your policy with them over time. You can usually save up to 5% of your insurance premium on this discount.
- The Nerd Discount
While this isn’t the official name for it, your insurance company might give you a discount if you’re a student and you have a GPA above a certain threshold that they have set. This can apply to both college and high school students. As long as you keep your average above the threshold, you will be entitled to the discount!
- The Safe Tech Discount
There are some insurance companies that give you additional discounts when your car has technology installed that makes it safer to drive. Some of these include factory safety features like airbags and ABS systems. The occasional provider will also give you a discount for installing anti-theft devices from a third party after having bought your car.
- The Safe Driver Discount
If you are a safe driver who always obeys all the road rules wherever you go, you’re eligible for a further discount on your insurance premiums. This involves having a clean record on your license for a number of years. The insurer will look for past claims, tickets, accidents, and more. The longer you maintain this safe driving record, the higher the discount will be. Most insurance companies today offer this discount by default so make sure you check for it when you get your policy from your provider.
- The Old Person Discount
This is a discount that isn’t too common, but finding it could mean good times for you. You get a discount when you turn a certain age, such as 25, 65, or further. You might also be able to get a discount on your premiums after having retired from work, or if you are on pension.
- The Educated Driver Discount
If you are a new driver who has just finished your driver’s education course, you’re eligible for a discount that is quite significant. Your driver’s training school needs to be accredited and recognized by the insurance company you plan on getting a policy with, though.
- The Green Driver Discount
This comes in many forms. Some of the cheapest car insurance companies offer discounts based on your driving habits. If you drive a hybrid car, for example, you might get a discounted rate on your premiums. The same goes for drivers who have a pretty low annual usage of their car. Some companies ask to install a tracking device on your car that analyzes all of your driving patterns to open you up to additional discounts over time.
Cheapest Car Insurance Companies
Who has the cheapest car insurance? Based on averages taken across the nation, here are some of the cheapest car insurance companies out there. Remember that your own rates could always be cheaper based on your personal information. Make sure you shop around and follow the helpful tips below to save even more money on your policy.
GEICO is one of the single cheapest insurance agencies out there. On average, this company has the cheapest quotes in the country, with about $1297 per year for a full coverage policy. Most of the discounts described above are applicable at GEICO, including the Safe Driver discount, the Multiple Policy discount, the Safe Tech discount, and many others.
In the US, it is one of the three cheapest companies, and is also one of the most popular for the general public. Along with this, you can manage your policy online with the web assistant and software provided by GEICO. Some of the discounts it doesn’t offer you include the low annual mileage discount, although it still has other price cuts like the driver’s training course.
- State Farm
State Farm insurance is the second cheapest in the country, on average, after GEICO. It is, however, over $1000 pricier than the latter. However, you do get to enjoy a huge amount of discounts with State Farm. This is especially true if you have been a good, safe driver. The cut to your premium can be significant in this case. Other discounts include four that are related to staying safe on the roads.
You can also get cuts to your premiums for not driving too far each year. If you happen to be an active member of the armed forces, you are granted a Military Service discount too. Loyalty cuts are common as well, and you can typically get even more discounts if you look hard enough.
According to the majority of insurance policy holders in a variety of states, Progressive is one of the three cheapest insurance companies in the country, and is also among the most popular. There is a huge array of discounts available, along with a ton of options to customize your coverage over time.
Your driving habits are taken into account for discounts, along with the presence of safety technology on your car. A Pet Injury clause can be added to your policy too, based on your state. This is usually included as a part of your collision insurance without having to pay extra for it.
On average, the yearly rates at Progressive are twice that of GEICO and about $500 more than State Farm.
This insurance company is one of the five cheapest car insurance companies out there. The national yearly average premium rate is about $3000, but this can vary. While this can seem an intimidating amount, the discounts and the service at Allstate is among the best in the country. In fact, it is so financially stable that A. M. Best has given it a Superior rating.
USAA is an insurance company that is highly recommended for those of you who are serving in the military right now. The company is only open to those with military ties, whether it is yourself or a family member who is, or was, in the armed forces at some point. It is the cheapest car insurance company in the USA, but we don’t rank it above GEICO simply because of the select crowd it caters to. At less than $1000 a year with more discounts such as Safe Driver and Educated Driver, you should be able to save hundreds of dollars in comparison to the top insurance agencies in the country.
While most insurance companies will ask for your average annual mileage and price your quote based on this, Metromile uses a different approach. You are fitted out with a telematics device, which attaches to your car’s electronics and tracks your mileage as you drive. The company only charges you for the miles you have driven each month, which is added to a very low base price. This is the best option for those of you that commute a short distance daily but don’t drive over 5000 miles in a year.
Quick Tips for Getting the Cheapest Car Insurance
It doesn’t matter whether you go with Allstate or GEICO, you need to save money. Getting discounts is one of the best ways to do this. Here are some of the ways in which you can keep your premiums at an all-time low from the time you first get yourself an insurance policy:
- Ask for discounts
Yes, that’s right. Don’t be embarrassed to ask your provider for discounts. There are many that aren’t advertised by the company but are available if you know where to look. Take the time to check up on all of these with your preferred provider. Mention any and all details that might make you eligible for one of the discounts above to your insurance agent. Anything helps!
- Consider your deductibles and your limits
Many people want to get the cheapest policy they can for the cheapest rates. This usually translates to cutting off most of their coverage in order to save money in the short term. Taking away your protection for lower prices is a bad idea. However, you should definitely consider raising your deductible amount for your collision insurance policy. Do this if you know you can afford to pay the higher amount out of pocket. If you don’t know what a deductible is, it is a sum of money you pay on your own after an accident happens. It is only after paying this that you get to file an insurance claim.
- Use life events to your benefit
There are many life-changing events that can mean cheaper car insurance for you. A good example is if you get married to your partner or you enter a civil union. This usually opens you up to a lowered rate on your premiums. Another event that can give you a discount is a big move to a city with good public transit services.
- Shop Around
This is one of the most important tips that can be given to you when you’re asking yourself who has the cheapest car insurance. Shop. Around. There are tons of insurance companies located in and around your city and state. Some of the smaller companies are highly reliable and can give you far cheaper rates than the national insurance providers. With this many options, your task is to sort through all the offers to find the best value for money for yourself.
- Get out of a crime zone
One of the factors that affects your insurance premium is your address. If you live in a part of your state or city that is known for the inordinate amount of crime in the area, you’re going to see higher premiums. The same goes for if you park your car at work and there is a lot of criminal activity in that location.
If you move to an area without as much crime and with wealthier people in it, you’re bound to experience a lower risk of car theft, break-ins and vandalism. Additionally, if you move closer to your place of work you are a lower risk of collisions because your drive is shorter. This translates to savings on your premiums.
- Buy a new car
This isn’t always an option, but doing so could save you quite a bit of money. It isn’t just about the make of the vehicle you own. Factors like the model, year, engine capacity, and more are used to compute your premium rates. Newer cars are more expensive to repair in accidents. However, new cars are more reliable than cars made 20 years in the past. Because of this, you should aim to buy an older, used car that isn’t too old. The goal is to find the sweet spot between brand-new and hunk of junk.
- Consider foregoing liability insurance
As a new driver, one of the most common things to do when getting insurance coverage is to immediately ask for full coverage. This means you get liability coverage, personal injury, comprehensive, and other types of coverage bundled together. If you own an older car, you might not need liability coverage on it simply because the cost of repairing the car might be smaller than the overall cost of the insurance premiums.
- Have a better credit score
Believe it or not, your credit score affects your insurance premiums. The cheapest car insurance can be found by improving your credit rating over time. Clean it up by clearing up your debt and paying your bills without delays. Stop overdrafting your bank and failing to pay the money back. In time, your score will gradually improve and your premiums will too.
- Be a better driver
Did you know that getting into an accident could increase your premiums by about 35%? Being a more careful driver on the roads is one of the best ways to keep your insurance cheap and easy to afford. Insurance companies, as you know, already have additional discounts for safe driving. These are on top of the automatic cut to your premium that you get when you have a clean driving record.
- Change where you park
Depending on your location, you may be at higher risk of having your car vandalized. However, there are ways to avoid or reduce the risk of vandalism and theft. One of the main targets for thieves and hooligans is a car that is parked outside on the street overnight. Park your car in a private garage or a place with security guards around. Keep it off the streets for a cheaper rate on your car insurance because of the reduced risk you enjoy.
Price Optimization Could be Destroying Your Rates
One final tip: watch out for your insurance company using big data and personal browsing information to increase your premiums. In many states, this practice is still legal. They analyze everything about you including your social media and online shopping history. They also look into whether or not you are asking for quotes from other car insurance companies. Every year, make sure you shop around online. This will dissuade your insurance company from jacking your own prices up.
So who has the cheapest car insurance? Well, anyone could. To enjoy the absolute cheapest insurance rates for yourself, all you need to do is the right amount of research. Look for discounts, shop around, and be a safer, more secure driver for the cheapest insurance rates you’ve ever seen. If you’re looking for even cheaper insurance you should look into very cheap car insurance no deposit requirements. But remember its not always about paying the least for insurance, it’s making sure your insurance covers what you need. So while finding cheap full coverage auto insurance may be hard, it may be worth it!