The most affordable type of car insurance is State Minimum Liability Coverage. You don't have to stick with the big insurance companies to find an affordable policy. Central Insurance, MMG and Secura, the smallest insurers offering coverage in several states, have even cheaper car insurance rates than Geico. We found that Geico has the lowest average rate for drivers with an at-fault accident, and American Family is the cheapest, on average, for drivers with DUI.
If you're looking for a large company with affordable car insurance rates, Geico might be a good place to start. According to our analysis, the company has the lowest average rates for good drivers with bad credit. Of the largest insurance companies in the country, Geico has the cheapest car insurance rates, on average. However, rates vary greatly from person to person based on factors such as gender, the car you are driving, and your location. To find the cheapest price, compare the car insurance rates of at least three insurers once a year.
MoneyGeek found that GEICO, Nationwide, and State Farm are among the cheapest companies in liability-only insurance, but it's recommended that you compare options in your state for a more accurate cost estimate. If you are an active member or former military member, USAA is usually the cheapest insurance company on average. It is more affordable than GEICO for both minimum state and major liability. These rates are based on a 40-year-old driver with a clean driving record and the analysis in this section is limited to companies offering car insurance in 30 states or more. Rates will vary based on the person's age, driving history, gender, and type of insured car. If you want a deeper look at how costs change based on these factors, MoneyGeek has an auto insurance cost calculator that allows you to get estimates from the cheapest carriers for several different levels of coverage.
Drivers can get even cheaper rates with GEICO by taking advantage of package, multi-car, anti-theft, and passive restrictions discounts. Current or former federal employees are also eligible for additional savings. Nationwide offers almost all of the common discounts offered by other insurers. Make sure all discounts apply when comparing quotes. The United Services Automobile Association (USAA) offers insurance nationwide and tends to be the most affordable option for active military personnel, veterans and their families.
Considering its strong reputation in both auto and home insurance, USAA is a good option for those looking to purchase homeowners insurance as well, allowing them to take advantage of its package discount. If you're looking for cheap liability insurance near you, you should look at the cheapest insurers in your state rather than nationwide. While GEICO is the cheapest insurer in 26 states, MoneyGeek found that 14 different insurers are the cheapest insurer in a given state, including State Farm (seven states) and Erie (four states). This analysis excludes USAA due to its eligibility requirements. But if you're part of a military family, you should get a quote, as it's ranked as the cheapest company in exclusive liability insurance in 38 states.
Safe drivers with a clean driving record will usually be able to get the most affordable liability insurance. Receiving a fine or having an accident will generally increase the cost of car liability insurance. MoneyGeek found that GEICO generally offers the cheapest sole liability insurance to those who have a violation in their history. If you have a penalty on your record, GEICO is the cheapest and most widely available insurance company on average for drivers with a penalty on their record for both minimum state liability and increased liability. Getting a speeding ticket can add hundreds of dollars a year to your insurance costs. USAA is the most affordable overall, but most drivers won't be eligible for a policy.
MetLife is at the bottom with the highest average annual premiums. If you have a speeding ticket on your record, you can still find affordable rates with GEICO, one of the largest insurers in the country. If you're looking to lower your rates even further, GEICO offers a discount for those who complete a defensive driving course. State Farm and Nationwide are similarly affordable for drivers with an accident, while USAA remains the cheapest for those who are eligible. Even after an accident, you'll find a variety of coverage options and packages with GEICO.
GEICO also offers accident forgiveness, a feature that means your rates won't go up after your next at-fault accident. This can be earned through years of safe driving or can be purchased. MoneyGeek analysis found that drivers can save up to 47% on their insurance policies by buying car insurance online and getting multiple quotes. Auto liability insurance is more than 40% cheaper than full coverage insurance but there are risks associated with getting the lowest amount of coverage. Low liability insurance limits won't cover it for claims that exceed hundreds of thousands of dollars and your own vehicle won't be covered at all. Knowing the limits and risks of liability insurance can help you make an informed decision when selecting car insurance coverage.
Often, the best way to find the cheapest liability insurance is to research options in your state. GEICO is usually the cheapest in most states but MoneyGeek found that 14 different insurers could be the cheapest in any state. Whenever your circumstances change it's a good idea to look around when buying auto insurance policies. We've researched dozens of car insurance providers to find companies that offer reliable and affordable car insurance. Even if you moved to an expensive area to get car insurance looking around can help you get cheaper coverage.
We recommend comparing car insurance quotes from providers to find the most affordable coverage for your situation. MoneyGeek analyzed quotes in both age groups to find the cheapest car insurance companies.