Car insurance is an essential financial protection for drivers, providing coverage for unexpected events such as accidents, theft, and natural disasters. However, the cost of car insurance can vary greatly depending on factors such as age, driving record, and location. For those who are looking for affordable options, there are many cheap car insurance policies available on the market.
In this article, we will explore some of the best cheap car insurance options of February 2023, taking into account factors such as affordability, coverage options, and customer reviews. Whether you are a new driver, a young adult just starting out, or a retiree looking to save on expenses, there is sure to be a car insurance policy on this list that fits your needs and budget.
Don’t focus on premiums alone when looking for cheap insurance
Cheap insurance seekers must not forgo protection in the name of saving money. While looking around for a cheap auto insurance provider is a good idea, drivers should be cautious of removing extra coverage or keeping only the bare minimal coverage in order to reduce costs.
Even though liability insurance is typically the only sort of insurance that states require, individual drivers frequently require more protection than the bare minimum. For instance, drivers would want to think about getting:
- Collision insurance to pay for damages to their own vehicle if they cause a crash.
- Uninsured/underinsured motorist coverage, which is required in some states and which pays for the policyholder’s damages caused by a driver who doesn’t have any or enough insurance coverage.
- Comprehensive insurance, which pays for theft or damage to the policyholder’s vehicle resulting from non-collisions (such as if a tree falls on the car).
Purchasing the bare minimum of coverage is unquestionably less expensive. Liability-only insurance premiums in the country cost just $764 on average. Yet without an optional cover, drivers might be compelled to pay for a problem’s repair or replacement out of pocket. Only the losses they cause to others would be covered by their insurance.
Cheapest auto insurance with bad credit available
Undoubtedly, drivers with bad credit will pay more for insurance. When determining premiums, insurers consider credit ratings. When their credit score isn’t as good as they’d like, motorists will need to browse around more carefully to get the most economical carriers.
The cheapest insurers for those with bad credit are as follows, according to an analysis of insurance data from several states:
- Geico: Geico offers affordable options for drivers with low credit. Average premiums for a 35-year-old male driver in Florida with poor credit who uses the car for commuting would be $2,321. By comparison, the overall average premium for the same driver would be $4,144.
- State Farm: State Farm also consistently provides more affordable premiums for low-credit drivers than competitors do. For example, a 35-year-old male driver in Florida with low credit would face an average insurance premium of $2,484 from State Farm — well below the overall average.
Best cheap car insurance for drivers with accidents
Insurance companies base policy costs on risk. After an accident, a motorist will cost more to insure because insurance providers worry that there will likely be another incident in the future, increasing the likelihood that they will have to pay out another claim.
Automobiles with an accident on their record should carefully search around for coverage because some insurers do not penalize drivers as much as others do. The Ascent conducted research on the most cheap options for auto insurance for high-risk drivers, including drivers who have a history of accidents, and discovered the following:
- State Farm: Average premiums for a driver in Florida with one accident on their record and excellent credit came in at $1,171, compared with an overall average premium of $4,531 for drivers with an accident history.
Geico: Average premiums for a driver with excellent credit and an accident history who commutes in their vehicle are just $1,467 from Geico — also well below the overall average.
The Ascent’s best cheap car insurance of 2023
- Nationwide: Best for bundling home and auto insurance
- Geico: Best for rock bottom premiums
- The Hartford: Best for seasoned drivers
- USAA: Best for military members and their families
Nationwide’s average annual premiums for all drivers are just $2,214 — well below the national average.
The insurer also offers some of the best savings when buying bundled coverage, with those who purchase both home and auto saving an average of $646 annually on their coverage.
- Many different types of insurance policies are available so there are ample options to bundle coverage and earn discounts
- SmartMiles option bases premiums on how much someone drives, so those who don’t use their vehicles often can get more affordable coverage
- Nationwide earned top marks on J.D. Powers shopper satisfaction survey
- Some reviewers indicated Nationwide was more expensive than competitor policies
- No rideshare insurance available
The national average premium for all drivers with Geico comes in at $1,758, compared to $2,646 for all insurers, making it one of the most economical insurance providers.
In addition to providing comprehensive auto insurance alternatives at rates that are lower than those of the majority of rivals, Geico guarantees that its clients will save 15% or more on their auto insurance. All 50 states offer insurance, and those who are in the military, a good student, a government employee, a senior, or a member of another specific group or organization may receive additional discounts.
- Nationwide coverage
- Affordable premiums
- High customer satisfaction
- Efficient claims handling process
- Great online application and account management experience
- Limited insurance coverage beyond auto insurance
- Fewer local agents than competitors
Stand-Out Coverage Options
- Mechanical Breakdown Insurance, which provides coverage for repairs and is available for new or leased vehicles that are less than 15 months old and have less than 15,000 miles
- Auto Repair Xpress® program can get motorists back on the road faster after an accident as they’ll get priority repairs and streamlined claims processing
- Rideshare insurance is available
Due to Hartford’s partnership with AARP, members who are 50 and older can receive the highest premium savings. Drivers 55 and older may be eligible for monthly premiums as low as $63, which is significantly less than the national average for the age group.
The Hartford’s distinctive disappearing deductible program, which rewards drivers who avoid collisions with lower deductibles that could reach nothing, is advantageous to seniors as well.
- AARP members can save substantially on premiums
- Disappearing deductible means drivers won’t have to worry as much about large out-of-pocket costs if something goes wrong after several years of safe driving
- Top-notch customer service, recognized by J.D. Power & Associates as number one in shopper satisfaction
- AARP membership is required to get the best price
- Limited ability to save by bundling policies since it offers few other types of insurance besides business, home, and auto insurance
- No insurance options are available for ridesharers
Some of the greatest auto insurance coverage is provided by USAA to military personnel and their families. With average premiums of $1,871 for all drivers compared to a $2,646 national average for all insurers, rates are less expensive than the majority of competitors.
Also, USAA provides a variety of coverage options and several opportunities for additional savings through premium discounts. After five years, free accident forgiveness coverage ensures that premiums won’t increase in the event of an accident. Only active duty military, veterans, and their families are permitted to join USAA. If they meet the requirements, it’s probably their best option for auto insurance.
- Premiums are cheaper than with most competitors
- High customer satisfaction ratings
- Policy discounts (for good students, for housing a car on a military base, and more)
- No coverage available outside of current and former military members, and their families
Stand-Out Coverage Options
- Free accident forgiveness after five years
- Rideshare insurance is available
How to get cheap car insurance
Getting cheap car insurance can be a challenge, but there are several ways to reduce your premiums and find an affordable policy. Here are some tips for getting cheap car insurance:
- Compare quotes from multiple insurance providers: One of the best ways to get cheap car insurance is to shop around and compare quotes from multiple insurance providers. Many insurers offer free online quotes, which allow you to easily compare prices and coverage options.
- Choose a higher deductible: A deductible is the amount you pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums, but it also means that you’ll have to pay more out of pocket if you get into an accident.
- Consider your coverage options: While it’s important to have enough coverage to protect yourself and your vehicle, you may not need all the extras that some policies offer. Consider your needs and choose a policy with only the coverage options you need.
- Drive safely and maintain a good driving record: Many insurance providers offer discounts for safe drivers and those with a good driving record. Avoid traffic violations and accidents to keep your premiums low.
- Look for discounts: Many insurance providers offer discounts for things like multiple cars, good grades, and anti-theft devices. Be sure to ask your insurance provider about any available discounts.
- Pay your premiums in full: Some insurance providers offer discounts for paying your premiums in full, rather than making monthly payments.
By following these tips and exploring your options, you can find cheap car insurance that provides the coverage you need at a price you can afford.
Getting cheap car insurance requires a bit of effort, but it’s worth it to save money in the long run. By comparing quotes, choosing a higher deductible, considering your coverage options, maintaining a good driving record, looking for discounts, and paying your premiums in full, you can find an affordable policy that meets your needs. Don’t forget to review your policy annually to make sure you’re still getting the best deal possible. By taking these steps, you can get the coverage you need at a price you can afford.
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