Top 10 Cheapest Car Insurance Companies in USA Car owners or car lovers treat their private cars as their babies. And since you are reading this article, we assume you are here because you love your car baby.
Just like we need health insurance for our baby, our vehicle also needs insurance. It is even mandatory to have car insurance in most of the states of the USA.
Car insurance ensures that you don’t have to pay a bulk amount of money in case of accidents that have been caused due to your fault. It takes care of all the expenses of your vehicle’s damage, other party’s medical bills, and damage to their vehicle.
Buying car insurance online can be tricky so before choosing one you should always compare the car insurance quotes given by different companies.
Buying car insurance online can be tricky so while you are searching for the correct one you need to compare car insurance quotes provided by different insurance providers.
Now arises the most important question that is, how to choose the right vehicle insurance company for you? There are many parameters that you need to keep in mind.
Because, just so you know, the same driver can be charged $39 per month by a car insurance company and at the same time $255 per month by another!
Out of many car insurance companies, we have seen that companies like state farm, USAA, and GEICO are consistently providing lower annual rates.
According to studies, state farm offers an average rate of $532 every year as a minimum liability policy which is 26% less than the natural average rate.
On the other hand, USAA offers an average rate of $432 per year, but this can be availed only by active military members, veterans, and their families.
Some of the insurers have small national footprints, a few of such companies are Farm Bureau Insurance, which costs $472 per year, and Auto-Owners, at $484 per year, these two companies rank as the cheapest. Apart from them Erie's is in the third position as it cost around $503 per year.
Some smaller companies offer lower rates than the bigger companies due to high competition among themselves. Another way to bring customers in is by providing homely support and guidance, few such companies are there that provide personal tough based on your location.
State Farm is one of the USA's largest auto insurance companies. This company provides the cheapest auto insurance present in more than 29 states. This company has local agents spread all over these states,
Which means that there is a state farm agent always available near you who will help you to compare the insurance of different companies.
If we compare state farm with other companies like USAA, Farm Bureau, and Auto-Owners we can see that this is the cheapest and most reliable car insurance company in the country.
This is considered the best among others because USAA has eligibility restrictions, Farm Bureau, and Auto-owners have excessive expenses when you add extra coverage.
Some add-on coverages are provided to the customers by State Farm. Few such coverages that you can include as add-ons with the insurance are pet coverage, rideshare insurance, and roadside assistance.
State Farm car insurance is considered to be one of the cheapest yet the best auto insurance company in the USA.
Geico is the second cheapest car insurance provider in the country. This company offers additional benefits i,e you can avail of vehicle insurance online at a much cheaper price depending on your locality. Geico is named to be the cheapest online car insurance provider in seven states including California and Florida.
In comparison with State Farm, Geico provides additional discounts. This is the main reason behind its outstanding performance than other companies. Even though state farm offers cheaper rates on average, on choosing Geico you can pay less overall.
Geico offers a long list of discounts which will help you to save a lot, on buying insurance from Geico you can save a lot more than other companies.
Erie provides the cheapest insurance in special cases like for drivers who have a ticket or have a record of accidents. If your record has DUI (Driver under the influence) then you won't be able to find a better rate. This company increases a very less rate if you had a driving incident, for example,
Erie will only increase your rate by an average of 7% if you get a ticket while driving on the other hand other companies increase rates up to 22%. If you met with a faulty-driving scenario, Erie will increase your rates up to 25% while the other companies increase rates up to an average of 44%.
Erie offers a nice set of insurance offers along with good customer service; this is what makes this company well reputed among others. Erie is available only in 12 states plus DC, this is the biggest drawback of this company. The states where you can avail this insurance are:
Metromile car insurance is for safe drivers who drive less than average, if you are such kind of driver then this might be the cheapest solution for you. It's a usage-based auto insurance company.
Metromile is one of the first car insurance companies in the US which provides premiums based on their mileage. It is often seen that usage-based car insurance is much cheaper than the standard car insurance policy because here your rates depend on how well and how often you drive.
So, in conclusion, we can see that this is a good solution for those who are retired or aged people, those students who live on the campus, the young drivers who possess clean driving records, and employees who are working from home and riding less.
The main drawback of this car insurance scheme is that it is only available in 8 states so if you do not live in any of the below-mentioned states then buying this insurance will cost you more than the other insurance companies.
Farm Bureau is the best and cheapest option for those drivers who have fewer credits averaging $1278 per year. On comparing this company with its closest competitor, Geico we found out that this company offers the cheapest car insurance with an average rate of $32 per year.
This company operates exactly like AAA. This means it more or less has a local section that offers insurance policies and other benefits to its members. You can still become a member even if you are not a farmer, you just need to pay an annual subscription fee which ranges from $20 to $100.
USAA is another cheapest car insurance provider in the country. USAA manages its network in all 50 states and Washington DC., but only the military members and veterans and their families can avail these facilities. This company is considered to be the 5th largest auto insurance provider in the country.
This company has various attractive features like affordable rates, the highest customer satisfaction index, great customer service post-buying insurance, and the lowest complaint index.
Nationwide car insurance is another company that provides vehicle insurance at the lowest rates. This provides insurance at the cheapest rates for drivers with poor credits. This company provides the best customer handling and customer services.
Some studies state that Nationwide provides insurance at a rate cheaper than the national average. Nationwide customer service earns third place after state Farm.
There are very less complaints registered by the members. The drawback here is that it provides high rates for young drivers another main concern here is that the insurance is neither recommended nor renewed by the current members.
Allstate car insurance provides various discounts to its users one such example would be if you could avail extra 10% discount on purchasing the policy before 10 days of the start date.
This company offers a usage-based policy at a decent discount. This means you can avail the pay-per-mile offer if you are a safe driver with a low driving average.
There are very less complaints raised by the policy members which makes this company reliable and trustworthy.
Even though this company has a well-maintained reputation with its high customer satisfaction index and pay-per-mile program, there are some drawbacks that you should know before you go for this program.
It has a high average rate for the drivers with speeding tickets, and have faulty-driving experiences, and drivers who are Driving Under the Influence. Also, it has a higher than the normal average rate for the addition of members on an ongoing policy.
The company offers insurance at various decent prices to customers. You can get a loan or rental insurance for only $ 39 a year. The company offers a cheap average rating for drivers with DUI on their records.
What is most interesting here is that this provides for accidental forgiveness as well as forgiveness for minor offenses. This strategy helps the company stand out from the crowd. Along with this, you can also get yourself usage-based insurance that offers the best discount for safe drivers.
In some studies, we can see that this company has a very small complaints index.
The company raises its prices by adding a youth member to ongoing insurance, this is one of the major issues for this policy.
Auto-Owners insurance policy provides various optional coverage options which help this company to stand out of crowd. Other than this the company will also provide you an additional 14% discount if you choose to pay the full amount at the same time or if you plan to enroll in an auto insurance scheme.
The company also provides gap insurance to the customers along with accident forgiveness.
Safe drivers can also try some of the usage-based insurance schemes (TrueRide) to avail of lower insurance rates.
The main drawback here would be high rates of DUI and higher average rates for adding teens into the ongoing policy plans.
Now that you have seen the difference between various car insurance policies, we hope you would be able to make out the best suitable option for yourself.
We would like to suggest that if you are a safe driver then you can choose the various mileage-based policies offered by various companies. On the other hand, if you are looking for the cheapest plan overall then you can go for State Farm. State Farm is the best cheap car insurance company in the USA with minimum to no deposits
1. Which is the Cheapest Car Insurance Company in the USA?
There are various car insurance companies in the USA. The famous ones which offer the lowest rates are State Fram, USAA, and Geico.
2. What is the Maximum Driving Mileage to Avail Insurance From Metromile?
In general, drivers should drive less than 10000 miles per year to avail of insurance from Metromile. Driving less than the mentioned limit per year will help the people ensure a better deal.
3. What all is Covered Under Metromile Insurance?
Following are the benefits enjoyed by the customers:
The insurance will pay you for the damage to the property and repairs to the car. This is called Liability coverage.
The repairs for the damage if your car hits another car. This is called collision coverage.
Not only the above benefits, but Metromile insurance will also pay you for the damage other than an accident, for example, a storm caused a tree to fall on your car that damaged your car. This is called comprehensive coverage.
There are many other benefits that you will enjoy if you get Metromile car insurance.
4. Will the Car Insurance Cover the Loss of Theft?
Yes, it will cover the loss of theft given that you have purchased the comprehensive coverage. Documentation is required of the stolen car and compensation will be given for the same.