Cheaper Auto Insurance Options Than Geico

What auto insurance is cheaper than Geico?

Geico is one of the cheapest car insurance companies in the US, but there are a few insurers that offer lower rates. The cost of car insurance depends on a range of factors, including age, location, driving history, and the level of coverage.

Cheaper alternatives to Geico

USAA, Erie, Auto-Owners, and Nationwide are all cheaper than Geico, according to US News. However, USAA insurance is only available to current and former members of the military and their families. Erie is also a good option for teen drivers, with the lowest rates for 17-year-old female and male drivers.

WalletHub also found that USAA, Progressive, and National General are cheaper than Geico, depending on the driver's profile. For example, National General is the cheapest option for drivers with poor credit, while Progressive is the cheapest for young drivers.

Finder suggests that Progressive, USAA, and Esurance can sometimes offer lower rates than Geico. Progressive is known for its customer-first mindset and transparent pricing tools. Esurance offers steep safety discounts and helpful add-ons, but it may not offer the flexible payment schedule you need.

Bankrate's analysis found that Auto-Owners, USAA, and Geico are among the cheapest insurers in the US. Auto-Owners is the cheapest option for drivers with a clean record and good credit, while USAA is the cheapest for drivers with a DUI. Geico is the cheapest option for drivers with poor credit.

Cheapest car insurance for drivers with poor credit

Overview

Drivers with a poor credit score are considered high-risk by insurance companies, who correlate lower credit with a higher chance of making an insurance claim. This means that drivers with poor credit often face higher insurance rates. However, there are still ways to find affordable insurance, and some companies offer cheaper rates than others.

Cheapest Companies for Poor Credit

According to MoneyGeek, Nationwide and GEICO are the cheapest insurers, on average, for drivers with poor credit. The average cost of full coverage with Nationwide is $1,374 per year, while GEICO costs $1,775 per year. However, the cheapest company depends on the driver's location, with GEICO offering the cheapest rates for poor credit drivers in four states and the District of Columbia.

Other companies that offer competitive rates for drivers with poor credit include Dairyland, Direct Auto, Progressive, Mercury, American Family, and Travelers.

Tips for Finding Affordable Insurance with Poor Credit

• Compare quotes from multiple companies, as rates can vary significantly.
• Look for companies that offer discounts, such as for bundling insurance or having a good driving record.
• Improve your credit score over time by making timely payments, keeping credit card balances low, and disputing any errors on your credit report.
• Reduce your coverage and only purchase the insurance you need.
• Raise your deductible, as a higher deductible leads to lower monthly payments.
• Consider your vehicle, as higher-value vehicles typically have higher premiums.
• Take advantage of usage-based insurance, which bases rates on your driving behaviour rather than credit score.

Cheapest car insurance for new drivers

New drivers often pay significantly more for car insurance than experienced drivers. However, some companies offer great prices and comprehensive coverage for new drivers.

State Farm

State Farm is the best cheap car insurance company for most drivers. State Farm has the best liability-only rates in 18 states, if you can't get USAA. It also has the cheapest full coverage quotes in 24 states. State Farm offers usage-based car insurance options and considerable discounts for students in good academic standing. The company also boasts a highly rated mobile app and an impressive service area spanning almost every state.

USAA

USAA is the cheapest car insurance company among large insurers, but its policies are only available to current and former members of the military and their families. USAA has the lowest rates we found for most groups of drivers.

Erie Insurance

Erie Insurance is the cheapest insurer in North Carolina, with a sample rate of $770 annually or about $64 monthly. Erie also has the lowest rates we found for teen drivers. The company has grown into the 13th largest provider of auto insurance in the U.S. Erie offers a young driver discount, car safety equipment discounts, and reduced usage discounts, making it an excellent choice for new drivers in the company’s coverage areas.

Auto-Owners

Auto-Owners has the cheapest rates for new drivers looking for an individual car insurance policy. Liability-only coverage from Auto-Owners costs just $112 per month for someone under 25 years old with no driving experience. Auto-Owners also tends to have affordable rates for teen drivers looking to share a policy with their parents.

Geico

Geico is the third-largest auto insurance provider and offers competitively low rates for most new drivers. The company also boasts a straightforward claims process and a user-friendly mobile app. Geico’s DriveEasy program, a usage-based insurance add-on, incentivizes new drivers to maintain a good driving record in exchange for rate discounts.

Nationwide

Nationwide has cheap car insurance options for people who work from home, retirees, students living on campus, or young drivers with a clean record. If you drive less than average or are generally a safe driver, Nationwide may have the best car insurance rates for you. The company has both a usage-based and pay-per-mile auto insurance plan to help you save on car insurance.

Cheapest car insurance for senior drivers

The cost of car insurance is influenced by various factors, including age, driving history, location, and the type of vehicle. Senior drivers, typically defined as those aged 60 and above, often enjoy lower insurance rates than younger motorists due to their experience and tend to drive fewer miles. However, insurance companies view older adults as slightly riskier to insure, and rates usually increase after the age of 65.

Erie Insurance

Erie Insurance offers competitive rates for senior drivers, especially those aged 60. According to US News and World Report's analysis, Erie has the lowest average rates for 60-year-old female and male drivers, at $1,277 and $1,224 per year, respectively. These rates are significantly below the national average and make Erie a top choice for seniors.

USAA

USAA provides insurance exclusively to military members, veterans, and their families. They offer some of the lowest rates in the industry, including for senior drivers. However, their availability is limited to those who meet the eligibility criteria.

Nationwide

Nationwide is another insurer with affordable rates for seniors. They are the cheapest option for drivers with poor credit and those adding a teen driver to their policy. Their rates for senior drivers are also competitive, with average rates for 60-year-olds that are 22-25% below the national average.

Travelers

Travelers Insurance is recommended for senior drivers due to its affordable premiums and strong ability to pay claims. They offer various discounts, including for loyalty, homeownership, and being claims-free. Their average annual rate for seniors is $1,015, making them a cost-effective option.

State Farm

State Farm is known for its cheap rates, national availability, and dependable customer service. While they may not always be the cheapest, they offer a range of discounts, including for safe driving, safe vehicles, and customer loyalty. State Farm is a good option for seniors seeking a balance between cost and service quality.

Progressive

Progressive is particularly competitive for drivers with a DUI on their record. They offer the lowest average rates for this category, at $2,296 per year, according to US News and World Report. Progressive is a good choice for seniors facing higher rates due to driving infractions.

When searching for the cheapest car insurance, it's essential to compare quotes from multiple companies, as rates can vary significantly depending on individual circumstances. Additionally, consider taking advantage of discounts, such as those for safe driving, bundling policies, and having safety features in your vehicle.

Cheapest car insurance for full coverage

The cost of car insurance is on the rise, but there are still some companies that offer competitive rates for full coverage. Here are some of the cheapest options:

USAA

USAA offers the lowest sample premiums in the industry, but its policies are only available to current and former members of the military and their families. USAA has the cheapest rates for most groups of drivers, including those with a clean driving record, a speeding ticket, an accident, or a DUI on their record.

Erie Insurance

Erie Insurance is available in 12 states and Washington, D.C., and offers the lowest rates for teen drivers, both female and male. They also have competitive rates for good drivers, female senior drivers, male senior drivers, and drivers after an accident or a speeding ticket. Erie's rates are hundreds of dollars below the national average for drivers with a clean record.

Auto-Owners

Auto-Owners Insurance is another company with low rates for full coverage. They are available in 26 states and offer affordable rates for new drivers, as well as teen drivers sharing a policy with their parents. Auto-Owners also has good customer service and a high score on J.D. Power's claims satisfaction survey.

Nationwide

Nationwide is a good option for those with poor credit, as they have the lowest sample costs for this category. They also offer usage-based and pay-per-mile insurance plans, which can be beneficial for those who work from home, retirees, students, and safe drivers. Nationwide has a large geographic footprint and is available in most states.

State Farm

State Farm is the cheapest national car insurance company for liability-only coverage, with rates of $50 per month. They also offer affordable full coverage at $124 per month. State Farm has excellent customer service and is the largest auto insurance company in the country. They offer various discounts, including for bundling, safe driving, and accident-free driving.

Geico

Geico is the cheapest large auto insurance company in the nation for minimum coverage, with rates as low as $30 per month. They also offer competitive rates for full coverage, especially for drivers with poor credit. Geico has a wide range of discounts and is available in all 50 states.

Progressive

Progressive offers the lowest sample rate for drivers with a DUI on their record, at 32% below the national average. They are a good option for those looking for affordable coverage after a DUI.

American Family

American Family has some of the cheapest car insurance rates in the country, with minimum coverage costing around $61 per month and full coverage around $160 per month. They offer a wide range of discounts, including for good students, safe teen drivers, bundling, and more.

Southern Farm Bureau

Southern Farm Bureau offers cheap car insurance in a few states, including Colorado. They have the cheapest rates for minimum liability coverage and competitive rates for full coverage. Southern Farm Bureau also offers various discounts, including for good students, driver's education, and customer loyalty.

When looking for the cheapest car insurance for full coverage, it's important to compare quotes from multiple companies, as rates can vary based on individual factors such as age, location, and driving history. Additionally, consider the company's customer service and claims process to ensure you're getting quality coverage at a fair price.

Cheapest car insurance for young drivers

Young drivers often struggle to find cheap car insurance because they are considered high-risk. This is due to their lack of experience on the road, higher likelihood of being involved in accidents, and higher chances of speeding and driving under the influence.

Cheapest Car Insurance Companies for Young Drivers

USAA, State Farm, Geico, Erie, and Progressive are some of the cheapest car insurance companies for young drivers. USAA is the cheapest option for 21-year-olds, with monthly rates of $218, while Travelers is the cheapest for 25-year-olds, with monthly rates of $166.

Tips for Getting Cheap Car Insurance as a Young Driver

• Reduce your coverage limits: Lowering your coverage will decrease your premium but will also leave you with less financial protection. You can choose to remove optional types of insurance, such as comprehensive or collision coverage, to save money.
• Increase your auto insurance deductible: Opting for a higher deductible will lower your insurance premium, but you will have to pay more out of pocket if you file a claim.
• Bundle your insurance policies: If you have renters or homeowners insurance, bundling it with your car insurance can get you a discount on both policies.
• Raise your credit score: In most states, insurance companies use policyholders' credit scores to determine their rates. Improving your credit score can help you get cheaper car insurance.
• Compare car insurance quotes: Shopping around and getting quotes from multiple providers is the best way to ensure you're getting the cheapest car insurance.

Other Factors Affecting Car Insurance Rates for Young Drivers

In addition to age, gender, and driving experience, other factors can affect car insurance rates for young drivers. These include:

• Marital status: Married young drivers often see a decrease in their insurance premiums.
• Roommates: Insurance companies may require you to list your roommates on your policy or exclude them entirely if you share a home and are assumed to occasionally share vehicles.
• Homeownership: Buying a home can lead to cheaper car insurance rates since homeowners are considered more financially stable, and you can also bundle your home and auto insurance for a discount.
• Life events: Major life events, such as moving out of your parents' residence or getting married, may require you to get your own car insurance policy, which can affect your rates.

Young drivers can also take advantage of various car insurance discounts, such as good student discounts, safe driver discounts, and vehicle safety discounts, to further reduce their insurance costs.

Frequently asked questions