Affordable Auto Insurance (2024)

Finding affordable auto insurance might feel difficult, especially when you consider that rates can vary between companies by over $100 a month. Several factors impact how much you’ll pay for auto insurance, which can make choosing the right company a challenge.

Despite rising costs, it’s not impossible to lower your auto insurance costs without sacrificing essential coverage. Finding cheap auto insurance is a straightforward process that only requires a little time and research.

Read on to learn more about finding the most affordable auto insurance rates, then compare personalized quotes with multiple companies to find the best price.

Understanding Auto Insurance Rates

In the United States, nearly all drivers are required to have auto insurance. This is because the U.S. government is vested in ensuring all drivers are safe on the road. 

On top of that, anyone operating a motor vehicle must have valid auto insurance to cover their expenses or damages to another driver in the aftermath of an auto accident. As a result, auto insurance is a necessary expense for most people in the United States.

Auto insurance companies have taken advantage of this, many of them charging normal drivers high auto insurance rates. Nonetheless, there are hundreds of auto insurance companies throughout the country.

From the corporate giants to local auto insurers, it’s possible to buy auto insurance that won’t break the bank. As you will find out below, many of the larger auto insurance companies you may have heard of could offer affordable auto insurance. 

Though, this depends on your specific situation. 

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Most Affordable Auto Insurance Companies

Not all drivers are the same. It’s difficult to ascertain which auto insurance company offers the most affordable rates for every driver. The best way to buy the cheapest auto insurance is to field multiple quotes from different insurers. When shopping for a new car, it’s essential to consider affordable subaru auto insurance quotes to ensure the best deal on coverage.

You can visit the website of any auto insurance company you choose and request a free quote. Once you shortlist 3-5 auto insurance companies, gathering a list of quotes shouldn’t be a hassle. 

Next, you should be mindful that many factors can affect the auto insurance rates you’ll receive. This can range from your credit score to your location. Finally, look for strong customer service reviews and multiple coverage options when assessing your options.

If you’re having trouble making the right decision, you can refer to some of the most affordable auto insurance companies based on our research:

• State Farm: the overall cheapest auto insurance rates
• Erie: the cheapest auto insurance rates for drivers with tickets
• Geico: the cheapest auto insurance rates with discounts
• Auto-Owners: the cheapest auto insurance rates for families
• Metromile: the cheapest auto insurance rates for safe drivers
• Farm Bureau: the cheapest auto insurance rates for drivers with poor credit
• USAA: the cheapest auto insurance rates for military families

Read more:

• Geico DriveEasy Review: Can you get affordable auto insurance?
• Affordable Auto Insurance Quotes for State Employees

State Farm: The Overall Most Affordable Auto Insurance Quotes

State Farm is the second-largest auto insurance company in the United States. Controlling nearly 14% of the country’s auto insurance market, State Farm has written approximately $42.50 billion in customer premiums as of 2023.

State Farm currently has 53,000 employees and almost 20,000 agents. In addition, State Farm also operates as a mutual auto insurance company, meaning its customers wholly own it. Based on our research, State Farm offers the cheapest auto insurance rates across nearly 30 states in the country. Visit our State Farm auto insurance review for more information.

Policyholders can take advantage of highly-affordable rates across an enormous network of independent agents. It’s important to note that State Farm doesn’t technically offer the lowest rates.

That title belongs to USAA. However, as you will find out, USAA is only geared toward military veterans and their families. 

Geico: Offers the Most Auto Insurance Discounts

Geico is the third-largest auto insurance company in the United States. The company currently writes out $39 billion in auto insurance premiums. Many people would recognize Geico for its TV commercials featuring an animated, talking gecko. 

Due to its enormous size, Geico employs approximately 43,000 people across 18 offices across the United States. In the past, Geico mostly served U.S. government personnel. Now, Geico serves customers from all walks of life. 

Geico offers the cheapest auto insurance rates for drivers eligible for their discounts. Some examples of the discounts you can take advantage of are:

• Customer loyalty programs
• Vehicle safety equipment
• Great driver history and habits
• Driver’s education
• Driver affiliations (military, federal employees, etc.)

Geico is also a great auto insurance company for college students. However, it would be best if you remembered that different rates would apply based on your criteria. Check out our Geico auto insurance review to learn more.

USAA: Best Rates for Full Coverage Insurance

If you’re looking for the cheapest full coverage auto insurance on the market, USAA may be your best bet. USAA offers the cheapest auto insurance rates by far. This is because the company only serves military personnel and their families. 

Full coverage auto insurance refers to having both collision and comprehensive auto insurance and the specific auto insurance limits your state dictates. Liability coverage is the most basic form of auto insurance and is required in nearly every U.S. state.

On the other hand, collision and comprehensive auto insurance are usually optional. If you’re shopping for full coverage, USAA is the best auto insurance company for veterans. State Farm offers nearly identical rates, which are more geared toward everyone.

State Farm: Most Affordable Minimum Auto Insurance Rates

State Farm is an excellent option for those seeking the cheapest auto insurance rates for minimum liability.

Minimum liability is the minimum amount of auto insurance coverage required by your state. Depending on the state, you must typically maintain a certain coverage limit for bodily injury and property damage.

State Farm offers great rates on its basic policies, and customers can expect to pay between $33 to $40 a month, depending on their driving history and location. Moreover, the company has a wide network of independent agents who can help you choose the best coverage for your needs.

In addition to its low-cost premiums, State Farm makes it easy for customers to file claims, adjust policy terms, and even receive discounts based on specific criteria. For instance, drivers aged 18-25 may qualify for a young driver discount, while veterans could receive a military service discount.

Regardless of your budget or risk profile, State Farm has an insurance option that suits your needs if you’re looking for bare minimum auto insurance.

Erie: Affordable Auto Insurance for High-Risk Drivers

High-risk auto insurance costs can be high, but Erie might be able to help drivers with bad driving histories. Erie Insurance Group has been in business since 1925, and its primary mission is to provide customers with reliable coverage at an affordable price.

The company offers competitive rates for drivers with poor driving records, so it’s worth looking into if you need a more affordable policy. 

With Erie, on average, you can expect to pay around $200 per month for full coverage policies. They also offer discounts for good driver habits and multi-policy and vehicle safety equipment discounts.

Erie offers customer service 24/7 and plenty of features like accident forgiveness that make it easier to insure your vehicle. These features can benefit people who have had a few tickets or accidents in the past and might struggle to find coverage elsewhere.

Erie is an excellent choice for drivers with a bad driving history looking for the cheapest auto insurance. With their competitive rates and wide range of discounts, you’ll find something that fits your budget and meets your needs. Learn more about the company at our Erie auto insurance review.

Erie: The Cheapest Auto Insurance Rates for Drivers With a DUI

Erie may be your best bet if you have a DUI and are looking for the cheapest auto insurance. This company has an excellent customer service record and a wide range of coverage options. Learn more about how a DUI affects your auto insurance rates.

The Rate Lock program offered by Erie allows customers who qualify to avoid increased premiums over time. Unless you change where you live or add or remove someone from the policy or vehicle, rates won’t go up even if you get a ticket or file a claim. 

Erie also offers discounts on auto insurance, such as those provided by major national insurers, including multiple policy bundling, having an anti-lock brake system installed in your auto, anti-theft equipment, and more. 

Unfortunately, this insurance company is only available in 12 states, including: 

• Virginia
• West Virginia
• Wisconsin
• North Carolina
• Ohio
• Pennsylvania
• Tennessee
• Indiana
• Kentucky
• Maryland
• New York
• District of Columbia (D.C.)
• Illinois

Auto-Owners: Affordable Auto Insurance for New Drivers

If you’re looking for the most affordable auto insurance option for a teen driver, having them stay on their parent’s policy is usually the best bet. Auto-Owners offers some of the lowest rates available to drivers under age 21. 

However, it should be noted that this company is only offered in 26 states, and you must contact an agent to receive a quote. 

Auto-Owners also has consistently excellent customer service ratings. If a young driver is away at college or anywhere else, they can still reach out for support or claim their dedicated agent, mobile app, or online account. 

All these features make Auto-Owners one of the top choices for parents looking to keep costs low while providing their children with the coverage they need. Visit our Auto-Owners auto insurance review for more information.

Read More: Do auto insurance rates go down at 21?

Metromile: Affordable Auto Insurance for Low-Mileage Drivers

Metromile is one of the premier auto insurance companies in the U.S., offering usage-based premiums that consider how often and how safely you drive. 

This makes it an ideal choice for people who are generally safe drivers but might need help finding cheaper rates due to age, credit score, or other risk factors. 

Metromile works best if you drive less than 10,000 miles annually and live in Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, or Washington.

If your state isn’t included on Metromile’s list of locations or you prefer standard auto insurance coverage, check out other telematics programs like Nationwide or Liberty Mutual that offer discounts based on low mileage or safer driving. 

Retirees, students on campus, and young drivers with a clean record are particularly well-suited to this cost-saving approach. 

Metromile is an excellent option if you’re looking for reliable auto insurance that rewards good drivers. Overall, it’s a great way to save on your premiums while remaining protected. You can learn more at our Metromile Device auto insurance review.

Read more: Metromile Auto Insurance Review: Can you get affordable quotes?

Farm Bureau: Affordable Auto Insurance for Drivers with Poor Credit

Insurance companies use credit information to help assess the risk associated with insuring an individual. 

Drivers seen as high-risk because of past payment habits, such as a history of late payments or unpaid debts, may be charged more for their auto insurance coverage than those with better credit histories. 

This is due to the belief that individuals with poor credit are more likely to make late payments on their policy premiums and file higher numbers of claims than those with good credit. 

The reasoning here is that if you have had difficulty managing your finances in the past, it indicates that you also need help to make regular premium payments on time or file fewer claims to keep your rates low. 

As such, having a poor credit score can lead to increased auto insurance premiums. Learn more about your credit score and auto insurance quotes.

Farm Bureau is the least expensive auto insurance option for drivers with poor credit, costing an average of $1,278 per year. That’s $32 cheaper than the closest competitor. This insurer offers rates 12% below the typical rate.

Membership in Farm Bureau is open to anyone; you don’t need to be a farmer. However, it requires an annual membership fee ranging from $20 to $100. Benefits include discounts on auto purchases, farm equipment, produce, healthcare, travel, and rental autos.

For those with bad credit scores, insurance premiums are almost double what they would be for those with good credit. Improving your score can result in massive savings on your policy from Farm Bureau or any other auto insurer.

USAA: The Cheapest Auto Insurance for Military Members

For those in the military, USAA is the most economical auto insurance choice on average. Compared to State Farm’s rates, USAA has been proven significantly more affordable annually by a considerable amount. 

USAA covers drivers all over the United States and Washington D.C., but only active members of the armed forces or veterans and their families can be approved for coverage.

As one of the top five auto insurers countrywide, it serves just about as many people as other big companies, such as Allstate and Progressive.

Apart from its cost-effective prices, USAA also brings excellent customer service standards, which have consistently made them a leader in J.D Power’s Auto Insurance Claims Satisfaction Study each year.

USAA also has a very low number of complaints filed against it by the National Association of Insurance Commissioners (NAIC), demonstrating that customers are happy with their services and claims. This makes USAA the ideal choice for military members seeking auto insurance.

The Most Affordable Auto Insurance by Age

Auto insurance rates for drivers of different ages vary greatly. Generally, it can be difficult to find affordable auto insurance quotes for women and men young adults under the age of 25 since companies consider them a higher risk. Alternatively, getting affordable auto insurance for seniors is easier as long as they have a clean driving record. (For more information, read our: “Affordable Auto Insurance Companies for Seniors“).

When it comes to changes in auto insurance premiums by age, the difference between younger and older drivers can be drastic. 

The cost of auto insurance for teenagers and young adults is much higher than any other age group due to their inexperience behind the wheel and the increased risk of an accident or claim being filed.

Insurance companies compensate for this heightened risk by charging higher premiums on policies written for teenagers and young adults. 

Additionally, teenage males tend to pay more than their female counterparts due to statistics showing that male drivers are more likely to be involved in accidents and violate traffic laws. 

Auto insurance premiums tend to drop significantly for drivers over 25. This is because older drivers are less likely than younger drivers to be involved in an accident or file a claim. With that said, here is a chart depicting how auto insurance rates change as you age.

Auto Insurance Monthly Rates by Provider, Gender, & Age

Many insurance companies offer discounts and other incentives to reward responsible driving habits and good credit history, which can further reduce premiums for older drivers. 

Additionally, certain states have regulations regarding auto insurance rates based on age groups, which may limit how much insurers can charge their customers depending on their age. 

Auto insurance rates vary significantly between different ages, with younger drivers paying higher premiums due to inexperience and increased risk of accidents or claims being filed.

While discounts are available for older drivers, they are still likely to pay more than their younger counterparts. Drivers of all ages must shop around and compare rates before purchasing auto insurance to get the best possible rate. 

States With the Most Affordable Auto Insurance

The cost of auto insurance varies drastically from state to state. Factors such as the amount of traffic an area typically experiences, the population density in a particular area, and the number of drivers with access to automobile insurance all play integral roles in determining how expensive coverage is for any given region. 

For example, states with densely populated cities tend to have higher annual rates than rural areas with less road congestion. Here is a complete chart showing the different auto insurance rates by state.

State Auto Insurance Monthly Rates by Coverage Type

Read more:

• Cheap Alabama Auto Insurance
• Cheap Kansas Auto Insurance
• Cheap Hampshire Auto Insurance
• Cheap Kentucky Auto Insurance
• Cheap Maryland Auto Insurance
• Cheap Michigan Auto Insurance
• Cheap Minnesota Auto Insurance
• Cheap Missouri Auto Insurance
• Cheap Montana Auto Insurance
• Cheap Nebraska Auto Insurance
• Cheap North Carolina Auto Insurance
• Cheap Wisconsin Auto Insurance
• Cheap Wyoming Auto Insurance

Auto insurance rates can also vary depending on whether or not a state has specific laws about coverage requirements. 

Some states require drivers to obtain more comprehensive policies than others, while some may offer discounts based on specific criteria like age or driving history. Insurance companies will consider these factors when calculating premiums. 

Thus, it’s essential to be aware of the regulations in your state. 

Read more: Cheap Utah Auto Insurance

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The Most Important Factor in Finding Affordable Auto Insurance Rates

The type of driver that can qualify for the cheapest auto insurance rates depends on various factors. The most crucial factor is typically a person’s driving record. 

Drivers with a clean driving record—meaning they have few speeding tickets, citations, and other traffic violations—are generally seen as less likely to be involved in accidents or cause property damage, so they tend to get better rates. 

Additionally, drivers over 25 years old and taking a defensive driving course may also be eligible for lower insurance premiums. 

Another factor that insurers consider when setting auto insurance premiums is the type of vehicle being covered. Autos with advanced safety features such as airbags and anti-lock brakes often receive discounts from insurers as these vehicles are considered less risky to insure. 

Additionally, autos with a higher market value can be more expensive to insure due to the greater risk of theft or damage.

Finally, auto insurance companies look at a driver’s credit score when determining rates. Drivers with good credit are considered lower risks and may qualify for cheaper premiums. 

Not all insurers use credit scores in their rate calculation, but many do, so it is worth checking before applying for coverage.

Factors That Affect Auto Insurance Rates

When shopping for the most affordable auto insurance rates, there are some caveats to be aware of. Below are the most impactful factors that insurers use to calculate your car insurance rate:

Age

Age can be one of the most influential factors regarding auto insurance rates. Generally, auto insurance companies rate drivers between the ages of 18 and 25 at a higher risk for claims due to their lack of experience on the road. 

This means that young drivers are often subjected to much higher premiums than older drivers, but there are ways around this. Some insurance companies offer discounts for students with good grades or safe driving records, which can help offset the cost of coverage for younger drivers.

Driving Record

Your driving record is another important factor in determining your auto insurance rates. Getting a low rate can be more challenging if you have had previous tickets or accidents. 

Insurance companies will check your driving record before approving any policy and may increase your premium if they see any potential risks associated with insuring you. 

It’s important to ensure that all violations on your record are accurate and up-to-date, as this could potentially save you money in the long run.

Credit Score

Your credit score is another major factor influencing your auto insurance rates. Insurance companies may use this information to determine the risk associated with insuring you, which could mean higher premiums for those with poor credit scores. 

That said, many companies offer discounts or other incentives to those with good credit, so be sure to ask your insurer about these options if they apply to you.

Location

Where you live can also be an important factor in determining your auto insurance rates. Certain areas are considered more costly to insure because of the number of accidents or crimes. 

As a result, insurers may charge higher premiums for drivers in these areas than others.

Vehicle Type

The type of car you drive can also play a role in determining your auto insurance rates. Insurance companies consider certain makes and models riskier than others due to their likelihood of being involved in accidents or stolen. 

Vehicles with higher safety ratings may qualify for discounts, while autos that are more expensive to repair or replace could increase premium costs. Also, luxury vehicles may require additional coverage options and may result in higher premiums.

Driving Habits

Your driving habits can also influence your auto insurance rates. Drivers who take longer trips often pay higher premiums due to the greater risk associated with them. 

Similarly, drivers who exceed the speed limit or use their phones while behind the wheel may also see an increase in their rates.

Insurance History

Your insurance history can also be a determining factor when it comes to auto insurance rates. If you have previously had any claims or violations, insurers may consider this when assessing the level of risk associated with insuring you. 

As such, having a good driving record and a history of paying premiums on time can help reduce your premium costs overall.

Gender

Gender can also be a factor in determining auto insurance rates. Generally, males between the ages of 18 and 25 pay more than females of the same age group due to their higher risk of being involved in accidents or other incidents. 

That said, some insurers may offer discounts for drivers who take additional safety measures, such as enrolling in defensive driving courses. By understanding these factors and researching various companies, you can ensure that you get the best auto insurance rates possible.

Other Factors to Consider When Shopping for Affordable Auto Insurance

In addition, make sure you compare apples to apples when shopping for auto insurance. In other words, ensure that each quote’s coverage and limits are comparable. 

Not all companies offer the same coverage options, so it’s important to understand what is included in each policy. Also, many companies offer discounts for motorists with a good driving record or who have taken a defensive driving course. 

Additionally, some insurers may require additional fees for drivers under 25 or those living in specific zip codes. 

Before signing up, research the individual company’s offerings and any extra fees associated with your policy. Lastly, consider whether you can bundle your auto insurance with another type of coverage, such as home or renters insurance, to save money on premiums. 

Through research, you can find the right auto insurance policy that best fits your needs. 

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How to Find Affordable Auto Insurance Coverage

Finding the most cost-effective auto insurance coverage doesn’t have to be a daunting task. By understanding your coverage needs, shopping around for quotes from multiple companies, and taking advantage of available discounts, you can ensure that you get the most affordable policy for your situation. 

Start by determining the necessary coverage based on your risk profile and state requirements. This will help to narrow down what types of policies are available to you and make comparison shopping easier. 

Once you’ve decided on the level of protection desired, collect quotes from various companies and compare them. 

Be sure to include applicable discounts when calculating the final price to find the most economical solution for your specific circumstances. With some research and diligence, you can get the right amount of coverage at the lowest price.

Look for Discounts to Find Affordable Auto Insurance Rates

If you’re looking for a more affordable auto insurance policy, it’s important to shop around and find the best auto insurance discounts. To get the most accurate quote possible, talk to an insurance agent and see if you qualify for special discounts. 

Auto insurance discounts are typically categorized into four types: driver safety discount, driver discount, policy discount, and safe auto discount.

Driver safety discounts generally come from having a good driving record or taking defensive driving courses. Driver discounts often reward certain lifestyles, such as students getting good grades, or seniors reaching a certain age group. 

Policy discounts can be acquired by buying multiple products or coverage levels from one insurer, such as bundling home and auto policies. Finally, a safe auto discount is available when your auto has certain safety features like anti-theft technology or automatic braking systems. 

Using a combination of these discounts, you can save money on auto insurance and get the coverage that best fits your needs. Comparing quotes online is an easy way to get started, but it’s ultimately important to talk to an insurance agent for the most accurate quote possible. 

With a bit of research and careful comparison shopping, you can find cheaper auto insurance with discounts.

 

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