Many factors can affect the cost of your car insurance, including the company where you choose to purchase coverage. If you’re shopping for car insurance, you may want to know what companies offer the best deals and which ones have expensive rates. Review this guide to learn about the most expensive car insurance companies to help you compare costs and find an affordable policy for your budget.
What Are the Most Expensive Car Insurance Companies?
The cost of car insurance can vary widely between drivers of different ages and locations. The company you choose for your car insurance can also affect the price you pay. Car insurance companies may charge different rates, even for drivers with similar criteria in common. U.S. News & World Report, which provides consumer advice, ranked nine car insurance companies by their national average rates for a year-long policy. Here are the findings of the report, ranked from most expensive car insurance companies to least:
- Allstate: $2,047
- Farmers Insurance: $1,917
- Progressive: $1,533
- American Family Insurance (tie): $1,371
- Travelers (tie): $1,371
- Nationwide: $1,327
- State Farm: $1,267
- GEICO: $1,148
- USAA: $1,000
How Much Does Car Insurance Cost on Average?
According to U.S. News & World Report, the national average rate for car insurance is $1,442 per year. Based on that statistic, three companies — Allstate, Farmers, and Progressive — charge higher average rates than the national average. The other six companies in the study offer average premiums or premiums below the national average. While it’s helpful to know this information when shopping for insurance, it’s important to note your premium may be higher or lower than these averages. Car insurance companies use many factors when determining your insurance premium, including:
Age
Insurers typically set higher premiums for younger drivers who have less experience on the road. In particular, teens and adults in their early 20s often have the highest average premiums among all age groups. Car insurance companies consider these drivers at a higher risk for an accident. According to the Centers for Disease Control and Prevention, teens ages 16 to 19 have the highest risk of being involved in a motor vehicle crash than any other age group.
Location
Where you live can have a significant impact on the cost of your car insurance. Companies may charge higher premiums for drivers who live in densely populated areas because more drivers are on the road, increasing their potential of being involved in a crash. In addition, car insurance companies determine the likelihood of theft or vandalism to your vehicle based on geographic data.
Vehicle
The type of vehicle you drive can directly affect the cost of your insurance premium. Companies charge more to insure some cars based on their value, repair costs, age, and safety ratings. For example, it may cost more to repair a brand-new sports car than a used sedan that’s several years old.
Driving Record
Your driving record, which may include the number of accidents or traffic violations you’ve had, can impact the cost of your car insurance. Insurers will review your driving record to determine the likelihood that you will file a claim. If you’re a safe driver with no accidents on your driving record, you may receive a lower premium than another driver involved in multiple accidents.
How Much Car Insurance Do You Need?
Often, you can lower the cost of your car insurance by only carrying the minimum amount required. This amount can vary based on your state and whether you’re financing the vehicle. Here are some common types of car insurance you may be required to have:
Liability
Most states require you to have liability insurance to drive legally. This type of insurance, which includes bodily injury liability and property damage liability, pays for injuries or damages to other people or vehicles if you’re the at-fault driver in an accident.
Collision
Though not mandated by states, collision insurance may be necessary if you lease or finance a vehicle because many lenders require it. This coverage pays to repair or replace your vehicle after an accident.
Comprehensive
Like collision insurance, lenders may require you have comprehensive coverage if you finance or lease a vehicle. This insurance covers expenses from damages other than an accident, such as weather damage.
Personal Injury Protection
Some states require personal injury protection, which pays for you and your passengers’ medical expenses. In some states, this coverage is optional and may be unnecessary if you have good health insurance.
Uninsured/Underinsured Motorist
This type of insurance protects you by paying for injuries or damages if an at-fault driver doesn’t have enough insurance to cover the costs. Some states require drivers to have either uninsured or underinsured motorist coverage.
How To Get Cheaper Car Insurance
If you’re worried you may pay too much for car insurance, there are ways you can work to lower the cost of your premium. Here are some strategies to help you get cheaper car insurance:
Get Multiple Quotes
It’s helpful to get quotes from several car insurance companies, even ones you think may be more expensive. By getting quotes, you can feel confident you’re choosing a reasonable insurance policy.
Ask About Discounts
Most car insurance companies offer discounts to eligible drivers. Ask about discounts to learn what ones you may be able to get, such as a loyalty discount or rewards for safe driving.
Review Your Policy
Make sure you review your policy regularly, especially when it’s time to renew. There may be ways you can adjust your insurance policy to save costs, such as by dropping unnecessary coverage.
Consider Local Companies
You may get cheaper car insurance if you purchase coverage through a local company rather than a nationwide insurer. Research companies or agents in your area to ask about their costs.
When you purchase car insurance, it’s worth shopping around to find the company that offers you the best rate. While some of the most expensive car insurance companies may have higher average rates than others, it’s still important to get quotes so you can find the right plan for you. Taking the time to review your options can help you find the best car insurance plan for your budget.
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.
