Affordable Auto Insurance: Finding The Cheapest Rates

What is the Cheapest Vehicle Insurance?

The cheapest vehicle insurance is a liability-only policy that only meets your state's minimum insurance requirements. However, minimum coverage isn't for everyone. In fact, the overwhelming majority of people in the U.S. have additional coverage for themselves.

According to an Insurance Information Institute (III) analysis of 2021 data from the National Association of Insurance Commissioners (NAIC), 76% of insured drivers have a policy that includes collision coverage and 80% of drivers with insurance have comprehensive coverage on their policy.

While full coverage may make sense for most people, it may not make sense for you.

Cheapest car insurance for young drivers

Young drivers are often considered high-risk, resulting in higher insurance premiums. However, there are ways to find cheaper car insurance for young adults.

Cheapest Car Insurance Companies for Young Drivers

USAA, State Farm, and Geico are consistently the cheapest options for young drivers, with USAA and Geico offering the lowest rates for both 21 and 25-year-olds. For 21-year-olds, USAA offers full coverage for $218 per month, while Geico and Travelers also provide affordable rates. For 25-year-olds, Travelers is the cheapest option, with USAA and Geico also offering competitive rates.

Factors Affecting Insurance Costs for Young Drivers

Young drivers are considered high-risk due to their lack of driving experience, higher likelihood of accidents, and higher rates of DUIs. As a result, insurance companies charge higher rates to offset the increased risk. Additionally, young male drivers tend to face higher premiums than their female counterparts due to higher accident and DUI rates.

Ways to Get Cheaper Insurance for Young Drivers

• Reduce coverage limits: Opting for minimum coverage instead of full coverage can lower your premium, but it provides less financial protection in the event of an accident.
• Increase your deductible: Choosing a higher deductible will reduce your insurance costs, but you'll pay more out of pocket if you need to file a claim.
• Bundle insurance policies: Combining your auto insurance with renters or homeowners insurance from the same company can often lead to discounts.
• Improve your credit score: In most states, insurance companies use credit scores to determine rates, so improving your credit can lead to lower premiums.
• Compare quotes from multiple providers: Shopping around and getting quotes from different insurance companies is one of the best ways to find cheaper rates.
• Enroll in a telematics insurance program: These programs track your driving habits, and safe driving can lead to discounts on your premium.

Other Cheap Insurance Options for Young Drivers

In addition to USAA, State Farm, and Geico, young drivers can also consider the following companies known for competitive rates and good customer service:

• Erie: Offers a range of discounts for young drivers, including a young driver discount for those under 21 living with their parents and a longevity discount for those who remain on their parents' policy for two years.
• Auto-Owners: Offers affordable rates for young drivers on their parents' policy and has an accident forgiveness program to prevent rate increases after the first accident.
• Progressive: A good option for high-risk drivers with accidents or DUIs on their record, as they tend to have more affordable rates in these cases.

Life Events Affecting Insurance Costs for Young Drivers

As young adults go through life changes, their insurance costs may fluctuate. Here are some common life events that can impact insurance rates:

• Marriage: Informing your insurance company of your marital status change can lead to a decrease in your premium. Additionally, adding your spouse to your policy is essential to ensure proper coverage when they use your vehicle.
• Living with roommates: Insurance companies may require roommates who share a vehicle to be listed on the same policy or excluded from coverage.
• Renting vs. buying a home: Homeownership can lead to insurance savings through multi-policy discounts when bundling home and auto insurance and improved financial stability in the eyes of insurers.

While insurance for young drivers tends to be expensive, understanding the factors that influence rates and utilizing cost-saving strategies can help young adults find more affordable coverage. Comparing quotes from multiple providers and considering companies like USAA, State Farm, and Geico can be excellent places to start the search for cheaper insurance.

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 around. Here are some of the cheapest car insurance options for military members:

USAA

USAA offers insurance exclusively to veterans, active-duty military and their families. It has the cheapest rates on average among military car insurers and is available in all 50 states, Washington, D.C., and some international locations. USAA also has high customer satisfaction ratings and a good range of discounts, including:

• Up to 60% off if you're deployed and store your vehicle in a safe location
• Up to 15% off comprehensive coverage if you keep your vehicle on a military base
• Good student discount
• Multi-vehicle and multi-policy discounts
• Discount for a clean driving record

Geico

Geico offers a military discount of up to 15% for current and former military and National Guard members. It also provides a 25% emergency deployment discount for military members deployed to ''imminent danger pay areas' defined by the Defense Department. Geico has a dedicated military support team composed of veterans and is available in all 50 states and Washington, D.C. However, it doesn't offer gap insurance and has limited local agents.

Farmers Insurance

Farmers Insurance offers a discount for those currently serving or who have served in the military, as well as 22 other types of discounts. It's available in all states except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia.

State Farm

State Farm doesn't have a nationwide discount for military members, but its low rates make it the cheapest option in some areas. It also offers a good driver discount and a Steer Clear program for drivers under 25, which can help you save up to 20%. State Farm is available in all 50 states.

Arbella

Arbella offers a 10% discount for Massachusetts customers deployed on active duty at least 100 miles from their car. It's only available in New England, but it has fewer complaints than expected and ranks highly for customer satisfaction.

Cheapest car insurance for drivers with a DUI

If you have a DUI on your record, you can expect your car insurance rates to increase by up to 108% compared to a driver with a clean record. The exact increase will depend on your state and insurance company, but on average, drivers with a DUI pay $1,395 per year for car insurance.

Progressive

Progressive has one of the best average rates for drivers following a DUI. It offers SR-22 insurance filing and non-owner insurance, which may be important for some drivers with a DUI conviction. Progressive also offers accident forgiveness and a vanishing deductible option. However, Progressive does not offer pay-per-mile car insurance policies and has received average grades for its collision repair claims process.

American Family

American Family has better-than-average rates for drivers with DUI convictions and has a very low level of complaints made to state insurance departments. They also offer accident forgiveness, a vanishing deductible, and a usage-based insurance program. However, American Family is only available in 19 states.

USAA

USAA offers the best average rates for drivers with DUIs, but their policies are only available to military members, veterans, and their families. They also offer accident forgiveness, new car replacement, and a usage-based insurance program. However, USAA does not offer gap insurance.

Auto-Owners Insurance

Auto-Owners Insurance has competitive rates for drivers with a DUI and offers accident forgiveness, a diminishing deductible, and gap insurance. They also have a user-friendly claims process and a low level of complaints. However, they do not offer SR-22 insurance filings, which may be required in some states after a DUI.

State Farm

State Farm offers below-average rates for drivers with a DUI and has a low level of complaints to state insurance departments. They also offer rideshare coverage and a renewal discount of 14% after three years of customer loyalty. However, State Farm does not offer gap insurance, accident forgiveness, or a vanishing deductible.

It's important to note that insurance rates can vary depending on your location, driving history, age, gender, and other factors. To find the cheapest car insurance for your specific needs, it's recommended to compare quotes from multiple companies.

Cheapest car insurance for drivers with a speeding ticket

A speeding ticket on your driving record will likely increase how much you pay for car insurance. According to my search, the cheapest car insurance for drivers with a speeding ticket in the US is offered by State Farm, at $247 per month. This is a 37% increase over the national average of $180. The second cheapest option is American Family, at $267 per month.

USAA also offers affordable rates for drivers with a speeding ticket, but their services are only available to military members, veterans, and their families.

If you are looking for the cheapest car insurance after a speeding ticket, it is recommended that you compare car insurance quotes from several companies, as the cheapest option for you will depend on various factors.

Cheapest car insurance for drivers with an accident

If you have been in an accident, your car insurance rates will likely increase. However, there are still some insurance companies that offer affordable rates for drivers with an accident on their record.

According to NerdWallet, Travelers has the lowest average rate for drivers with one at-fault accident, at $565 per year, or $47 per month. Other cheap options for drivers with an accident include:

• Erie: $1,350 per year, or $113 per month
• USAA: $1,050 per year, or $88 per month
• State Farm: $1,150 per year, or $96 per month
• Geico: $1,150 per year, or $96 per month

USAA is only available to military, veterans and their families.

If you have a speeding ticket on your record in addition to an accident, Erie is a good option, with average annual rates of $1,350. For drivers with a DUI in addition to an accident, Erie is also a good option, with average annual rates of $1,550.

For drivers with poor credit in addition to an accident, Geico is a good option, with average annual rates of $1,500.

If you are a young driver with an accident on your record, Erie, Travelers, Geico and Nationwide are good options. Erie has average annual rates of $2,200 for an 18-year-old driver with an accident on their record.

Frequently asked questions