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Affordable Car Insurance Companies (2022) - Insurify

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Amy Beardsley

By: Amy Beardsley

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Life has many great mysteries, but finding affordable car insurance is not one. This complete guide helps drivers find the cheapest car insurance policies and shows you what to look for when buying coverage.

Fortunately, Insurify makes the process of comparing auto insurance quotes the easiest thing you will do all week. Insurify gathers quotes from dozens of insurers so you can comparison-shop all of the companies in one place.

See More: Cheap Car Insurance

Quick Facts

  • The average cost of car insurance in the U.S. is $121 per month, according to Insurify’s internal database.
  • Shopping online to compare quotes is the best way to find affordable coverage.
  • Many factors influence how much you pay for car insurance.

What is affordable car insurance?

How can I find affordable car insurance?

The easiest way to find the best policy for the cheapest price is by comparing quotes on an insurance comparison platform like Insurify.

Affordable car insurance is the best policy and price that matches your budget and needs. The average rate of car insurance in the U.S. is $122 per month, according to Insurify’s internal database.

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Factors That Affect Auto Insurance Rates

Many factors are at play when checking your car insurance rates, including driving record, type of vehicle, and location. Two similar people might have drastically different quotes based on the following circumstances:

Driving Record

A person’s driving history can significantly impact car insurance rates. Good drivers with a clean driving record typically enjoy some of the lowest rates for auto insurance. However, insuring drivers with a history of at-fault accidents, moving violations like speeding tickets, reckless driving, and DUIs can cost hundreds of dollars more over six months.

Location

One of the first things insurance companies ask when getting a quote is your ZIP code. Depending on your area, you might have a higher or lower rate of theft, vandalism, accidents, and other factors. Where you live helps determine the likelihood of your vehicle being involved in an accident, vandalized, or stolen.

Vehicle Use

The more you use your car, the more opportunities you have to be involved in an accident. Cars driven for commuting to school or work are usually less expensive to insure than if you drive your vehicle for business purposes. And if you are a low-mileage driver, you might qualify for discounts.

Type of Vehicle

Newer, more expensive vehicles typically cost more to insure than older, less expensive vehicle models. Your vehicle type, make, and model may impact insurance costs.

Driving Experience

Teen drivers and beginner drivers generally pay higher premiums. Drivers with more experience behind the wheel typically have good driving habits. They’re less likely to have accidents than young drivers or motorists with less experience.

Age

Once a driver reaches age 25, car insurance rates usually decrease. Older drivers typically have better defensive driving judgment based on having more years of experience. As a result, they are generally less likely to be involved in accidents.

Gender

Some auto insurance companies charge men more for car insurance since they tend to be riskier drivers. However, other insurers charge women—particularly middle-aged women—higher rates than same-aged men. In some states, the practice of charging one gender more than another is outlawed.

Credit History

Insurers can rely on your credit-based insurance score to determine how likely you are to file a claim. Drivers with a good credit score can pay significantly less for car insurance than drivers with fair or poor credit history.

Insurance Coverage

Choosing to opt-in for full coverage that includes comprehensive and collision coverage will cost quite a bit more than buying liability coverage only. Likewise, the lower your deductible is, the more you pay for car insurance.

Where you buy insurance coverage also matters. Companies consider factors differently—where one might place higher importance on driving history, another might offer lower rates to high-risk drivers.

How to Find Affordable Car Insurance

Fortunately, it is easy to find affordable car insurance from top insurers like GEICO, Nationwide, Allstate, State Farm, USAA, and Progressive. Here are a few quick tips to get you started:

  • Shop for an online quote to compare prices. It’s free and takes a couple of minutes.
  • Be aware of the factors that affect how much you pay for car insurance.
  • Determine how much car insurance coverage you need.
  • Weigh cost versus risk when choosing a deductible amount.
  • Bundle your homeowners and auto insurance to get a multi-policy discount.
  • Ask your insurance agent for other car insurance discounts.

Picking the Right Coverage

The type of coverage you buy significantly influences how affordable your premiums might be. Here are the most common coverage options for policyholders to customize car insurance:

  • Liability insurance covers bodily injury and property damage liability. You can increase this coverage if needed.
  • Comprehensive insurance pays to repair or replace your vehicle after non-collision damage or theft.
  • Collision insurance pays for your car repairs after an accident.
  • Uninsured and underinsured motorist coverage protects you if someone else’s insurance cannot pay for your losses.
  • Medical payments and personal injury protection help cover hospital bills and loss of income.
  • Gap insurance (for leased or financed cars) pays the difference between what your vehicle is worth now and how much is left on the contract in the case of a total loss.
  • Rental reimbursement pays for a rental car while yours is repaired.

Take on as much risk as you feel comfortable, and choose a deductible that fits your needs.

For example, if you want the insurance company to take the most risk, you can have a lower deductible and higher auto insurance policy limits—but your policy will be more expensive. You can lower your insurance costs by accepting a higher deductible and lower policy limits, but that doesn’t offer as much protection.

Risks of Cheap Car Insurance

The best car insurance isn’t always the policy with the lowest cost. Buying from one of the cheapest car insurance companies can save you a lot of money in the moment, but it can also open you up to risks.

Underinsured When Something Happens

If you have a severe accident and don’t carry enough insurance coverage, you might not be able to cover the costs yourself. While it depends on where you live because states have different minimum coverage guidelines, being underinsured could mean you don’t have enough coverage to repair your vehicle or pay for medical expenses if someone is injured.

High Deductibles Can Create Financial Hardship

Higher deductibles generally mean lower insurance premiums. But suppose you select a deductible that exceeds your savings and file a significant claim. You may not be able to cover the cost without taking a loan or asking friends or family for money to get your car repaired.

Poor Customer Service

Price isn’t the only consideration when choosing cheap car insurance. When you pick a more reputable insurance provider over one with lower ratings, you might pay a bit more. However, reliable insurance companies will be there for you when you need help the most, providing good customer service and help to process a claim.

Cheap prices and low ratings may lead to a car insurance company never paying your claim or being impossible to reach for help.

See More: Best and Worst Sites to Compare Car Insurance

5 Tips to Make Car Insurance More Affordable

You might think finding cheaper car insurance is one of the great mysteries in life. Fortunately, it’s not a big secret, nor is it difficult to get car insurance discounts. Here’s how:

Ask for Discounts

Car insurance companies often have discounts available for many drivers. Sometimes, they provide discounts automatically, but other times, you must ask for savings.

Suppose you are a married person who works from home, and you drive much less than when you bought the policy. Mention the situation to the agent and ask if there is a driver discount for low usage, low mileage, or marriage.

Other discounts can include safe driver, good student, bundling policies, multiple cars on the same policy, being employed by a major employer, military member, or a member of a professional or affinity organization.

It never hurts to ask for a low-cost discount. Sometimes, you may discover savings that you didn’t know about before shopping for car insurance.

Consider Your Deductible

Deductibles are the amount you’re responsible for paying before the insurance company kicks in to cover a claim. Policyholders with higher deductibles take on more financial risk than those with lower deductibles. However, the risk can pay off in the form of lower car insurance premiums.

Accepting a higher comprehensive and collision deductible can save you hundreds if you do not drive much or feel comfortable paying more out of pocket in case of an accident. If you can’t pay your deductible after an accident, you might get into financial trouble, so be sure to set it at a reasonable amount.

Don’t Buy More Coverage Than You Need

Buying more insurance than you need doesn’t always pay off.

Think about this: Suppose you drive an older car, and comprehensive insurance and collision coverage double the premium. It might not make financial sense to insure the vehicle at that level if it isn’t worth much. Remember, insurers only pay claims up to your car’s value today, less the deductible.

Make sure your coverage level is sensible for the age of your vehicle, your driving frequency, and your financial situation.

Update Your Policy After Major Life Changes

Significant life changes sometimes mean cheaper car insurance. For example, your rates typically go down if you’re married. If you move to a new location, you might also qualify for cheaper car insurance rates.

Anytime you experience a significant life change, shop for auto insurance quotes to see if you qualify for cheaper premiums.

Revisit Your Quotes Often

It’s a good idea to look for cheaper car insurance quotes every three to five years. Then, when your driving record improves or old violations drop off, it can provide you an opportunity to save hundreds of dollars.

See More: Car Insurance Quotes

Affordable Protection for Peace of Mind

If you could do one thing today that would significantly make affordable car insurance protection cost less, it’s shopping around for quotes—it can help you get the best cheap car insurance.

Even with a clean driving record, you may still be paying too much for car insurance if you skip comparison-shopping and just renew an old policy. Insurify’s car insurance comparison tool gives you the peace of mind that you did your due diligence to find the lowest car insurance quotes available.

Frequently Asked Questions

  • Shopping around is the easiest and quickest way to get the best rate for cheap auto insurance. You can also lower your rates by having good credit, a clean driving record, and a car that’s not too expensive to insure. It also helps to live somewhere with low crime and accidents and to ask for discounts.

  • When drivers turn 25, most insurance companies begin to discount car insurance rates because drivers are less likely to have accidents or get moving violations.

  • Like shopping for groceries, getting the cheapest rates is easy when you can see all your insurance options. The best way to find the cheapest car insurance quotes online is by shopping around and comparing coverage and rates from multiple insurers. It’s easy and fast with Insurify.

  • Car insurance quotes are always free with Insurify. You will never pay us an agent’s fee to get car insurance quotes from dozens of companies.

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Amy Beardsley
Amy Beardsley
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Insurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

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