Finding the least expensive but comprehensive car insurance company is essential for saving money and feeling covered.
There are a few major companies to focus on because they provide comprehensive coverage while giving you relatively affordable rates.
Here are the top 5 big companies for car insurance:
USAA-Only available to active military, veterans and their families
Each of these companies specialize in certain parts of car insurance but all will give you relatively affordable rates.
Later in this post, I will provide bonus tips for how to save on your car insurance policy.
Through this post I will provide you with the benefits and disadvantages of each company and show you the most affordable car insurance companies.
GEICO could be the best for people who have no credit or bad credit.
If you have good credit, then this company could still be a good fit for you depending on all your factors.
This is a company that is famous for its gecko commercials. It claims to be a very inexpensive option for car insurance. I have been with GEICO for the last 3.5 years and it certainly seems to be the most affordable option.
In my experience, this company is very affordable but could make it easier to get claims covered, such as when I had my car broken into.
When my car passenger window was smashed and valuable items stolen, reporting this claim to GEICO turned out to be a tricky business.
Ultimately, I was not able to get GEICO to pay for the re installation fee for the passenger window. But they were able to give me some temporary window replacement until the window could be installed a few days later.
They also covered the car being cleaned up a lot and were able to get most of the broken glass out of the car. If I had taken the right step initially, then the replacement expense would have been covered.
I have really enjoyed being with GEICO and this company does receive one of the highest customer satisfaction ratings out of all the big car insurance companies.
Since I have now been with GEICO for a few years, they have started giving me extra discounts, which has helped reduce what I have to pay.
Staying loyal to a specific car insurance company can be advantageous because of the extra loyalty savings.
But it is still worth getting free quotes from other car insurance companies once or twice a year.
State Farm seems to provide the cheapest car insurance plan for drivers with good credit as well as receives good customer service ratings too.
If you have good credit established, then this could likely be your most affordable option for car insurance.
State Farm does seem to have the lowest annual rates out of all the largest auto insurers at $1,330 per year for good drivers.
This car insurance company is the best price for good drivers, drivers involved in a one fault accident and for getting the minimum coverage available.
This company recently cut its rates in most states and up to twice as much in some states. State Farm has very cheap rates and also receives the least amount of complaints out of all the big car insurance companies.
State Farm is going to likely be the most affordable option for drivers with good credit but it is still worth checking around.
This is another great car insurance company that offers inexpensive rates while also offering extra benefits too.
Compared to other big car insurance companies, Progressive will offer an extra benefit called gap coverage.
Gap coverage is when there is a driver who has a gap between the amount that is owed to their car and to the car’s current value right after an accident has occurred.
If you are involved in a car accident and your car is totaled, then the gap coverage could end up saving you significant money.
Say you own a car that is currently valued at $10,000 but still owe $13,000 in car payments.
If this car is totaled in an accident and is written off, then your insurance company will reimburse you for the $10,000 that your car is currently valued at.
Current Value of Car = $10,000
Total Car Payments Still Due = $13,000
$13,000-$10,000 = $3,000 difference
This would mean that you would have to pay the $3,000 difference between the car payments due and the car’s current value.
If you had gap coverage, then your car insurance company would cover the difference and you would not have to pay that $3,000 difference.
Progressive offers a usage-based insurance, which is where an app keeps track of a specific driver’s habits and in return you are able to get specific discounts.
Progressive will also allow you to have insurance that can cover custom parts or stereos, which is not available through the other big insurance companies.
If you are looking for a very comprehensive and relatively affordable insurance company, then Progressive is the choice for you.
If you want to learn more about how to save money on other significant car expenses, then read How to Save Money on Car Maintenance.
This is an inexpensive car insurance company that can provide you with affordable insurance for your car and has a few key reviews that seem great to me.
Compared to the other big car insurance companies, Farmers has earned the highest scores filing a claim, customer service and how claims get resolved.
The customer service for Farmers appears to be one of the best, if not the best, especially if there is a claim that is filed.
This is a very positive reason to go with this company for me because if there is an incident, this could be one of the best insurance companies to take care of you.
There are key benefits for going with this company such as better customer service, which is worth paying a little more to me.
There is also a free app which will allow you to do the following:
- See Your Current Insurance Cards
- Get in Contact With an Agent
- Prepare for Your Next Bill
- Make a Claim, even if you are on the road and not at home
This company will offer comprehensive coverage at a higher rate than the other companies but still could yield an affordable rate for particular individuals.
If you drive a lot of miles in a year, there will not be a significant increase in price for your coverage with Farmers whereas other companies will likely charge you more for driving a lot in a year.
The USAA, or United Services Automobile Association, is a very inexpensive car insurance option that is only available to active or veteran military and their families.
USAA has the least expensive car insurance options that I have ever seen and if you have military in your family, it could be worth looking into this company for coverage.
The United Services Automobile Association is well-known in the car insurance world as the cheapest option.
Not to mention USAA is one of the most comprehensive options with very high ratings in almost all the important categories.
Bonus Tips = Review Your Current Car Insurance Policy
Review your current car insurance policy to potentially save money. Revising what this specific policy covers can be a critical way to save money while still having comprehensive coverage.
I like to focus on the bigger areas of car insurance including the following:
- Bodily Injury Liability
- Property Damage Liability
- Uninsured Motorist and Underinsured Motorist
- Emergency Road Service
I have to pay car insurance payments twice a year and I usually review my current car insurance policy a week before the next payment is due.
Doing this has been able to save me money because I can make a slight adjustment to my coverage every time.
Adjusting what you pay in deductibles can always be a way to reduce your car insurance. But make sure you still feel comfortable with whatever changes you make to your coverage.
If you have an older vehicle, you can potentially drop comprehensive and collision coverage because these two parts of your insurance will only pay what your car currently is valued at, minus the deductible.
A good idea to save more is by asking for discounts, such as the Good Student discount, the Good driver discount or anti-theft device discount.
It probably won’t hurt to ask if there are any discounts that you qualify for or could receive.
Always contact your current car insurance company, and other ones you are interested in, if you have had any of the following events happen recently:
- Moved to a New Place
- Changed Cars
- Gotten Divorced or Married
- Had a Young Family Member Added to Your Policy
- Gotten Involved in Moving Violations
- Involved in an Accident
There can often be multiple factors for why a person’s car insurance is as expensive as it is.
If you move to another state, there could be a big difference in how much you pay for car insurance.
Contacting your current car insurance company, and other ones you are interested in, could end up saving you a significant amount too.
If you were involved in any accidents, moving violations or tickets, check car insurance quotes once three years and five years have passed since these events have happened.
Checking your insurance quotes after this amount of time has passed could likely drop your prices. This is because these events will likely have been removed from your driving record.
Sometimes you are covered exactly as much as you want to be but it never hurts to look at and review your current plan.
If you want to learn about more tips to budget and save money, read How To Budget Your Money Better.
Make Adjustments and Research
Finding the most affordable and comprehensible car insurance company for you will save you money. Taking the time to review your current car insurance policy and making adjustments if possible could end up saving you even more.
Staying loyal to a specific car insurance company for a few years can land you extra savings. But it is important to still get quotes regularly from other insurance companies, especially if you have had any big life events occur recently.
Do some shopping around to make sure that you are not over paying for your current car insurance policy.
Research the details of your current policy to make sure you are not being over charged.
I hope that you liked this post and that it gave you helpful information about finding the most affordable car insurance companies for you.
If you have any questions about what I have talked about here, feel free to put it below and I will answer it as best as I can.