How To Get Cheap Car Insurance in 2022Updated September 16, 2022 Insurance
Getting reliable car insurance coverage is a must for any driver, but getting the best coverage can also mean spending more money on an insurance premium. Still, finding affordable car insurance that balances cost with excellent coverage options is certainly possible. Several companies are committed to offering cheap car insurance with discounts for good driving habits. Some insurance providers are committed to providing low rates while giving consumers top-of-the-line car insurance coverage.
Best Cheap Car Insurance Companies
- State Farm
- Erie Insurance
- Travelers Insurance
- Auto-Owners Insurance
- Liberty Mutual
- Farmers Insurance
- American Family Insurance
- Direct Auto
It’s important to note the difference between cheap car insurance with benefits for consumers and cheap car insurance that skimps on coverage. Whether you want both liability and comprehensive coverage or minimum coverage on your car, you should be able to explore a few options that fit your personal budget. The best auto insurance companies let you choose options that affect your insurance rate without taking away necessary coverage to give you a car insurance quote you can work with financially.
So, when we talk about cheap car insurance, we mean insurance that’s flexible enough to meet most budgets without leaving drivers unprotected in the event of an accident. Looking for the cheapest car insurance from a trusted insurance company can help you get the coverage you need at a price you can afford.
Best Cheap Car Insurance Companies
Shopping around for car insurance is just as important as comparing the cost of health insurance, homeowners insurance, and life insurance plans. Consumers have the right to shop around for the insurance coverage that best fits their needs and their budget. Many experts say that shopping for new auto insurance at least once a year could help consumers get the best rate.
The following companies are known for offering cheap car insurance. It’s important to remember that car insurance varies by situation and location, so you may get a better car insurance rate from one company than another person does. That’s why we’ve listed several companies, in no particular order, to help you get insurance coverage that fits your budget, even if you have a young driver, bad credit, or another less-than-ideal driving situation.
USAA is an insurance company that caters to current and former military service members and their immediate families, which is why it’s one of the most affordable insurance providers. The company has multiple rewards and benefits for members, like multi-vehicle discounts, safe driving discounts, and accident forgiveness.
Based in San Antonio, Texas, USAA operates in most states and may even cover members abroad.
USAA offers several types of car insurance for different drivers, including motorcycle, classic car, and motorhome insurance. Bundle your auto insurance with USAA to take advantage of multi-policy discounts for even more savings. USAA’s flexible options let you customize your deductible and policy limits to create a policy that fits your budget.
Geico is one of the few car insurance company options that offer a cost estimator on its website to give you an idea of what you can expect to pay with specific coverages added, like roadside assistance or collision coverage.
Geico is especially known for its affordable coverage for people with poor driving histories or poor credit. While these situations can typically lead to much higher-than-average insurance premiums with other companies, Geico often has more reasonable quotes, depending on your state. Paying in full for your policy or completing a driving course could lower your rate with Geico even more.
3. State Farm
State Farm operates across the United States and boasts an average savings of more than $500 when people switch from another car insurance company. Potential customers can get an online insurance quote within a few minutes by filling out some basic information about themselves, their vehicles, and their driving histories.
State Farm’s many insurance options allow customers to find cheap car insurance for virtually any situation. For example, the company offers liability insurance, uninsured motorist coverage, and rental car reimbursement coverage.
State Farm has thousands of agents across the country who can help you find the coverage you need at the price you want while ensuring that you get all available discounts.
4. Erie Insurance
Erie Insurance has been around for almost 100 years and remains one of the top options for the best cheap car insurance. In fact, founder H.O. Hirt started the company with the mission of providing “near perfect protection…at the lowest possible cost.”
In addition to standard coverages, like comprehensive coverage, personal injury protection, and liability coverage, Erie Insurance provides unique coverage options, like pet injury coverage and windshield repair coverage. You can also get your first accident forgiven by Erie Insurance if you remain claims-free on your account for at least three years.
5. Travelers Insurance
Travelers Insurance provides many different types of insurance policies, making it easy to bundle your policies together for extra savings. For example, you can combine your auto insurance with home or renters insurance for a better insurance rate on your policies.
Even if you don’t have other policies with Travelers Insurance or don’t want to bundle, you can still find cheap car insurance on its own. The company gives customers plenty of opportunities to get discounts on their policies, such as insuring multiple cars, getting a quote before your current policy expires, or insuring an electric or hybrid vehicle. Homeowners, safe drivers, and students can also find exclusive discounts through Travelers Insurance.
Use helpful online tools from Nationwide to find customized solutions for your car insurance needs. The Nationwide ThreeSixZero tool guides you toward the right coverage for car insurance that fits your needs and can offer a cheap car insurance rate based on discounts you might qualify for.
One of the best ways to save with Nationwide is to bundle your home and auto insurance, which could save an average of more than $600, based on national data. You can also take advantage of Nationwide’s unique offers, like its Vanishing Deductible, which lowers your deductible by $100 for every year you’ve proven your safe driving skills.
Progressive is another auto insurance company that operates across the country. It frequently updates its offerings to remain competitive in the insurance industry, which benefits drivers seeking cheap car insurance.
Snapshot is a popular tool that tracks your driving via an app and provides discounts for safe driving behaviors. Or, use the Name Your Price Tool to state what you’d like to pay for auto insurance and find a cheap car insurance rate that fits within your budget. Based on national data, Progressive claims that it saves new customers an average of $700 when they switch from their current company.
8. Auto-Owners Insurance
Auto-Owners Insurance is a collection of independent agents that cover 26 states. It offers a comprehensive selection of insurance coverages, like personal injury protection, collision coverage, and loan gap coverage.
The company allows customers to shave money from their auto insurance premiums through standard discounts, like good payment history discounts and a discount when you pay your policy in full. There are also a few unique ways to save, like paying your premium online rather than receiving paper bills and getting a lower premium for a favorable loss history.
9. Liberty Mutual
Find cheap auto insurance through Liberty Mutual, a company known for its quick online quotes and easy claims process. Liberty Mutual’s discounts can save many customers money on auto insurance, with savings for purchasing your policy online, bundling with other insurances, and having specific safety features in your vehicle. Sign up for RightTrack to monitor your driving performance and save up to 30% on your auto insurance premium.
Liberty Mutual currently sells insurance in 33 states through thousands of agents.
Allstate is headquartered in Illinois, but it provides cheap car insurance across all 50 states. It also works with agents across the country to help customers find the best deals for the coverages they need.
Allstate offers policy savings for having an anti-theft device installed, setting up an EZ-pay plan, paying a policy in full rather than installments, and signing a policy at least seven days before it starts. You might also qualify as a safe driver, good student, or reliable payer to see even steeper discounts on your bill.
11. Farmers Insurance
Farmers Insurance operates in most states, and qualified agents can help you find the best car insurance coverage for your situation and budget.
One way to save is through Farmers GroupSelect Auto Coverage, which can save drivers an average of 22% if they work in or are members of specific organizations or associations. Drivers who don’t qualify can still benefit from several other discounts, like proving safe driving behaviors through Signal’s monitoring system. Mature drivers who have recently completed a safe-driver training course can also qualify for a discount, as can families with multiple drivers sharing vehicles.
12. American Family Insurance
American Family Insurance offers insurance policies in 19 states, including Idaho, Oregon, and Washington. Its car insurance services include customizable policies that fit your budget and coverage needs and 24/7 help with claims.
In addition to bundling discounts, American Family Insurance customers can get discounts for having a teen driver on their policies, being a loyal American Family Insurance customer, or switching from a direct competitor. Low mileage, defensive driver training, and vehicle safety equipment discounts are also available for cost savings.
Esurance is owned by Allstate, so you’ll see some similarities between the two in terms of discounts and types of coverage, although Esurance has slightly fewer perks like accident forgiveness and classic car insurance. The main difference between them is that Allstate relies on insurance agents to assist customers, while drivers will handle more on their own with Esurance and its online customer support.
The direct approach of Esurance can bring down prices for some drivers, saving them even more than they would with Allstate. If you’re looking for minimal coverage on a budget, Esurance could be the right choice for you.
14. Direct Auto
Direct Auto has locations in 16 states and can also help drivers secure budget-friendly insurance online. This company is especially helpful in providing insurance for high-risk drivers. Therefore, you may not find this to be the cheapest option if you have a clean driving record. But, drivers with poor credit or driving histories could get their best rates here.
Direct Auto is also one of the few companies to offer a military discount of up to 25%. It also has discounts for having another insurance company for at least six months without a lapse in policy, being a homeowner, or being a member of an affiliated organization.
Car Insurance Discounts
The cheapest car insurance companies usually include multiple car insurance discounts for drivers to save money on their policies. Insurance companies offer discounts to people who lower the company’s risk of having to pay claims, such as favorable driving histories or being a low-mileage driver.
Before signing up for any cheap car insurance company, ask for a list of all potential discounts. You could get at least a few dollars shaved off your policy for having a good credit score, owning a home, or owning an insured vehicle with safety equipment installed. Some companies even give discounts to young drivers with good grades.
Is Cheap Car Insurance Always Best?
Cheap car insurance can help your wallet when you pay your premium monthly or in full. However, getting cheap car insurance won’t help you in the long run if you don’t have the necessary coverage.
For instance, you may need full coverage on your vehicle if you’re financing it. Not having full coverage could result in your insurance carrier not paying for claims resulting from an accident or damage and your lender taking possession of your car. This process can be much more expensive than paying extra money for car insurance to get full coverage.
Also, consider your deductible. Hiking up your deductible — the amount you’re required to pay before insurance pays for a claim — lowers your premium. But if you can’t reasonably afford that deductible at the time of a claim, you won’t be able to get insurance coverage. Keep your deductible as low as necessary to ensure that you can pay it if needed, even if it raises your insurance costs.
In summary, it’s best to find balance. Compare cheap car insurance quotes, coverages, and discounts with multiple companies to find the best solution for your situation. Working with an agent can also help you quickly compare costs with different insurers.