Finding Affordable Auto Insurance: Tips And Tricks

Auto insurance is a necessity, but it can be expensive. The best way to find cheap car insurance is to compare rates from multiple insurers. In California, drivers pay an average of $2,599 per year for a full coverage policy and $641 for minimum coverage. The cheapest car insurance in California is Geico at $239 per year, or $20 per month. In Portland, Oregon, the cheapest car insurance is State Farm, at $58 per month for minimum coverage and $93 per month for full coverage. In Missouri, State Farm has the best cheap car insurance, at $122 per month for full coverage.

How to find the cheapest car insurance

The cost of car insurance can be a burden, especially for those on a low income. However, there are ways to find cheaper car insurance without compromising on quality and service.

Compare quotes from multiple companies

Shopping around for car insurance is one of the best ways to find a cheaper rate. Insurance companies use various factors to determine the cost of insurance, and these factors can vary between companies, so it's worth getting multiple quotes to find the best deal.

Look for insurers with good customer satisfaction ratings

While the price is important, it's also worth considering the level of service you'll receive. Opting for the cheapest option could mean compromising on the quality of service, so look for insurers with good customer satisfaction ratings.

Take advantage of discounts

Many insurance companies offer a range of discounts that can help lower the cost of your insurance. For example, you may be able to get a discount for having multiple cars on your policy, bundling your auto and home insurance, paying your policy in full, completing a defensive driving course, having a clean driving record, or having safety and anti-theft devices in your car.

Choose the right type of vehicle

The type of car you drive can also impact the cost of your insurance. Vehicles with good safety ratings, lower repair costs, and less powerful engines tend to be cheaper to insure, as they are associated with reduced accident risk and lower potential claim expenses.

Consider your age

Age can also affect the cost of car insurance, as younger and older drivers are often considered higher risk. Insurance generally becomes more affordable once drivers reach the age of 25, and rates may decrease throughout adulthood before increasing again at age 70.

Review your coverage limits and deductibles

You can also lower your insurance costs by increasing your deductibles and reducing your coverage limits to align with your needs. However, it's important to maintain adequate protection, especially in the event of a serious accident.

Shop around regularly

Finally, it's a good idea to shop around and compare quotes from different insurers regularly, as your rates may change over time. This will help you secure the most affordable coverage for your specific circumstances.

Cheapest car insurance by state

The cost of car insurance varies across the United States, with the average cost of car insurance ranging from $29 per month in South Dakota to $154 per month in Michigan for minimum coverage. The national average for minimum coverage is $64 per month.

States with the Cheapest Car Insurance Rates

South Dakota, Wyoming, Idaho, Vermont, and Iowa have the cheapest car insurance rates in the country.

• South Dakota: South Dakota's rural landscape and low number of uninsured drivers contribute to its cheap insurance rates. Quotes for minimum coverage average $29 per month, 55% lower than the national average.
• Wyoming: Wyoming drivers pay 52% less than the national average. Quotes for minimum coverage average $31 per month. Low population, limited traffic, and a small number of uninsured motorists help keep rates low.
• Idaho: A minimum coverage policy in Idaho costs $34 per month, 47% cheaper than the national average.
• Vermont: The average cost of car insurance in Vermont is $35 per month, making it 45% cheaper than the national average.
• Iowa: With an average monthly rate of $37 for minimum coverage, Iowa has some of the cheapest car insurance in the U.S. Quotes are 42% cheaper than the national average.

States with the Most Expensive Car Insurance Rates

Michigan, Nevada, Delaware, Florida, and Rhode Island have the highest car insurance rates.

• Michigan: Michigan has the most expensive car insurance rates in the country. Drivers pay an average of $154 per month for minimum coverage, more than double the national average.
• Nevada: With an average monthly cost of $114 for minimum coverage, Nevada has the second-highest car insurance rates in the country. Traffic congestion in cities such as Las Vegas and Reno contributes to high insurance rates.
• Delaware: As a no-fault state, Delaware requires drivers to carry PIP insurance. Delaware drivers pay about $107 per month for minimum coverage, 67% above the national average.
• Florida: Florida is one of the most expensive states for car insurance, with an average monthly cost of $101 for minimum coverage. High rates are due to the large percentage of uninsured drivers and the risk of weather damage.
• Rhode Island: Rhode Island ties with Florida, with rates averaging $101 per month for minimum coverage. This is 57% higher than the national average.

Factors Affecting Car Insurance Costs

In addition to location, age, driving record, credit score, gender, and vehicle type can impact the cost of car insurance. Car insurance is also more expensive in states with higher coverage requirements.

Cheapest car insurance by driver age

The cost of car insurance is determined by several factors, including age and gender. Young drivers, especially teens, are considered to be high-risk and are more likely to be involved in accidents due to their inexperience. As a result, they often pay higher insurance premiums than older drivers.

Cheapest Car Insurance for Drivers Under 25

COUNTRY Financial, Auto-Owners, and USAA offer the cheapest liability rates for drivers younger than 25. On average, young drivers under 25 pay $127 per month for liability insurance and $258 for full coverage.

Farmers Insurance, Travelers, and State Farm are also good options for young drivers, offering various discounts and competitive rates. Farmers Insurance, for example, provides good student discounts and distant-student discounts for college students living away from home.

Cheapest Car Insurance for 21-Year-Olds

USAA offers the cheapest rates for 21-year-old drivers, with monthly rates of $62 for minimum coverage and $218 for full coverage. Geico and Auto-Owners also offer competitive rates for this age group.

Cheapest Car Insurance for 25-Year-Olds

Travelers offer the lowest rates for 25-year-old drivers, with an average monthly rate of $166 for full coverage. USAA, Geico, and Auto-Owners also provide affordable options, with rates under $70 per month for minimum coverage.

In general, insurance rates decrease as drivers get older and gain more experience. Male drivers also tend to pay slightly more than female drivers due to a higher propensity for risky driving behavior. However, the difference in premiums between genders narrows as drivers age.

It's important to note that insurance rates can vary drastically by state and provider, so it's always a good idea to compare quotes from multiple companies to find the best deal.

Cheapest car insurance by vehicle type

The cheapest cars to insure are typically those with fewer and less costly claims. The cheapest midsize sedan, SUV, or small truck to insure might include the Subaru Legacy, Subaru Ascent, and Toyota Tacoma xtra cab. SUVs are the most affordable type of car to insure based on rate data.

The cheapest car models to insure for each body type are:

• Standard pickup truck: Chevrolet Silverado 1500
• Minivan: Kia Carnival
• Small SUV: Hyundai Santa Fe
• Large SUV: Subaru Outback
• Sedan: Honda Accord

How to lower your car insurance rate

There are several ways to lower your car insurance rate. Here are some of the most effective methods:

• Shop around for quotes: One of the best ways to find affordable auto insurance is to compare rates from multiple companies. Insurance rates can vary significantly between providers, so it's worth getting quotes from several insurers before making a decision.
• Look for discounts: Many insurance companies offer a range of discounts that can help lower your premium. Common discounts include those for bundling policies, having a clean driving record, being a good student, and installing safety or anti-theft devices in your car.
• Choose a higher deductible: Opting for a higher deductible can lead to lower insurance premiums. However, it's important to ensure that you can afford to pay the deductible if you need to make a claim.
• Reduce your coverage: If your car is older or has a low value, you may not need comprehensive and collision coverage. Review your policy to ensure you're not paying for coverage you don't need.
• Improve your credit score: In most states, insurance companies use your credit score as a factor in determining your premium. Improving your credit score can lead to lower insurance rates.
• Choose a vehicle with a good safety rating: Cars with good safety ratings and lower repair costs tend to have lower insurance premiums. When purchasing a car, consider the insurance costs associated with different makes and models.
• Maintain a low annual mileage: If you don't drive often, consider usage-based insurance or telematics programs, which base your premium on how much you drive.
• Take a defensive driving course: Completing a defensive driving course can demonstrate your commitment to safe driving practices, leading to lower insurance rates.
• Pay your policy in full: Some insurance companies offer discounts to customers who pay their policies in full rather than in installments. Paying in full reduces the risk of late or missed payments, making you a lower-risk customer.

Frequently asked questions