Affordable Insurance: Cheaper Alternatives To Safe Auto

SafeAuto is no longer writing new policies, but there are several other insurance companies that offer cheaper insurance than SafeAuto used to.

Some of the cheapest car insurance companies include USAA, Erie, Auto-Owners, and Nationwide. USAA is only available to military members, veterans, and their families, so Nationwide is the cheapest option for those without a military connection.

The cheapest type of car insurance is a liability-only car insurance policy, which offers only the minimum amount of insurance required to meet state laws. A state-minimum car insurance policy costs an average of $618 a year, while a full-coverage policy costs an average of $2,067 a year.

When shopping for car insurance, it's important to get quotes from several insurers to find the cheapest option for your needs.

Cheapest car insurance companies

The cost of car insurance is on the rise, so it's important to find an insurer that suits your budget. Here are some of the cheapest car insurance companies and what they offer:

USAA

USAA offers the lowest sample premiums in most driver categories, including those with poor credit, young or senior drivers, and military members and veterans. However, USAA insurance is only available to current and former military members and their families.

Erie

Erie Insurance is the cheapest option for drivers with a clean record, as well as those who have caused an accident or received a speeding ticket. They also have the lowest rates for teen drivers and senior drivers. Erie is available in 12 states and Washington, D.C.

Nationwide

Nationwide has some of the cheapest rates for drivers with poor credit, as well as those who have caused an accident or received a speeding ticket. They also offer pay-per-mile insurance for those who don't drive often.

Geico

Geico offers low costs for many driver types, especially those with poor credit. They also have a low level of complaints and a wide range of discounts available. However, their rates for drivers with a DUI are higher than average.

Progressive

Progressive has the cheapest rates for drivers with a DUI, as well as competitive rates for a broad range of other driver profiles. They also have a low level of complaints and offer a wide range of discounts.

Auto-Owners

Auto-Owners offers affordable premiums and high customer satisfaction ratings. They are a good option for those looking for minimum coverage and are available in 26 states.

State Farm

State Farm has the cheapest car insurance for most drivers, with liability coverage at $50 per month and full coverage at $124 per month. They also have a high score on J.D. Power's claims satisfaction survey.

Cheapest car insurance by category

Cheapest car insurance for good drivers:

Erie Insurance, with an average annual rate of $1,532.

Cheapest car insurance for female teen drivers:

Erie Insurance, with an average annual rate of $3,478.

Cheapest car insurance for male teen drivers:

Erie Insurance, with an average annual rate of $4,351.

Cheapest car insurance for the military community:

USAA, with an average annual rate of $1,335.

Cheapest car insurance for female senior drivers:

Erie Insurance, with an average annual rate of $1,277.

Cheapest car insurance for male senior drivers:

Erie Insurance, with an average annual rate of $1,224.

Cheapest car insurance after a DUI:

Progressive, with an average annual rate of $2,296.

Cheapest car insurance after a speeding ticket:

Erie Insurance, with an average annual rate of $1,765.

Cheapest car insurance after an accident:

Erie Insurance, with an average annual rate of $1,964.

Cheapest car insurance for poor credit:

Nationwide, with an average annual rate of $2,268.

Cheapest car insurance for minimum coverage:

Erie Insurance, with an average annual rate of $1,483.

Cheapest car insurance for high coverage:

Erie Insurance, with an average annual rate of $1,574.

Cheapest car insurance by state

The cost of car insurance varies from state to state, with the difference between the most and least expensive states being as much as $168 per month. The states with the most affordable car insurance rates are Ohio, New Hampshire, and North Carolina, with average rates at least 40% lower than the national average of $124 per month. The cheapest region in the U.S. for car insurance is New England, followed by the Great Lakes.

On the other hand, the states with the highest auto insurance rates are Michigan, Louisiana, and Florida, with drivers in Michigan paying an average of $196 a month for minimum coverage. The priciest region in the U.S. for auto insurance is the Far West, with California and Nevada among the most expensive states.

In addition to location, car insurance rates are also affected by factors like age, gender, profession, driving record, credit score, coverage level, and specific location. For example, drivers with speeding tickets or car accidents will usually pay more than those with a clean driving record.

• South Dakota
• Wyoming
• Vermont
• Iowa
• North Dakota

And the five states with the most expensive car insurance rates:

• Michigan
• Rhode Island
• Nevada
• Florida
• New Jersey

Cheapest car insurance by age

The cost of car insurance is influenced by several factors, including age, gender, location, driving history, and credit score. While insurance rates vary across providers, here is an overview of the cheapest car insurance by age:

Cheapest Car Insurance for Teen Drivers

Erie Insurance offers the lowest rates for teen drivers, with an average annual cost of $3,478 for 17-year-old female drivers and $4,351 for male drivers. These rates are significantly lower than the national average for teen drivers, which is around $7,200. Geico, Auto-Owners, and USAA also offer competitive rates for this age group.

Cheapest Car Insurance for Young Adult Drivers

For 20-year-old drivers, Geico is the cheapest option, with an average rate of $4,812 per year. However, it is recommended that young adults stay on their family's policy until they have a more robust driving history, as this can result in lower insurance rates.

Cheapest Car Insurance for Adults

As drivers gain more experience, insurance rates tend to decrease. By the age of 25, drivers may notice a significant reduction in their premiums. Nationwide and Erie are among the cheapest options for adults, with average annual rates of around $1,600.

Cheapest Car Insurance for Senior Drivers

Senior drivers, defined as married 60-year-olds in this context, typically enjoy lower insurance rates compared to other age groups. Erie Insurance offers the lowest rates for senior drivers, with an average annual cost of $1,277 for female drivers and $1,224 for male drivers. USAA, Nationwide, and Auto-Owners also offer competitive rates for this age group.

Cheapest car insurance after adding a teen driver

Adding a teen driver to your insurance policy can be expensive, but there are ways to save money. The best way to get the cheapest car insurance for young drivers is to add them to a parent's or guardian's policy.

Cheapest Car Insurance Companies for Teen Drivers

According to Forbes Advisor, Erie, USAA, American Family, and Nationwide are among the best car insurance companies for teens and young drivers. USAA is the cheapest overall car insurance company after adding a teen driver, but it is only available to military members, veterans, and their families. Erie and Geico are good alternatives for those who are not eligible for USAA.

How to Save on Car Insurance for Teens

• Shop around for multiple car insurance quotes to find the cheapest rate.
• Look for discounts such as good student discounts, defensive driving discounts, and student away-at-school discounts.
• Choose a safe and moderately priced vehicle. Insuring a teen driver in a cheaper vehicle with good safety ratings can help lower premiums.
• Keep your teen on your policy. It is usually more cost-effective to add a teen driver to a parent's or guardian's policy than to purchase a separate one.
• Consider additional coverage options such as accident forgiveness or increasing your liability limits to protect against lawsuits or damages.
• Don't pay for coverage you don't need. If your teen is driving an older vehicle, consider dropping comprehensive and collision coverage if the cost of repairs would be less than the cost of the coverage.

Frequently asked questions