The Cheapest Car Insurance Companies (January 2024)

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The Cheapest Car Insurance Companies (January 2024)
The Cheapest Car Insurance Companies (January 2024)

Car insurance is one of the most important expenses for drivers, but it can also be one of the most expensive. Finding the cheapest car insurance company can save you hundreds or even thousands of dollars per year. But how do you know which company offers the best deal for your situation?

In this article, we will compare the cheapest car insurance companies in January 2024, based on average rates for different types of drivers and coverage levels. We will also provide some tips on how to lower your car insurance costs and find the best policy for your needs.

How We Found the Cheapest Car Insurance Companies

To find the cheapest car insurance companies, we used data from NerdWallet, Forbes, Bankrate, ValuePenguin and The Motley Fool, which analyzed car insurance rates from various insurers across the country. We looked at the average annual and monthly rates for minimum and full coverage policies, as well as the rates for different categories of drivers, such as good drivers, drivers with a speeding ticket, drivers with an accident, drivers with a DUI, drivers with poor credit, senior drivers and young drivers.

We also considered the availability and reputation of each company, as well as the discounts and features they offer. We ranked the companies based on their overall affordability, but we also highlighted the cheapest option for each category of drivers.

The Cheapest Car Insurance Companies Overall

According to our analysis, the cheapest car insurance companies overall in January 2024 are:

  • USAA: USAA is the cheapest car insurance company for those in the military, veterans and their families, with an average rate of $34 per month for minimum coverage and $118 per month for full coverage. USAA also has a high customer satisfaction rating and offers many discounts and benefits for its members. However, USAA is not available to the general public, so you need to have a military connection to qualify.
  • Auto-Owners: Auto-Owners is the cheapest car insurance company for those not in the military, with an average rate of $38 per month for minimum coverage and $136 per month for full coverage. Auto-Owners also has a very low complaint level and offers a variety of discounts and features, such as a no-drop promise, a dividend program and a personal umbrella policy. However, Auto-Owners is not available in every state, so you need to check its availability in your area.
  • Geico: Geico is the third-cheapest car insurance company overall, with an average rate of $43 per month for minimum coverage and $143 per month for full coverage. Geico also has a good customer satisfaction rating and offers many discounts and features, such as a mobile app, a usage-based program and a mechanical breakdown coverage. Geico is available in every state, so you can easily get a quote online or by phone.

The Cheapest Car Insurance Companies by Category

The cheapest car insurance company for you may vary depending on your driving history, credit score, age and other factors. Here are the cheapest car insurance companies for each category of drivers, based on our analysis:

  • For good drivers: A good driver is someone who has a clean driving record, no claims and a good credit score. The cheapest car insurance company for good drivers is Auto-Owners, with an average rate of $136 per month for full coverage. USAA is a close second, with an average rate of $118 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $143 per month.
  • For drivers with a speeding ticket: A speeding ticket can increase your car insurance rates by an average of 25%, according to NerdWallet. The cheapest car insurance company for drivers with a speeding ticket is Westfield, with an average rate of $167 per month for full coverage. USAA is the second-cheapest option, with an average rate of $139 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $173 per month.
  • For drivers with an accident: An accident can increase your car insurance rates by an average of 42%, according to NerdWallet. The cheapest car insurance company for drivers with an accident is Auto-Owners, with an average rate of $179 per month for full coverage. USAA is the second-cheapest option, with an average rate of $160 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $200 per month.
  • For drivers with a DUI: A DUI can increase your car insurance rates by an average of 79%, according to NerdWallet. The cheapest car insurance company for drivers with a DUI is Progressive, with an average rate of $231 per month for full coverage. USAA is the second-cheapest option, with an average rate of $233 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $248 per month.
  • For drivers with poor credit: A poor credit score can increase your car insurance rates by an average of 71%, according to NerdWallet. The cheapest car insurance company for drivers with poor credit is Geico, with an average rate of $202 per month for full coverage. USAA is the second-cheapest option, with an average rate of $204 per month, but it is only available to the military and their families. Auto-Owners is the third-cheapest option, with an average rate of $206 per month.
  • For senior drivers: A senior driver is someone who is 65 years or older. The cheapest car insurance company for senior drivers is Auto-Owners, with an average rate of $156 per month for full coverage. USAA is the second-cheapest option, with an average rate of $139 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $160 per month.
  • For young drivers: A young driver is someone who is 16 to 24 years old. The cheapest car insurance company for young drivers is Erie, with an average rate of $113 per month for full coverage. USAA is the second-cheapest option, with an average rate of $116 per month, but it is only available to the military and their families. Geico is the third-cheapest option, with an average rate of $179 per month.

How to Lower Your Car Insurance Costs

Besides comparing car insurance quotes from different companies, there are other ways to lower your car insurance costs and find the best policy for your needs. Here are some tips to help you save money on car insurance:

  • Choose the right coverage level: The minimum coverage required by your state may not be enough to protect you from financial losses in case of an accident. You may want to consider adding more coverage, such as collision, comprehensive, uninsured/underinsured motorist and medical payments. However, you should also balance the cost and benefit of each coverage option, and avoid paying for coverage that you don’t need or use. For example, if your car is old and has a low value, you may want to drop collision and comprehensive coverage, which pay for the damage to your own car.
  • Increase your deductible: The deductible is the amount of money that you have to pay out of pocket before your insurance kicks in. By increasing your deductible, you can lower your premium, as you are taking on more risk. However, you should also make sure that you can afford to pay the higher deductible in case of a claim, and that you have enough savings to cover it.
  • Improve your driving record and credit score: Your driving record and credit score are two of the most important factors that affect your car insurance rates. By avoiding tickets, accidents and DUIs, you can improve your driving record and qualify for lower rates. By paying your bills on time, reducing your debt and checking your credit report for errors, you can improve your credit score and lower your risk profile.
  • Take advantage of discounts: Most car insurance companies offer discounts for various reasons, such as being a good student, having a good driving record, having multiple policies, having a safe car, taking a defensive driving course, being a loyal customer and more. You should ask your insurer about the discounts that you are eligible for and how much you can save by applying them.
  • Shop around regularly: Car insurance rates can change frequently, depending on the market conditions, your personal situation and the insurer’s policies. You should shop around for car insurance quotes at least once a year, or whenever you have a major life change, such as moving, buying a new car, getting married, adding a driver or changing your coverage. By comparing car insurance quotes from different companies, you can find the best deal for your needs and budget.

Conclusion

Finding the cheapest car insurance company can help you save money and get the best value for your coverage. However, the cheapest car insurance company for you may depend on your driving history, credit score, age and other factors. You should compare car insurance quotes from different companies and consider the coverage level, deductible, discounts and features that each company offers. You should also follow some tips to lower your car insurance costs and find the best policy for your needs.

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