Geico takes the title for cheap car insurance in 36 states, as well as overall for the country, based on an Insure.com analysis of rates from top market-share companies for full coverage.
Geico’s average nationwide rate is nearly half of Allstate’s, which shows why it’s important to compare car insurance rates before buying a policy. You can’t save if you don’t shop around for the cheapest auto insurance rate. The price of an auto insurance policy will vary significantly among insurers because each company assesses risk differently and uses its own formula to calculate what you pay.
Top 6 Cheapest Car Insurance Companies
Here is how major car insurance companies ranked on price for a full coverage policy
|Company Name||Average Annual Price|
|State Farm||$ 1,313|
Who has the cheapest auto insurance near me?
If you’re wondering, “Who has cheap car insurance near me?” you can get an idea of which car insurance companies have low cost car insurance in your state by doing a search in the table below. It shows how insurers ranked on price for a policy with the following coverage:
- Bodily injury liability — $100,000 per person/$300,000 maximum per accident for bodily injury
- Property damage liability — $100,000 for property damage
- Comprehensive and collision coverage with $500 deductible
- Where you live can make a difference in your auto insurance premiums.
- Insure’s tool enables drivers to compare auto policy costs quickly.
- This report shows the cheapest car insurance companies by state, for a given driver profile.
- Drivers should shop for the best coverage at least once per year; shopping every six months is even better.
- The lowest-cost option may not always be the best solution; consumers should consider value for the price.
Cheapest car insurance companies by state
Enter your state in the search field to see average rates by company.
|State||Company||Avg. Car Insurance Rates (Annual)|
|Florida||21st Century Centennial||$1,972|
|Iowa||Amco Ins Co||$645|
|Idaho||Depositors Ins Co||$863|
|Illinois||Amco Ins Co||$678|
|Mississippi||Progressive Gulf Ins Co||$1,268|
|North Carolina||State Farm||$845|
|North Dakota||State Farm||$1,132|
|North Dakota||Mid Century||$2,560|
|New Hampshire||State Farm||$1,036|
|New Jersey||21st Century Centennial||$762|
|New Jersey||Allstate NJ||$1,761|
|New Jersey||State Farm||$1,847|
|New Mexico||State Farm||$1,177|
|New York||State Farm||$1,855|
|Rhode Island||State Farm||$1,132|
|South Carolina||State Farm||$1,511|
|South Dakota||Mid Century||$982|
|South Dakota||State Farm||$1,052|
|West Virginia||State Farm||$1,309|
*Rates were fielded by Quadrant Information Services from up to six major insurers in nearly every ZIP code of each state. Driver profile: male, age 40, married, clean record and good credit, driving 2016 Honda Accord. Full coverage of 100/300/100 with comprehensive and collision; $500 deductible.
Expert Recommendation and Tips for buying affordable car insurance and getting cheap car insurance quotes
While a list of cheap car insurance companies is helpful, Penny Gusner, consumer analyst for Insure.com states, “It should be used as a jumping off point to comparison shop with a variety of auto insurers. Your rates will differ from ours due to your own personal rating factors — such as your age, vehicle and driving record, thus the need to shop around and find which insurer offers the best price for your specific situation.”
Gusner’s list of ways to get and keep cheap car insurance rates:
- Shop around at least once a year, if not at every six-month renewal period.
- Keep a clean driving record. Your history behind the wheel shows the risk to you pose to the insurer. If you don’t have a clean record now, work towards it. As incidents, such as a speeding ticket, falls off your driving record, shop around for better rates.
- Keep continual auto insurance coverage. A gap in coverage is looked down on my insurers and will take away your chance to get the cheapest car insurance rates. If you go without a car for a period of time, opt for a non-owners auto policy during that time.
- Have excellent credit. Most states allow insurers to use your credit as a rating factor and offer higher rates to those whose credit is lacking. If your credit score is not good, work to better it and keep shopping for affordable auto insurance because rates should fall as your credit gets better.
- Raise your deductibles. Set your collision and comprehensive deductibles as a higher rate — but still one you can afford. This goes hand-in-hand with Gusner’s advice to use your insurance for major things, pay out of pocket for minor items if possible and then claim to repair your vehicle for major damage that is above your deductible amount. Fewer claims and a higher deductible will keep your car insurance costs lower.
- Get all the discounts you can. Car insurance companies’ discount offering differ immensely, so make sure you are getting a price cut for all the discounts you are eligible to receive. Scour your insurer’s website and ask if you see a discount you believe you should receive but don’t see on your dec page.
Cheap car insurance quotes are just one factor to consider when buying a policy
saving money on car insurance by comparison shopping to see who has cheap car insurance quotes is wise, but keep in mind the cheapest car insurance policy isn’t always the best one. There are other factors to consider when buying coverage. Insure.com surveyed 3,700 customers to find the Best Car Insurance Companies, based on value for the price, customer service, claims handling and likelihood of being recommended. You should also consider the financial rating of potential insurers since it’s vital that your insurer has the financial means to pay out if you make a claim.
Another thing you should consider in addition to price and customer service is the level of coverage that best suits your particular situation. While buying bare-bones coverage will net the cheapest car insurance cost, it may leave you on the hook financially should you get in accident or your car is damaged by severe weather or is stolen.
If you buy just the state minimum required to drive legally, your policy won’t pay for damage to your car — it will only cover damage to other drivers’ vehicles and injuries you cause you cause to others in an accident you cause. To have your insurer pay for damage to your car you need to buy comprehensive and collision coverages, which are optional. Additionally, buying just the state-required liability limits means you could wind up paying out-of-pocket if you’re at fault for an accident that exceeds your policy limits. That’s why Gusner recommends policies that include $100,000 payouts per person you injure, up to $300,000 for one accident, and $100,000 to pay for damage you cause to other’s cars and property, along with comprehensive and collision.
Is the cheapest car insurance policy the best choice?
The cheapest auto insurance policy you can find may not be the best option. As we mentioned previously, you have to look beyond the cost. If you find a super cheap auto insurance, we advise you to read over the details of the policy before purchasing. There may be reasons why that policy is not a good fit for your situation.
Some policies, especially those advertised as “very cheap car insurance with no deposit or down payment,” come with restrictions that standard policies do not. Common restrictions on these include:
- Only the named driver is insured. (Standard policies normally cover anyone that you give permission to operate your vehicle).
- Step-down provision that states other drivers of your vehicle are covered, however, if you carry higher than minimum liability limits, when others operate your car the limits are “stepped down” to just state minimum.
- Your coverage does not extend to rental cars.
Cheap car insurance policies do not normally come with perks like disappearing deductible or accident forgiveness. Also, very cheap insurance providers tend to not offer as many discounts, so compare to an affordable company where you have a variety of discounts offered to make certain you really are getting a good deal with the “cheaper” company.
We’re not saying all super cheap car insurance policies are bad, many can be like any other standard policy – just do your due diligence in reading all the details of the policy and checking the financial security status of the insurers, as well as reviews to make sure the company is a good fit for you and your family’s current circumstances. Don’t buy and then be surprised.
Get Affordable Car Insurance Quotes Now
Don’t forget to compare quotes from best car insurance companies by filling out the information in the form below. This will help you to get instantly matched up to 20 insurers in your area and compare cheap auto insurance that still includes sufficient coverage.