Alyssa Lane
The cost of auto insurance varies depending on several factors, including age, vehicle type, driving history, and location. Generally, liability coverage is the cheapest option, but it may not provide sufficient financial protection in the event of a serious accident. While USAA offers the cheapest rates, their policies are only available to military personnel, veterans, and their families. For those who do not qualify for USAA, Nationwide, Travelers, and GEICO are good options, with GEICO offering the lowest rates for liability coverage. For young drivers, GEICO and Root are affordable options, while State Farm is a good choice for senior drivers.
| Characteristics | Values |
|---|---|
| Cheapest car insurance companies | GEICO, Progressive, State Farm, Travelers, American National, USAA, Root, Erie, Nationwide, Allstate, Auto-Owners |
| Cheapest for young drivers | GEICO ($306), Root ($3,138 for females and $3,176 for males), Auto-Owners |
| Cheapest for senior drivers | State Farm ($136), American National ($824 for females and $812 for males), USAA |
| Cheapest for drivers with an accident history | Erie |
| Cheapest for drivers with a DUI | American National, Root |
| Cheapest for high-risk drivers | Auto-Owners |
| Cheapest for full coverage | Travelers ($143 a month and $1,714 a year) |
| Cheapest for liability coverage | GEICO ($41 a month and $489 a year) |
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What You'll Learn
Cheapest car insurance for young drivers
Car insurance for young drivers can be expensive. This is because auto insurers view inexperienced drivers as riskier to insure. The cost of insurance for young drivers varies depending on the age of the driver, their gender, and their location. For example, a 16-year-old driver in Hawaii can expect to pay $742 for car insurance, whereas a 16-year-old in Louisiana will pay $5,074.
There are several ways to save money on car insurance for young drivers. One way is to add the young driver to an existing family policy. This can result in significant savings, as individual teen policies are much more expensive than adding a teen to a family policy. For example, an individual teen policy costs an average of $4,866 per year, while adding a teen to a family policy averages $3,048. GEICO offers the cheapest family car insurance for teens at $601 per year, while State Farm has the lowest rate for an individual teen policy at $781.
Another way to save money on car insurance for young drivers is to take advantage of discounts. Many companies offer good student discounts, and some offer discounts for teens who complete certified driver's education programs. Low-mileage drivers can also qualify for significant insurance discounts, with some insurers offering 10-25% savings for driving under 7,500 miles annually. Usage-based telematics can also provide savings, as they track driving behavior and offer feedback and potential discounts based on safe driving habits.
It's worth noting that insurance rates for young drivers decrease as they get older and gain more driving experience. Therefore, it may be beneficial for young drivers to stay on their family's policy until they have more driving experience.
Some of the cheapest car insurance companies for young drivers include:
- Erie: Erie has the lowest average rates for female and male teen drivers, with sample premiums for 17-year-olds that are $2,932 and $3,026 below the national average, respectively.
- USAA: USAA has the cheapest rates overall, but it is only available to teens in military families.
- Nationwide: Nationwide has the next cheapest rates for female young adult drivers and is available in all but four states.
- GEICO: GEICO offers the cheapest individual policies for young adults, starting at $111 per month.
- State Farm: State Farm has the lowest rate for an individual teen policy at $781.
In summary, while car insurance for young drivers can be expensive, there are several ways to save money, including adding the young driver to a family policy, taking advantage of discounts, and comparing rates from different insurance companies.
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Cheapest car insurance for seniors
Car insurance for seniors can be expensive, with elderly drivers paying more than middle-aged drivers due to an increased likelihood of accidents and severe injuries. However, there are still ways for seniors to find cheap car insurance.
USAA
USAA offers the cheapest auto insurance for seniors, with monthly rates of just $98 on average. USAA consistently ranks highly for customer service and price, and offers a 10% introductory discount through their SafePilot Program, with the possibility of up to 30% off your premium at renewal time. However, USAA is only available to military personnel, veterans, and qualifying family members.
GEICO
GEICO is another great option for seniors, with the cheapest car insurance for most senior drivers, averaging $86 monthly for minimum liability coverage. GEICO also offers discounts for seniors, strong customer service, and a multitude of coverage options.
State Farm
State Farm offers competitive rates for senior drivers, with an impressive array of discounts and coverage options. State Farm also receives high marks for customer service and is available nationwide.
Erie
Erie has the cheapest rates for senior drivers with a speeding ticket on their record. They also offer add-on coverage like accident forgiveness, gap insurance, and new car replacement.
The Hartford
The Hartford has offered exclusive benefits and car insurance discounts for AARP members for almost 40 years, as well as customizable coverage to meet the unique needs of senior drivers. AARP members who switch to The Hartford can save an average of $577 on their car insurance.
Nationwide
Nationwide has the lowest rates for senior drivers aged 65 to 80 with a clean driving record, as well as the cheapest rates for senior drivers with poor credit. Their SmartMiles program may be a good fit for seniors who drive less.
It's important to note that car insurance rates vary by state, so be sure to compare rates from different insurers to find the best deal.
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Cheapest car insurance for drivers with an accident history
The cost of car insurance is determined by several factors, including a driver's age, claims history, and driving record. Accidents can affect insurance costs for up to three years, depending on the location, insurer, and the nature of the accident. Minor fender-benders with no injuries typically result in smaller rate increases than accidents involving injuries or significant property damage. At-fault accidents generally carry higher penalties, but some insurers don't penalize drivers for accidents where they weren't at fault.
For drivers with an accident history, State Farm, GEICO, Progressive, Travelers, and Auto Owners offer the most affordable rates, with premiums as low as $55 per month. State Farm, in particular, offers full coverage rates starting at $120 per month, making it one of the cheapest options for drivers with accidents. Progressive is another excellent choice, providing competitive rates at $145 per month for drivers with accident histories.
Erie Insurance, a company specializing in high-risk drivers, is also worth considering for drivers with accident histories. While these companies tend to be more expensive, Erie may offer competitive rates for those with accident claims.
To find the lowest rates, drivers with accident histories should compare quotes from multiple companies, as rates can vary significantly between providers. Additionally, bundling auto and home policies, maintaining continuous coverage, and enrolling in telematics programs that monitor driving behavior can help reduce premiums.
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Cheapest car insurance for drivers with a DUI
If you have a DUI violation, your insurance rate will go up as insurance companies consider DUI drivers riskier to insure. Some insurers will refuse coverage, but Progressive is a widely available option for drivers with a DUI, offering the cheapest average rates for this group. Progressive's rates are over $1,100 cheaper than the national average for DUI drivers and are the cheapest for all age levels evaluated, from 21 to 70.
Other options for drivers with a DUI include Erie, which offers the second-cheapest rates for 21-year-olds and 70-year-olds with a DUI, and is over $600 cheaper than the national average for 40-year-olds with a DUI. GEICO, a standard insurer, offers average premiums with a DUI of $1,973 for six months, while USAA, available only to military members and their families, offers DUI insurance for $1,557 for six months.
If you have been dropped by your insurance company following a DUI, you may need to explore non-standard insurance companies that specialise in high-risk clientele. However, prices will be higher on average with these insurers.
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Cheapest car insurance for high-risk drivers
The cheapest car insurance companies for high-risk drivers include Erie, State Farm, GEICO, Progressive, USAA, Dairyland, and Travelers. The cost of car insurance for high-risk drivers depends on various factors, such as age, location, vehicle type, driving record, and credit score.
High-risk drivers can benefit from comparing quotes from different insurers, improving their credit scores, and maintaining a clean driving record. Additionally, bundling policies, safe driving, and insuring newer vehicles can help reduce insurance costs.
Some companies offer specialized discounts for high-risk drivers. For instance, USAA provides specialized discounts for high-risk drivers with military backgrounds or federal employment, while Allstate's Drivewise program offers frequent rewards and an early signing discount for high-risk drivers transitioning to a standard carrier.
National General is the cheapest option for high-risk drivers with a DUI, with rates starting at $66 per month or $703 annually for minimum coverage. State Farm is a close second, with rates only $6 higher per month, and it received a higher overall MoneyGeek score, making it the best cheap insurance company for DUI drivers.
For drivers caught speeding, State Farm, GEICO, and Travelers offer the most affordable rates. State Farm provides the best rates for minimum coverage, averaging $56 per month, which is $13 cheaper than other high-risk insurance companies.
In Kentucky, Travelers offers the lowest rates for high-risk drivers with poor driving records, at $2,904 per year.
Overall, high-risk drivers can find affordable insurance options by considering their specific circumstances and taking advantage of discounts and opportunities to improve their driving records.
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Frequently asked questions
According to US News, American National, USAA, and Root have the cheapest average car insurance costs. Forbes Advisor and NerdWallet also list USAA as one of the cheapest options, but it is only available to military members, veterans, and their families. Other cheap options include Nationwide, Travelers, and Geico.
Using an online quote-comparison tool like Insurify can help you find the cheapest car insurance company for your state, city, or zip code. You can also try increasing your deductible, which is the amount you pay out of pocket before your car insurance kicks in. This can lower your monthly premiums, but make sure you can afford a higher deductible if you file a claim. Additionally, consider bundling your car insurance with other types of insurance, such as homeowners or renters insurance, as most car insurance companies offer bundling discounts.
Liability coverage, also known as minimum coverage, is typically the cheapest option. However, it only pays for injuries and damage you cause to other drivers, and you will have to pay for your own expenses. Full coverage, on the other hand, includes comprehensive, collision, and liability coverage and will help pay for repairs in most scenarios, including damage caused by weather, accidents, or vandalism.
Root has the second-lowest sample annual rates for teen drivers, while Auto-Owners is the fourth-cheapest insurer for female teens. American National has the lowest average annual rates for young adults, followed by Root and USAA. For young drivers with an accident on their record, Erie is the cheapest option.
