Best Cheap Car Insurance Companies (2024)

Locating cheap insurance isn’t as complicated as it seems, as comparing quotes from cheap car insurance companies has made it much easier for you to find affordable car insurance. Our article covers which car insurance companies are the best and most affordable in the United States.

If you want to find cheap auto insurance right now, enter your ZIP code in the free online tool above to compare quotes from multiple car insurance companies near you.

What are the best cheap car insurance companies in America?

The best car insurance companies in the nation have the highest market share in the car insurance industry. But which companies have the highest market share in 2022?

Let’s look at the top 10 companies by market share.

A.M. Best Financial Strength Ratings for the Top Car Insurance Companies in the U.S.

These companies are considered the best because of their earnings, their place among the A.M. Best ratings, and their stable loss ratio.

State Farm has been one of the top earners in the last few years, but USAA and Geico have cheaper insurance rates. And in some parts of the United States, State Farm is rated lower than companies like Travelers and Allstate.

Quality varies by state. Some companies don’t perform well in specific areas, while others do. But looking at averages can give you a better idea about which company is more affordable overall.

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Which insurance company is the cheapest by age?

Age is a significant factor that can lead you to cheap auto insurance. Drivers 25 and older often pay less for car insurance, but drivers younger than 25 pay significantly more.

Check out the table below to see which company is cheapest by age group.

Average Monthly Car Insurance Rates Based on Age, Gender, and Marital Status by Company

USAA is the cheapest company, but each company fights for second place in each age group. Geico is the second-cheapest company for 17-year-old females, but State Farm is the most affordable for 60-year-old females.

Not everyone can get a USAA insurance policy because it’s an insurance company that serves only veterans and their immediate families.

Teen drivers pay nearly double the average rate that a 35-year-old driver pays. Meanwhile, senior drivers pay the least for insurance. And if you’re married, you can secure affordable auto insurance.

Which car insurance company is the most affordable by credit history?

People who have good credit have access to the cheapest auto insurance on the market. Insurance companies correlate good credit with a low risk of filing car insurance claims, but drivers with bad credit have the opposite effect.

Therefore, bad credit can lead to more expensive insurance rates. Here’s an example of how poor credit can affect cheap insurance.

Average Monthly Car Insurance Rates Based on Credit History by Company

Besides USAA, State Farm and Geico are the most affordable companies for drivers with good and fair credit. However, Nationwide is the cheapest car insurance company for drivers with poor credit.

Fair and poor credit drives up auto insurance rates, but you can offset high-cost insurance with other factors that determine car insurance cost. If your credit improves during your policy, let the insurance company know.

Which insurance company is the cheapest by driving record?

Your driving record is one of the best roads to take to get cheap insurance. A clean driving record produces affordable car insurance rates, but multiple driving infractions can raise your rates.

Let’s look at the table below to see how different traffic violations and accidents affect your insurance rates.

Average Monthly Car Insurance Rates Based on Driving Record by Company

You could spend less money at Geico, American Family, and Nationwide with a clean driving record. Although State Farm earns the most money, it was bumped to fifth place for drivers with clean driving records.

DUIs and accidents have the biggest impact on your car insurance rates per month. And traffic infractions can last for three years or longer. As long as you have those violations on your driving record, you’ll always pay expensive car insurance rates.

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Is liability insurance cheaper than full coverage?

Liability car insurance provides the bare minimum. In other words, liability insurance is the lowest possible coverage you can buy to drive legally. There’s nothing wrong with that, but you won’t have the extensive reach of full coverage.

Full coverage auto insurance comes with several coverages, but it costs more. According to the National Association of Insurance Commissioners (NAIC), full coverage is 53% more expensive than liability coverage.

We’ve seen the average car insurance rates of the best companies. What would their liability-only rates look like? Let’s use NAIC’s percentage to estimate liability-only rates at the top insurance companies.

Comparing Full Coverage vs. Liability-Only Car Insurance Rates by Company

Liability auto insurance cuts cost more than half. So, if you’re looking for the cheapest car insurance, you should buy liability-only insurance.

But keep in mind, drivers who are still making payments on their vehicle through financing are required to have full coverage insurance.

How do you get cheap car insurance rates?

You can get cheap full coverage insurance, but you’ll need to qualify for multiple car insurance discounts. When you stack car insurance deals, you can save hundreds of dollars per year.

But how much are discounts worth at the best companies in America? Let’s examine a list of available deals you can add to your policy at the most significant companies in the United States.

Car Insurance Discounts

The truth is that you won’t get all the discounts you see. But you could save money even if you’re eligible for only three insurance deals.

Can you save money through usage-based insurance?

Yes, you can. Usage-based insurance can save you more money by using your driving habits and how much you drive to determine savings. Here are a few usage-based insurance programs from the best insurance companies.

Usage-Based Car Insurance Savings by Company

Nationwide provides the most savings through SmartRide, but you’ll have to qualify for those savings through good driving habits. Usage-based insurance discounts are not guaranteed, so you’ll have to maintain a good driving performance to get cheaper rates.

Case Studies: Best Cheap Car Insurance Companies

Case Study 1: USAA

John, a military service member, was looking for affordable car insurance. After comparing quotes from various insurance companies, he found that USAA offered the best rates. With their competitive pricing and excellent customer service, John was able to secure cheap car insurance coverage that met his needs.

Case Study 2: Geico

Sarah, a young driver with a clean driving record, wanted to find the most affordable car insurance option. After researching different insurance companies, she discovered that Geico consistently provided low-cost insurance for drivers in her age group. By choosing Geico, Sarah was able to save money on her car insurance premiums while still receiving quality coverage.

Case Study 3: American Family

Emily, a homeowner, wanted to find an insurance company that offered both home and car insurance at an affordable price. After comparing quotes from various providers, she found that American Family offered competitive rates for bundled policies. By choosing American Family for her insurance needs, Emily was able to enjoy cost savings and convenient coverage options.

Case Study 4: Nationwide

Mark, a driver with a less-than-perfect credit history, was concerned about finding affordable car insurance. After researching different insurance companies, he discovered that Nationwide specialized in providing coverage for drivers with poor credit. By selecting Nationwide, Mark was able to obtain affordable car insurance rates despite his credit history.

Case Study 5: State Farm

Lisa, a driver with a clean driving record, wanted to find a reputable insurance company with a strong financial standing. After reviewing different options, she found that State Farm had consistently high ratings and a stable loss ratio. Although State Farm’s rates were slightly higher than some other companies, Lisa valued their financial stability and opted for their reliable coverage.

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Best Cheap Car Insurance Companies: The Bottom Line

You can get affordable auto insurance by shopping around. Don’t go with the first car insurance quote you see until you’ve compared it to another.

USAA is one of the best insurance companies in America, but you can’t get a policy with them unless you’re in the military or in the immediate family of someone in the U.S. Armed Forces. But the other car insurance companies are just as good.

If you want to see if you can secure cheap car insurance in your area, use our free online quote tool to compare insurance companies now.

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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