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Affordable Car Insurance Companies (2022)
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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.
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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.
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:
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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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.
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.
The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.