Home And Auto Insurance: Finding The Cheapest Coverage

Home and auto insurance bundles are a great way to save money, with some insurers advertising discounts of up to 30%. However, bundling isn't always the cheapest option. It's important to shop around for quotes with and without a bundle to make sure you're getting the best deal.

Bundling is the process of buying more than one policy from the same insurance company, typically at a discounted rate. Insurance companies tend to like bundling because they get more of your business, while you get a lower rate plus the convenience of buying everything in one place.

Bundling isn't just for homeowners and auto insurance. Depending on the company, you may also be able to bundle other types of policies such as umbrella, boat, RV or life insurance.

The primary reason that many people bundle car and homeowners insurance is to lower their premiums. A multipolicy discount could save you as much as 30%, according to some insurer websites, depending on the company and where you live.

But that’s not the only reason to bundle. It’s also typically easier to manage multiple policies when they all come from the same company.

And it may even help you maintain your insurance coverage long-term. If you’ve made auto insurance claims or gotten tickets, having other policies with the same company can make it less likely the insurer will drop you because of those incidents.

According to MoneyGeek, the cheapest car insurance company for full coverage is Travelers, with policies costing an average of $1,284 annually or $107 per month. The cheapest minimum coverage car insurance is also Travelers, with an average annual rate of $601 or $50 per month.

USAA and State Farm are rated as the best insurance companies and have the cheapest average rates for bundling home and auto insurance.

Cheapest full coverage car insurance

The cheapest full coverage car insurance will depend on your age, driving history, and location. Here is a list of the cheapest full coverage car insurance companies for different driver profiles:

Cheapest for 22- to 29-year-old drivers:

• Travelers: $1,284 per year or $107 per month
• GEICO: $1,453 per year or $121 per month

Cheapest for drivers with an accident:

• State Farm: $1,571 per year or $131 per month
• Travelers: $1,651 per year or $138 per month

Cheapest for drivers with a DUI:

• Progressive: $1,661 per year or $138 per month
• State Farm: $1,760 per year or $147 per month

Cheapest for drivers with a ticket:

• State Farm: $1,442 per year or $120 per month
• Travelers: $1,537 per year or $128 per month

Cheapest for drivers with bad credit:

• Nationwide: $1,651 per year or $138 per month
• Travelers: $1,861 per year or $155 per month

Cheapest for military members:

• USAA: $823 per year or $69 per month
• Travelers: $1,122 per year or $94 per month

Cheapest overall:

Travelers: $1,122 per year or $94 per month

Cheapest by car model:

• Subaru Outback: Nationwide ($1,049 per year)
• Subaru Legacy: Nationwide ($1,157 per year)

Cheapest minimum coverage car insurance

Minimum coverage car insurance, also known as liability-only car insurance, is the cheapest type of car insurance you can buy. It only provides the minimum coverage required by state law and does not cover damage to your own vehicle in accidents you cause or damage from theft, vandalism, or environmental causes.

According to MarketWatch, Farm Bureau offers the cheapest liability car insurance for most drivers in 2024, with rates as low as $31 per month or $368 per year on average. USAA, Auto-Owners, and Country Financial are also listed as some of the most affordable providers of liability car insurance.

MoneyGeek also found that Travelers is the cheapest full coverage car insurance company for 22 to 29-year-old drivers, with an average annual rate of $1,284, or $107 per month. For minimum coverage car insurance, they found that Travelers is also the cheapest option, with an average annual rate of $601, or $50 per month.

The Zebra's 2022 survey found that USAA and State Farm are the best insurance companies for bundling home and auto insurance, with USAA offering a 10% discount and State Farm offering a 17% discount.

Cheapest car insurance for high-risk drivers

High-risk drivers are often charged higher insurance rates or refused coverage. However, some companies offer more affordable options for high-risk drivers. Here are some of the cheapest car insurance options for high-risk drivers:

State Farm

State Farm is one of the cheapest options for high-risk drivers, with an average annual premium of $1,459. They offer SR-22 insurance for those who need to file an SR-22 and non-owner SR-22 insurance for individuals who don't own a vehicle but still need state-required coverage. State Farm also offers various discounts, such as safety features, driving habits, educational achievements, vehicle and policy management, and senior driver discounts.

Travelers

Travelers is another affordable option for high-risk drivers, with an average annual premium of $1,649.

Geico

Geico has the lowest rates for high-risk drivers, with rates that are 36% less expensive than other companies. They consistently offer cheap quotes for drivers with speeding tickets, DUIs, or lapses in coverage, as well as young drivers with tickets.

American Family Insurance

American Family Insurance is available in 19 states and offers relatively small rate increases after common driving infractions. They also have an accident-forgiveness policy that allows customers to avoid steep rate increases after their first at-fault accident if they meet certain criteria.

USAA

USAA is known for its affordable rates, especially for high-risk drivers. Their rates do not increase as dramatically as some competitors after accidents or violations. However, USAA coverage is only available to military members and their immediate relatives.

The General

The General is a non-standard insurance company that offers coverage to high-risk drivers who may have been denied coverage by other companies. However, their rates are typically higher than standard insurance companies.

Safe Auto and National General

Safe Auto and National General are other examples of non-standard insurance companies that cater to high-risk drivers.

It's important to note that insurance rates can vary based on location, driving history, age, credit score, and other factors. It's recommended to shop around and compare quotes from multiple companies to find the most affordable and suitable coverage for your specific situation.

Cheapest car insurance for bad credit

Having bad credit can make it difficult to find cheap car insurance, as drivers with poor credit tend to pay, on average, $105 more per month than those with very good credit. However, there are still some insurance companies that offer competitive rates for drivers with bad credit.

Geico

Geico is the cheapest widely-available auto insurance for drivers with bad credit, with an average of $257 per month. It offers some of the best rates for drivers with poor credit, and in 13 states, it has the best rates of any non-USAA insurer. Geico only raises rates by 59% for drivers with bad credit, compared to people with good credit.

USAA

USAA offers the cheapest rates overall for drivers with lower credit scores, with full-coverage auto insurance costing an average of $181 per month. However, policies are only available to military members, veterans, and some of their family members.

Farm Bureau

Farm Bureau is an organization with availability in most states, and most offer car insurance at a discounted rate to members. A full-coverage policy for a driver with poor credit is $273 per month. You'll have to pay an annual membership fee, but it's usually less than $100 per year, and you don't have to be a farmer to join.

Nationwide

Nationwide offers relatively good rates for drivers with poor credit, and the level of complaints against the company for auto insurance is very low. It also offers a usage-based insurance program and a pay-per-mile option for drivers who want to lower costs based on actual driving.

American Family

American Family has a robust lineup of optional car insurance coverage and a very low level of complaints. It also has decent average rates for drivers with poor credit, making it an option worth considering.

Westfield

Westfield has competitive car insurance costs for many types of drivers, including people with bad credit. It also has very low complaints and a good grade from repair professionals on their collision claims process.

Travelers

Travelers has decent insurance rates overall for many types of drivers, including those with bad credit. The company also has many optional features that can give you better insurance protection.

No-credit-check insurance companies

A few states, including California, Hawaii, Massachusetts, and Michigan, do not allow insurance companies to use credit scores as a factor in setting car insurance rates. While no-credit-check insurance companies are rare, you might be able to find a local option. For example, Dillo in Texas and Cure Auto Insurance in New Jersey and Pennsylvania.

Cheapest car insurance for military members

If you're a military member or veteran, you may be eligible for some of the best car insurance rates. Here's a list of the cheapest car insurance for military members:

USAA

USAA offers auto insurance exclusively for veterans, active-duty military and their families. It has the cheapest rates on average and offers insurance to active military, veterans and their families only. USAA also has high customer satisfaction ratings and is a one-stop shop for insurance as well as banking and investing products. Policies are available in all states and Washington, D.C.

Geico

Geico offers a discount of up to 15% for retired or active-duty military, National Guard members, those in the Reserves and members of military professional organizations. It also offers a 25% emergency deployment discount for military members deployed to "imminent danger pay areas". Geico has a robust website and mobile app, and is available nationwide.

Arbella

Arbella offers a 10% discount for Massachusetts customers deployed on active duty at least 100 miles from their car. It ranked 7th out of 11 for customer satisfaction in New England.

Armed Forces Insurance

Armed Forces Insurance provides auto policies to veterans, active-duty service members and their families, as well as employees of the Department of Defense, the National Oceanic and Atmospheric Administration and the U.S. Public Health Service. It has an A+ rating from the Better Business Bureau and is available in all 50 states.

Farmers

Farmers Insurance offers a 10% discount for former and current military and is available in all states except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia. It has below-average NAIC complaints and offers discounts for paperless policies, timely payments, being a homeowner and installing anti-theft features.

State Farm

State Farm has a discount for safe driving records and online driving courses, and offers low rates in some states. It has high customer satisfaction scores from J.D. Power and is available in 26 states.

Nationwide

Nationwide's SmartMiles programme can save low-mileage drivers up to 20% over a traditional insurance policy. It has low rates for seniors, parents of teen drivers and high-risk motorists and is available in 46 states and Washington, D.C.

Frequently asked questions