The 7 Best Cheap Car Insurance Companies Available
The law obligates everyone who drives a vehicle to carry automobile insurance. There is no getting around the law, but it's becoming an increasingly challenging obligation. Nowadays, consumers are searching for cheap car insurance companies that can provide them with the protection they need without breaking their wallets.
We wanted to do you a favor and listed some cheap insurance companies for you to review. We looked into these companies and found that they were the most wallet-friendly establishments in business. You can check out each one of these companies and then decide which one is right for you. First, read the information about insurance rates and how various insurance companies calculate them.
What are Cheap Car Insurance Companies?
Cheap car insurance companies are companies that provide consumers with automobile insurance at fair car insurance rates. Policyholders with these companies are calm and comfortable because they know that their insurance rates are not overwhelming. Cheap car insurance companies are in no way low-quality Companies. On the contrary, they are some of the highest quality companies that one can find.
We feel that the list we created will point you to some top-notch providers that care more about your well-being than they do about hiking up the cost of auto insurance. The cheap car insurance companies that we list are current providers that are in high standing within the community. You can have the highest level of confidence in any of these providers.
1. Root Insurance
We picked the Root Insurance company as one of the cheap car insurance companies because it operates in a unique and exciting way. Root adds an additional category to the traditional premium calculation strategies. Root provides its applicants with a mobile application that measures their driving ability. The company has the applicant complete a test-drive, and then it calculates that person's premium based on the results of the test-drive. Drivers whom they determine are good drivers can save up to 52 percent on their premiums. Many consumers are pleased with Root because of this.
About Root
The Root company launched in 2015, and two men named Alex Timm and Dan Manges pioneered it. Its headquarters is in Columbus, Ohio, and the company has more than 700 employees. Root operates in 29 states, including states such as Georgia, South Carolina, Delaware, and Oklahoma. The company continues to strive to become operational in all 50 states very soon.
Discounts
Along with the huge savings that one can get just by exercising good driving practices, you can save up to $900/year.
2. Metromile Insurance
We chose Metromile Insurance as one of the cheap car insurance companies because of the unique way that it calculates premiums for users. Metromile uses a distinct style of calculating the premium based on the number of miles that the person drives. Metromile customers must install a device to their OBD-II port that measures the mileage that they put on their cars. The drivers then pay a low base rate each month plus a certain number of cents per mile.
This results in an extremely low bill for people who do not drive that much. That's why we classified this company as one of the cheap car insurance companies. It's ideal for people who drive short distances to work and do not use their vehicles for much else. Anyone who drives fewer miles than the average 12,000-mile standard amount is in a great position to benefit from signing up with this provider.
About Metromile
The Metromile insurance company started in 2011, and David Freidburg is its founder. Its main headquarters is in San Francisco, California, and the company has more than 230 employees. Metromile only operates in a few states, however, and it's working hard to expand its reach to other locations. The key states that Metromile operates in include states such as California, New Jersey, Virginia, Arizona, and Oregon.
Discounts
There does not seem to be any additional discounts for Metromile customers since they already provide drivers with a superb discount. However, interested persons can locate coupons and promotional codes that apply to Metromile on some of the key coupon sites like Retail Me Not and Groupon. Consumers may be able to find additional deals that can accommodate their wallets even more than the current discounts that Metromile offers.
3. GEICO
GEICO is one of the most largely televised cheap car insurance companies in the nation. Consumers always see GEICO commercials about saving money on their car insurance. That's why we added it to the list of cheap car insurance companies.
GEICO offers its policyholders lower premiums, a heap of discounts, and the security of knowing that they have coverage from a top-quality provider. GEICO's website allows shoppers to request quotes, set up auto-pay, make policy changes, change payment dates, and more. Therefore, users get an expansive online experience plus the comfort of a full-service customer service team that cares.
About GEICO
GEICO is short for Government Employees Insurance Company. The business opened its operations in 1936, and Leo Goodwin, Sr. is the founder along with Lillian Goodwin. The headquarters is in Chevy Chase, Maryland, and the company has more than 40,000 employees. Unlike other companies, GEICO operates in all 50 states. Any U.S. consumer can apply for a policy.
Discounts
GEICO offers an array of discounts to its customers. One example is the Good Driver Discounts. Another discount is the Multi-Car Discounts. GEICO was also one of the first cheap car insurance companies to provide a 15 percent discount to its customers during the 2020 pandemic.
4. USAA
U.S. News rated USAA as one of the top cheap car insurance companies, so we are adding it to our list, as well. The site claimed that USAA offered the lowest rates in the country when it conducted its studies. USAA offers automobile insurance to military personnel and their relatives. Consumers who are in active duty, guards, reserves, and veterans can qualify for coverage with this provider. Additionally, the spouses and children of such people can be eligible for car insurance through USAA, as well. Many consumers are pleased with the company and its amazing rates.
About USAA
USAA stands for United Services Automobile Association. The company started its operations in 1922. It offers a wide variety of products such as car insurance, credit cards, and retirement account. Its headquarters is located in San Antonio, Texas, and it offers insurance in all 50 states.
Discounts
Qualified applicants can reap the benefits of many deals and discounts. USAA offers a 10 percent discount to members who bundle their car insurance with other types of insurance, such as home and renter's. Some of the other discounts that policyholders can get are discounts such as safe driver discounts, loyal member discounts. You can get a discount if you're storing your vehicle or don't drive much. There are many more savings where those came from, as well. Interested persons should investigate further for more information.
5. American Family
American Family is another provider that we felt was worthy to be on the "cheapest car insurance companies" list. It offers fantastic rates as well as all-star customer service and convenient site features.
About American Family
American Family is a Fortune 500 company that has been around since 1927. The name of its founder is Jack Salzwedel, and the company has more than 11, 307 employees. Its headquarters is in Madison, Wisconsin. American Family Insurance operates in at least 19 states across the United States. The company is steadily trying to expand its services to individuals in other states across the nation.
Discounts
American Family offers a generous number of discounts to its policyholders. Some of the discounts a driver can get from this company include Multiple-product discounts, Multiple-vehicle discounts, loyalty discounts, and Early Bird discounts. The company also offers discounts such as smart pay discounts and full payment discounts. Interested persons can get the full list by visiting the provider's website.
6. Erie Car Insurance
Erie Car Insurance is another company that you may want to look into for an automobile policy. It is listed as one of the cheap car insurance companies because of their fair rates and massive discount opportunities. Erie has a "rate lock" feature that keeps you locked into your affordable rate so that it doesn't change unless you add a vehicle or a driver. You can feel confident that you will stay in control with the rate lock feature on your side.
About Erie Insurance
Erie Insurance has been serving customers as one of the cheap car insurance companies since 1925. Its founders are H.O. Hurt and O.G. Crawford. Its headquarters is located in Erie, Pennsylvania. The company offers a broad range of products such as car insurance, home insurance, life insurance, and more. Consumers are very happy with this company, and they recommend it to anyone who is looking for coverage for their vehicle. Erie operates in 12 states, including states such as Pennsylvania, New York, North Carolina, and Tennessee. The company is continually trying to broaden its horizons so that people in additional states will have coverage.
Discounts
Erie offers a massive number of discounts to its customers. Examples of discounts that new policyholders can receive are bundle discounts, first accident forgiveness, multiple policy discounts, vehicle storage, etc. Customers can also receive some amazing add-on features such as rental coverage, auto glass repair, and pet coverage. The main goal of Erie is to make all of its customers feel comfortable with the products and services they provide. They've been successful in doing that for decades. Therefore, new applicants can feel confident in seeking a policy from them.
7. Auto-Owners
Auto-Owners is another company you might want to look into if you're looking for cheap car insurance companies. Auto-Owners promises to build policies that revolve around each consumer's specific needs. They offer affordable insurance with a broad spectrum of coverage and features. Consumers have given this company very high ratings in their reviews, and we believe that you will be pleased with them, as well.
About Auto-Owners
Auto-Owners has been in business since 1916, and the person who found it is named Vern V. Moulton. The company has headquarters in Michigan, and it currently has more than 5,227 employees. Auto-Owners offers various types of insurance, including auto, home, and life insurance coverage.
It is a Fortune 500 provider, and consumers are quite pleased with its features and its customer service. Interested persons can have confidence in starting a policy with this provider. Service options are currently limited to only 26 states as of right now, but the owners hope to expand coverage very soon. Current residents of those states can take advantage of the many features and discounts that this company offers.
Discounts
Auto-Owners offers an extensive line of discounts. Some of the key discounts include a safe driving discount, multiple policy discounts, safety feature discounts, a green discount, and good student discounts. You can find many more amazing discounts by visiting the provider's site. There you will find more than 10 discounts that can make your expenses lower than what you expected from one of the best cheap car insurance companies in the nation. Think about it right now.
Choosing the Best Cheap Insurance Companies
When you are searching for cheap car insurance companies, you have to take a lot of things into consideration. Choosing the right provider is not all about the prices. You must also consider their level of customer service. Good customer service consists of prompt communications, friendly answers, availability, and excellent problem-solving skills. You also need to review the suite of services that each company has to offer. Your goal should be to get every feature and benefit that you desire and one car insurance policy.
Consumer reviews play a huge role in choosing the best cheap car insurance companies, as well. Read what the consumers have to say about their experiences in all aspects of working with the providers. You should be able to make your decision at that time. We hope that we have pointed you in the direction of the best cheap car insurance companies. Use this information to get yourself set up with the provider that you can stick with for a lifetime.
Factors That Affect Your Car Insurance Premium
It's understandable that you want to find cheap car insurance companies. There are some cheap car insurance companies out there. However, you must also understand that your personal premium quote may or may not be as low as you want it to be. Car insurance companies use a number of criteria to evaluate how much your premium will be. Some of those factors include your age, gender, vehicle type, residential area, marital status, and credit history.
They may also consider your homeowner status and whether you rent. Therefore, you will not always receive a low guaranteed rate on your auto insurance. You must also consider that one car insurance company may have a completely different pricing grid than another one has. That's why it's best to compare quotes from several providers before you choose cheap car insurance companies. That being said, the companies on this list are most likely to calculate a lower premium for you than most other car insurance providers.
How to Reduce Your Insurance Premium
As previously stated, your premium can vary a lot, depending on your circumstances. It can go up because of your situation. Fortunately, you can do a few things to decrease your premium, as well. One thing you can do is sign for autopay. Some insurance companies allow their policyholders to receive a discount for having their premiums taken directly from a checking or savings account.
You can also apply for one of the many discounts that cheap car insurance companies offer. Examples of some of those discounts include multiple car discounts, military discounts, safety feature discounts, good driver discounts, and more. You can save hundreds per year just by qualifying for those discounts.
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Contact Us if You Need Financial Help
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