Not all auto insurance quotes are created equal.
so how do you know if you’re being cheated on?
When it comes time to find a new policy, having all the right information is the best way to save money on auto insurance.
the sea. 9, usa uu. news and world report published an analysis of 50-state auto insurance rates from most of the biggest names in auto insurance to generate a list of the cheapest providers in the country.
Here’s how your insurance company compares and what you can do to get even lower than average rates.
the 9 cheapest insurers
The national average annual insurance rate is $1,320, according to the u.s. news studio.
based on that figure, ee. uu. news analyzed the top auto insurance companies and compared quotes by age, gender, and demographic location to generate the following list of cheapest insurance providers for 2021.
united states. With an average rate of just $875 per year (a savings of about $255 or 20% compared to the next cheapest company), this insurance company has the lowest premiums for almost every demographic driver in the US. uu. news looked. and even when it wasn’t the cheapest, it was still priced pretty close to the cheapest. the warning here? it is only for people related to the military.
geico. Annual rates with Geico hover around $1,099, which is still 17% cheaper than the national average. this insurance company offers some of the lowest rates for nearly every demographic analyzed in the study, especially young drivers.
state farm. entering the no. Ranked 3rd on the list, the state farm’s average annual premium is $1,168, about 12% less than the overall national average.
travellers. As the fourth cheapest insurance company on the list, the average premium with travelers is $1,250, about 5% lower than the national average. while most driver demographics will receive below-average rates, there are some exceptions to that rule.
at the national level. This insurance company is the last on the list to have average premiums below the national average, reaching $1,284. At savings of about 3%, rates nationwide are below or near average for most drivers in the study, with one exception. For DUI drivers, it is one of the most expensive options.
progressive. With average premiums of $1,334, the progressive is about 1% more expensive than the national average. For most drivers, the company’s rates are pretty close to average. it is more expensive for drivers 25 years of age and drivers with an accident. however, it is the cheapest company in the study for DUI drivers.
American family. The average rate on American Family is $1,451, which is a significant jump from progressive rates and 10% higher than the national average. Rates are higher across the board for nearly all US demographics. uu. news studied except for drivers with an accident or drivers with dui. for both groups, american family rates are below average.
farmers. Average premiums to farmers are $1,634, which is about 24% higher than the national average. Rates in farmers were comparatively high for each driver archetype and demographic in the US. uu. news studio, often for several hundred dollars a year or more.
all states. As the most expensive auto insurance company in this year’s annual rankings, the average rate at Allstate is $1,787. that’s 35% higher than the national average. All demographics pay more for insurance through Allstate, but 25-year-old drivers will find it especially expensive.
While different auto insurance companies offer different rates, knowing each company’s average rate isn’t enough to determine which rate you’d qualify for.
The amount you’ll pay for auto insurance varies based on a wide range of other factors: what state or zip code you live in, your age, driving record, gender, experience, and financial situation.
here are the top three factors of usa. uu. Found news influencing auto insurance premiums.
be a good driver
Most auto insurance companies will reward you for being a good driver. Being a safe and experienced driver is one of the best ways to get cheap car insurance.
Car insurance companies like to have good drivers as customers because they are less likely to file insurance claims. and so, in return, they get access to lower rates than other drivers with more irregular records.
according to us news, the cheapest car insurance for good drivers is usaa, followed by geico, then state farm.
have a bad driving record
Just as being a good driver affects your insurance rating, having accidents, speeding tickets or DUIs will have a significant impact on what you pay.
Receiving a speeding ticket is likely to cause your rates to increase by approximately 21%, while accidents will increase by approximately 42%. however, the worst thing you can add to your record is a dui.
speeding ticket: usa. In the US, state farm increases less) same for a car accident
With a DUI, you can expect your premiums to increase by approximately 60%.
As for which companies are the most affordable with speeding tickets and car accidents on their driving record, USAA ranks first with State Farm a close second. With a DUI, the state farm is the most affordable, followed closely by the United States.
your credit score
Drivers with bad credit face auto insurance rates similar to those with DUIs, according to the us. uu. news analysis. When you have a low credit score, you can expect average rates of $2,227, which is 70% higher than drivers with good credit, whose average rates are $1,310.
If you don’t know your score, you can check it for free.
for drivers with low credit scores, the most affordable insurers were usaa, followed by geico and nationwide.
But if you have bad credit, that doesn’t mean you have to settle for high rates forever. Purchasing credit repair services can help you improve your score and secure more affordable auto insurance rates.
how to find the cheapest car insurance
Beyond your credit score and driving record, the best way to find the lowest price on auto insurance is to shop around for the best rates.
Experts like the Insurance Information Institute will recommend that you review at least three quotes before settling on a single offer. doing so can save you more than $1,000 a year.
If you’re happy with your insurer, but still think you could save a few bucks, why not apply for a pandemic discount? With everyone staying closer to home last year, some insurers have already given customers refunds, and may do so again if you ask.
And once you’ve started finding savings on insurance, why stick with just your car? The same savings principle applies to help you save $1k on home insurance and find affordable life insurance, which has seen a huge increase in demand during the pandemic.
The only big choice you’ll have to make is what to do with the hundreds of dollars you’ll save each month.
See also: How to Verify Car Insurance Coverage