If you're wondering how to get cheap car insurance in the United States, you're not alone. With rising costs of living, finding affordable coverage that still protects you on the road is a top priority for many drivers. Fortunately, there are several proven strategies you can use to lower your premiums without sacrificing quality. This article breaks down the steps, tips, and considerations to help you secure the best deal tailored to your needs.
Understand Your Coverage Needs
The first step to finding cheap car insurance is understanding what you actually need. Insurance policies vary widely, and paying for coverage you don’t require can drive up costs. Here’s how to assess your needs:
Liability Coverage: This is the minimum required by law in most states. It covers damages or injuries you cause to others in an accident. If you have an older car with low value, this might be enough.
Collision and Comprehensive: These cover damage to your own vehicle from accidents or non-collision events (e.g., theft, vandalism, or natural disasters). Consider skipping these if your car isn’t worth much.
Uninsured/Underinsured Motorist Coverage: Essential in states with many uninsured drivers, this protects you if you’re hit by someone without adequate insurance.
Personal Injury Protection (PIP): Required in no-fault states, this covers medical expenses for you and your passengers regardless of who’s at fault.
Evaluate your car’s value, your driving habits, and your financial situation. For example, if you live in a safe area and drive infrequently, you might not need extensive coverage.
Which Insurance Companies Offer Cheap Car Insurance?
Geico: Geico is one of the largest insurers nationwide, offering some of the lowest premiums, with an average minimum liability coverage of $41 per month ($492 per year). Available in all 50 states, Geico is a great option for most drivers, especially those with good credit and a clean driving record.
State Farm: State Farm offers full coverage at an average of $95 per month, with minimum liability at $55. It has smaller rate increases after accidents or speeding tickets (only 17%), making it a cost-effective choice, particularly for drivers with minor violations.
Travelers: Travelers provides minimum liability coverage at an average of $45 per month and full coverage at $122. It operates nationwide and is especially affordable for drivers with a DUI, offering lower rates in this category.
Auto-Owners: Auto-Owners’ minimum liability coverage is under $45 per month, with full coverage at $106. It’s competitive for young drivers and those with good credit but is only available in 26 states.
Erie: Erie’s full coverage averages $106 per month, making it a good choice for drivers with an accident history (annual premium of $1,964, 33% below the national average). However, Erie is only available in 12 states and Washington, D.C., including Illinois, Indiana, and Ohio.
USAA: USAA often provides the cheapest rates in the U.S., with minimum liability at $43 per month and full coverage at $141. However, it’s exclusively for military members, veterans, and their immediate family. If you qualify, USAA is a top choice.
How to Find Cheap Insurance in Your Area?
Safe Driver Discount: Maintain a record free of accidents.
Multi-Policy Discount: Bundle your car insurance with other policies like home insurance.
Low Mileage Discount: If you drive less than 6,000 miles annually.
Safety Features Discount: Vehicles equipped with anti-theft systems or airbags.
Pay-in-Full Discount: Pay your annual premium upfront instead of in installments.