Taking a closer look at your car insurance premium may be a good place to start if you’re trying to cut down on your monthly expenses. However, cheap premiums aren’t the only consideration when you’re deciding on a car insurance company. You also need to look at other factors, such as the level of customer service and the range of products a company offers. In addition, although not as often, some companies provide better rates than others for drivers with poor credit or accident history, or those with DUIs or speeding tickets on their records.
This list of cheap car insurance companies will save you some research time. To help you choose the best company for your unique needs, each entry contains information regarding the specific products they offer.
USAA
Who Should Opt for USAA?
- Active-duty military members and veterans
- Military family members
About USAA
USAA is one of the cheapest car insurers in the country. There is a caveat, though. Only veterans, active-duty military members, and their families are eligible for vehicle insurance through USAA. If you do qualify, you’ll have access to super-affordable rates, especially if you have a clean driving record. Drivers with previous accidents on their records or DUIs, however, are also privy to some of the lowest rates around. In addition, those with poor credit ratings receive lower-than-average premium rates through USAA.
Young adult drivers and senior drivers age 65+ also receive relatively cheap premium rates through USAA. Although adding a teen driver to your insurance policy will increase your rates quite a bit, the rate hike is still lower than that of most competitors for this product. While still below the industry average, complaints against USAA are slightly higher when compared with some competitors.
Here are some of the optional products this company offers:
- USAA offers accident forgiveness insurance. If you pay for five years without a claim, you will receive this product for free after.
- USAA offers new car replacement coverage to clients who have comprehensive and collision coverage. This coverage pays 20% over your vehicles current market value in the event of a total loss.
GEICO
Who Should Opt for GEICO?
- Drivers with bad credit
- Drivers with speeding tickets on their records
- Drivers with clean records
- Senior members and young drivers
About GEICO
Compared to other car insurance companies, GEICO provides some of the cheapest premium rates in the industry. They offer affordable rates for many types of drivers, including good drivers and those with poor records. In fact, if you have a bad credit rating, GEICO should be your go-to car insurer since they offer the lowest rates for this category of drivers in the country.
Senior citizens and young adult drivers, which are two groups that typically have to pay more to have their cars insured, also get good rates through GEICO. However, the rate hike for drivers who are convicted of a DUI offense is a bit steeper with GEICO than with some competitors. Adding a teen driver to your insurance policy is also on the expensive side with GEICO.
In general, the level of complaints against GEICO is low, and customers seem pretty satisfied with the service they receive from this company. As far as optional insurance products go, GEICO provides accident forgiveness insurance. As is the case with USAA, this becomes a free feature if you don’t file a claim for five years.
State Farm
Who Should Opt for State Farm?
- Drivers with accidents or speeding tickets on their records
- Those who want to add a teen driver
- Drivers with accidents or speeding tickets on their records
- Senior drivers age 65+
- Drivers with DUIs
About State Farm
If you’re a driver with a DUI or accident on your driving record, State Farm is the best option when it comes to insuring your vehicle. Although GEICO provides cheaper rates for good drivers and those with speeding tickets on their records, State Farm’s rates for these two categories are very competitive.
If you’ve got poor credit, it’s best to look elsewhere for insurance coverage, since State Farm’s premium rates are high for this category of driver. If you want to add a teenager to your insurance policy, however, you will receive affordable rates from State Farm. Young adult drivers and senior drivers age 65+ also enjoy relatively low rates.
State Farm offers rideshare insurance, which covers the gap between your personal auto insurance and that of the rideshare company. Complaint levels against State Farm are impressively low, and the service they generally offer is satisfactory. Since State Farm is the largest auto insurer in the U.S., the company has a wide network of local agents.
Erie Insurance
Who Should Opt for Erie?
- Drivers with clear records
- Drivers with accidents or speeding tickets on their records
- Drivers with DUIs
- Young drivers and senior drivers age 65+
- New car owners
About Erie
Erie offers good rates for various categories of drivers, including drivers with clean records and those who have had accidents or received speeding tickets. Although a DUI will significantly increase your monthly premiums, the rate Erie charges is among the best for drivers with DUIs. However, if you have a poor credit rating, you should look at insuring your car elsewhere.
With Erie, you can lock in a rate, which means that your monthly premium will remain the same year after year, unless you change your policy. This is a great way to keep your insurance costs low. Erie offers competitive rates for young adult drivers and senior drivers age 65 and up. Adding a teen driver through Erie, however, is quite expensive when compared to other companies.
Erie receives excellent feedback regarding its claim processes. However, the level of complaints against the company is quite high. Here’s a list of some of the optional products this company offers:
- Erie offers accident forgiveness insurance.
- You can get new car replacement coverage through Erie.
- Erie also offers gap insurance coverage.
Which Car Insurance Company Should You Go For?
Choosing a car insurance company involves more than the average cheapest rate. Other factors to consider include your age and driving record as well as the range of products that a company offers. In the end, it’s best to shop around and ask for quotes from multiple companies, so that you can make an informed decision regarding your car insurance.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
