With car insurance costs on the rise, no one wants to pay more than necessary to insure a car. That’s why it’s important to compare car insurance rates from several companies to make sure you’re getting the coverage you need at the lowest possible price.
To make comparison-shopping easier for you, Yahoo Finance has identified the cheapest car insurance rates using data from Savvy Insurance Solutions.
Learn more: How inflation affects car insurance rates
Cheapest full coverage car insurance
Full coverage car insurance usually refers to a combination of liability, collision, and comprehensive insurance. However, it can also include other coverage options, such as uninsured/underinsured motorist coverage and rental car reimbursement coverage.
At $151 per month, American Family and Farm Bureau offer the cheapest full-coverage car insurance.
Cheapest car insurance for full coverage
SOURCE: Savvy Insurance Solutions
Cheapest liability-only car insurance
Drivers in every state except New Hampshire must have a minimum amount of liability insurance. This type of basic car insurance coverage pays for property damage and injuries to others if you cause an accident. Liability insurance can also help cover your legal fees following an accident.
Liability insurance is typically less expensive than full coverage car insurance. If you opt for only this basic coverage, the companies below offer some of the lowest rates.
Cheapest car insurance for liability-only coverage
SOURCE: Savvy Insurance Solutions
Learn more: Minimum car insurance requirements in all 50 U.S. states
Cheapest car insurance for teens
Adding teen drivers to your car insurance policy can significantly increase your rate because they’re considered high risk. In fact, the risk of car accidents is higher among teens ages 16 to 19 than any other age group, according to the Centers for Disease Control.
Finding the cheapest car insurance for your teen can help keep costs down, as can taking advantage of a range of car insurance discounts. These car insurance companies have the cheapest full coverage rates for teen drivers.
Cheapest car insurance for teen drivers
SOURCE: Savvy Insurance Solutions
Read more: Best car insurance for teens
Cheapest car insurance for seniors
Drivers in their 50s, 60s, and early 70s tend to have lower car insurance rates than younger drivers. That said, it still makes sense to look for the best deal on coverage, especially if you’re retired and living on a fixed income.
Below are the insurance companies with the cheapest rates for senior drivers.
Cheapest car insurance for senior drivers
SOURCE: Savvy Insurance Solutions
Read more: Best car insurance for seniors
Cheapest car insurance for good drivers
Having a good driving record can help you pay less for car insurance. In fact, car insurance companies often offer discounts if you haven’t had any accidents or moving violations in the past three years.
To find the cheapest car insurance, good drivers should consider these options.
Cheapest car insurance for drivers with a clean record
SOURCE: Savvy Insurance Solutions
Read more: Cheapest car insurance for good drivers
Cheapest car insurance with one at-fault accident
Getting into a car accident can send your insurance rate climbing, especially if you’re at fault. However, how your driving record is evaluated varies by company, according to the Insurance Information Institute (III).
You might find that you can get cheaper car insurance with one of the companies listed below. Rates are based on estimates for full-coverage insurance for an average policyholder with one at-fault accident.
Cheapest car insurance for drivers with one accident
SOURCE: Savvy Insurance Solutions
Read more: Cheapest car insurance after an accident
Cheapest car insurance with one speeding ticket
Getting a speeding ticket doesn’t guarantee you’ll have to pay more for car insurance. Some insurers don’t raise rates after a first offense.
However, if your car insurance premium goes up after a speeding ticket, you might find cheaper insurance with one of the companies below. Rates are based on estimates for full coverage insurance for an average policyholder with one speeding ticket.
Cheapest car insurance for drivers with one speeding ticket
SOURCE: Savvy Insurance Solutions
Read more: Cheapest car insurance after a speeding ticket
How to get the cheapest car insurance
There are plenty of ways to bring down the cost of car insurance. Take these steps to get the best possible price on the coverage you need.
Step 1: Get the right type of coverage
You can keep the cost of car insurance low by buying only the minimum amount of liability coverage required by your state. However, this strategy can backfire. Liability coverage pays only for property damage and injuries to others if you cause an accident. It doesn’t cover repairs to your vehicle, leaving you on the hook for those costs.
It can save you money in the long run to spend a little more each month to add collision insurance and comprehensive insurance to your coverage. Collision coverage insurance pays for repairs or replacement after an accident, and comprehensive insurance pays if your car is stolen or damaged by something other than an accident with another vehicle, such as a storm or vandalism.
Read more: Most common types of car insurance explained
Step 2: Opt for a higher deductible
Your car insurance deductible is the amount you pay to repair or replace your car before collision or comprehensive coverage kicks in. Opting for a higher deductible can lower your car insurance cost. For example, increasing your deductible for collision and comprehensive from $200 to $500 can reduce your rate by as much as 30%, according to III. Just make sure you have enough in an emergency fund to cover your deductible.
Step 3: Shop around for the lowest quotes
It pays to get quotes from multiple insurance companies because each insurer has its own methodology for setting car insurance premiums. As a result, quotes for comparable policies can be substantially different.
There are several ways to comparison shop for car insurance quotes:
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Online car insurance comparison tools show car insurance premiums from different insurers and let you compare prices for similar policies.
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Car insurance websites allow you to expand your search to companies that aren’t featured in online comparison tools.
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Independent insurance agents can do the comparison shopping for you by getting quotes from several companies.
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Captive insurance agents only sell products from a single insurance company, such as Allstate, Nationwide, and State Farm.
Step 4: Take advantage of car insurance discounts
Ask your insurance agent or car insurance company whether you qualify for any of these discounts that can lower your premium:
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Multi-policy discount: Most insurers offer a discount if you buy more than one insurance policy, such as auto and home or auto and renters insurance.
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Low mileage discount: Many car insurance companies offer discounts if you drive less than the average number of miles per year. If you put relatively few miles on your car, explore pay-per-mile car insurance.
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Safe driver discount: You can get a lower rate if you haven’t had any accidents or moving violations in a certain number of years.
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Anti-theft device discount: Several car insurance companies offer a security discount for having an anti-theft device or technology to protect your car.
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Good student discount: Many insurers offer good student discounts for high school and college students with a high GPA.
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Defensive driving discount: Young drivers and seniors may get lower rates by taking an approved safe driving course.
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Military discount: A variety of insurers offer special discounts for serving in the military.
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Loyalty discount: Some insurers offer discounts for staying with them for a certain number of years, which can be worthwhile if you can’t save money by switching companies.
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Autopay discount: You might get a discount by setting up automatic premium payments. Opting for electronic statements rather than paper also might save you money.
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Payment in full discount: Save money by paying for six months or a year of coverage at once instead of monthly.
Learn more: How to get the best car insurance discounts
Step 5: Don’t focus on monthly price alone
There’s more to choosing the right auto insurance policy than cost alone. Trying to secure the most affordable car insurance policy might save money up front, but could lead to higher costs if coverage is inadequate.
Ask about any coverage restrictions before buying a policy. For example, will your coverage level drop if you drive outside of your state? Will your insurance cover a friend if they get into an accident when borrowing your car?
Also, check online reviews and complaints for insurers you’re considering to find a company with a good customer service track record.
Step 6: Review your coverage annually
Review your car insurance coverage each year to ensure you’re getting all discounts you qualify for and not paying more than necessary. For example, if your income has increased, you might be able to afford a higher deductible, which will lower your premium.
Also, use your annual check-in to get quotes from other insurers to see if you can get a lower rate elsewhere. However, make sure to account for the loss of any discounts with your current insurer before switching.
Methodology
Unless stated otherwise, the estimates above are generated by Savvy Insurance Solutions’ in-house machine learning models based on over 3 million data points, and include more than 15 of the largest insurance companies in the Savvy nationwide data set. This includes data from more than 2 million insurance accounts connected through Trellis Connect, an in-house technology allowing consumers to “link” their insurance accounts before searching for insurance, and tens of thousands of policies bound by Trellis’ own agents. It takes into account a myriad of factors to create predictions, such as:
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Policyholder age
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Number of vehicles
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ZIP code
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Vehicle age
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Insurer
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…and more
Savvy Insurance Solutions creates estimates by running models against multiple inputs to the parameters of interest. For instance, the “teen driver” estimates were created by adjusting the policyholder age input into the pricing model while keeping all other variables steady from the baseline for “full coverage.” The models enable hyper-personalized estimates that take into account a plethora of user attribute permutations (e.g., teen drivers in specific states, teen drivers with new vehicles, teen drivers in specific states with new vehicles) to provide individuals with a unique and tailored experience. The charts above are a subset of the kinds of personalization Savvy Insurance Solutions can do.
Definitions
The following are definitions used by Savvy Insurance Solutions when providing its rate estimates for various types of coverage.
Full coverage car insurance: A policy with comprehensive, collision, and liability coverage
Average policyholder: A 48-year-old driver who owns a 13-year-old vehicle and lives in an average-income ZIP code
Senior driver: A 70-year-old policyholder with full coverage car insurance
Good driver: Drivers across all coverage types, vehicle types, and locations who have no tickets, accidents, or DUIs