The best way to protect your car is to have it correctly insured. It will cover the cost of any damage to your vehicle and help cover the cost of any financial losses if your car is stolen or damaged in an accident. Some of the cheapest car insurance policies also cover rental cars, which is excellent for students who are not ready to purchase a brand new car.
There are plenty of sites online that list the best car insurance companies in the country, but this article will focus on the cheapest car insurance companies in the country. The best car insurance companies in the country have the best rates, so shop around when looking for a quote. You can also try to find a broker that has worked with a company you are interested in to get a better deal.
Factors That Go Into Car Insurance
Various things go into choosing, buying, and managing car insurance. You may have to pay a small deductible, a premium for a specific coverage type, or a certain amount for each accident reported in your vehicle’s history. There are also things that you may not have to worry about at all. For example, if you have a new car, you’re likely to receive a discount on your first year’s car insurance. However, if you have an older car and plan to keep it longer, you may want to consider upgrading to car insurance that offers more protection.
The most important things to consider when buying car insurance are:
- The coverage you need
- The cost of the policy
- The coverage provided
The best car insurance companies can provide you with all that information. However, it is essential to realize that these features don’t necessarily make a car insurance company the best. What you get in return for these features is entirely subjective. If you compare A to B, then A is the best company. However, if you compare A to C, A is not necessarily the best company.
20 Cheapest Car Insurance Companies In The US
Following are the top 20 cheapest insurance companies in the US in 2022. All the data, ratings, and prices are collected from multiple trusted sources and are completely up-to-date.
USAA is a well-established and respected auto insurance provider. They have the lowest insurance rates compared to other big names in the field and offer various discounts to military members and their families. For example, they provide an extra 20% off the average price of vehicle insurance for members of the US armed forces. USAA also offers 10% off to active duty and retired military personnel family members.
American family members of military personnel can also take advantage of USAA’s Home Equity Protection Policy discounts. Military discounts are available on a variety of other insurance products as well. You don’t have to be an army community member to take advantage of these discounts. You can also receive them if you are dependent on a military community member.
Why Choose USAA: Top scorer in Good Service, Customer Satisfaction, and Claims Handling
Rate For Good Drivers: $875 /year
Geico has low car insurance rates, and its complaints level is one of the lowest in the business. It is a good sign because the company pays attention to its customers’ concerns and solves their problems as efficiently as possible. Most insurance providers try to increase their rate as soon as possible, but Geico is different. It pays attention to its policyholder’s concerns and tries to solve them as efficiently. Geico offers drivers in all 50 states discounts on car insurance, including a 25% savings for insuring multiple vehicles and a 15% student discount. The only complaint customers make about inconsistent claims processing.
Why Choose Geico: Easy to Use, Good Customer Service, and Solid Referral Rate
Rate For Good Drivers: $1,100 /year
3. State Farm
The company has a wide range of coverages, such as bodily injury and property damage liability, and benefits such as extended insurance coverage for pre-existing conditions and multiple vehicle options. Policyholders can choose from rates based on age, gender, and zip code. In addition to its wide availability, State Farm is also respected for its transparency and open communication with policyholders.
State Fram’s customers praise their customer service, handling claims, and loyalty. However, if you buy a policy through local agents, the customer service may not be satisfactory.
Why Choose State Farm: Low rates, Good Customer Service, and Loyalty
Rate For Good Drivers: $1,169 /year
Erie Insurance Group is a subsidiary of Erie Insurance Exchange, founded in 1892. It is a leading provider of auto, home, life, and business insurance products. The company has been serving its customers for almost 100 years.
ERIE is also one of the largest insurance providers in the New York Metropolitan area. It has many advantages over other providers, including a strong complaint history and AAA rating. We highly recommend checking out ERIE for drivers under 25 since they offer decent rates, especially for good drivers. The company also offers insurance through independent agents in all 50 states.
Why Choose Erie Insurance: Good Rates and Claims Service
Rate For Good Drivers: $1,200 /year
The Travelers Companies Auto Insurance is suitable for drivers who want more coverage than a liability. Their rates are low but don’t let that deceive you because they don’t rank well in customer support and claims. The company offers a wide range of optional coverages that can help you keep your car insured when it’s in an accident or stolen. They offer liability insurance, roadside assistance, and Loan/Lease Gap Insurance.
Why Choose Travelers: Competitive rates
Rate For Good Drivers: $1,251 /year
Nationwide is a company you should check out if you’re shopping for auto insurance. Their rates are decent, and they offer many helpful add-on coverages. However, their policy renewal rate is meager, and many people don’t refer Nationwide to their friends and family. Their rates for young drivers are also not very decent. Nationwide is considered amongst the best in customer satisfaction and claims handling.
Why Choose Nationwide: Great Customer Satisfaction and Claims Handling
Rate For Good Drivers: $1,284 /year
Progressive is the best option if you’re looking to insure multiple policies or vehicles. It has a reputation for providing high-quality products and services, but the rates are high. You can expect to save at least 20% on a new car with Progressive, and it offers the most significant discounts on lease and convertible car insurance. And with its online quoting tool and easy-to-use website, you can get a better idea of how much your insurance will cost before you buy. Progressive is a good option for drivers with a DUI.
Progressive doesn’t have a good reputation regarding customer service and claims handling, which, along with its above-average rates, prevents it from ranking higher.
Why Choose Progressive: Decent rates for drivers with DUI
Rate For Good Drivers: $1,334 /year
Esurance was founded in 1999 and is the first online auto insurance company. It offers car insurance in 43 states, making it one of the largest providers of this type of coverage. Esurance has a user-friendly mobile application that makes finding information about policies and rates easy. Its interactive tools make it fun to get quotes for car insurance and keep you up-to-date on changes to your policy. The mobile apps are also helpful, allowing you to stay connected with your policies even when you’re on the go. Allstate bought Esurance in 2011.
A downside is that Esurance has more negative ratings than average, and the rates are not that reasonable compared to other companies of its size, i.e., Geico.
Why Choose: Highest-Rated Mobile Application and Rideshare Service
Rate For Good Drivers: $1,372 /year
Although the rates are comparatively high, AFA’s coverage is comprehensive and affordable for some. It is also considered the most loyal company compared to others. It offers discounts for multiple policies to young drivers. The company’s representatives are eager to provide advice and can help choose the right coverages for various situations. As a result, most customers insured through AFA find that it meets or exceeds their needs.
Why Choose AFA: Loyalty with Customers and Discounts for Young Drivers
Rate For Good Drivers: $1,451 /year
Wawanesa’s auto insurance products cover all the significant liability components and comprehensive coverage for various accidents and damage types. The company is licensed by the Canadian and California state authorities, and it is also listed on the Canadian Securities Exchange. They have an easy-to-use, reliable website and offer free quotes and 24/7 service. However, Wawanesa only offers ‘Good Driver’ discounts to drivers who live in California and don’t have a mobile application.
Why Choose Wawanesa: Affordable Rates and User-Friendly Website
Rate For Good Drivers: $1,569 (1,276 only in California) /year
Shelter Insurance company offers auto insurance services across 18 states. If you’re a youngster from those states, keep Shelter in mind. They offer various unique discounts, including military deals and good student and defensive driving discounts. Shelter auto insurance covers a variety of situations, like car accidents, slips and trips, and more. They are also highly ranked for customer service but do not offer unique coverages.
Why Choose Shelter: Decent Rates for Young Drivers (Teens) and Great Customer Service
Rate For Good Drivers: $1,601 /year
Farmers may not be the ideal choice if you’re looking for an insurer with the lowest rates, but their service is satisfactory. The Company is worth checking out if you’re willing to pay extra to have a smooth claim experience. They provide excellent coverage for your vehicles, and their claims process is quick and easy. Although their rates are higher than average, Farmers rank high for ease of opening a policy, customer service, and positive claims.
Why Choose Farmers: Great Customer Service and Claims Experience
Rate For Good Drivers: $1,635 /year
While MetLife’s prices are average for the industry, they are significantly higher than other insurers’ policies. Metlife has an extensive network spanning over 44 states and scores high on financial strength rankings. It offers various discounts and has some unique features that others don’t. It is not well reputed for customer support and ratings, mainly due to the high rates. In short, Metlife is an average insurance provider on the national level but isn’t rated good on the local level.
Why Choose Metlife: Unique add-ons and a high number of discounts
Rate For Good Drivers: $1,686
14. Pekin Insurance
Pekin is one of the most competitive auto insurance providers in Arizona, Indiana, Illinois, Ohio, and Wisconsin. They’re known for their competitive rates and excellent customer service. They have a wide variety of options for drivers who want to save money on their premium, and they’re also known for offering great discounts to customers who qualify.
Why Choose Pekin Insurance: Great DIscounts and 24/7 Roadside Assistance
Rate For Good Drivers: $1,647 /year
NJM has very competitive auto insurance rates and is an excellent option for drivers shopping for a full-coverage policy. You can also avail of extra perks like rental car reimbursement for no additional cost. Owners of higher-value vehicles can find great prices with NJM. There are plenty of other insurance options, but NJM is a trusted brand that customers come back to repeatedly. If you have a young driver in the household, NJM offers teen auto insurance at great prices.
The downside is that NJM is only available in five states, and they have no mobile application to manage policies.
Why Choose NJM: Customer Satisfaction and Comparatively Lesser Complaints
Rate For Good Drivers: $1,731 /year
Auto-Owners provides a full range of car insurance, homeowners insurance, and recreational vehicle insurance policies to meet the needs of its clients. All policies come with the same benefits and coverages, and rates are consistently among the lowest in the industry. Auto-Owners offers various discounts, including multiple vehicles, anti-theft, student and military, and credit union discounts. The downside is that their quotes are only available through agents, and they provide services in just 26 states. If you’re from one of those 26 states, you must check out Auto-Owners.
Why Choose Auto-Owners: Exceptional Customer Satisfaction and Offers Various Discounts
Rate For Good Drivers: $1,740 /year
Southern Farm Bureau is a decent choice with a long history and sound financial strength if you’re looking for auto insurance with competitive rates. The Southern Farm Bureau Casualty Insurance Company is authorized by the States of Colorado, Florida, Louisiana, Arkansas, Mississippi, and South Carolina to provide auto insurance to its members. As with most companies, Southern Farm Bureau may increase or decrease rates depending on the state in which you reside. It may not be the cheapest option for auto insurance, but it is a good one. The downside is that you can not apply online, and it is only limited to six states.
Why Choose Southern Farm Bureau: Competitive Prices and Customer Confidence
Rate For Good Drivers: $1,782 /year
Metromile auto insurance became increasingly popular during the Corona pandemic due to its usage-based policy. You only have to pay for as much as you drive. With this type of insurance, you won’t have to worry about incurring expensive repair costs if you get into an accident. Metromile provides a pay-per-mile insurance service, making it pocket-friendly for users if they travel short distances. They currently offer insurance in only eight states: Washington, Arizona, Illinois, Pennsylvania, New Jersey, Virginia, Oregon, and California.
You must’ve automatically understood that Metromile insurance won’t work with older vehicles as they don’t have diagnostic ports. Another downside is that you have to share your data, i.e., location and milage.
Why Choose Metromile: Usage-Based Insurance Policies and Extra Services
Rate For Good Drivers: Depends on how much you drive
The company is one of the largest auto insurance providers in the US, and it has a reputation for providing quality coverage at very high rates. Although All-State’s policy is easy to open, they are not well reputed in customer service and loyalty.
15% discount for customers who are over the age of 65. This discount is available if they have been with Allstate for at least five years and have paid their premiums on time every month. This discount is only available in certain states, including California, Florida, Illinois, Michigan, New York, and Pennsylvania.
Why Choose All-State: Has an Easy to Open Policy and Claims are Easy to File
Rate For Good Drivers: $1,788 /year
Mercury Insurance spans only 11 states and offers rideshare coverage in nine. The company is a decent option if you’re looking for coverage in one of these states. There are certain benefits to this policy that make it a feasible choice. It offers multiple discounts for policyholders, varying on which state you live. In addition to providing rideshare coverage, Mercury also offers mechanical breakdown coverage and other types of insurance, such as liability coverage.
Although Mercury is a great option, you have to purchase their policy through an agent. There is also no online claims filing service available.
Why Choose Mercury: Multiple Discounts and Coverages
Rate For Good Drivers: $1,844 /year
This article discussed the top 20 cheapest car insurance companies in the US. We researched so you don’t have to. While several websites list the most affordable car insurance in each state, we wanted to provide you with the most up-to-date information so you can make an informed decision when shopping for car insurance. The list you see above is the best, including facts and figures from multiple trusted sources. The companies we’ve highlighted above have been praised for their customer service, low rates, and diversity of coverage options. We hope that this article is of great use to you.