Let’s face it. The best way to save money and get cheap car insurance is to shop around. There is no one price fits all. No two drivers are the same. And car insurance companies consider everything from where you live to your credit score!
The Best Cheap Car Insurance in 2019
Things are different now. Every year the insurance companies use new statistics and algorithms to decide your rate. Which factors make a difference, and which don’t matter even one iota, deserve some research. So, we researched to start you on your way.
The Biggest Companies
In a general sense, you can rank the average rates across the country for the 6 biggest car insurance companies. They sell 65% of the individual policies. The top 7 are Allstate, Farmers, Geico, Liberty Mutual, Progressive and State Farm. Included in that 65% is also USAA. USAA is cheapest, but only for active military members, veterans and their families.
Cheap Car Insurance from Smaller Companies
Cheap car insurance isn’t always with the biggest companies. Many regional and smaller insurers beat the lowest premium offers, and they beat them with great customer service, too.
Farm Bureaus often only offer car insurance in one single state, but they were cheapest in several states in 2019.
Cheap car insurance doesn’t amount to the same rate in every state. Rates do vary widely across the country. There’s no point in comparing your rates to someone else’s, even in the same state. Check what different companies charge for your situation.
How to Save the Most on your Car Insurance
The way to get the cheapest car insurance is to only carry the very minimum amount of coverage that’s required. In most states, that’s just liability coverage. The insurance pays for medical bills and property damage for others if you cause an accident. Some states require uninsured and underinsured motorist coverage. That pays for your injuries or your property damage if the other driver is at-fault and doesn’t have enough insurance.
A policy with comprehensive and collision coverages cost more, but they do cover you if your car is damaged or stolen, no matter the cause. So, hailstorms or running into a fence post or a deer are all part of your policy. Add this to your liability with uninsured/underinsured coverage, and it’s considered full coverage.
How Often Should You Shop Around for Cheap Car Insurance?
Yes, you need to shop around every time your policy is up for renewal. Hassle that it is, your current company might not be the cheapest this year.
Check to see what discounts they offer. Ask for a discount, especially if you find a new company with a lower rate than your current insurer. If you drive less than you used to, ask for a discount. As your car ages, ask for a discount.
Cutting Coverage to get Cheap Car Insurance
Think about your limits and deductibles. Higher collision and comprehensive deductibles make sense when you drive less or can manage the financial risk. Raising deductibles means paying more out of pocket for comprehensive or collision claims. But if you save up the money you save on premiums it might work out better in the long run. Because you will get cheap car insurance.
Be careful cutting your coverage. Don’t take away coverage only to save money on your premiums. If you have a car loan, you’ll need full coverage. But if you own the car outright, or drive an older car, dropping comprehensive and collision coverage might be the way to go.
So, cheap car insurance isn’t always the best car insurance. Getting the right coverage for your situation and comparing rates will get you the best deal.