Cheapest Car insurance is a necessity in the United States, but it doesn’t have to break the bank. Whether you’re a new driver, a young driver, or simply looking to cut costs, finding affordable car insurance can seem like a challenge. The good news is that there are many ways to save on car insurance without sacrificing coverage.
Read Also: How To Get The Best Car Insurance Quotes: A Step-By-Step Guide
In this guide, we’ll show you how to find the cheapest car insurance available and what steps you can take to lower your premiums.
1. Compare Quotes from Multiple Insurers
The most effective way to find affordable car insurance is to shop around. Different insurance companies use different formulas to calculate your premiums, so it’s possible that one company will offer you a significantly lower rate than another.
Here’s how to compare quotes:
- Use online comparison tools like The Zebra, Compare.com, or Gabi to get instant quotes from multiple insurers.
- Check insurers’ websites directly and request quotes from companies like Geico, Progressive, State Farm, and Allstate.
- Make sure to provide accurate and consistent information to get the most accurate quote.
2. Consider Minimum Coverage (If You Don’t Need Full Coverage)
If you’re driving an older car or you don’t need comprehensive protection, opting for minimum coverage may be the most cost-effective choice.
Minimum coverage typically includes:
- Liability insurance: Covers damage you cause to other drivers or their property.
- Personal Injury Protection (PIP) or Medical Payments: Covers medical bills for you and your passengers, regardless of who’s at fault.
If you have a newer or more valuable car, full coverage (including collision and comprehensive insurance) may make sense. However, for older cars that aren’t worth much, full coverage can be expensive and unnecessary.
Tip: If your car is worth less than 10 times your annual premium, you may want to ditch comprehensive and collision coverage and only carry liability insurance.
3. Increase Your Deductible
Your deductible is the amount you’ll pay out of pocket in the event of a claim before your insurance kicks in. By raising your deductible, you can reduce your monthly premium.
For example:
- If your deductible is $500, try raising it to $1,000. This could lower your premium by 10% or more.
- However, make sure you can afford the higher deductible in case of an accident or damage.
4. Take Advantage of Discounts
Insurance companies offer a wide range of discounts that can help reduce your premium. Here are some common discounts you should ask about:
- Safe Driver Discount: If you’ve been accident-free for a number of years, you may qualify for a safe driver discount.
- Bundling Discount: Combine your car insurance with home, renters, or life insurance for a multi-policy discount.
- Good Student Discount: If you’re a student with good grades, you may qualify for a discount.
- Low Mileage Discount: If you don’t drive much (typically under 12,000 miles a year), some insurers will offer a discount.
- Defensive Driving Course: Some insurers offer discounts for drivers who complete an approved defensive driving course.
Don’t be afraid to ask the insurance provider about additional discounts they offer. Discounts vary from company to company, and you might qualify for something you didn’t know about.
5. Maintain a Good Driving Record
A clean driving record is one of the best ways to keep your car insurance premiums low. Insurers reward drivers who avoid accidents, speeding tickets, and other traffic violations. In general, drivers with a history of safe driving are considered lower-risk and can enjoy cheaper rates.
- If you’ve been involved in an accident, consider attending a defensive driving course to show insurers that you’re committed to improving your driving skills.
- Avoid traffic violations and follow safe driving practices to maintain a clean record.
6. Consider Your Car’s Make and Model
Your car’s make and model can have a significant impact on your insurance rates. Luxury cars, sports cars, and vehicles with high repair costs tend to be more expensive to insure.
How to save:
- Choose a car that’s cheaper to insure: In general, sedans, minivans, and certain hybrid vehicles tend to have lower premiums.
- Look for cars with good safety ratings: Insurance companies often offer discounts for cars with high safety ratings (e.g., those with advanced driver-assistance features).
- Avoid high-performance cars: Sports cars, convertibles, and vehicles with powerful engines usually have higher premiums.
7. Pay Your Premium in Full
If you can afford to pay your premium upfront, consider doing so. Many insurance companies offer discounts for paying your annual premium in full, rather than making monthly payments.
Why it helps:
- Insurance companies may charge additional fees for monthly payments, so paying in full can help you avoid those extra costs.
- You might also be eligible for a discount if you can pay your premium in one lump sum.
8. Check for State-Specific Programs
Some states offer low-cost auto insurance programs for drivers who meet certain income requirements or financial need. For example, California offers the California Low Cost Auto Insurance Program, and New Jersey has the New Jersey FamilyCare Insurance program.
Check with your state’s Department of Insurance to see if you qualify for any government-backed programs or subsidies.
9. Use a Telematics Program (If Available)
Some insurance companies offer telematics programs or “pay-per-mile” insurance plans. With telematics, the insurer uses a device (or app) in your car to track your driving behavior (such as speed, mileage, and braking habits). Safe drivers can benefit from substantial discounts.
Programs like:
- Progressive’s Snapshot
- State Farm’s Drive Safe & Save
- Allstate’s Drivewise
These programs can help you save money if you’re a low-mileage driver or if you maintain safe driving habits.
10. Consider a Non-Standard Insurer (If You Have a Poor Driving Record)
If you have a less-than-perfect driving record (e.g., previous accidents or violations), you may be considered a high-risk driver. For these drivers, traditional insurance providers might offer higher premiums. In this case, consider non-standard insurers that specialize in high-risk drivers. These companies may offer lower rates than the larger, traditional insurers.
Some non-standard insurers include:
- The General
- National General
- Dairyland
However, be sure to compare their rates with others, as high-risk insurance can still be expensive.
Conclusion: Saving Money on Car Insurance
Finding the cheapest car insurance in the USA is all about being strategic. Shop around, ask for discounts, and adjust your coverage based on your needs. By following these steps, you can ensure you’re getting the best possible rate without sacrificing important coverage. Don’t forget to review your policy annually to make sure it still meets your needs—and your budget.
By putting in a little extra effort upfront, you can save hundreds of dollars annually on your car insurance premiums.