When it comes to finding the best and cheapest car insurance, it’s important to remember that cheap and value aren’t always the same. In this article, I’ll break down the cheapest car insurance providers in the U.S., offering insights and reviews on each company. You’ll also get my personal opinions and some key facts to help you determine if the cheap options are worth the value. Let’s dive in!
10. Liberty Mutual
Liberty Mutual, a well-known name in the insurance world, is unfortunately on the decline. They are going through some restructuring, which has impacted their coverage options. For minimum coverages (PLPD—personal liability and property damage), you’re looking at an average of $1,090 per year. Full coverage runs around $3,419 annually. While it’s one of the cheaper options, the restructuring raises questions about the company’s long-term value.
9. Farmers Insurance
Farmers has seen a decline in its reputation but is trying to rebound by pushing harder to increase business. With a mix of life insurance offerings and auto coverage, Farmers can sometimes be a bit pushy. For minimum coverage, expect to pay about $1,044 annually, while full coverage averages around $3,295. While they aren’t the cheapest, they might offer value in certain regions.
8. Nationwide
Nationwide has been a solid insurance provider for many, but their approach is a bit more selective these days. With a policy that requires car registration and photos of the vehicle, they’ve added extra layers to reduce fraud. One advantage of Nationwide is their use of independent agents who can shop for the best deal across multiple insurance companies. Minimum coverage costs about $718, and full coverage is priced at $3,419 per year.
7. Allstate
Allstate is known for its stability and competitive rates, but they’ve made some changes recently that have raised their prices. Minimum coverage runs around $781, while full coverage costs about $2,438. While Allstate may not always be the cheapest, their strong customer service and consistent offerings make them a trusted option.
6. State Farm
State Farm, one of the largest insurance providers, has made a name for itself through branding and high-profile sponsorships. However, they aren’t the cheapest. Minimum coverage will set you back $718 annually, while full coverage comes to around $2,627. While they’ve faced some legal troubles and higher prices recently, they remain a solid choice for many.
5. Travelers
Travelers offers affordable coverage, with minimum policies costing about $639 and full coverage averaging $2,536. The company’s reputation is generally good in some states, though they are becoming stricter about the types of homes they insure. If you’re in the right state, Travelers can be an excellent choice, especially for auto insurance.
4. Progressive
Progressive offers some of the most competitive prices in the industry, with minimum coverage averaging $549 and full coverage at $2,271. Progressive is known for its innovation and technology, frequently staying ahead of the trends. However, they are strict with their claims process, so make sure to read through the policy details to avoid any surprises. While the rates are great, make sure the coverage is a good fit for your needs.
3. AAA
While AAA has long been known for its reliable road service and membership offerings, their car insurance rates have become less competitive. The minimum coverage is priced at $529, but don’t forget the membership fees, which can add $60-$90 per year. AAA may still be a good fit for those who value their roadside assistance, but their technology and customer service have fallen behind in recent years.
2. USAA
Once the go-to insurance provider for military families, USAA has dropped in customer satisfaction rankings. Although they used to be number one, their service levels have declined, and prices have risen. For minimum coverage, you’ll pay around $487, and full coverage will cost approximately $1,829. If you’re eligible (as a service member or family member), USAA could still be a decent choice, but be aware of their recent service issues.
1. Geico
While the article claims Geico is the cheapest, I have to disagree. Geico is a solid option for high-risk drivers or those with limited coverage needs, but it’s not the best for everyone. Minimum coverage starts at $462, and full coverage averages $1,955. Geico offers low rates for younger drivers or those with a less-than-perfect driving history, but their customer service and overall experience may not be for everyone.
Conclusion
In the end, the cheapest car insurance isn’t always the best deal. While some of these companies may offer lower premiums, their coverage options, customer service, and claims processes vary. Be sure to weigh the cost of coverage with the value you’re getting before making your decision. If you’re looking for more insights or quotes, feel free to use the link below to connect with an insurance agent who can help you find the right fit for your needs.
