7 Cheap Car Insurance Companies 2023: Pros & Cons
Due to variables like your location, age, and driving history, the cheapest companies for your car coverage might be different for everyone else. Comparing prices from various insurance providers will help you get affordable auto insurance coverage and excellent customer service.
This article explores the best and most affordable car insurance companies. Let’s begin!
1. USAA Car Insurance
USAA offers coverage for drivers in Washington, D.C., and all 50 states, but only active-duty personnel and veterans are eligible. However, it covers almost as many drivers as other well-known brands like Progressive and Allstate car insurance while being the fifth-largest auto insurance provider in the nation.
In addition to offering affordable auto insurance rates, USAA is notable for having one of the greatest reputations for customer service in the market. In J.D. Power’s annual Auto Insurance Claims Satisfaction Study, the company consistently places first. The National Association of Insurance Commissioners (NAIC) complaint index for USAA is also low, indicating that there aren’t many customer service or claim-related grievances. The average Monthly rate costs about $37.
Pros
- Cheapest quotes if you qualify
- Consistently top-rated support
- Unique military perks like a custom billing schedule
Cons
- Only available to military, veterans, and family
- Long quote process
2. Farm Bureau
It is similar to AAA, Farm Bureau has local chapters in almost every state that provide members with affordable insurance plans and other advantages. Anyone, not just farmers, can join, although there is a yearly membership cost that can be anywhere between $20 and $100. Discounts on the purchase of cars, farm equipment, produce, healthcare, travel, rental cars, and other items are also included in the membership perks. In comparison to drivers with outstanding credit, insurance prices for drivers with bad credit are approximately 99% more on average. You can save a lot of money on your insurance coverage by raising your credit score. The average Monthly rate costs about $39.
Pros
- Cheap plans with any credit score
- Available in most states
Cons
- Missing coverage like gap insurance
- The annual membership fee is around $60
3. Auto-owners Insurance
Typically, staying on a parent’s policy is the most affordable method to obtain auto insurance for a teen driver. for drivers under the age of 21, on their parent’s policy, auto-owners offer some of the most affordable rates.
The drawbacks are that auto-owners are only offered in 26 states and that getting a quote requires speaking with a representative. The average monthly rate costs about $40.
Pros
- Cheapest family policies
- Top customer support scores
Cons
- Available in 26 states
- No online quotes or support
4. State Farm
For most drivers, State Farm offers the most affordable and reliable auto insurance. The biggest auto insurance provider in the nation, State Farm also offers the most affordable estimates in 29 states if USAA is not an option for you. A State Farm agent in your city can likely assist you in finding the best rates in your area because of the company’s extensive network of regional agents. The average Monthly rate costs about $44.
Pros
- Cheapest company in 29 states
- Variety of coverage like gap and rideshare
Cons
- Average customer support
5. Erie Car Insurance
For motorists with a citation or accident on their record, Erie offers some of the most affordable auto insurance prices. Furthermore, if you have a DUI (driving while intoxicated) on your driving record, it’s unlikely that you’ll get a better rate. Erie also has the lowest post-accident premium hikes for vehicle insurance.
If you receive a ticket, Erie will only boost your rates on average by 7%, compared to the majority of insurers who raise rates by 22% or more. Erie will only increase your rates by 25% rather than the industry standard of 44% if you are at fault for an accident. Additionally, the average quotation in Erie for someone with a DUI is now $188 per month, a 64% increase. After a DUI, you should anticipate your rates from other businesses to double. The average Monthly rate costs about $45 – $50.
Pros
- Cheap plans for any driving record
- Accident forgiveness
Cons
- Only in 12 states and Washington, DC.
- Limited online support
6. Metromile Car Insurance
A usage-based or pay-per-mile vehicle insurance company, like Metromile, may offer the best rates for you if you drive less frequently than the average person or are generally a cautious driver. One of the first businesses in the United States to base vehicle insurance quotations in significant part on mileage was Metromile. You should drive less than 10,000 miles per year for Metromile to be a reasonable price.
Metromile has only eight state availability: Arizona, California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington is its main drawback. If you don’t live in one of those states, think about enrolling in one of the telematics programs offered by State Farm, Nationwide, or Liberty Mutual, which provide discounts for driving less and/or more safely. The average Monthly rate costs about $52, but it varies.
Pros
- Cheap plans if you only drive 10,000 miles each year
- 22% average savings for safe drivers
Cons
- Only available in 8 states
- Unreliable customer support
7. Geico Car Insurance
Only State Farm, among the major firms, offers cheaper auto insurance than some of Geico’s national rates. Depending on where you reside, Geico might offer you a better deal than State Farm. Geico is the least expensive insurer in seven states, including Florida and California.
Geico stands out when it comes to potential discounts and savings. Geico’s auto insurance has a slightly higher average cost than State Farm’s, but if you qualify for one of the several discounts Geico offers, you can end up paying less overall.
Geico offers one of the most extensive lists of discounts, and the amount you can save with each discount is more significant with Geico than with most businesses. Geico, for instance, offers cautious drivers a discount of up to 22% instead of the industry standard of 10%. Normally, installing anti-theft systems in your car can save you up to 15%, but Geico guarantees savings of up to 23%. The average Monthly rate costs about $56 – $60.
Pros
- Smooth online experience
Cons
- No gap coverage
Final Thoughts
To discover the best deal on auto insurance, choose the appropriate level of coverage, and request quotations from several providers to take advantage of any discounts that could be offered. Start by obtaining the bare minimum of liability insurance that your state requires, and find out if you can increase it. These steps can help you purchase some of the cheapest car insurance coverage.
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