What type of car insurance is the cheapest?

The type of car insurance that is the cheapest is minimum liability coverage. Every state requires a minimum of liability insurance, but unfortunately, this level of coverage is so minimal and will not protect you in any sort of major car accident. The cheapest type of car insurance also won’t protect you from flood damage, thieves, or vandals. Instead of shopping for the cheapest type of auto insurance, start looking for affordable rates for the level of coverage you actually need. Enter your ZIP code below to start comparing cheap car insurance quotes for free.

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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 26, 2020

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There are many different types of auto insurance and looking for the cheapest type of car insurance is a natural step in comparing car insurance quotes. The downfall is if you only focus on the cheapest car insurance quotes your odds of being underinsured, or uninsured, are much higher in a car accident.

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All states have minimum car insurance requirements and purchasing a policy only to meet these laws is often the cheapest car insurance available. States are in the business of protecting the public while balancing the cost to its residents, which means any mandatory requirements are typically on the low side of what you really should have. Car insurance is a very notable example of this since no matter where you live there is no requirement to purchase comprehensive and/or collision coverage – the types of insurance which cover damages to you and your vehicle in a car accident. Only some form liability of insurance is required and even then, the amount of coverage mandatory by law is much less than what you really need.

What type of car insurance is the cheapest?

The cheapest car insurance policy is one with just enough coverage to comply with state law however, in terms of risk, this is the most expensive. Depending on where you live you are required to have anywhere from $10,000 to $60,000 in some form of liability insurance. This sounds pretty good but in reality there are many problems with this bare minimum car insurance purchase.

  • First, there is no collision or comprehensive coverage to insure your own damages in an accident where you were at fault
  • There is no uninsured motorist coverage and up to 30% of drivers remain either uninsured or underinsured.
  • For new car owners a total loss vehicle can cause you to automatically be up to $10,000 or more upside down as there is no GAP coverage required.

With the high cost of medical care, vehicle repairs and a thriving car accident attorney industry its never a good idea just to choose the cheapest type of car insurance. You need a policy which represents sufficient coverage for your unique needs and the very cheapest car insurance policy will never do this. However, there are ways to save money and find cheap car insurance for policies with sufficient coverage online.

How to find cheap car insurance with sufficient coverage?

Many drivers opt for collision and comprehensive coverage in addition to other supplemental forms of insurance such as GAP and medial payments coverage. Before shopping for car insurance you really need to understand how car insurance works and the different types of coverage. When you do it’s very easy to find cheap car insurance quotes online. At the end of the day it will be your decision on which provider to choose but some of these steps will help you narrow down potential car insurance options and help find the cheapest car insurance rates:

Compare Apples to Apples

Always compare policies that offer equal coverage and deductibles. Without offering the exact same details of coverage you are not comparing apples to apples.

Learn about Car Insurance Discounts

Always ask any potential auto insurance company about your eligibility for discounts. Discounts do not have to be listed on a website or form to be available – in fact, sometimes they are even left out intentionally. Learn about the common ones available, speak with a real person and go down the list one by one to what is available.

Never take the First Quote

If you plan taking the first quote then you simply have no interest in saving money. Car insurance comparison is much like shopping for anything else, and consumers who spend a little time collecting and comparing quotes from different providers typically always get the better deal.

How much is car insurance per month? Compare Car Insurance Quotes Online and find cheap auto insurance today!

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