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Nov 23

Which Auto Insurance Providers Are The Cheapest?

Reading Time: 4 mins

One of the best ways to protect your car is to get auto insurance. Auto insurance helps ensure that you can get your car repaired. Even if car repairs are expensive, you’d be able to get your car back on the road. In some cases, car insurance can also help cover the costs of damages to other drivers in case of accidents.  

Despite its usefulness, many people think twice about getting car insurance. It’s true that many insurance companies offer expensive insurance plans. However, there are still many reputable insurance companies that offer cheap car insurance.

Below, we’ve compiled a list of 10 of the cheapest auto insurance providers today.

 

1. Allstate

To kick off this list, we have Allstate Insurance Company. This company offers an average premium rate of $1,880 per year. This is a considerably affordable rate for a well-established insurance company. Allstate is also known to be generous in giving its customers great discounts.

This company is one of the most prominent casualty insurance companies in the US. Another good thing about Allstate is that it is a publicly-traded company. It has the resources to pay your claims. You’re unlikely to have problems getting your insurance claims on time.

 

2. Farmers Insurance Group

Next is Farmers Insurance Group. This company is one of the major insurance companies in the United States. With an average annual rate of only $1,635, you can insure your car with this company.

Farmers Insurance Group was founded in 1928. It started out as an insurance provider for the vehicles of rural farmers. The company has expanded since then, and it now offers other services such as investment products and pet insurance. With almost 19 million policyholders, there is no question about the company’s popularity.

A disadvantage of choosing this insurance company is that it doesn’t offer a lot of driver discounts compared to the other companies on this list.

 

3. Progressive Corporation

Progressive Corporation is the third-largest insurance company in the US. The company has over 33,000 employees and more than 400 office branches. By paying an average premium rate of $1,334 yearly, you can get Progressive insurance. Their website also has a “Name Your Price” feature, which helps you find the best coverage for your budget.

The company also provides a wide variety of online services. Through the Progressive website, you can get quotes and file claims. Another great thing about Progressive is its Accident Forgiveness Benefits program. This program prevents your rate from increasing when you get into an accident.

 

4. State Farm

State Farm is also known for providing affordable auto insurance coverage. Serving 18% of the entire car insurance market, State Farm is the biggest insurance company in the United States. You can get auto insurance from the company by paying an average yearly premium of $1,168.

State Farm’s mutual insurance company status means that the policyholders own the company. This scheme is the reason the company can offer cheap auto insurance. State Farm also returns profits to their members as dividends or as a reduction to their annual rates.

 

5. USAA

With mostly positive reviews among the insurance providers in America, USAA is another popular insurance company. Twenty-five army officers established this insurance company in 1922. This company offers a wide array of products such as car, health, and life insurance.

You can get a USAA car insurance plan for an average premium rate of only $875 annually. The catch is that USAA provides insurance only to military personnel, veterans, and their immediate families.

 

6. Geico

Aside from USAA, Geico is the cheapest auto insurance provider in the country. With an average annual premium rate of $1,100, Geico provides affordable coverage for most types of drivers.

This company started providing insurance for military personnel and government employees in the United States. Today, it has granted more than 16 million auto policies.

They also have customer service accessible 24/7, online or via phone call. Owned by Berkshire Hathaway, Inc., Geico is more than capable of providing your insurance claims whenever you need them. 

 

7. Nationwide Insurance

Nationwide Insurance has been providing affordable insurance policies for over 80 years. Today, it is one of the biggest and most well-known insurance providers in the United States. Car owners can get Nationwide coverage for an average premium rate of $1,321 per year. Nationwide guarantees quick transactions whether it’s online or in person.

 

8. Esurance

Esurance is a versatile insurance company for motorcycles, renters, homeowners, and, most importantly, car owners. A driver in his or her 30s can get coverage from Esurance for an annual average premium rate of $1,432.

One of the company’s most outstanding qualities, aside from cheap insurance policies, is its easy-to-navigate website. You can do almost all of your transactions in their company through their website.

 

9. Allied

Just like Esurance, Allied offers a variety of insurance products. The products include business insurance, farm insurance, home insurance, and so much more. If you’re in your 20s, you can get Allied insurance coverage for an average of $1,392 per year.

The company can also customize insurance coverage to make it suitable for your needs and budget. In addition, the company provides discounts for new vehicle owners, excellent students, and people with good driving history.

 

10.  American Family

American Family offers inexpensive insurance options for collision, liability, and comprehensive coverage. If you’re in your 30s, the average annual premium rate offered by the company is $1,101. Unfortunately, the problem with American Family is it is not available in all states. 

 

Conclusion

Getting auto insurance nowadays is necessary. With everything that is going on with the world today, being financially secure is important. Having insurance doesn’t make accidents less likely to occur. However, car insurance ensures that you’re protected during these unexpected events. 

 

Many people hesitate to get insurance because of its cost. However, our list of car insurance companies can help you get insured without driving you into debt. With affordable car insurance, you don’t have to compromise your financial security for your car’s protection.

 

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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