Compare the Cheapest Car Insurance Companies [2024]
The easiest way to find the cheapest car insurance rates is to comparison shop online. Your age, your driving record, and where you live will impact how much you pay for car insurance coverage. It's in your best interest to compare the cheapest car insurance companies against one another in order to find the best rates. Enter your ZIP code now to get a free car insurance quote in your state.
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Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
UPDATED: May 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 13, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Different insurance providers also tend to target different markets, thus making one insurer cheaper for one driver but very expensive for another driver
- This is why it is important to review one’s auto insurance rates at least once a year and make sure that their insurer has not gone out of the cheapest range
- Driving record, mileage, car manufacturer and minimum requirements all factor in cost of insurance
All the searching in the world will not lead to a single car insurance company that is the cheapest in all aspects. This is because insurers are very driven and unique when it comes to rating motorists and setting prices. (read our “How are car insurance companies the same?” for more information).
Different insurance providers also tend to target different markets, thus making one insurer cheaper for one driver but very expensive for another driver.
The first thing everyone needs to understand is that car insurance companies adjust rates based on their profits and losses. The only way possible for finding the cheapest insurance company is to understand how different insurance companies rate drivers.
If an insurance company ends up paying a lot of money for car insurance for seniors in a given year, it will raise the rates for those drivers in the next year to compensate for the loss.
If, however, the company makes a profit on women drivers under the age of 25 because there were few claim payouts, they will then reduce the rates for this category. This will make them the cheapest car insurance for young female drivers.
This also shows that insurance rates are forever changing, and the company that is the cheapest one year may not be so the next.
This is why it is important to review one’s auto insurance rates at least once a year and make sure that their insurer has not gone out of the cheapest range.
Finding the cheapest auto insurance company means having to do a lot of research. This can be carried out by actually visiting several auto insurance providers or just comparing quotes online.
We make doing the research easy! Just enter your zip code and you will receive multiple car insurance quotes for free.
Factors that Influence Insurance Rates
There are a large number of factors that affect car insurance rates. Typically, insurance companies give rewards in terms of cheaper rates to good drivers and punish poor drivers with higher insurance costs.
They also give various incentives to drivers; for example, if one installs a security alarm or other device in their car so that the chance of it being stolen will be less, they will be charged much less in premiums due to anti-theft discounts.
Additionally, students who maintain good grades will qualify for the good student discount and will pay less than those doing poorly in school.
— Clean Driving Record
Clean driving records translate into cheaper insurance. Some insurance companies give safe driver discounts that can reduce premiums by as much as 20 percent.
Infractions, such as over time tickets, parking violations, and DUI’s do disappear from one’s record over time. However, until they do, one is stuck with the higher costs of car insurance after a DUI.
So whatever the driving record is currently, it is beneficial to clean it up and keep it that way if one wants to enjoy the cheapest insurance rates.
— Low Mileage
The amount of driving plays an important role in the cost of auto insurance. Low-mileage car insurance is usually cheaper than average due to low-mileage discounts.
Insurance companies consider the number of miles people travel in a given area when determining rates. If the number of miles is more than the average for that area, then one will be charged higher premiums.
This is because the more time one is on the road, the more they are exposed to traffic dangers and the higher the risk of accidents. Many insurance companies charge long-distance drivers like delivery personnel or truckers extra to compensate
— Mass Market Manufacturer
Sticking to cars manufactured for the mass market instead of going for the more expensive elite ones helps to acquire the cheapest insurance possible.
The reason cheaper cars are cheaper to insure is because their parts are cheaper to replace and repair work is also less costly. Buying an expensive foreign car with spares that are hard to get locally will mean higher premiums for exotic car insurance.
— Flexibility
Being flexible in terms of the insurance provider one chooses can mean significantly lower premiums. Sometimes companies will have car insurance loyalty rewards programs, but that shouldn’t stop one from making inquiries and comparing prices.
Many times the loyalty discount one gets dwarfs compared to the cheaper rates quoted by other companies without the loyalty.
— Minimum Requirements
The minimum car insurance required in each state varies. Just sticking to the minimum state insurance requirements does not mean one has the cheapest insurance; it only means they may have insufficient coverage for their needs.
In reality, cheap insurance is one that provides the maximum coverage for the least amount of money.
To get the right amount of insurance coverage, one should consider the current hospital cost if someone has to be hospitalized for a couple of days due to an accident. One should also consider what the cost to upgrade the car will be.
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Comparing Insurance Providers
There is really only one way to find the cheapest auto insurance company and that is by comparing as many different companies as possible.
What’s even more important is to remember to compare apples to apples, otherwise, the comparison has no value. We can help you in your comparison shopping.
Auto insurance rates are changing constantly. Sometimes, the change is due to demand, other times it is dictated by the economic conditions.
It may even be caused by a sudden increase in the buying power of the consumer, traffic accidents, or changes in the crime rate of an area.
You should not be afraid to investigate and be prepared to make a change if necessary.
If one is a good customer who pays their premiums on time, then many times an existing insurance provider will match a lower offer by another company just to hold on to their customer.
The easiest way to find lower car insurance rates is to enter your zip code in our car insurance comparison tool and you will receive multiple car insurance quotes for free.
Frequently Asked Questions
What are the cheapest car insurance companies?
While insurance rates can vary depending on various factors such as location, driving history, and vehicle type, here are some car insurance companies that are often considered affordable:
- Geico
- Progressive
- State Farm
- USAA (available for military members and their families)
- Esurance
- The General
What are the advantages of choosing the cheapest car insurance companies?
The benefits of opting for affordable car insurance providers include:
- Cost savings: Choosing a cheaper insurance company can help you save money on your premiums.
- Basic coverage: Cheap insurance options typically offer the basic coverage required by law, ensuring you meet legal obligations.
- Flexibility: Some inexpensive insurers provide flexible payment plans and policy options, allowing you to customize your coverage according to your needs.
- Online tools: Many affordable insurance companies offer online platforms for policy management, claims filing, and customer support, making it convenient to handle your insurance affairs.
Are there any disadvantages to choosing the cheapest car insurance companies?
While cheaper car insurance can be appealing, it’s essential to be aware of potential drawbacks, such as:
- Limited coverage options: Inexpensive insurers may provide minimal coverage, which might not be sufficient for certain situations or preferred by individuals seeking comprehensive protection.
- Customer service: Some budget insurance companies may not have the same level of customer service as larger, more established providers. This could result in slower claims processing or less personalized assistance.
- Discounts and rewards: Cheaper insurers may have fewer discounts and rewards programs compared to higher-priced alternatives, potentially reducing potential savings.
- Financial stability: It’s important to research the financial stability and reputation of any insurer before purchasing a policy, as some low-cost providers may have fewer resources to handle large-scale claims events.
Will choosing the cheapest car insurance impact the quality of coverage?
The quality of coverage can vary between insurance companies, regardless of their pricing. While cheaper car insurance providers may offer basic coverage, it’s important to review the policy details and ensure it meets your specific needs. It’s recommended to carefully read the policy terms and conditions, including any limitations or exclusions, before making a decision.
Can I still get discounts with the cheapest car insurance companies?
Yes, some affordable car insurance companies offer discounts that can help reduce your premium costs. Common discounts include safe driving discounts, multi-policy discounts (bundling auto insurance with other policies), low-mileage discounts, and discounts for certain safety features installed in your vehicle. It’s advisable to inquire about available discounts when obtaining quotes or contacting the insurance company directly.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Dani Best
Licensed Insurance Producer
Dani Best has been a licensed insurance producer for nearly 10 years. Dani began her insurance career in a sales role with State Farm in 2014. During her time in sales, she graduated with her Bachelors in Psychology from Capella University and is currently earning her Masters in Marriage and Family Therapy. Since 2014, Dani has held and maintains licenses in Life, Disability, Property, and Casualt...
Licensed Insurance Producer
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.