What company has the cheapest car insurance?

It isn't easy to determine which company has the cheapest car insurance rates because insurance providers all have different ways to measure risk, and premium rates vary between drivers. Car insurance discounts and comparison shopping online are the best ways to find the cheapest car insurance rates. Get at least three quotes to determine which company has the cheapest auto insurance in your area. Enter your ZIP code below to get started now with free quotes from local companies.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 29, 2020

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Almost all drivers can agree that when shopping for car insurance its important to find cheap car insurance quotes but which company has the cheapest car insurance rates will depend entirely on your profile.

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Car insurance companies all have different ways to measure risk and it’s this level of risk which determines your car insurance rates. Risk in the car insurance industry is defined as “the risk of a driver filing a future claim” and while some car insurance companies will overlook a single car accident others may even deny coverage unless you have a spotless driving record. This means you really have to spend time doing a car insurance comparison search before selecting a provider however there are many things you can do to help find the cheapest car insurance company for your profile.

Learn about Discounts

Car insurance discounts are a natural way for drivers to save money and while the auto insurance industry has some common discounts available from most providers there are still a large selection of discounts only available through select companies. Some examples would include hybrid car discounts, early renewal discount, customer loyalty discounts and more. Before searching for a car insurance policy learn about the different car insurance discounts and try to find a company who offers all the discounts you may be eligible for.

You also want to pay very special attention to the “single accident forgiveness waiver” which will provide you with a waiver against premium increases from your first accident. Even great drivers are prone to a minor accident and you certainly want maximum protection against higher car insurance rates. The single accident forgiveness waiver however is not as common as you think but many of the big brands like Allstate and Nationwide do offer some form of this.

Do not focus only on Premiums

Cheap car insurance certainly sounds great but if you only focus on how much car insurance costs you may just be left with policy coverage that has little value in any accident bigger than a fender bender. It’s important to learn how car insurance works and define limits of policy coverage which represent fair coverage for your situation before shopping around. Finding a balance between policy coverage and premiums is the only way to get the best car insurance rates.

Consider a Used Car

Used cars are no longer just the hand me downs of somebody else but a big business where car manufacturers offer pre-certified cars and last year’s models at significant savings over new models. These cars often come with the same warranty and offer great value compared to the instant depreciation of a new car. Used cars also have a lower replacement value and this helps with lower car insurance rates.

Compare at Least 5 companies

There are over 100 licensed car insurance companies in most states and while many drivers can probably only name a handful this doesn’t mean the rest are not quality providers. The car insurance industry is heavily regulated and most car insurance companies have stellar ratings from agencies such as JD Power and Associates and more. Do some research and try to compare at least a handful of car insurance companies before selecting a provider.

Just remember that the cheapest car insurance for you may not be the same as for other people you know. Every driver has a different set of needs and a unique profile so shop around, compare car insurance companies and with the right knowledge you should only be minutes away from finding the cheapest car insurance for you and your family.

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