January 5, 2022

How to Find Cheap Car Insurance Companies

Whether you’re a senior, a new driver, or even someone with a DUI

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No one wants to pay more than they have to for car insurance, but how do you know which companies are inexpensive and which ones are pricey? The cost of your auto insurance depends heavily on factors like your age, driving history, and credit score, so the cheapest company for one person may not be the same for everyone. That’s why we’ve broken down the cheapest company for every situation below.

How to Find Cheap Car Insurance Companies

FYI

If you were involved in a car accident that wasn’t your fault, your premiums won’t go up.

  • Cheap car insurance after a DUI: Similarly, it can be hard for people with DUIs to find affordable auto insurance, but we’ve narrowed down the best auto insurance for drivers with DUIs.
  • Cheap car insurance for drivers with bad credit: People with bad credit are more likely to file claims, which is why insurance providers charge more for people with bad credit. Unless you live in Massachusetts, Hawaii, Michigan, or California, insurance providers can legally take your credit score into account when determining premiums. To get around this hurdle, get no-credit-check auto insurance quotes.
  • Cheap car insurance for new drivers: New drivers are more likely to get into accidents than more experienced drivers, thus submitting more claims and costing the insurance provider more money. That’s why rates are particularly high for those under the age of 25. If you haven’t reached your 25th birthday, read about the best cheap auto insurance for young people. You can also check out discounts for young people from insurance providers like Erie, Farmers, Mercury, Plymouth Rock (in New Hampshire and New Jersey), Progressive, and State Farm.
  • Cheap car insurance for seniors: On the other side of the pendulum, seniors often  pay more for auto insurance rates than people between the ages of 25 and around 65. That’s why you should only consider the best auto insurance for seniors if you’re over 65.
  • Cheap car insurance for good drivers: If you are a good driver with a clean driving record, you shouldn’t have any issues finding affordable auto insurance. We recommend getting a free auto insurance quote from multiple companies and comparing rates. You can also benefit from your excellent record by cashing in on accident-free discounts from companies like the American Family Insurance Group, Amica, Clearcover, Direct, Erie, Farmers, GEICO, Infinity, Liberty Mutual, Mercury, Nationwide, Plymouth Rock (in Connecticut, New Jersey, and Pennsylvania), and State Farm.
  • Cheap car insurance for minimum coverage: Minimum coverage means that your auto insurance coverage matches your state’s minimum requirements. First, find out the minimum requirements in your state, then compare auto insurance quotes from different providers.
  • Cheap car insurance for full coverage: Full coverage includes property damage, bodily injury, collision, comprehensive, uninsured motorist, personal injury protection, and medical payments coverage. All insurance providers offer these coverages, so just look for cheap car insurance companies in general.
  • Cheap car insurance for low mileage: If you don’t drive your car that much, consider pay-per-mile auto insurance. You’ll only get charged for the miles you actually drive, which could save you money. Additionally, some providers will reward you with discounts for low mileage, including the American Family Insurance Group, GMAC, Lemonade, Liberty Mutual, Metromile, and Nationwide.

NOTE

Pay-per-mile insurance is a type of usage-based insurance also known as pay-as-you-drive insurance. As a market, usage-based insurance was worth $19.6 billion in 2021 and is projected to grow to $66.8 billion by 2026.1

  • Cheap car insurance for the military: Many auto insurance providers offer discounts for active-duty military personnel as well as veterans. If you’re in the military, you can get discounts from Clearcover, Direct (25 percent at that), Endurance, Farmers, GEICO, Kemper, and Liberty Mutual.
  • Cheap car insurance for drivers caught without insurance: If you got caught driving without insurance in states like Ohio,2 Oregon,3 and Virginia,4 you may be required to get an SR-22, which is proof of insurance. Having an SR-22 makes getting insurance more difficult, but you can choose from Allstate, Dairyland, Esurance, Farmers, GEICO, Infinity, Nationwide, Progressive, State Farm, The General, Titan, and USAA.

Recap

No matter which company you choose, take advantage of car insurance discounts, from low mileage to paperless billing. Many people don’t realize how much they could be saving for the most affordable car insurance!

Even drivers with poor credit can find the cheapest car insurance company in terms of average rates. Sure, people with good credit will have cheaper car insurance than those with bad credit or a speeding ticket, but you can still find the cheapest insurers for your situation. No matter your ZIP code or driver profile, you can find liability insurance that’s close to or below the national average annual cost of full-coverage insurance, which was $1,202 in 2000.5

Citations

  1. Usage-Based Insurance Market for ICE & Electric Vehicle by Package (PAYD, PHYD, MHYD), Technology (OBD-II, Black box, Smartphone, Embedded), Vehicle Age (New, Old), Device Offering (BYOD, Company Provided) and Region – Global Forecast to 2026. Research and Markets. (2021, June).
    https://www.researchandmarkets.com/reports/5350869/usage-based-insurance-market

  2. Driving & Transportation FAQs. Recovery Ohio. (2021).
    https://recoveryohio.gov/wps/wcm/connect/gov/ohio+content+english/site/help-center/faqs/driving-and-transportation/driving-and-transportation

  3. SR-22 Information. Oregon Driver & Motor Vehicle Services. (2021).
    https://www.oregon.gov/odot/dmv/pages/driverid/sr22.aspx

  4. Financial Responsibility Certifications. Virginia Department of Motor Vehicles. (2021).
    https://www.dmv.virginia.gov/commercial/#insurance/certifications.asp