The Cheapest Type of Car Insurance in USA
Introduction
Car insurance is a legal requirement for drivers in most states, but it can also be a major expense. According to The Zebra, the average annual cost of car insurance in the USA is $1,6741. However, there are ways to find cheaper car insurance options that still provide adequate coverage and protection. In this article, we will explore some of the factors that affect car insurance rates, and how to compare and choose the cheapest car insurance company for your needs.
Factors that affect car insurance rates
Car insurance rates are determined by a variety of factors, such as:
Your age, gender, marital status, and driving history
Your vehicle make, model, year, and safety features
Your location, mileage, and driving habits
Your credit score and insurance history
Your coverage level, deductible, and discounts
Some of these factors are within your control, while others are not. For example, you can improve your credit score, reduce your mileage, or increase your deductible to lower your car insurance rates. However, you cannot change your age, gender, or location easily.
How to compare and choose the cheapest car insurance company
The best way to find the cheapest car insurance company is to shop around and compare quotes from multiple insurers. You can use online tools like The Zebra2, NerdWallet3, or Policygenius4 to get personalized quotes from different companies based on your profile and preferences. You can also contact insurers directly or work with an independent agent to get more information and negotiate better rates.
When comparing quotes, you should not only look at the price, but also the coverage level, customer service, claims process, and reputation of each company. You should also check for discounts that you may qualify for, such as:
Bundling your home and auto insurance
Having a good driving record or completing a defensive driving course
Having a good student or alumni status
Having a low-risk vehicle or installing anti-theft devices
Paying your premium in full or using automatic payments
FAQ
Here are some frequently asked questions about the cheapest type of car insurance:
What is the minimum car insurance required by law?
The minimum car insurance required by law varies by state, but it usually includes liability coverage, which pays for the damages and injuries you cause to others in an accident. Some states also require personal injury protection (PIP), which pays for your own medical expenses regardless of fault, or uninsured/underinsured motorist (UM/UIM) coverage, which pays for your damages and injuries caused by a driver who has no or insufficient insurance. You can check your state’s minimum car insurance requirements here.
What is the cheapest type of car insurance?
The cheapest type of car insurance is usually the minimum coverage required by law. However, this may not be enough to protect you from financial losses in case of a serious accident. You may want to consider adding other types of coverage, such as collision and comprehensive, which pay for the damages to your own vehicle caused by a collision or other events like fire, theft, vandalism, or natural disasters. The cost of these coverages depends on the value of your vehicle and your deductible amount.
Which company has the cheapest car insurance?
The cheapest car insurance company depends on your personal situation and preferences. According to The Zebra’s analysis of rates from 154 car insurance companies around the country2, USAA has the cheapest car insurance when it comes to nationally available companies, with an average rate of $94 per month. However, USAA’s policies are only available to drivers in military families. GEICO is the second-cheapest car insurance company among large insurers, with an average rate of $102 per month. Nationwide is the third-cheapest auto insurance company among large insurers, with an average rate of $106 per month.
Conclusion
Finding the cheapest type of car insurance can be challenging, but not impossible. By understanding the factors that affect car insurance rates, comparing quotes from different companies, and taking advantage of discounts, you can save money on your car insurance without compromising on quality and coverage. Remember to review your policy regularly and update it as your needs change. Happy shopping!
