What is the Cheapest Type of Car Insurance?

State minimum liability coverage is the most affordable type of car insurance. According to MoneyGeek, State Farm is the most cost-effective option on average in 20 states if you have been involved in an accident. Other insurers such as GEICO, American Family, and Erie may also be budget-friendly options, depending on your location. State Farm's competitive auto insurance rates for different types of drivers and its low number of complaints make it worth considering.

After an accident, your liability car insurance rates are likely to increase more than they would after a speeding ticket. The most economical cars to insure for teen drivers (and drivers of all ages) are the Subaru Forester, the Dodge Grand Caravan and the Honda Odyssey. Although regional insurance companies may not be as well-known as larger companies, getting quotes from these lesser-known insurance providers can provide you with cheap insurance coverage in your area. In no-fault states, you must first make most injury claims in your own car insurance, regardless of fault. Complaint numbers from the National Association of Insurance Commissioners (NAIC) show the level of complaints a company has relative to the size of its business, with complaint numbers greater than 1.0 that are higher than the industry average.

In some cases, reducing your auto insurance coverage or choosing only liability coverage can result in more affordable car insurance. For instance, driving a vehicle with a high safety rating that is not routinely stolen will equate to lower car insurance rates, while a sports car highly desired by thieves will result in higher car insurance quotes. However, if you are part of a military family, you should get a quote as it is ranked as the cheapest company in exclusive liability insurance in 38 states. Cars such as certain Tesla models tend to have expensive rates because owners are more likely to file insurance claims. You can find cheap car insurance, even cheap full coverage, without lowering your coverage limits.

There are a variety of discount offers you can take advantage of to further reduce the cost of your insurance premium. 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. MoneyGeek found that GEICO, Nationwide, and State Farm are among the cheapest companies in liability-only insurance; however, it is recommended that you compare options in your state for a more accurate cost estimate.

Blanche Kroner
Blanche Kroner

Friendly social media trailblazer. Typical music lover. Professional travel scholar. Hipster-friendly zombie practitioner. Evil travel fan.

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