Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Written by

Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 18, 2020

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Key takeaways...

  • As a consumer, you should compare at least three different quotes before making a final decision
  • A.M. Best is a great resource when comparing car insurance quotes
  • Bundling insurance policies helps you save money

The “cheapest car insurance” is a bit of a misnomer, in that the affordability of insurance you get depends not only on the rate offered by the company but also the make of the car, your personal history, and other factors.

But consumers can do their homework and compare benefits and terms in order to determine which company can provide the cheapest insurance for their needs.

Three major aspects impacting this are company comparison, situational and personal factors.

Compare car insurance and find out which insurance factors affect you! Enter your zip code above to get started for FREE!

Table of Contents

Comparison Factors

The largest and most well-publicized car insurance companies include:

  • Progressive
  • State Farm
  • Geico
  • Allstate
  • Nationwide

These car insurance companies offer the best car insurance out there. One should compare their information and review each company’s policy.

One place to find out which company is the best for car insurance is to check out the A.M. Best Ratings. These ratings will help with properly assessing the insurance companies.

Besides price, you need to consider the stability and size of the vehicle, the simplicity of the buying process, and quality of customer service.

Some consumers also check the companies complete ratio with their state’s Department of insurance.

If you’re interested in bundling different types of insurance together, such as life and health insurance policies, deciding on that path can be the key way to finding the cheapest car insurance company.

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Situation Factors

Circumstances with your car or even your handling of your insurance payments for that vehicle may greatly impact the decision to render as to which company vibes the cheapest and best insurance.

The company may charge different rates the same kind of person or vehicle depending on whether you park your car in a garage in the evening, use anti-theft devices, as those practices can make the car safer and less prone to damage.

The age of the car contributes to this, as many popular models such as a Toyota Camry or the Honda Accord may be more attractive to car thieves.

Depending on the model, it may be helpful drop the collision and comprehensive coverage for the older car.

Insurance rates can drop vastly for teenage drivers if you give them a more conservative, or “starter” automobile (instead of a sports car) to begin their driving career with.

Personal Factors

By far the most important element in determining how affordable a rate you will get from one of the cheapest car insurance companies is personal history and circumstances of the person behind the wheel.

A person’s credit or driving history is crucial in getting a cheap rate.

For example, drivers who have three or more violations on their record can see their insurance rates soar over 50 percent or higher, even with the “cheapest” companies.

If a consumer goes beyond this and takes corrective measures such as enrolling in defensive driving courses, companies are willing to provide additional discounts on their policy.

Another decision drivers may elect to pursue is paying a higher deductible, or choosing to have their insurance payments get automatically deducted from their bank account.

Other personal choices one makes can lower their insurance rate, including:

  • Picking the company that offers cash back (which lowers the cost of the cover), or one is younger
  • Putting off the purchase of a vehicle for a few years in order to be out until they are older

The above-mentioned safe driving practices and safe handling of the car especially count if you deliberately set out to maintain those habits in order to lower their insurance costs.

The cheapest car insurance companies will sense you are a diligent and careful person and adjust the rates they quote you accordingly.

Find affordable car insurance quotes now! Enter your zip code above and get started for FREE!

References:

  1. https://www.progressive.com/
  2. https://www.statefarm.com/
  3. https://www.geico.com/
  4. https://www.allstate.com/
  5. https://www.nationwide.com/
  6. http://www.ambest.com/home/default.aspx
  7. https://www.healthcare.gov/glossary/individual-health-insurance-policy/
  8. https://www.digitaltrends.com/cars/anti-theft-devices-cars/
  9. https://www.toyota.com/camry/
  10. https://www.allstate.com/auto-insurance/auto-insurance-for-teen-drivers.aspx