With these 10 cheap car insurance you can maintain this essential service to provide security to your family and generate savings, which is important in these inflationary times
The goal of auto insurance is to provide financial security for you and everyone driving alongside you on the streets. Accidents can happen at any time, but it is your duty to always be prepared for any eventuality.
Of course, the fact that car insurance is mandatory in the US does not mean that you should select the most expensive one. According to the most recent information from the Insurance Information Institute, the average annual cost of auto insurance is $1,070.57, a number that increases year after year. In the face of an economic slowdown, or, in the worst case, a recession, it is normal to look for alternatives that allow services to be maintained while reducing expenses.
Thinking about this scenario, at Globe Live Media we have prepared a list of the 10 cheapest car insurance in the United States.
1- GEICO
One of the largest insurance companies in the United States. According to NerdWallet, they are primarily known for offering hedging at low prices.
Geico also offers a wide variety of discounts. To be eligible for one of them, you must meet one of the following conditions (although they may vary from state to state):
— Have a vehicle with safety equipment, such as air bags or an anti-theft system.
— Have a vehicle that has been assembled within the last three years.
— Have driven for five years without accidents.
— Complete a defensive driving course.
— Have good grades if you are a student.
— Insure more than one vehicle with Geico.
A minimum Geico policy, that is, having only the minimum liability coverage, can cost as much as $354 a year. However, the average price increases when you purchase other plans, such as medical payments coverage, personal accident protection coverage, or collision coverage.
2- State Farm
This insurer offers a large number of discounts on policy rates, among which are:
— Drive Safe & Save: a program where you can get a discount on your car insurance of up to 30%, depending on how you drive. According to the information provided by the company on its website, this program does not take into account violations or accidents, but rather collects actual miles traveled and basic driving characteristics to calculate the discount.
— Steer Clear: To qualify for this discount, you must be under the age of 25, have a valid driver’s license, and have had no moving violations or at-fault accidents in the past three years. By completing the program requirements, you can earn up to a 15% policy discount.
Similarly, students with good grades can qualify for discounts that allow them to save up to 25% of the policy.
According to Nerdwallet, the cost of the minimum annual auto insurance from State Farm is approximately $452.
3-Progressive
The third largest insurance company in the United States, founded in 1937, and a common company in all auto insurance listings in the country.
With 27 million customers, they say everyone who has switched to Progressive has saved at least $700 a year. This is confirmed by the company itself based on surveys carried out on customers who decided to insure Progressive between June 2020 and May 2021.
As a particularity, the amounts of the policies are usually much higher if they are for adolescents.
The Snapshot program offered by this company offers discounts, on average, of $146 for good driving.
A minimum coverage in Progressive costs approximately $619.
4-Farmers
This insurer is the seventh largest in the United States, and its value lies in the multiple policy options, in order to adjust them to the consumer’s interest.
This company also offers coverage for various scenarios such as the total loss of a new car, which implies that, if the lost vehicle is only two years old and has 24,000 miles of use, it is replaced with a new vehicle.
To the standard discounts of these companies, Farmers adds the discounts for vehicle and home insurance packages.
A minimum Farmers coverage can cost up to $620.
5-Allstate
While Allstate policies tend to be more expensive than the national average, this company often adds value to its proposition through a streamlined claims system and easy access to customer service.
Allstate’s minimum policy has an average price of $666, and, like all policies, its price is subject to increase according to the profile of the driver.
6-Nationwide
“Yes, you can have unparalleled protection and affordable auto insurance,” says Nationwide. It is one of the companies with the cheapest minimum policy, up to $573 per year.
This company has offers to establish policies based on driving habits, among which are:
— SmartRide: which involves the use of an application or the installation of a device that collects information about your driving style. Safe driving discounts can be as high as 40%.
—SmartMiles: With this program, you can get up to a 10% discount if your mileage is reduced. However, it should be noted that this program is not available in Alaska, California, Hawaii, Louisiana, Massachusetts, North Carolina, New York and Oklahoma.
7- Travelers
Another of the large insurance companies in the United States, whose attractions are a low number of complaints in relation to the size of the company; multiple coverage options depending on needs and low rates.
Customer service seems to be a bit below the national quality average, but it makes up for it with rates that are also below the national average.
Travelers minimum coverage is approximately $472 per year.
8- Self-Owners
For over a hundred years, Auto-Owners has offered insurance policies to American consumers. It is a company that offers multiple products in addition to car insurance, and it can be a good option if you are looking for a classic company in which to trust your security.
Among the various discounts you can get at Auto-Owner, there is a particular one: a discount if you manage to pay all the coverage fees on time for 36 months.
By having a large number of products, such as home insurance, they also offer discounts for insurance packages of various goods.
The price of a minimum coverage in Auto-Owners is $333.
9- American Family
The American Family company is the ninth largest insurer in the United States. According to NerdWallet, for the size of its clientele, it has a relatively low number of complaints, denoting a good general quality of service.
Like other companies, American Family has a pay-per-mile program, known as KnowYourDrive, that monitors your driving habits in order to offer discounts of up to 20% on policies.
A minimum American Family policy can cost up to $573.
10- Friends
It is not the largest insurer, but it is perhaps the oldest in the United States. Founded in 1907, Amica is a stable company that offers one of the cheapest policies in the country.
The minimum policy offered by Amica can cost $504. However, the most interesting thing about this company is its dividend policy, which can make your coverage go up a little in price, in exchange for receiving payments of between 5% and 20% of the annual fee.
Of course, the key to this policy is to keep the policy payments up to date, because that way, you can guarantee minimum benefits.
What you should take into account when choosing a policy
We have shown you here the lowest prices in relation to minimum insurance policies, which are the minimum requirements per state to be able to drive.
However, it should be remembered that these requirements can vary from state to state, so it is best to find out about the insurance requirements in your area in order to avoid problems.
Similarly, the simplest policy is not always the one that best suits your interests. In addition to liability coverage, which covers injury, death, or property damage in accidents you’ve caused, it’s wise to review other coverage.
For example, coverage for accidents involving drivers who do not have insurance; collision coverage or comprehensive coverage, which is responsible for costing damage to your vehicle due to weather, animal accidents or vandalism.