Which Auto Insurance Company Has The Cheapest Rates?

Finding the best value for your car insurance policy will require you to research and compare rates from over a dozen car insurance companies. Your auto insurance needs to be affordable, reliable and customized to your unique and individual needs. Insurance companies will take into consideration many factors such as your age, location, driving history, vehicle year, make, and model, and various other metrics that will enable them to assess your level of risk as a policyholder.

As a consumer, the main question is which car insurance company is offering the best and cheapest car insurance? In our study, we managed to survey the top car insurance companies and their common rating factors to come up with a list of reliable car insurance companies who have low rates – even for high-risk drivers and young motorists.

How To Find Cheap Car Insurance After An Accident

One thing that will increase your car insurance premium is having auto accidents on your driving record. Insurance companies will rule collision claims or property damage claims as at-fault accidents. If you end up with an at-fault accident, don’t be surprised if your insurance premiums rise by as much as $500 every six months.

Regardless of the company you have chosen, an at-fault accident will always guarantee a rise in your auto insurance rate.

When it comes to car insurance, the premiums change when there is a change in your driving profile. Each of the top car insurance companies applies their rate changes after an accident differently, and this is why you will notice a higher rate with some companies than others. If you have been involved in an auto accident and notice a significant increase in your car insurance premium, consider shopping around for a new car insurance policy and choosing a company that sees your accident as less costly compared to your current company.

Car Insurance Rates After Driving Violations

In terms of car insurance, a “violation” covers a broad range of driving offenses. What we have included in our analysis are violations with high financial consequences; DWI or DUI, hit-and-run, driving with a suspended license, and reckless driving. How do car insurance rates stack up for people with these types of infractions?

Car Insurance Rates After DWI, DUI

There are legal consequences of getting a DUI or DWI, and on top of that, you can expect to see an impact on your car insurance rates. The average rate increase on car insurance after a DUI or DWI is $624 every six months. The company that offers the lowest car insurance rates for individuals without DUI or DWI cases is Farmers; however, we found them to increase their rates by $1,316 after a DUI or DWI violation, which was the highest rate increase compared to the other companies.

Allstate and Nationwide increased their rates by $900. State Farm had the second-lowest rate increase by $350. Progressive, which was not the cheapest car insurance option for people who don’t have a DUI, increased their rate on their premium the least by just $200 after a DUI infraction.

When it comes to choosing the best and most affordable car insurance company, you should conduct a thorough comparison of rates from the top car insurance carriers. Just because your current insurance company is offering a cheaper insurance rate before your DUI, doesn’t mean they will still be the cheapest option for you after the infraction.

Car Insurance Rates After Driving With A Suspended License

The average rate of increase in car insurance premiums after driving with a suspended license is $376 every six months. The company that offers the lowest rates for people without a driving while suspended violation is State Farm. After a driving while suspended violation, State Farm and increased their rate by $304, which also makes them the cheapest option after the violation. Farmers increased their rate the most, by over $600, making them one of the more expensive car insurance providers after driving while suspended.

State Farm might be the best option for you if you are convicted of driving with a suspended license. Companies that are initially offering the cheapest car insurance rates before a driving violation might not be after an offense, so it is essential to shop around and find the best rate for your coverage policy.

Car Insurance Rates After A Hit-And-Run Violation

A hit and run violation is serious, and it reflects on your insurance policy. Hit and runs are the most expensive driving violations you can receive in most states – even more costly than DUIs. You will find yourself having a hard time finding affordable car insurance after you have been ticketed because of a hit-and-run.

After a hit-and-run violation, State Farm becomes the most affordable option for car insurance. State Farm increased their rate by $315, which is $313 less than the average rate increase of the other major car insurance companies. The car insurance rate increase as a result of a DUI ($572), and driving with a suspended license ($483), are lower compared to a hit-and-run violation.

Car Insurance Rates After A Reckless Driving Violation

The definition of reckless driving varies from state to state. In general terms, reckless driving is operating a vehicle while disregarding the rules of the road and endangering other drivers. Reckless driving violations tend to have hefty fines and our research shows an average increase of $576 on a six-month car insurance premium.

After a reckless driving violation, State Farm is the cheapest option for car insurance, with an average six-month premium of $967 – which includes an increase of $311 after the violation. If you have a reckless driving violation on your record, then you should choose between GEICO, Progressive, and State Farm as your cheapest options for car insurance.

Additional Cheap Car Insurance Resources

If you have any questions about cheap car insurance quotes with the best value, ask our licensd insurance experts at Insurance Online by calling (800) 956-8611 or try our free online insurance quote comparison tool.

Adding Teen Drivers To Your Car Insurance Policy

Another concern parents have is how much more expensive their car insurance premiums will be after adding their teen to their policy. When young drivers are added to a car insurance policy, there tends to be an 83% increase in the annual insurance premium. The reason for such a high rate increase is because young drivers pose a high risk when they get behind the wheel. They don’t have a lot of experience, and they can try risky things when driving, which exposes the insurance companies to more risks when offering coverage. We performed an assessment of car insurance premiums when a married couple adds their teen to their car insurance policy. Compare the rates for car insurance after adding a teen driver to your insurance policy below.

The cheapest car insurance company when adding a teen driver to a policy is GEICO, and the second-best option for cheap car insurance when adding a teen is State Farm. When calculating the average rate increase in car insurance premiums, we took the average rate for a teen female driver and a teen male driver. When comparing male and female teen drivers, male teen drivers have to pay $239 more in annual premiums than female teen drivers. There are more risks involved when insuring male teen drivers compared to female teen drivers. GEICO turned out to be the cheapest option for teen drivers from either gender.

Credit Score and Car Insurance Rates

Car insurance companies put a lot of weight on credit scores when determining risk. There are studies done by the FTC (Federal Trade Commission) showing that drivers who have low credit scores file more claims than those with higher credit scores. Drivers with bad credit also tend to have higher rates for car insurance than drivers with good credit.

Drivers with good credit scores are seen as safer customers to insurance companies and are offered cheaper car insurance rates as a result. By increasing your credit score, you can lower your rates for car insurance. When you move from one credit tier to the next, you can expect to see some changes in your premiums, with the average rate increase forfrom selected insurers being $344 in annual premiums.

If your credit score is low, then you should look at Nationwide and GEICO when choosing your car insurance company. Your credit score will become even more important when you realize that drivers who are considered to have “bad credit” pay $544 more on average in annual premiums when compared to those who are seen as having “good credit”. If you are considered to have “good credit”, then GEICO is the most affordable option for car insurance as their rates are $144 cheaper than the average rates for drivers with “good credit.”

Insurance History and Car Insurance Rates

The longer you've had car insurance and the more insurance you have, the cheaper you can expect your premiums to be. There is data used by insurance companies showing that people who go above and beyond the state minimum coverage when purchasing coverage for their cars are less likely to get into an accident and file a claim. Drivers who buy more than the state minimum coverage are also seen as more financially stable compared to drivers who only purchase the state minimum coverage.

Car insurance companies provide their long-term customers with lower rates because of the decreased risk. If you are getting started with car insurance, then consider going higher than the state minimum property damage and bodily injury limits. Purchasing additional coverage will go a long way in protecting your family in case of an accident and ensuring you have a good start with your insurance history.

The data used in our rate comparison is based on two 30-year olds who have not purchased liability car insurance before or purchased high-limit liability car insurance within the past five years. Our study shows that car insurance rates are cheaper by an average of $92 for drivers with an existing history of car insurance coverage.

Nationwide is the cheapest car insurance option for new drivers with no insurance history. For drivers with good car insurance history and an existing car insurance policy, Geico is the most affordable option by $60 every six months.

For more information on car insurance coverage options, see our resources:

• Collision coverage
• Uninsured motorist coverage
• Personal injury protection

Primary Vehicle Use

Drivers usually use their cars for pleasure, but if you want to use your vehicle for business purposes, then you can expect to see an increase in your car insurance premiums. When a vehicle is used for business, there is an increased risk for car insurance companies.

Nationwide offers the best rates for cheap business-use car insurance. Keep in mind that a business-use car insurance policy is not the same as commercial policy. A business-use car insurance policy means you have combined business and personal use for your vehicle. A business-use car insurance policy will often times provide coverage delivery drivers and sales people.

How Much You Drive

Insurance companies can know how much you drive by looking at your annual mileage, and in places like California, it can negatively or positively affect your premiums. If you were to compare the annual premiums of those driving less 7,500 miles per year and those driving more than 15,000 miles per year, you would notice a 25% gap between them. The less you drive your car, the more you save on your car insurance – but the impact is not that big.

Compare rates for state minimum liability car insurance based on annual miles driven:

Car insurance companies charge higher rates for higher annual mileage drivers.= The more time you spend on the road, the higher the risk is that you get into an accident. For high annual milage drivers who drive over 15,000 miles per year, Nationwide is the most affordable choice for car insurance.

How To Find The Best Car Insurance For Less

Take your time and read between the lines when shopping around for car insurance. The cheapest auto insurance policy is not always the best way to go when your car and your health are at stake. You can save on your car insurance without having to compromise on the quality of service by using our Online Car Insurance Quote Comparison Tool.

How To Find Cheap Car Insurance

If you are looking to find cheap car insurance, then the best place to go searching is online. You can compare rates from the top car insurance companies online in seconds and decide which coverage plan is best for you.

Car Insurance Rates Are Specific To You

Car insurance companies use many factors to determine coverage rates. Some of the factors that go into determining your rates are your age, location, driving history, insurance history, and the car you are driving. Your price will increase if there have been recent claims filed with your insurance company or if you have any at-fault accidents on your driving record.

Popular Auto Insurance Discounts

There are many car insurance discounts available to you, which can save you 20% or more on car insurance if you qualify. You can be eligible for discounts on your policy if you meet the qualifications for the Good Student Discount, Good Driver Discount, Low Mileage Driver Discount, and even a discount for signing up for autopay.

Bundling/Multi-Policy Insurance Discount

To qualify for bundling / multi-policy insurance discounts, you will need to have two or more policies with the same insurance company to bundle. Some of the common multi-policy combinations are renters-and-auto insurance and home-and-auto insurance.

Homeowners-and-auto insurance has the most significant discount, with a savings of $110 per year on average. When you choose to bundle renters-and-auto insurance together, you can expect to save $72 per year on average. Signing up for a multi-policy discount is going to save you money on all of the policies you have with the same insurance company. Make sure to compare multi-policy rates with all of the top car insurance providers before making a final decision on who to go with for your policy.

Average Multi-Policy Insurance Discounts

Telematics

Telematics, also known as usage-based insurance, has become popular among consumers in recent years. Insurance companies track your driving habits by using an in-car device to monitor your mileage, speed, brake patterns, and other factors apart from your credit history, age, and location to determine the rates they can offer for your car insurance policy. Insurance companies tend to offer discounts if you use their telematics device and display safe driving habits for six months or more.

The telematics programs have not been authorized in all states. Find out whether you are eligible based on where you live and save on your car insurance today by contacting one of our live car insurance agents at (800) 956-8611.

Being Smart With Coverage

The car that you've had for two decades is not increasing in value. If you own an old car, you can expect to pay more for car insurance compared to newer cars, i.e., collision and comprehensive insurance. Below are some points to put into consideration when it comes to shopping around and choosing coverage options.

• Use NADA and Kelley Blue Book when determining the value of your car
• Look at the difference between the pricing for liability insurance and full coverage insurance (comprehensive and collision). If the money you save in premiums as a result of removing full coverage insurance isn’t enough to cover the cost of a new car in case of an accident, then it might be a good idea to keep your comprehensive and collision coverages.
• If you feel like you need to have full coverage car insurance, then you should raise your deductibles to save money on your rate. When you raise your deductibles, you are going to pay less in premiums because you will be taking on more financial responsibility in the event of your car getting totaled.
• If you are going to remove optional coverages like comprehensive and collision insurance, make sure you have property damage and bodily injury coverage as per your state's minimum requirements. You should also keep uninsured/underinsured coverage too.

Safe Driving Discount

To get a safe driving discount, you will need to complete a defensive driving course and provide proof to your insurance company. The reason why insurance companies are ready to give safe driving discounts is that safe driving results in lower risks.

Equipment Discount

You can get a discount from your car insurance company by having an anti-theft device installed. An equipment discount will not be as significant in savings as a safe driver or multi-policy discount, but you can expect to save an average of $11 on your car insurance every year by using an anti-theft device in your vehicle.

Average Insurance Savings: Safety Devices

Good Driver Discount

Drivers who have clean driving records can qualify for a good driver discount. You can get a good driver discount when your CLUE report or Motor Vehicle Report is clean of driving violations and at-fault accidents. If you are sure of a clean driving record – but are not getting any discounts, consider talking to your insurance company about your eligibility and ask whether they have discounts for good drivers. When you keep a clean slate, you can end up getting about 10% in discounts on car insurance.

Average Annual Auto Insurance Cost Increase By Violation

Military Discount

There are many insurance companies that offer discounts for active or former military members and these discounts also apply to their families. The qualifications for a military discount and the savings will vary from one company to another. If you have an active or former military member in your family, ask your insurer if they offer these discounts.

Multi-Car Discount

If you are looking to insure more than one car using the same insurance company, you can qualify for a multi-car discount. A multi-car discount will be added automatically to your policy, whether you add all of your cars to your policy at the same time or decide to add them on later.

Preferred Payment Discount

You can save an average of $62 a year on your car insurance if you pay for the entire premium upfront. If you set up automatic payments through Electronic Funds Transfer (EFT), you can save an average of $278 a year from an EFT discount. If you can take advantage of either of these preferred payment methods, it may help reduce your cost of car insurance.

Average Rates: ETF Auto Insurance Discount

Average Car Insurance Rates By Payment Plan

Profession Discount

The Profession discount is for those insurers with specific occupations. A few of the professions that get this discount are educators, doctors, police officers, and firefighters. For example, most police officers and firefighters live in the town they serve, so they have a short commute to work and, therefore, less of a chance of getting into an accident. Speak with an agent directly to see which discounts could apply to you.

Good Student Discount

It is costly to insure a young driver because young drivers are new to the road and inexperienced behind the wheel. Insurers see this as high risk and charge accordingly. Luckily, if your child has good grades – usually a GPA of 3.0 or higher – the insurance company will offer a discount. Speak with your insurer and ask them about a good student discount. Be sure to have documents available such as a transcript every policy period (6 to 12 months) as validation for receiving the discount.

Good Student Car Insurance Discounts: Average Savings

Pros and Cons of Cheap Car Insurance

We’ve all heard the saying, “you get what you pay for.” Some car insurance companies are no better; offer cheap coverage, cut corners during the claims process, or provide minimal customer support. If you consider customer service and reliable claims process essential, then you should reconsider cheap insurance options. On the other hand, affordable coverage can come with more flexibility, more significant discounts, and lower rates.

Different drivers will be offered different rates, and this makes it hard to give a specific insurance company that will offer the cheapest rate. The best option is to shop around and compare car insurance quotes you get from the top insurance providers.