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What's in this guide?
- Which companies have the best cheap car insurance?
- Get cheap car insurance quotes
- Top 11 ways to get cheap car insurance
- How much can I save on car insurance with discounts?
- What’s the cheapest type of car insurance?
- Can I get cheap car insurance by switching?
- Should I balance cheap insurance with good coverage?
- Bottom line
- Frequently asked questions about cheap car insurance
Which companies have the best cheap car insurance?
The cheapest insurance for you depends on what you’re looking for in a policy, plus other factors such as your driving record, location, demographics and car.
Looking at car insurance quotes on a general scale can be difficult, especially since every driver will get a unique quote based on their driving history, vehicle and state. The cheapest car insurance company for one driver might not be the same one for another.
Compare the companies with the lowest rates for the same driver profile to get an idea of who might have the cheapest rates for you.
Cheapest car insurance for men
|Age||Cheapest rate||Cheapest insurer|
Cheapest car insurance for women
|Age||Cheapest rate||Cheapest insurer|
Cheapest car insurance for young drivers
|Company||Cheapest annual rate|
Cheapest minimum car insurance coverage
|Company||Lowest annual rate||Learn more|
|21st Century||$651||Read review|
|Liberty Mutual||$709||Read review|
|State Farm||$726||Read review|
|The Hartford||$727||Read review|
Which cheap car insurance is best for me?
These insurers tend to have the cheapest rates for certain drivers, but your mileage may vary.
|Cheapest for||Average annual rate||Cheapest insurer|
|Drivers who want to bundle insurance||$864||★★★★★||Progressive|
|Military members, veterans and family||$532||★★★★★||USAA|
Get cheap car insurance quotes
Top 11 ways to get cheap car insurance
Compare the top ways to save on your car insurance to find out if you could lower your premiums.
- Only pay for the coverage you need. Resist adding optional extras unless you truly need them. Also consider dropping comprehensive and collision on an older car.
- Trade in for a cheaper car. The next time you’re shopping for a new or new-to-you car, look for lower insurance rates on safer cars or cheaper cars.
- Try a higher deductible. Consider raising your deductible, which is the amount you have to pay when making a claim before you get reimbursed. A higher deductible means lower premiums. Just make sure you can afford the higher cost if you end up needing to make a claim.
- Be a safe driver. Take a defensive driving course to get a safe driver discount and some new skills, and keep your claims history and tickets to a minimum.
- Nominate your drivers. You should see lower premiums by insuring your policy in the oldest or safest driver’s name and nominating drivers with higher risk. Just avoid fronting — falsely listing who uses the car the most — otherwise your claim could be denied.
- Park in a safe location. Cars kept in locked garages are cheaper to insure than those parked on the street. Consider installing antitheft or security features for lower premiums.
- Reduce your mileage. You could get a low mileage discount if you drive less than 35 miles a day or 13,000 per year.
- Improve your credit score. If you live in a state that allows insurers to factor in your credit score when setting your rates it could save you big to bump it up before applying.
- Check for discounts. Make sure you’re getting rewarded where you can. And check for any new deals that may come up after being with a carrier for a while, like a claims-free or loyalty discount.
- Shop around to compare prices. Switch car insurance instead of renewing, especially if you’ve been through any big life changes like getting married or moving. You can also use comparison quotes to ask for a price match from your current insurer.
- Consider local carriers. A regional or local car insurance company may have better rates than a national one.
How much can I save on car insurance with discounts?
Just about every provider offers discounts, and you could save up to 50% with driver and vehicle discounts if you qualify.
- Defensive driver. Take and pass a driver safety class and get a 5% to 10% discount with some providers. Bonus: If you have a poor driving record, some classes will also erase violation points from your license.
- Antitheft device. A car alarm will deter would-be thieves, which lessens the insurer’s risk. Today, these alarms come standard on most cars. But don’t forget about other antitheft devices, like a steering wheel lock bar, an electronic immobilizer or a vehicle tracking system.
- Multiple policies. Bundling your policies can bring big savings. If you and a member of your household both have car insurance, make sure you get both cars on the same policy. You can get even greater savings by bundling other insurance policies like renters or homeowners and life insurance.
- Safety devices. A car with safety features or above average safety ratings can save you money. Some safety features that will get you a discount include antilock brakes, air bags, lane departure warning and adaptive cruise control.
- Paid in full. If you are financially able to pay your full premium upfront instead of in monthly payments, you’re likely to get a discount.
- Homeowner. If you own a home, you can save on insurance, even without bundling it. Insurance providers assume homeowners are more financially stable and therefore less of a risk.
|Discount||Average savings||How you could qualify for this discount|
|Safe driver||$50 to $500 or 15%||Drive without getting in an accident or making a claim for a certain period of time|
|Good student||10% to 35%||Get a B average (3.0) or higher in high school or college|
|Paid in full||5% to 10%||Pay upfront or sign up for autopay|
|Bundle||5% to 10%||Combine multiple cars or insurance policies with the same provider|
|Low mileage||20% to 50%||Your car is garaged, you don’t drive much or you drive during low traffic times|
|Defensive driver||10% to 20%||Pass a driver safety or skills course|
|Security||5% to 25%||Your car has a device that makes it harder to steal, like an alarm or tracking device|
|Safety device||5% to 33%||Drive a car with antilock brakes, airbags, etc.|
|Electric, hybrid||5% to 10%||Choose an electric, hybrid or low emission car|
|Military||5% to 10%||Serve, have served or have an affiliation with the military|
|Low income||50% to 75% or more||Have a low income in states that require insurance|
|Homeowner||10% to 25%||Own a home instead of renting|
|Occupation||5% to 15%||Be employed in education, healthcare, government, nonprofit and other occupations|
|Online quote||5%||Get a quote, switch or sign up and get a discount on your first term|
What’s the cheapest type of car insurance?
Price is important, but it’s not everything. The best move is to find the coverage you want first, and then try to reduce your premiums from there.
Start with the bare minimum requirements for your state and add more coverage types from there. Then see how much extra it costs to increase maximum coverage.
You can often double your coverage for only a few bucks more a month. For example, if your state requires $15,000 bodily injury liability, bumping that up to $30,000 might only cost an extra $10 a month. A good rule of thumb is that your total coverage amount should be enough to completely replace your car in the event of a total loss.
- State minimum. Get the basic bodily injury and property damage liability insurance coverage required by your state.
- Liability only. Cheap, liability-only auto insurance is a good starting place for low cost premiums. Add on extra coverage maximums for a slight premium increase.
- Collision. For an extra $25 a month on average, you could get coverage for damage to your car in an at-fault crash.
Liability only vs full coverage: average annual rates
|State||Liability only||Full coverage|
What kind of coverage can I drop to save money on my policy?
You might be able to drop certain kinds of coverage from your policy to get big savings on the cheapest auto insurance rates. Make sure this option works for you before cutting coverage you do need.
- Comprehensive. Drop comprehensive on an older vehicle to save big.
- Medical payments. Your health insurance might be enough to cover your bills in an accident.
- Gap insurance. After you pay off your car loan, you won’t need gap insurance anymore.
Can I get cheap car insurance by switching?
The average driver shops for new car insurance every 12 years. But comparing quotes from different companies is the best way to save on car insurance, and most drivers save up to $500 by switching.
It’s probably time to start shopping if you answer yes to any of these questions.
- Are you unhappy with the current level of service? Maybe you’re getting too little or too much communication, terms aren’t clearly stated, you’ve had problems when making a claim, customer support is unhelpful or you’re being penalized for a no-fault claim.
- Have your circumstances changed? Maybe you hit an age milestone, you’ve moved addresses or you changed jobs. Your rates could be lower now, depending on any new life events.
- Are you eligible for new discounts? You may now be eligible for discounts that your current insurer doesn’t offer. These could include bundling discounts, free perks and even discounts just for getting an online quote.
- Is your current policy the cheapest on the market? The insurance market is constantly changing, and new brands enter the market all the time. Letting yourself get stolen by a competitor might lead you to a great deal.
Car insurance savings calculatorCalculate how much you could save by switching car insurance.
|Annual car insurance cost|
Fill out the form and click "Calculate" to see how much less you could be paying for car insurance.
Expected savings: $
How can I get a lower rate on my auto insurance?
Start by reducing coverage maximums, dropping unneeded coverage and increasing your deductible. Then work on improving your driving record and reducing claims. Shop around to get better rates, and then talk to your current provider to see if you can get a lower rate before switching car insurance.
Should I balance cheap insurance with good coverage?
The cheapest car insurance you can find won’t necessarily be the best car insurance. When selecting car insurance, you’ll want to weigh cost versus value to find the right insurance for your needs.
- Accident forgiveness could save you long term. This feature might cost more on the front end, but when your rates go up because of a fender-bender, you could end up paying more in the long run.
- Customer service is usually worth paying for. Getting great support may be worth the extra couple dollars each month. You might wish you’d factored in customer support when it comes time to file a claim or get help with an issue.
- Less coverage means less protection. Your state’s minimum requirements are a good place to start. But in a major accident, you might be glad you increased your coverage. After your coverage maxes out, you’ll be left footing the bill.
- Free towing is often handy. Included roadside assistance can end up paying for itself when you consider the fees, hassle and time involved in getting help when you’re stranded on the side of the road.
When it makes sense to buy the cheapest car insurance
Getting only your state’s minimum coverage requirements could give you really cheap car insurance rates, but it could cost you much more money in the long run if you’re involved in an accident. If the cost to fix the damage to your car exceeds your max coverage amount, you’ll be left to make up the difference.
However, there are certain situations where you might want to consider getting minimum coverage. As your financial situation changes, be sure to review your coverage.
- You don’t plan on putting many miles on your car. Does your car sit in the garage most of the time? The less you drive the less risk there is that you might get in an accident. This is a time when minimum coverage might be a good choice.
- Your car isn’t worth much. Are you driving around an old car that would cost more to fix than to replace? More than minimum coverage probably isn’t worth it in this situation. Go ahead and find a budget insurer for your beater car.
- You have little to no income. If you’re living paycheck to paycheck and need your car to simply get to work, the savings that minimum coverage provides might be worth it.
- You have a low net worth and no major assets. You are less likely to be sued if you are at fault in an accident if you don’t have any valuable assets like a home or expensive collectibles. However, you can still have a lien placed against you, or you could lose your license for an inability to pay.
- You’re working to remove points from your license. If a poor driving history has racked up points on your license, you’re likely paying a higher insurance premium. Obtaining minimum coverage in this situation can help to offset the costs.
If you want inexpensive car insurance, you’ll need to compare the options available from a range of insurers. The right policy at the right price is out there, you’ve just got to go find it. Compare your options to find cheap auto insurance that’s right for you.
Frequently asked questions about cheap car insurance
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