How To Get Cheap Car Insurance?
Are you in the market for car insurance, but trying to save money? You’re not alone! Everyone wants to find cheap car insurance rates, without sacrificing coverage or customer service. Fortunately, there are plenty of steps you can take to get great prices on your auto insurance policy.
In this blog post, we’ll discuss various ways to reduce your premiums and ensure that you get the best deal possible on your car insurance plan. Read on for more information about how to get cheap car insuranceso that you can rest easy knowing you’re covered and saving money at the same time.
Avoid Assuming That A Particular Company Has The Lowest Prices
When it comes to finding the cheapest car insurance rates, don’t make the mistake of assuming that any one company is the clear winner. Sure, those flashy commercials might make it seem like one insurer is offering the best deal on the market. But the reality is that there is no one-size-fits-all solution when it comes to car insurance.
The only way to ensure you’re getting the lowest rate possible is to take the time and compare car insurance rates.
A NerdWallet analysis of rates highlights this importance. For instance, in Florida, State Farm offers the cheapest rate at an average of $1,766 a year for a full coverage policy on a 2018 Toyota Camry LE, while Geico’s average rate is $239 higher. However, in California, Geico is the cheapest option with an average rate of $1,458, while State Farm’s average is $423 higher.
Consider Local and Regional Insurance Companies
Sure, the big names like Allstate, Geico, Progressive and State Farm dominate the market, but that doesn’t mean they always come out on top in terms of customer satisfaction. In fact, smaller insurers such as Auto-Owners Insurance and Erie Insurance might offer the same level of coverage at a lower rate, making them worth considering.
Improve Your Credit
In fact, insurers in most states use credit when determining car insurance rates. That’s why it’s essential to work on your credit and improve your chances of getting lower insurance rates. A recent analysis by NerdWallet showed that poor credit can increase car insurance rates by hundreds of dollars per year compared to having good credit.
Don’t let your credit score hold you back from getting the best insurance deals. By paying your bills on time, reducing debt, and tracking your credit score, you’ll soon be on your way to saving money and enjoying lower car insurance rates.
Skip Comprehensive and Collision Coverage For An Older Car
Collision coverage is designed to repair any damange caused to your vehicle from a car or object, while comprehensive coverage is meant to repair any non-collision related damage. However, if your car is older and has a low market value, it may not be worth it to pay for these coverages.
After all, the maximum payout is limited by the value of the car – so if your car isn’t worth all that much, it might make more sense to forgo these kinds of policies in order to save money on your insurance premiums.
Raise Your Deductible
One option that’s worth exploring is raising your deductible on comprehensive and collision coverage. By agreeing to a higher deductible, you’ll likely see a reduction in your monthly premiums. Of course, it’s important to weigh this potential savings against the risk of having to pay a higher amount if you ever need to file a claim. But if you’re confident you can afford the deductible in the event of an accident, opting for this choice could be a wise financial move.
Consider Usage-Based or Pay-Per-Mile Insurance
With options like Allstate’s Drivewise, Progressive’s Snapshot, and State Farm’s Drive Safe & Save, you can qualify for discounts based on factors like how much you drive and how well you drive. If you’re someone who barely uses their car, pay-per-mile programs like Metromile, Allstate’s Milewise, or Nationwide’s SmartMiles could save you even more money.
Of course, opting for these programs means giving your insurance company permission to track your driving behavior, but if the money saved is worth it to you, it’s worth considering.
Ask About Discounts
Building a relationship with your insurance provider can really pay off. Some companies will give you discounts for bundling car insurance with other policies, such as homeowners insurance, insuring multiple cars with one policy, having a clean driving record, paying your entire annual or six-month premium at once, agreeing to receive documents online, owning a car with certain anti-theft or safety features, or being a member of particular professional organizations or affiliate groups.
However, don’t just think a long list of possible discounts will be enough to convince you. Make sure you compare rates from multiple insurers, so you can find the best deal for you.
What Factors Influence Your Premiums?
Your car insurance premiums are based on several factors, including your car, your driving habits, demographic factors, and the coverages, limits, and deductibles you choose. These factors interact to determine the level of risk you present to the insurance company and how much they will charge you for coverage. Let’s explore each of these factors in more detail:
Your car
The make, model, age and value of your car all play a role in determining your premium. Generally speaking, older cars cost less to insure than newer ones because they’re worth less and are often not equipped with safety features like airbags or anti-lock brakes.
Your driving habits
If you’ve been in multiple accidents, your insurance cost is likely to be higher than someone with a clean driving record. However, if you’re a new driver and have not had insurance before, you’ll pay more for car insurance regardless of your driving record.
Another significant factor is how much you use your car. Insurers usually consider the amount of time you spend behind the wheel. If you have a long daily commute, you may pay more for insurance than someone who only uses their vehicle to run errands on weekends.
Demographic factors
If you live in an urban neighborhood that is more prone to accidents, theft, and vandalism, you may end up paying a higher premium. Your age and gender are also significant factors, as younger and less experienced drivers are often charged more for car insurance.
The coverages, limits and deductibles you choose
The type of coverage
While liability coverage is typically required by most states, you also have the option to choose additional coverages such as comprehensive, collision, uninsured/underinsured motorist coverage, and medical payments or personal injury protection.
It’s important to carefully consider these coverages and their limits in relation to your budget and potential risks. Additionally, you may want to consider optional protections such as towing and labor costs, rental reimbursement, and sound system coverage.
Your limits and deductibles
Your policy’s limits represent the maximum amount your insurance company will pay towards a covered loss. By adjusting your coverage limits based on your needs, you can find a balance between the coverage you need and the premium you’re willing to pay.
Similarly, your deductible is the amount you agree to pay before your insurance kicks in. Choosing a higher deductible can help lower your insurance premiums, but it can also mean paying more out of pocket in the event of a covered loss.
Ultimately, your insurance provider can help you determine which coverage, limits, and deductibles are best suited to your needs, as well as identify any discounts you may be eligible for.
The Cheapest Car Insurance
If you’re looking for the cheapest car insurance option, you may want to consider your state’s minimum coverage requirements for liability-only auto insurance. This type of coverage covers property damage and medical expenses of others as a result of accidents that you caused. Our analysis primarily focuses on rates for this type of coverage across different states.
However, it’s important to keep in mind that your car insurance rates will vary depending on your location and driving history, among other factors. Check out our list of the overall cheapest car insurance companies for each category.
| Category | Company | Average Monthly Rate |
|---|---|---|
| Midsize company | Auto-Owners | $28 |
| Senior drivers | State Farm | $36 |
| Large company | State Farm | $37 |
| After a speeding ticket | State Farm | $45 |
| After an accident | State Farm | $50 |
| If you have poor credit | Geico | $73 |
| After a DUI | State Farm | $68 |
| Young drivers | Travelers | $86 |
The 10 States With the Cheapest Car Insurance Costs
Here’s a look at the 10 states with the lowest average monthly car insurance rates based on our research:
| Rank | State | Average Annual Cost |
|---|---|---|
| 1 | New Hampshire | $940 |
| 2 | Maine | $992 |
| 3 | Ohio | $1,010 |
| 4 | Virginia | $1,066 |
| 5 | Idaho | $1,118 |
| 6 | North Carolina | $1,124 |
| 7 | Vermont | $1,145 |
| 8 | Wisconsin | $1,169 |
| 9 | Pennsylvania | $1,214 |
| 10 | Indiana | $1,215 |
FAQs about How To Get Cheap Car Insurance?
How can I get cheap car insurance?
There are a few things you can do to help lower your car insurance premiums. Shop around for different companies and compare rates, opt for higher deductibles, take advantage of discounts based on factors like your driving habits or vehicle type, and consider pay-per-mile programs if you don’t drive frequently.
What factors influence the cost of my car insurance?
Your car insurance premiums are based on several factors, including your car, your driving habits, demographic factors, and the coverages, limits, and deductibles you choose. Opting for cars with higher safety ratings or those equipped with anti-theft devices may help reduce costs. Additionally, having a good driving record and taking advantage of discounts may help lower your premiums.
How much should I expect to pay for car insurance?
Generally speaking, the national average cost of car insurance in 2023 is approximately $2,014 per year. However, it’s important to note that your rate may vary significantly depending on your individual circumstances.
What discounts are available for car insurance?
There are a variety of discounts that can help reduce your car insurance premiums. These include good driver discounts, multi-policy and multi-vehicle discounts for households with multiple drivers or vehicles insured by the same company, anti-theft device discounts for cars equipped with security systems, and student discount programs for young drivers who maintain good grades in school.
Conclusion
Car insurance can be expensive, but there are steps you can take to save money. Remember to shop around for the best rates, compare different coverages and limits, and consider pay-per-mile programs or other ways of limiting your usage of the car if you’re a light driver.
Additionally, consider discounts offered by insurers as well as factors like safety ratings and anti-theft devices when buying a car. Finally, look at state-by-state averages to get an idea of how much you may pay in premiums no matter where you live.
Thank you for reading! We hope this article was helpful in answering the question how to get cheap car insurance?
I’m Timothy Ballard, owner of a used car dealership in Springfield. I love just about everything automotive, but I have a special place in my heart for trucks. I’m an ASE Certified Master Technician, so I know my way around a car. In my spare time, I enjoy traveling with my family and hiking new trails.