Affordable Auto Insurance: Cheaper Options Than Geico

Car insurance is a necessity for all car owners, but it can be challenging to find an affordable policy that meets your coverage needs. The cost of car insurance is on the rise, with the average annual rate among insurers analysed in 2023 being $1,459, compared to $2,068 in 2024. However, there are a few insurance companies that offer competitive rates, providing an opportunity for significant savings.

USAA, Erie, Auto-Owners, and Nationwide are consistently ranked among the cheapest car insurance companies in various driver categories. GEICO also offers affordable rates, often cheaper than the national average, making it a good option for those seeking budget-friendly coverage. Progressive is another insurer known for its low rates, especially for drivers with a DUI on their record.

When looking for cheap car insurance, it is essential to compare quotes from multiple companies, as rates can vary significantly depending on personal factors such as age, location, and driving history. Additionally, asking about discounts, increasing your deductible, and revisiting quotes after improving your driving record can help you secure the most affordable coverage.

Discounts for good students, federal employees, and safe drivers

Students who maintain good grades may qualify for cheaper car insurance through a good student discount. This discount is usually between 10% and 25% and applies to students with their own policy or those listed on their parents' policy. To be eligible, students must be full-time and achieve a B average or higher. Students may need to send proof of their grades to their insurance company to maintain eligibility.

Progressive offers a discount for full-time students under 23 with a B average or better. The average discount is 10%. They also offer a distant student discount for those aged 22 or younger who attend school at least 100 miles from home and don't have a car at school.

State Farm offers a good student discount of up to 25% for full-time high school or college students who maintain at least a B average. This discount is available until the student reaches the age of 25.

GEICO offers a good student discount of up to 15% for full-time high school or college students who maintain at least a B average.

Federal employees can also benefit from auto insurance discounts. GEICO, Alfa, and Mercury offer discounts specifically for federal employees. GEICO's Eagle Discount can reduce total auto insurance premiums by up to 12% for active and retired federal government employees. Alfa offers an affinity discount for state or federal employees in Alabama and Mississippi. Mercury's occupational discount is available to federal employees and their spouses.

Safe drivers can also benefit from discounts. State Farm offers a good driver discount for new customers who have gone three years or more without moving violations or at-fault accidents. They also offer a Steer Clear program for new drivers or those under 25, which provides savings while they learn to become safer drivers.

Multi-vehicle discounts

GEICO, for example, offers savings of up to 25% on your policy when you insure more than one car with them. State Farm also offers a significant multi-vehicle discount of up to 20%. Other insurance companies like Progressive, Travelers, Allstate, Farmers, Liberty Mutual, and Nationwide also offer multi-vehicle discounts, although the exact amount of the discount may not be specified.

In addition to the cost savings, there are other benefits to having a multi-vehicle insurance policy. One benefit is the ability to stack insurance coverages. In states where it is allowed, stacking coverage means you can combine the total amount of your coverage from multiple vehicles in the event of an accident. For example, if you have two cars with $50,000 in uninsured motorist coverage each, you effectively have $100,000 in coverage protecting you at all times.

Another advantage of a multi-vehicle policy is streamlined payments and policy management. With all your vehicles on one policy, you only need to make one recurring payment and track one policy renewal date, making it easier to manage your insurance.

To get a multi-vehicle insurance policy, simply contact your insurance company and let them know you have multiple vehicles to insure. They will guide you through the process of adding the additional vehicles to your policy.

Discounts for defensive driving course completion

Defensive driving courses are a great way to improve your driving skills and can also help you save money on your car insurance. GEICO offers discounts to policyholders who have completed a defensive driving course. The amount of the discount and the eligibility criteria vary by state, but generally, drivers who are over 50 years of age and have completed the course voluntarily (not due to a court order) are eligible for a discount. In some states, you must also not have been involved in an at-fault accident or convicted of a traffic violation to be eligible.

The easiest way to take advantage of this discount is by completing an online defensive driving course offered by Defensive Driving by IMPROV, the National Safety Council, or the American Safety Council. These courses are discounted for GEICO policyholders, and after successful completion, GEICO will be notified, and your policy will be updated to reflect the discount. Other defensive driving courses may also qualify for the discount, and you can contact a GEICO agent to inquire about a specific course.

In addition to GEICO, many other insurance companies offer discounts for completing defensive driving courses. For example, NYCM Insurance offers a 10% discount for three years to New York State drivers who complete an approved accident prevention or defensive driving course. AAA Western and Central New York also offers a defensive driving course that can qualify you for up to a 10% discount on your auto insurance.

Completing a defensive driving course not only helps you improve your driving skills and make the roads safer but can also save you money on your car insurance. Be sure to check with your insurance provider to see if you are eligible for a defensive driving discount.

Lower rates for drivers with a clean record

Maintaining a clean driving record is one of the best ways to keep your auto insurance premiums low. A clean driving record indicates that you have no violations, at-fault accidents, or traffic-related convictions on your motor vehicle record (MVR) for a certain period, usually three to five years. It shows insurers that you are a safe, low-risk driver, which can lead to a range of benefits, including:

Lower Insurance Rates

Insurers typically offer lower premiums to drivers with clean records because they are less likely to file claims. A clean driving record can result in significant savings on your auto insurance, with rates up to 29% lower than those with a speeding ticket, according to Insurify data.

Good Driver Discounts

In addition to lower base rates, many insurance companies offer good driver discounts, such as accident forgiveness. For example, GEICO won't increase your rates after your first at-fault accident if you've been accident-free for a certain period.

Lower Deductibles

Some insurers will reduce your deductible by a set amount or percentage each policy period you remain accident and violation-free. Progressive, for instance, will subtract $50 from your policy's collision or comprehensive deductible at renewal for every six-month period without incidents.

More Insurance Options

A clean driving record gives you access to a wider range of insurance companies and coverage options. You can shop around and compare quotes to find the best rates and coverage for your needs.

No Stress

With a clean driving record, you don't have to worry about paying traffic fines, dealing with license suspensions, or filing auto claims. It's one less thing to stress about!

Employment Prospects

A clean MVR can also positively impact your employment prospects, even for jobs that don't involve driving. Potential employers may view your clean driving record as a sign of responsibility and trustworthiness.

Remember, the definition of a clean driving record can vary slightly from state to state, and some violations may stay on your record longer than others. Minor driving citations typically remain for at least three years, while more serious violations like DUIs can stay on your record for much longer.

To maintain a clean driving record, practice safe driving habits, address any minor issues promptly, and consider taking a defensive driving course to improve your skills and potentially reduce points on your license.

Discounts for safety and anti-theft devices

Many auto insurance companies offer discounts for safety and anti-theft devices. These devices not only help to prevent car theft but can also result in savings on your insurance premium. There are two main types of anti-theft devices: passive and active.

Passive anti-theft devices, such as transponder keys, alarms, and automatic locking doors, work automatically without any effort from the driver. On the other hand, active anti-theft devices like steering wheel locks and brake locks require manual activation before they can protect your car.

Some common passive anti-theft devices include:

• Transponder keys: These keys contain chips that emit a unique signal, and the car won't start if the signal isn't recognized. Transponder keys have been found to reduce car theft significantly.
• Audible alarms: Most cars have alarm systems that sound loudly when they detect unauthorized access. While alarms are sensitive and can be set off easily, they are not very effective in deterring thieves.
• Automatic locking doors: Some newer vehicles with electronic doors will automatically lock when the key fob is more than a certain distance away from the car.

Active anti-theft devices include:

• Steering wheel locks: These locks immobilize the steering wheel, preventing the car from being steered and deterring theft.
• Brake locks: These devices prevent the gas pedal from being pushed down, making it impossible to drive the car until the lock is disabled.
• Kill switches: Kill switches cut off all electricity in the vehicle, rendering it inoperable until reactivated by the owner.

In addition to these, there are also remote disabling devices and vehicle tracking systems. Remote disabling devices connect to your smartphone, allowing you to decelerate, downshift, or lock the brakes remotely. Vehicle tracking systems, such as GPS trackers and subscription services like OnStar and LoJack, help locate your vehicle if it's stolen.

It's important to note that the availability and amount of the anti-theft device discount may vary depending on your insurance company, state, and the specific device installed. Some insurance companies may require proof of installation and only offer discounts for certain types of devices. Additionally, the discount typically applies only to the comprehensive part of your coverage and not the entire policy.

Frequently asked questions