Affordable Auto Insurance: Finding The Cheapest Companies

The cost of car insurance is rising, making it challenging to find an affordable policy that meets your coverage needs. The cheapest car insurance companies in the US include USAA, Erie, Auto-Owners, and Nationwide.

The average annual cost of a car insurance policy is $2,068, compared to $1,459 a year ago. Car insurance rates are highly individualized and vary based on factors such as your age, driving history, location, and more.

When looking for cheap car insurance, it's important to compare quotes from multiple companies and ask about discounts. Additionally, consider the level of coverage you need and choose a deductible that fits your budget. Remember that cheaper car insurance may not always provide adequate coverage in the event of an accident.

Cheapest car insurance for young drivers

Car insurance for young drivers is usually very expensive. Young drivers are considered very risky to insure due to their lack of driving experience and are more likely to be involved in accidents. However, there are ways to find cheaper insurance for young drivers.

Tips for Finding Cheaper Insurance

• Add a young driver to a parent's or guardian's policy: This is often the cheapest option for young drivers.
• Shop around and compare quotes: Getting quotes from multiple companies can help find the cheapest rate.
• Look for discounts: Some companies offer discounts for young drivers who are good students, have defensive driving training, or are members of certain groups.
• Consider usage-based insurance: This type of insurance tracks a young driver's behaviour and can result in discounts for safe driving.
• Choose a higher deductible: Opting for a higher deductible can lower the cost of insurance premiums.
• Bundle insurance policies: Combining car insurance with other types of insurance, such as renters or homeowners insurance, can often result in a discount.

Recommended Insurance Companies for Young Drivers

Based on customer satisfaction surveys and cost, the following companies are recommended for young drivers:

• USAA: Offers some of the cheapest rates for young drivers and performs well in customer satisfaction surveys.
• Geico: Consistently offers affordable rates for young drivers and has a variety of discounts available.
• State Farm: Known for its good student discounts and local insurance agents.
• Progressive: Often an affordable option, especially for high-risk drivers.

Other Options for Young Drivers

In addition to traditional insurance, there are other options available for young drivers:

• Black Box Insurance: Tracks driving behaviour and can result in lower premiums for safe driving.
• Pay-as-you-go Insurance: Allows young drivers to pay only for the miles they drive, which can be useful if they are not driving regularly.
• Named Driver Insurance: Covers a young driver on their family's car without affecting the parents' No Claims Discount.
• Short-term Learner Insurance: Provides temporary insurance for learner drivers practising in a parent's or friend's car.
• Car Sharing Insurance: Allows young drivers to drive someone else's car without affecting the owner's No Claims Discount.

Finding cheap car insurance as a young driver can be challenging, but by comparing options and taking advantage of discounts, it is possible to find more affordable coverage.

Cheapest car insurance for senior drivers

Car insurance rates are highly individualized, and premiums vary widely by insurer. However, several companies offer affordable rates for senior drivers, including:

Nationwide

Nationwide offers the cheapest car insurance rate for senior drivers in Virginia at about $771 per year, or $64 per month. The company also has competitive rates for seniors in other states. For example, in Ohio, Nationwide's insurance costs $55 per month, while in Pennsylvania, it's $62 per month.

USAA

USAA provides the cheapest car insurance for seniors who are active military members, veterans, or their immediate families. In California, USAA's insurance costs $132 per month, while in Texas, it's $78 per month.

Erie Insurance

Erie Insurance has the lowest rates for senior drivers in several states. In Virginia, the company's insurance costs $1,277 per year for female drivers and $1,224 per year for male drivers. In Pennsylvania, Erie Insurance's rates are $1,532 per year.

Travelers

Travelers offer the cheapest full-coverage insurance for seniors, with an average rate of $1,753 per year or $146 per month. The company also has affordable rates for senior drivers in other states. For example, in New York, Travelers' insurance costs $192 per month.

Geico

Geico consistently offers some of the cheapest car insurance rates for senior drivers in many states. In Indiana, Geico's insurance costs $49 per month, while in New York, it's $176 per month.

Progressive

Progressive provides affordable rates for senior drivers, especially those with a DUI on their record. The company's average rate is $585 per year, or $49 per month.

Auto-Owners

Auto-Owners Insurance has competitive rates for senior drivers in several states. In Maine, the company's insurance costs $55 per month, while in Minnesota, it's $72 per month.

Cheapest car insurance for drivers with a DUI

A DUI conviction can have a significant impact on your car insurance rates, and it's important to find an insurer that offers affordable coverage without compromising on quality of service. Here are some of the cheapest car insurance options for drivers with a DUI:

Progressive

Progressive is a popular choice for drivers with a DUI, offering competitive rates and essential services. Their average monthly cost for full coverage after a DUI is around $212, which is significantly lower than the national average. They also provide small accident forgiveness for most drivers and various discounts, such as bundling home and auto insurance or paying bills automatically. However, their customer service reviews are mixed, and they don't offer pay-per-mile insurance policies.

Erie

Erie is an excellent option for DUI insurance if you live in one of the 12 states and Washington, D.C., where it operates. Their full coverage insurance after a DUI costs around $181 per month, which is well below the national average. Erie also excels in customer service, earning high scores on claims satisfaction surveys. They offer useful coverage options like roadside assistance and new car replacement. However, you cannot purchase a policy online and must call an agent.

The General

The General specializes in high-risk drivers and offers relatively affordable rates for those with multiple DUIs. They tailor their quote process to high-risk drivers and include the SR-22 filing if needed. The General also provides a convenient mobile app and coverage options like roadside assistance and gap insurance.

State Farm

State Farm offers the cheapest rates for both minimum and full coverage car insurance after a DUI. Their average annual cost for full coverage is $1,231, which is significantly lower than competitors. They have an above-average customer satisfaction rating and provide access to a range of discounts. However, they may not offer certain coverages that DUI drivers may want, such as deductible modification and gap insurance.

USAA

USAA is specifically for military members, veterans, and their families, and it offers the lowest rates for DUI insurance. Their full coverage costs around $188 per month after a DUI. They also provide excellent customer service and a range of discounts. However, their coverage is limited to eligible individuals.

Cheapest car insurance for drivers with a speeding ticket

A speeding ticket will typically increase your car insurance costs. According to US News, the average annual cost for a driver with a single speeding ticket is 20% higher than for a driver with a clean driving record.

US News found that Erie Insurance offers the cheapest insurance for drivers with a speeding ticket, with an average annual rate of $1,765.

NerdWallet also found Erie to be the cheapest option for drivers with a speeding ticket, with an average annual rate of $1,532. However, they noted that Erie is not available in every state.

The Zebra found that USAA and State Farm are the cheapest options for drivers with a speeding ticket, with average six-month premiums of $750 and $765 respectively.

Value Penguin found that State Farm is the cheapest option, with an average monthly rate of $125 for full coverage.

Insurify found that Auto-Owners offers the cheapest full coverage after a speeding ticket, at $136 monthly.

Cheapest car insurance for drivers with an accident on their record

The cost of car insurance is rising, making it challenging to find an affordable policy that meets your coverage needs. The cheapest car insurance companies for drivers with an accident on their record include:

State Farm

State Farm is the cheapest insurance company after an at-fault accident. It offers a full coverage rate that is 43% cheaper than the average. State Farm also has the lowest rates for drivers with speeding tickets, at $125 per month for full coverage. That's $95 per month cheaper than the average. State Farm is available in every state and has a high score of 89/100 in MoneyGeek's overall best provider comparison study.

Progressive

Progressive has the cheapest rates for drivers after a DUI, at 28% less than the average. Progressive also offers the lowest sample rate for drivers with a DUI, 32% below the national average.

Erie Insurance

Erie Insurance has the lowest average annual rates for drivers after an accident, besides USAA. Erie's sample rate of $1,964 for this driver group is 33% below the national average.

USAA

USAA has the lowest rates for motorists with clean driving records, 35% below the national average. It's also the cheapest option for those with a single speeding violation or an accident on their record. However, USAA's policies are only available to current and former members of the military and their families.

The General Insurance

The General Insurance is a good nonstandard car insurance company for high-risk drivers.

It's important to note that car insurance rates are highly individualized, and your age, driving history, location, and many other factors will influence your costs. Shopping around and comparing quotes from multiple providers is the best way to find the cheapest car insurance for your specific needs.

Frequently asked questions