The 10 Providers with the Cheapest Auto Insurance
People buy auto insurance, commonly referred to as car insurance, for several reasons. Auto insurance is a deal between an insurance company and a car owner, which states that the car owner will be compensated for certain injuries or losses due to an accident, theft, or other unforeseen disasters.
When choosing an auto insurance provider, there are many things to consider: cost, add ons, branding, and range. Insurance cost is dependent on whether you pick a well-known or small provider, but the two cheapest well-known auto insurance providers in the United States are State Farm and USAA.
Are you looking for auto insurance and wanting to explore other cheap insurance providers in the United States? Are you trying to make the decision of which auto insurer to go with to cover your car? If so, read through this article to find a list of the top ten cheapest providers.
What Should I Consider When Buying Auto Insurance?
Before choosing which insurance provider to use, it is important to make sure that you understand the difference between each one.
There are a few things to consider when looking into buying insurance for your car. The most important thing to do is make sure that you understand what the insurance you choose covers.
Some other things to know before purchasing insurance include:
- Add ons
- Insurance offered by the car dealer
- The brand
- Range
Each of these items plays an important role in auto insurance prices. Depending on the provider and the quality of insurance you are looking for, your auto insurance premium could be cheaper or more expensive.
Add Ons
Many policies come with add ons which you can add to your coverage, but these generally each have their own extra added costs. Therefore, make sure to double-check pricing before adding too many.
Add Ons can include things like rideshare coverage, glass coverage, pet insurance coverage, and similar things.
Insurance Offered by the Dealer
Often, car dealers have connections to insurance companies and can provide insurance with your purchase. If you choose to do this, make sure to double-check exactly what that insurance includes so that you are not surprised later. This way, you will be clear on your options from the moment you purchase your car.
Brand
Often, the insurance brand can make a big difference in what they offer. Well-known brands, for instance, while sometimes more expensive, can occasionally offer better discounts and benefits. Make sure to check carefully and do some research before deciding on an auto insurance brand.
Range
Another important thing to consider is what is included in the coverage. For example, in case of an accident, is glass fixing covered? Are engine repairs covered? Make sure that you understand the range of coverage before deciding on an insurance policy.
Who Offers the Cheapest Auto Insurance?
As previously mentioned, the price is often dependent on whether you are looking for a well-known provider or a little-known one. No matter which one, though, some options are cheaper than others, and when it comes to auto insurance, things can often get expensive fast.
If you are looking at well-known companies, the list of the top five cheapest is as follows:
- USAA
- State Farm
- Geico
- Progressive
- National Average
If, however, you are considering using one of the lesser-known insurers, the prices often go even lower. The top five cheapest lesser-known auto insurers are:
- Erie
- Farm Bureau
- American Family
- Met Life
- Auto-Owners
It is often important to look for cheap providers and options. But, beyond the above list, you may wonder what the top ten cheapest auto insurers are. Read on to find out.
The 10 Providers with the Cheapest Auto Insurance
Here is a list of the top ten cheapest auto insurance providers. Some of these provider prices are subject to change depending on the driver’s age and the state the insurance is bought in.
Most car insurance policies offer a similar range of coverages, and generally, this includes:
- Liability for property or damage
- Property damage in case of a crash
- Car theft
- Medical coverage for bodily injury in case of a crash
These are sometimes dependent on the type of coverage you get. For example, if you only get liability coverage, you may have to pay medical bills yourself. Some insurance policies also cover mechanical issues, breakdowns, or rideshares if you use your car for Uber or a similar taxi style service.
1. Erie Insurance
The cheapest auto insurance provider is Erie Insurance. On average, the cost of a six-month payment with Erie is $195.
Erie is highly praised both for its low prices and its good quality customer service. The company provides the cheapest insurance available, and clients generally go through agents to purchase coverage.
One thing that makes Erie stand out from other insurance companies is that it offers a ‘rate lock’.
- This means that your insurance will remain locked, or the same, each year, rather than going up as it can do with some other companies
- If you change the car or driver, or your listed home address, though, the rate could then be subject to change
One of the drawbacks of Erie is the ease of use – they do not have an app you can use to access your account or file a claim. Instead, customers must either go through an agent to file a claim or make payments through the website. Also, Erie does not offer insurance to all of the United States, but only certain areas.
2. USAA
The second cheapest auto insurance provider is USAA. On average, the cost of a six-month payment with USAA is $223. This insurance is only available to those who have either served in the military, are actively serving, or are related to someone who has used the insurance company before.
The insurance company offers special benefits to their clients who serve in the military. These include coverage for cars that are not used but in storage while people are on active duty as well as deductibles on uniforms, for example. This is also a good insurance policy to consider if you are a younger driver, since there are a lot of savings available.
There are just a couple of negatives to this insurance company. One of those is that it can be hard to find, as there are not that many physical building locations. This means that most of the customer communication is done online. This can make it harder for those who struggle with online communications.
Another drawback is that in many states, glass coverage, for a broken window or windshield, for example, is not offered.
3. Farm Bureau Mutual
The third cheapest auto insurance provider is Farm Bureau Mutual. On average, the cost of a six month payment with this company is $251. This insurance company has an annual membership fee, which makes it stand out from a few others, but there are also many savings to be had, making that fee generally worth it. The fee is usually less than one hundred dollars, but that is state-dependent.
This membership is available to everyone but is especially good for those who are members of the Farm Bureau and work as farmers.
One thing which makes Farm Bureau Mutual stand out from other providers is that, not only does it have extremely competitive rates, it also offers clients certain benefits. These include discounts on travel, prescriptions, and more.
Further, there is a special technology offered by this company which can be installed in your car to measure your driving, called ‘driveology’. If your driving is deemed to be exceptional, you can be eligible for discounts on insurance premiums.
These benefits, as well as the great offers provided by the company, make Farm Bureau Mutual a popular choice among all types of people, from college students to farmers to businessmen, looking for auto insurance.
4. State Farm
Fourth on the list is State Farm. On average, their six-month payment is $309. Though this is more expensive than the previous three, State Farm does offer quite a lot of opportunities for discounts and benefits, such as the programs ‘Drive Safe and Save’ and ‘Steer Clear Driver Program’.
Another benefit of State Farm which is not found with some other providers is that it is fairly easy to have in-person communications with insurance brokers, rather than having to work through an app or online. This is great for some people who may prefer talking face to face. They also do have an app and an easy-to-navigate website, making online communication a good option as well.
5. American Family
The next one down on the list of cheapest providers is American Family. On average, their six-month payment is $387. This is a larger company than the others listed so far and does not have the same high level of customer service satisfaction. However, it is still relatively cheap and functional insurance to have.
This is also an especially good policy for parents to get if their children are starting to drive, as they can be included in the same policy.
- This makes for a much more inclusive policy that can cover the entire family
- Further, they have easy-to-use apps that allow users to quickly and efficiently do what they need to do
This insurance is not available in every state, so make sure to check availability in your state if you are interested in choosing this provider.
6. Geico
Sixth on the list is Geico. On average, their six-month payment is $390, making it a very close one to American Family. Geico is a well-known insurance company, famous for its gecko mascot, and stands out in that the website and apps are very user-friendly. This makes it an easy insurance company to navigate.
That being said, a negative for some people using Geico would be that often speaking face to face with a representative is not as easy as navigating online. For those who prefer to talk in person, this may not be the best insurance company to choose.
Geico also has a special deal for older customers, those over fifty. They are granted access to Geico’s ‘prime time contract.’ This means that they can always renew their contracts, whereas sometimes, after some time, other insurance companies may not allow renewal options. Further, Geico offers this right from the start, rather than only after five, ten, or even twenty years.
Otherwise, in terms of what Geico offers with its car insurance and the price, it is fairly comparable to other similar insurance companies.
7. Progressive
The next one is Progressive. On average, their six-month payment is $394, so it is also close to both Geico and American Family. Progressive is a good choice for many because it offers some discounts and benefits for its users.
This insurance policy is also a good choice for those who have been in accidents before, as sometimes other policies will penalize previous crashes. With Progressive, however, the rates are still relatively cheap.
Progressive also has a pet insurance policy, meaning that if your pet is injured in a car accident, they will pay for the vet bills. They also have another added coverage option, which is to cover any special additions you make to your vehicle.
They offer a variety of discount programs as well, such as:
- Safedriver: rewards you for long periods of time with no accidents or tickets,
- Multicar: offers discounts on insuring more than one car, and
- Teen Driver Discount: allows parents to add teenage children (under eighteen) onto the policy coverage for a discount.
One negative aspect of Progressive auto insurance is that the customer service is not the best. Many complain about long wait times or poor communication, which can make it a bad choice for some.
8. Nationwide
Next is Nationwide, which is at a $466 per six-month rate. This company is well known for its motto, “Nationwide is on your side.” This is one of the United States’ largest insurance companies and generally is known to have average service and not the lowest prices. Therefore, many choose to look elsewhere for cheap auto insurance.
However, if you do choose to go with Nationwide, there are quite a few things you can add to your standard coverage. These include roadside assistance coverage, expenses related to rental cars, gap coverage if you need a replacement vehicle, and accident forgiveness if you cause a crash.
Another great thing that Nationwide offers is a special program that charges you based on how much you drive. This is called Smartmiles, and is paid monthly based on the number of miles you drive each month. This can be a good choice for those who do not drive often or far.
9. Auto-Owners Insurance
Ninth on the list is Auto-Owners Insurance. On average, their six-month payment is $513. One great thing about this insurance company is that it offers personalized help, which gives it a step up from other companies where most of the support is remote or online. That being said, this policy can only be bought through agents, not directly.
This means that this insurance company often comes out with very high customer service satisfaction ratings, making it a great choice in that respect despite the slightly higher costs than the others on this list. It is also very dependable and has high financial ratings.
Auto-Owners Insurance also has an app on phones which tracks your driving, and safe driving can lead to discounts. A downside to this company, however, is that it is not available in all fifty states.
10. Farmers Insurance
Finally, there is Farmers Insurance, which costs on average $553 for their six-month payment. Like Auto-Owners Insurance, Farmers generally has very high customer satisfaction ratings, making it a great choice in terms of reliability and dependability in spite of its higher price.
Farmers insurance also makes it easy to customize your service as they offer a variety of add ons and benefits.
- Some of these include coverage for added customizations you have put on your car and coverage for roadside assistance and breakdowns
- It also offers full glass coverage for windshields and windows, which is a plus
Further, if your car is in the shop getting repaired, Farmers will pay for your rental car for up to thirty days. Even though it is the most expensive company on this list, Farmers is a high-quality and dependable company to choose for auto insurance.
Conclusion
There are a wide variety of companies to choose from when looking for car insurance. It is important to make sure that you are well educated about what each insurance company offers and covers with each policy before deciding on one. Each company generally also offers added coverage benefits and discounts, which can be explored further on their websites.
This list of the ten cheapest auto insurance providers in the United States will help you to make an informed decision, but make sure to go to the websites and do further research, or even talk to a company representative, before making a final decision.
