auto insurance
Each driver receives a different insurance rate depending on their address, vehicle and driving history. You will also find different rates from each insurance company. The only way to find the best car insurance rate for you is to get multiple quotes from different companies.
How much does my car insurance cost?
It is important to have an idea of how much your car insurance should cost before you start looking for car insurance quotes.
How much does car insurance cost?
Companies base their offers on how likely they think you will make a claim and how much it might cost them.
Below are the average car insurance rates for different drivers. Please note that rates for drivers with incidents or bad credit and for teenagers are for comprehensive insurance.
The other factors most often used to calculate your quotes are the level of insurance you choose, the car you drive and where you live. Typically, companies also check your credit rating, age and gender.
Why it’s important to compare car insurance quotes
Prices of consumer goods have risen since the pandemic, and while inflation has slowed in 2024, car insurance costs continue to soar. In fact, car insurance premiums increased by almost 25% in 2023.
But that doesn’t mean you’ll be stuck with ever-higher rates. Some insurers are raising premiums faster than their competitors, while others are more resilient to the rising car prices and repair costs that have fueled the recent rise in insurance rates.
In any case, the best way to get cheaper car insurance is to compare offers from as many companies as possible. That’s why we compared average quotes from dozens of car insurance companies across different driving profiles and rating factors to show you how much you could save.
Compare the cheapest offers from the 10 largest car insurance companies
You’ve seen advertisements offering big savings and you’ve probably wondered which insurance company really offers the lowest rates. However, even the largest insurance companies in the United States have highly fluctuating average rates because they each have their own formula for calculating monthly premiums.
The following table compares auto insurance offerings from the nation’s ten largest auto insurance companies by market share, according to the National Association for Insurance Commissioners (NAIC).
We found that GEICO has the cheapest average prices for liability insurance, but State Farm has the best average prices for comprehensive coverage. GEICO charges just $68 per month for liability insurance, while State Farm offers average rates for comprehensive coverage of about $139.
Compare the cheapest offers from 10 smaller insurance companies
Just because an insurance company is big and advertises significant savings doesn’t mean it’s the cheapest option for you. When comparing car insurance quotes, don’t be afraid to look at lesser-known insurance companies.
In the following table, we have compared 10 smaller regional insurers with the cheapest average offers, sorted by the cheapest liability insurance.
According to our analysis, Hastings Mutual offers the cheapest average rates of all small insurance companies. The average Hastings Mutual customer pays just $45 for basic liability coverage and $87 for comprehensive coverage.
How to compare car insurance online
Comparing car insurance quotes online can be quick and easy if you know how. You can get free car insurance quotes online and use these tips to find the best coverage from the cheapest company for your individual needs.
Determine your budget
Before you start comparing quotes, determine your budget, the type of insurance you need and how much coverage you need. This allows you to quickly filter out overpriced insurance companies as a first step and concentrate on those with the lowest prices.
According to our latest data, the average American driver pays $135 per month for auto insurance. So it is e
date of birth
Social security number
Driving license number
Vehicle Identification Number (VIN)
Current coverage data
3. Use an insurance comparison site
Insurance comparison portals make it faster and easier to compare offers because you only need to enter your details once. In addition, you can compare prices and coverage options from different companies at the same time.
4. Research companies with the best offers
The biggest insurance companies don’t always offer the best price for your specific needs. Do your research before contacting an insurer. Third party websites, such as B.J.D. Power and AM Best analyze insurance companies based on customer feedback and experiences on topics such as website and mobile performance, shopping experience, claims process and financial strength.
Here’s a look at how some of the top firms compare to some of the most reputable research firms
A value of 1.00 represents the number of complaints the NAIC expects for a similarly sized insurer, and values below 1.00 represent fewer claims than average. Any value above 1.0 indicates how many more complaints the company has than expected.
For example, an insurer with a score of 2.0 has twice the expected number of customer complaints.
5. Choose the best offer for you
It’s time to choose the company that best suits your insurance needs and budget. See your quotes on your car insurance and choose the best offer for you. Then fill in the application for your new insurance.
6. Compare offers again when renewing
If your policy is eligible for renewal, you will usually receive a renewal notice about 30 days before your renewal date. Take the time to compare car insurance quotes again to find out if your current insurer is still the best deal. You won’t know if you can find lower prices or get a better deal if you don’t get new quotes.
Compare car insurance quotes based on various factors
Below we highlight some that have the biggest impact, such as: B. Age, driving history, relationship status and credit rating.
Old
With age comes maturity and wiser driving decisions, which usually results in lower car insurance premiums. Teenagers tend to pay the most, while drivers aged 40 and older tend to pay the least for car insurance.
Young drivers almost always pay the highest rates because they tend to make riskier driving decisions, increasing the risk of tickets and accidents. However, if you have a clean driver’s license, your rates will likely drop significantly by the time you turn 25.
The average liability insurance premium for an 18-year-old is $297 per month, while a 25-year-old pays an average of $109. Rates are relatively the same after age 40, but can increase again when you reach an age where vision or movement problems can affect your driving.
Driving behavior
Your driving habits also affect your car insurance rates. Drivers with no tickets, convictions or accidents get the best rates. Drivers with violations, on the other hand, are riskier to insure and typically pay more for the same coverage. The table below shows the average car insurance premiums for drivers with clean records and drivers with various violations.
After a traffic ticket, drivers pay an average of $113 per month for liability insurance and $268 per month for comprehensive insurance. Drivers who cause an accident pay even more: $132 per month for liability coverage or $309 per month for comprehensive coverage.
But drivers with a DUI pay more than any other group, with the average comprehensive insurance costing up to $413 per month.
Relationship status
Whether you are married or single affects your car insurance premiums. Married drivers typically pay less for car insurance than single drivers, as shown in the table below.
When we compared auto insurance quotes, we found that single drivers spend an average of $153 per month on liability insurance, while the average married driver pays $96. For comprehensive insurance, married drivers pay $230 per month, but single drivers can expect to pay $356.
Credit history
It’s not just lenders and employers who are interested in your credit rating; Some insurance companies also use your score to determine premiums. The better your credit score, the less you’re likely to pay for auto insurance, as shown in the table below.
How to get cheaper car insurance
When it comes to getting cheaper car insurance, you may have more options than you think. Here are some of the best ways to save money on your monthly bill.
Take advantage of discounts: Most insurance companies offer their customers a variety of discounts. You can save a lot of money by doing things like driving a safe car, getting good grades, taking a driver improvement course, and more.auto insurance
Bundle your policies: One of the best ways to save on car insurance is to buy multiple policies from the same company. For example, if you combine your home and car insurance, you can save up to 30% on your monthly bill.
Maintain a clean driving record.
As we showed above, a clean driving record is the best way to get cheap car insurance. But there is still hope, even if your driving behavior is erratic. Most insurance companies have a “look back” period of three to five years, so good driving habits today can help you save in the future.
Consider usage-based insurance: When it comes to safe driving, most major insurance companies offer telematics programs that reward you for good driving behavior. The best usage-based policies include State Farm’s Drive Safe & Save, Nationwide’s SmartRide, and USAA’s SafePilot.
Compare quotes from multiple companies: The best way to get cheaper insurance is to get quotes from multiple companies. After all, there are hundreds of insurance companies to choose from in the US.
The only way to find out who offers the best rates for your individual profile is to get quotes from as many companies as possible. Fortunately, car insurance comparison sites allow you to compare multiple quotes side-by-side, making the whole process faster and easier...click hare..