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You probably won’t be surprised when I say that, regardless of how much money I make, I’m always looking for new ways to save.
Whether it’s cutting down on my cable TV costs, or discovering a new app that helps me find cheap gas near me – I believe that there are always ways to save more.
Shopping wisely for car insurance is one of them.
Getting your car insured, however, is probably one of the biggest expenses a car owner faces, which makes looking for the best cheap car insurance well worth the time spent. To make things a little bit easier for you, we looked at the 7 best cheap car insurance companies, what they offer, and what you can save.
But first, let’s take a look at some of the questions I get asked the most when it comes to finding low-cost car insurance.
What is Good, Cheap Car Insurance?
Good, cheap car insurance is a car insurance company that saves you money but is also there for you should you need to open a claim – and makes the experience of doing that as smooth as possible.
Saving money on your premium only to be left high and dry if something happens isn’t going to cut it! Reputation goes a long way in the insurance world, and that is why we only considered the top players in the market. Our pick for good cheap car insurance would be…all of the providers we listed! We wouldn’t recommend them if they weren’t good.
That said, if you look at customer satisfaction ratings in the J.D. Power’s 2019 U.S. Auto Insurance Study, for example, you’ll see that, when it comes to cheaper car insurance providers, State Farm consistently gets high customer satisfaction scores.
It receives 4/5 in many regions, and doesn’t dip below 3 overall – and these ratings are promised to anyone considering State Farm as a car insurance provider.
Cheap Car Insurance Companies
Who has the cheapest car insurance?
With a large number of variables determining what you will end up paying, the most affordable car insurance for you will ultimately depend on your situation, and preferences.
We looked at what each of the insurance companies offer, allowing you to make the best decision for yourself according to your circumstances.
Liberty Mutual Auto Insurance
Liberty Mutual car insurance offers you good pricing and many ways to save money on auto insurance. Not only can you get up to 30% off for good driving behavior, but further discounts are also applicable if you purchase your insurance online, your vehicle has security features installed or is fueled by alternative energy.
There are many other discounts – such as homeowner, military, early shopper, good student, and more – so check their website to see which ones you could benefit from.
With Liberty Mutual, you can also enroll in the deductible fund and set aside $100 every year. With this scheme, however, you only have to pay $30, with the remaining $70 being covered by Liberty Mutual. This fund will be used to reduce or eliminate your collision deductible.
You can continue growing your fund for an unlimited time, and it doesn’t expire as long as you remain their customer. The deductible fund covers all vehicles on your policy.
- Offers many discounts: good student, early shopper, homeowner, advanced safety features, and more
- Lower your car insurance costs by enrolling in the deductible fund
- Rated A (Excellent) by A.M. Best
Allstate Auto Insurance
Allstate Insurance is one of the best auto insurance choices for drivers – especially those buying a new car. You can get up to 15% off if your car is not more than one year old, and you are the first registered driver.
On top of that, you can get discounts for vehicle safety equipment, such as anti-theft technology and anti-lock brakes.
Allstate also offers discounts for multiple policies, responsible payers (those that pay their installments on time), and smart students, which allows young adults with good grades to save money on their car insurance.
Allstate encourages all drivers to drive safely and promises big savings if you make it to the Safe Driving club. Download and start using the Drivewise app, and you will be rewarded for your safe driving habits, including safe speeds and stops. By driving safe, Allstate customers also collect Allstate Rewards and Deductible Rewards.
- A high-rated mobile app that customers will appreciate
- Offers a ton of ways to save: good student discount, vehicle safety equipment discounts, responsible payers discounts, and many more
- Rated A+ (Superior) by A.M. Best
Allstate Car Insurance Allstate offers a Smart Student Discount to drivers under the age of 25 if you meet their requirements. You can also get a multiple policy discount if you bundle in your renter's insurance with Allstate.
As you probably already know, I’m a big fan of Metromile. It’s one of the best auto insurance options for those who don’t cover a lot of miles. People are saving as much as $1000 with Metromile, which charges you a minimum base rate plus a rate for miles driven.
The company installs a small device called Metromile Pulse under your dashboard, which counts the miles you have driven to calculate your bill. Per-mile rates are calculated the same way other insurance companies calculate your rates, including drivers’ age, driving history, and other such characteristics.
You will only be charged for up to 250 miles a day (150 in New Jersey), so if you took an unexpectedly long journey on the weekend, you don’t need to worry about a heftier insurance bill.
The base rate is paid monthly in advance, and the mileage payment is paid for the previous month. This auto insurance includes all coverage as any other car insurance does.
- If you don’t drive more than 10,000 miles a year, you could save a lot
- An excellent, high-rated app that’s easy to use
- Multi-car discounts – add more cars, and pay less for Metromile
Progressive Car Insurance
Progressive Car Insurance claims they can save you an average of $699 when switching to one of their insurance policies. How do they achieve this? Well, there are a few ways you can reduce your insurance payments, and one of them is to bundle your auto and property insurance policies, which is great if you own a property.
Progressive also offers Snapshot – a savings program with a smartphone app that analyzes how safe you drive. Sign up, and you will get the first discount straight away, with further discounts depending on how well and safe you drive.
Once you’ve signed up, you can track your progress on the app to see where and how you can improve. Thanks to Progressive’s flexible coverage system, they can also customize the insurance package to fit your budget.
To top it all off, Progressive rewards their loyal customer with Progressive’s Loyalty Rewards Program, which brings many perks that increase as you move up the rewards ladder.
- Bundle up home and auto policies, and you could get a discount
- Download Snapshot (a free program that tracks how you drive) – and you could also get big discounts
- Rated A+ (Superior) by A.M. Best
Geico Car Insurance
Geico knows a thing or two when it comes to car insurance with more than 75 years of experience in providing competitive car insurance rates and excellent customer service.
They take time to personalize auto insurance policies that fit within your requirements and your budget. Geico insurance also offers a great number of discounts, including for those in the military and students. You can also expect further discounts depending on your vehicle’s equipment such as airbags and anti-lock brakes.
Your driving habits and history can also contribute to discounts up to 26% if you haven’t had any accidents in five years as well as undertaking drivers’ education courses such as defensive driving. Stick with Geico, and you can also benefit from loyalty discounts of up to 25%.
Not only does Geico offer great rates and discounts, but they also give you an opportunity to decide how you want to pay. You can, of course, choose to pay your premium all at once or, if you happen to be strapped for cash, choose one of their installment plans.
- Offers many ways to save: vehicle safety equipment, defensive driving, good driver, good student – and many more discounts
- Great website and mobile app features for tech-savvy customers
- Rated A++ (superior) by A.M. Best
State Farm Auto Insurance
State Farm is one of the biggest insurance companies in the USA. Not only do they offer some of the best rates and discounts, but also a few programs that allow you to reduce your auto insurance bills even more.
The Drive Safe & Save mobile app offered by State Farm connects to your car through Bluetooth and measures your mileage, speed, braking, acceleration, time of day travel, and fast cornering. They use this data to calculate your discount, which can reach up to 30%.
Young drivers under the age of 25 without any traffic accidents in 3 years can enroll in the Steer Clear training. Training includes safe driving video lessons, driving scenarios, driving hours, and mentoring. By completing this program, drivers will be awarded a certificate and a Steer Clear Safe Driver discount of up to 15%.
- Offers many ways to save on auto insurance – from safe vehicle to loyal customer discounts
- Drive Safe and Save mobile app allows you to save while encouraging safe driving habits
- Rated A++ (superior) by A.M. Best
Esurance Car Insurance
Esurance offers 3 easy steps to save on your auto insurance.
The first step is Switch and Save, which allows you to save an average of $412 by simply switching from another insurance company. The second step is called the Good Driver discount, and here’s how it works.
If you’ve had your driver’s license for more than 3 years and a driving record with one or fewer points, you are eligible for a discount of up to 40% off the premium.
You can also save $100 off your premium instantly just by signing up for DriveSense – an app that tracks your driving habits. The data collected from this app is used to calculate further discounts for each term while advising you on how to make your driving safer.
The third and final step is combining insurance policies. Here, you can save up to 10% by bundling your auto and home insurance.
Esurance also offers more discounts, such as discounts for the safety features of your car and a claim-free discount.
- Offers multiple ways to reduce the cost of auto insurance (discounts based on your policy, for being a good driver, and for having advanced car safety features)
- Save for bundling your car and home insurance
- DriveSense could save you a $100, according to Esurance
- Rated A+ (Superior) by A.M. Best
What is the Cheapest Car Insurance for Full Coverage?
When you get full coverage insurance, you’re basically taking out a policy that makes sure you are fully covered should the worst happen.
This type of policy is typically the most expensive; however, it is also the safest – because you get liability, comprehensive, collision, and uninsured motorist coverage, all in one go.
In terms of providers, based on our research, State Farm steals the top spot again with the most affordable monthly average rate for full coverage.
How Can I Get the Cheapest Car Insurance?
Once you have determined which insurance company you would like to insure your car with, simply get in touch with the insurance company of your choice, and they will most definitely help you with the entire process.
Do remember that it always pays to shop around, and don’t be too shy about negotiating quoted prices, especially if you have found cheaper ones.
Saving on your car insurance does not have to be an impossible task, with many insurance companies offering different types of discounts for different drivers.
Do remember that, when comparing car insurance quotes, you also need to pay attention to coverage, deductibles, and limits so that you’re always comparing like with like.
Take the time to understand what is important for you and then find which car insurance companies can best serve that need.