If you’re looking to get the cheapest price on your car insurance, it’s important to understand that cheap and value are two different things. We will discuss the cheapest car insurance options available in the US and review some of these companies to give you an idea of whether the cheap price is worth the value.
1. Geico
Geico is ranked as the cheapest insurance company. However, it’s important to note that this ranking is subjective. Geico is known for offering affordable rates, especially for younger or high-risk drivers. Minimum coverages with Geico cost $462 per year, while full coverage is priced at $1,955 per year on average.
2. USAA
USAA used to be the top-ranked company but has dropped in customer service. They require a military affiliation to be eligible for their services. While their prices have increased, they are still a good company overall. Minimum coverages with USAA cost $487 per year, while full coverage is priced at $1,829 per year.
3. AAA
AAA has fallen behind in terms of technology and customer service. They bug their customers with constant turnover of agents. While they are known for their road service and membership benefits, they may not be the best option. AAA’s minimum coverages cost around $600 per year, and full coverage is priced at $286 on average.
4. Progressive
Progressive is known for their innovation and competitive rates. While they may not be the cheapest option, their rates have increased less compared to other companies. However, they are strict when it comes to claims and accurate information is crucial. Minimum coverages with Progressive cost $549 per year, while full coverage is priced at $2,271 per year on average.
5. Travelers
Travelers’ reputation varies by state, but they can be very competitive when it comes to auto insurance. They are strict about the type of policies they offer, particularly for homes. Their minimum coverages cost around $639 per year, while full coverage is priced at $2,536 per year.
6. State Farm
State Farm is known for their branding efforts, particularly in the sports world, but they are not the cheapest option. They focus on their core products and have faced numerous lawsuits. Minimum coverages with State Farm cost $718 per year, while full coverage is priced at $2,627 per year on average.
7. Allstate
Allstate is a good company, but they have recently increased their rates and made changes to their home policies. It is important to read the policy guidelines carefully to ensure you have the coverage you need. Minimum coverages with Allstate cost around $781 per year, while full coverage is priced at $2,438 per year.
8. Nationwide
Nationwide has been a great company in many states, but they are becoming more selective about the business they take on. They require proof of registration and photos of the car to ensure there is no damage. Nationwide agents have access to multiple companies, providing you with more options and potentially saving you money.
9. Farmers Insurance
Farmers Insurance has seen a decline in reputation but is making efforts to improve their business. They offer minimum coverages at an average cost of $1,044 per year and full coverage at $3,295 per year. It’s worth noting that Farmers agents often push life insurance along with auto quotes.
10. Liberty Mutual
Liberty Mutual is ranked number 10 on the list. While they are a great company with great people, they are currently undergoing restructuring and offering minimum coverages, such as PLPD (Personal Liability and Property Damage), at an average annual cost of $1,090. Full coverage, on the other hand, is priced at $3,419 per year on average.