Most cost-effective car insurances for September 2021 – NerdWallet

If you are looking for the best and cheapest car insurance, you have come to the right place. NerdWallet analyzed the rates of auto insurers across the country to find cheap auto insurance for a wide variety of drivers.

The cheapest car insurance is probably the one Minimum coverage required in your state, so we've focused our rate analysis on these minimums. In many states, this is just liability insurance that covers property damage and medical bills for others due to accidents that you cause.

Another alternative is fully comprehensive insurance, but on average it can cost over $ 1,000 more per year than a minimum annual insurance policy. This is because there is additional coverage such as uninsured / underinsured motorist protection as well as full and collision insurance.

Nerdy tip: If you have a car loan or a lease, your lender will likely ask you to buy Full and collision protection. These types of cover pay off if your car is stolen or damaged in an accident that you have caused, among other things.

If you need more than a simple guideline, check out our analysis of the best cheap fully comprehensive insurance. If you're just looking for the cheapest car insurance, we've listed providers with affordable minimum coverage below.

The cheapest car insurance

Geico is the cheapest major auto insurance company in the country, according to NerdWallet's latest minimum coverage analysis. Geico's average annual rate was $ 380, or about $ 32 per month. It's also among the best cellular operators in the country, earning a 5-star rating from NerdWallet.

Here are the cheapest annual auto insurance rates for six of the world largest auto insurer in the United States. We also took into account average prices for some smaller companies. These tariffs only apply to the minimum coverage prescribed by the state. Our "good driver" profile is a 40 year old with no moving violations and credit in the "good" category.

These rates are only guidelines – the best cheap car insurance for you may vary.

Cheapest car insurance from the biggest companies

* USAA is only available to military personnel, veterans and their families.

Cheap car insurance from smaller companies

Finding cheap auto insurance doesn't mean you have to stick with big insurance companies. Secura, a smaller insurer that offers coverage in seven states, has even cheaper car insurance rates than Geico.

Although availability may be limited, regional and small insurers can outperform the cheapest car insurance rates from larger carriers. Plus, they often have great customer service.

We selected these companies for their low pricing and availability in multiple states. However, there may be cheaper car insurance options where you live. For example many Farm office Insurance companies only exist in one federal state and were often among the cheapest in our analysis.

The best cheap car insurance

Of all the companies we looked at, Safety had, on average, the cheapest car insurance rates. However, it only sells auto insurance in three states. Geico has, on average, the cheapest tariffs among the largest insurers in the country.

To find cheap auto insurance, NerdWallet compared the tariffs among the The best auto insurance 2021 for which we have full price data. We looked at the average prices in each zip code in all 50 states and in Washington, D.C. viewed. Not all companies offer insurance in every state.

Although Liberty Mutual is one of the largest insurers in the country, it is not included in our analysis as it does not provide tariff data. USAA is often the cheapest, but it's only available to active military, veterans, and their families. It is for this reason that we include the numbers in this article, but do not rank them.

Here are the top auto insurance companies based on our ratings for 2021, ranked by the average auto insurance rate per year.

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* USAA is only available to active military, veterans and their families.

Cheapest car insurance by state

What qualifies as cheap car insurance depends on where you live, as rates vary widely from state to state.

To give you a better price comparison, we have the cheapest average auto insurance in every state and in Washington, D.C. found.

But state averages can only tell you so much. Even within a state, minimum car insurance rates can differ.

Cheap car insurance after an accident or DUI

The cheapest vehicle insurance varies depending on the ticket. The tables below show the largest companies' average car insurance rates for drivers after an accident or DUI.

We found that Geico has the lowest average rate for good drivers and drivers with a faulty accident. Progressive is on average the cheapest for drivers with a DUI.

Cheapest car insurance after an accident

Average annual rate after a fault

* USAA is only available to military personnel, veterans and their families.

Cheapest car insurance after a DUI

Average annual rate after a DUI

* USAA is only available to military personnel, veterans and their families.

Are you looking for an even cheaper car insurance? Try a smaller insurer. Drivers with a fault of their own or a recent DUI can find the cheapest car insurance rates from MMG and other smaller insurers.

Prices vary based on many personal factors. Make sure to compare Motor insurance offers from at least three insurers to find the best, cheapest car insurance for you.

Cheap car insurance for bad credit

Your driving record isn't the only factor that can increase your prices. Many insurers also use credit-based insurance scores to calculate auto insurance rates. In many states, this can make it difficult to get cheap auto insurance with poor credit ratings.

A credit-based score includes the same factors as a normal credit score, such as debt and payment history, but weights them differently. California, Hawaii, Massachusetts, Michigan, and Washington do not allow insurers to use credit in determining auto insurance rates.

Credit can have a shocking impact on insurance costs. Major insurers charge bad credit drivers an average of $ 376 more per year than good credit drivers.

If you're looking for affordable auto insurance from a large company, Geico might be a good place to start. According to our analysis, the company has the lowest average prices for good drivers with bad credit ratings. Among the smaller companies we have data for, Hastings Mutual offers, on average, the cheapest auto insurance.

Still, shopping is always the best way to get the cheapest car insurance rates regardless of your credit history.

Cheap car insurance from major insurers for drivers with poor credit ratings

Average annual rate for drivers with poor credit ratings

* USAA is only available to military personnel, veterans and their families.

Cheap car insurance from smaller companies for drivers with poor credit ratings

Average annual rate for drivers with poor credit ratings

Cheap car insurance for new drivers

If you are a new driver, you may struggle to get cheap car insurance. This is because auto insurers view drivers with no current driving experience as riskier. This includes people with a new driver's license, expired auto insurance, immigrants, and visitors to the United States.

To get the cheapest auto insurance, you should look around every year and compare the policies of a wide variety of companies. If you live with your family, it may be cheapest to keep their policy on until your driving history is more robust.

How to get cheap car insurance

When looking for the cheapest car insurance, it is important to compare offers from several insurers. You can use NerdWallets. use Comparison tool for motor insurance to easily find cheap car insurance deals online. You may already have the cheapest insurance, but that is subject to change, so check back about once a year.

These tips can help you get cheaper car insurance rates:

  1. Ask about discounts. There might be savings that you are not taking advantage of. Perhaps you are now working from home and driving less than you did when you signed your policy. If you mention that, you might get a discount for low mileage.

  2. Reconsider your deductible. A higher collision and deductible can be useful if you rarely drive a car or if you are comfortable with the financial risk. Increasing your deductible means you owe more out of pocket if you had to file a fully comprehensive or collision damage claim. But it's a surefire way to get cheaper auto insurance.

  3. Know when to cut the cover. Don't just do without cheap car insurance. However, if you drive an older car, you can cancel the fully comprehensive and collision insurance. These types of cover only pay up to the current value of your car minus the excess.

  4. Benefit from big changes in life. Certain life events can lead to cheaper car insurance. So buy offers when something important changes in your life. For example, many companies offer a lower tariff for married couples or life partners. Or maybe you've moved to a suburb with lower accident and crime rates. Even if you've moved to a more expensive area for auto insurance, you can still get cheaper coverage while shopping in the area.

  5. Take another look at the offers after your driving record has improved. Buy online for cheap car insurance deals three to five years after accidents, tickets, or moving violations. They can be struck from your ticket.

frequently asked Questions

How do you get cheap car insurance?

Shopping for Motor insurance offers is the best way to find cheap auto insurance. A good credit rating and a clean driving record can also keep your rates low. And ask about discounts that you may be missing in your policy.

At what age is car insurance cheaper?

Teenagers and young drivers have, on average, some of the highest car insurance rates. With increasing experience, prices decrease. According to a separate NerdWallet analysis for young drivers, rates drop significantly by the age of 25. In general, rates continue to decrease and then increase again by the age of 70, with a more dramatic increase around the age of 75.

Who has the cheapest car insurance?

Geico has, on average, the cheapest auto insurance rates from the largest insurance companies in the country. However, prices vary widely and depend on factors such as a person's gender, the car they drive, and their location. To find the cheapest price, Compare car insurance rates once a year with at least three insurers.

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