Home Insurance The Cheapest Car Insurance Companies of 2023

The Cheapest Car Insurance Companies of 2023

0
The Cheapest Car Insurance Companies of 2023
Photo-insurancebusinessmag

Switching car insurance companies can feel like a chore. However, we have done some of the legwork for you by finding the best cheap car insurance for different types of drivers. These include good drivers, those with an accident on their record, and those with poor credit. Shopping for a new car insurance policy can also be time-consuming, but we aim to make it easier for you. We have researched and identified the most suitable options for various driver profiles.

Cheapest car insurance for good drivers

COMPANYAVERAGE ANNUAL RATE
USAA$1,412
Auto-Owners$1,628
Geico$1,716
Westfield$1,759
National Average$2,067

USAA offers the most affordable car insurance for good drivers. However, only members of the military community and eligible family members can qualify for coverage.

If you don’t qualify for coverage with USAA, there are other options to explore. Consider checking out Auto-Owners, Geico, and Westfield, which also provide low rates for good drivers compared to the national average.

Cheap car insurance after an accident with injuries

COMPANYANNUAL RATE
USAA$2,093
Auto-Owners$2,145
Westfield$2,458
Geico$2,487
National average$2,897


USAA stands out as the most affordable option for drivers responsible for a collision leading to injuries, with a slight edge over Auto-Owners.

Both Westfield and Geico provide rates below the average, making them viable alternatives for those at fault in an accident with injuries.

Drivers should anticipate a significant rate hike if they are responsible for an accident resulting in injuries. If you fall into this category, it’s essential to obtain car insurance quotes from these particular insurers.

Cheap car insurance after an accident with property damage

COMPANYAVERAGE ANNUAL RATE
USAA$2,079
Auto-Owners$2,145
Geico$2,451
Westfield$2,458
National average$2,844

If you are a driver who caused a crash resulting in property damage, Auto-Owners can be a great option for you. In case USAA membership is not available to you, consider Geico and Westfield as they also offer decent rates for this group. You may find considerable savings compared to the national average with these insurance providers. However, keep in mind that rates tend to increase steeply from this point onward, according to our analysis.

ALSO READ  Proposed Rule Changes to Fuel Growth in India's $731 Billion Insurance Sector

Cheap car insurance for drivers with a DUI

COMPANYAVERAGE ANNUAL RATE
USAA$2,751
Progressive$2,776
American Family$2,983
State Farm$3,235
National average$3,454


Having a DUI on your record usually results in a significant rate increase. However, some insurers provide rates below the national average despite this. USAA is known for offering the most affordable coverage after a DUI. Still, Progressive comes in a close second with competitive rates.

Cheap car insurance for drivers with a speeding ticket

COMPANYANNUAL RATE
USAA$1,709
Westfield$2,001
Geico$2,098
Auto-Owners$2,250
National average$2,502

Getting a speeding ticket can increase your car insurance rate. However, there’s a way to mitigate the financial impact. By shopping around, you may find the increase isn’t as severe as you initially thought.

USAA offers excellent rates for this category of drivers, but it’s worth noting that eligibility is limited. If you don’t qualify for USAA, don’t worry; there are several other options available.

Many other insurance companies tend to charge below the national average for this particular group of drivers. So, explore your alternatives before making a decision.

Cheap car insurance for 16-year-old driver on a parent policy

COMPANYANNUAL RATE
Erie$1,594
Nationwide$1,774
Geico$1,952
USAA$2,036
National average$2,512

Teen drivers often come with high insurance costs. However, there are affordable options available if you plan to add a teen to your policy. One such option is Erie, which offers the cheapest average rates for adding a 16-year-old driver to a parent’s policy. If Erie doesn’t cover your area, you can consider Nationwide, which provides the second lowest rates.

Cheap car insurance for young drivers, 18 to 25

COMPANYANNUAL RATE
USAA$2,774
Geico$3,332
Auto-Owners$3,382
State Farm$3,795
National average$4,521

Young drivers often face some of the highest insurance rates compared to other driver profiles. When it comes to individuals aged between 18 and 25, there are several insurance companies worth considering for coverage. USAA, Geico, and Auto-Owners are among the top choices. Interestingly, State Farm, although not on our list of best car insurance companies, does offer competitive rates specifically for this particular group of drivers.

ALSO READ  Best Travel Insurance Companies of 2023

Senior drivers, like teen drivers, might face higher than average rates, emphasizing the importance of shopping around. For senior drivers, Auto-Owners offers the most affordable average annual rate, following closely behind USAA. If you are in your 60s, 70s, or 80s, it’s worth checking for discounts on defensive driving courses that can potentially lower your insurance rates.

Cheap car insurance for drivers with poor credit

COMPANYAVERAGE ANNUAL RATE
Geico$2,426
USAA$2,594
Nationwide$2,771
Westfield$2,964
National average$3,629


The national average for drivers with poor credit is significantly high in our analysis. However, young drivers on their own policy stand out as an exception. USAA doesn’t always provide the cheapest rates, contrary to this particular instance. Geico, on the other hand, takes the lead in offering the most affordable rates.

Comparing the average rates of USAA and Geico, there’s only a slight difference. Considering this, USAA becomes a viable option worth exploring, if it’s accessible to you.

Cheap liability car insurance

COMPANYAVERAGE ANNUAL RATE
USAA$367
Auto-Owners$389
Westfield$439
American Family$448
National average$635


States typically mandate car owners to have liability insurance, which can be a significant cost within a car insurance policy. If you’re seeking the most affordable liability insurance, two good options are USAA and Auto-Owners. These companies provide average annual rates that are notably lower than the national average.

Cheapest car insurer in your state

The cost of your insurance is influenced by where you live and the insurer you select. Check out the table below to find the most affordable car insurance companies for good drivers in each state. Keep in mind that USAA may offer the cheapest coverage in certain states, but it’s exclusive to the military community. Therefore, we’ve included the next most affordable insurer for general eligibility.

If you qualify for coverage through USAA, it’s advisable to obtain a quote to determine if it’s the best option for your budget.

ALSO READ  Should You Get Pet Insurance?
STATECHEAPEST COMPANY FOR GOOD DRIVERSAVERAGE ANNUAL COST
AlabamaTravelers$1,176
AlaskaState Farm$1,699
ArizonaRoot$876
ArkansasNationwide$1,357
CaliforniaWawanesa$1,470
ColoradoColorado Farm Bureau Mutual$1,531
ConnecticutTravelers$1,399
DelawareTravelers$1,525
FloridaGeico$2,771
GeorgiaAuto-Owners$1,439
HawaiiState Farm$1,207
IdahoAmerican National$422
IllinoisMercury$1,388
IndianaPekin Ins.$808
IowaHastings Mutual$604
KansasGeico$1,022
KentuckyAuto-Owners$1,406
LouisianaGeico$2,484
MaineConcord Group$852
MarylandTravelers$1,930
MassachusettsState Farm$1,283
MichiganSecura Ins.$988
MinnesotaAmerican Family$1,597
MississippiDirect General$1,002
MissouriState Farm$1,699
MontanaProgressive$1,234
NebraskaGeico$898
NevadaGeico$1,776
New HampshireMMG Ins.$828
New JerseyNJM$1,370
New MexicoNationwide$1,370
New YorkNYCM Insurance$2,986
North CarolinaNorth Carolina Farm Bureau$930
North DakotaNodak Mutual$748
OhioHastings Mutual$512
OklahomaOklahoma Farmers Union$1,686
OregonQBE$922
PennsylvaniaTravelers$1,916
Rhode IslandState Farm$1,233
South CarolinaTravelers$1,472
South DakotaAllied$1,148
TennesseePenn National Ins.$1,048
TexasGeico$1,861
UtahGeico$1,230
VermontGeico$660
VirginiaPenn National$944
WashingtonPemco$1,129
West VirginiaNationwide$1,196
West VirginiaNationwide$1,196
WisconsinSecura Ins.$1,006
WyomingAmerican National$546
Source: Quadrant Information Services.

How much is car insurance?

The average cost of car insurance for a good driver is $2,067, as per our analysis. The cost of coverage can vary depending on several factors. To find the cheapest car insurance, it’s advisable to obtain and compare at least three quotes.

Your coverage expenses will be influenced by the type and amount of coverage you select. For instance, a liability-only car insurance policy meeting your state’s minimum requirements will likely be more affordable than a full-coverage policy including liability, collision, and comprehensive coverage.

How to find the cheapest car insurance


Searching for the most affordable car insurance? These strategies can aid you in finding a suitable policy and a budget-friendly rate.

Comparison shop for options. Before finalizing a policy, obtain quotes from at least three different car insurance companies. This will allow you to assess average insurance costs and identify the insurer with the most economical coverage.

Be on the lookout for discounts. Discounts can effectively lower your rates. You might qualify for a discount if you bundle your home and auto insurance with the same company or include all household vehicles on a single policy. When seeking quotes, inquire about other potential discounts, like those for good students or vehicles equipped with safety features.

Purchase only what you truly need. Determine the specific types of car insurance and the level of coverage required for your circumstances before requesting quotes. Avoid obtaining unnecessary coverage, as it will only result in higher rates.

Keep in mind that this doesn’t necessarily imply you should opt for the minimum state-required insurance. For instance, if you own a costly new car, additional coverage like new car replacement may be a wise choice. Similarly, if you lease or finance your vehicle, gap insurance might be a prudent addition to your policy.

How much car insurance do you need?

  1. To comply with your state’s minimum car insurance requirements, ensure you purchase sufficient coverage.
  2. In most states, you are obligated to have bodily injury liability and property damage liability coverage at the very least.
  3. These coverage types compensate others for injuries, death, or physical damage caused by you.
  4. Additionally, liability insurance covers your legal defense if you are sued due to an accident, and it covers settlements or judgments within your policy limits.
  5. Depending on your location, you might also need to carry uninsured (and sometimes underinsured) motorist coverage.
  6. Personal injury protection (PIP) and medical payments (MedPay) coverage could also be required.
  7. Check with your state’s department of motor vehicles for the minimum limits of these coverage types, or your licensed insurer can provide this information.
  8. If you have a leased car or an outstanding loan, your lender may demand extra coverage like collision, comprehensive, and gap coverage.
  9. After meeting state or lender requirements, consider protecting your assets by carrying enough car insurance.
  10. This ensures you are safeguarded against potential losses in a lawsuit.