Are you looking for an affordable auto insurance policy? Geico is usually the cheapest option among major domestic providers, but Progressive, USAA, and Esurance can sometimes beat their low rates. Geico stands out for its potential savings through discounts. Although their car insurance rates may be slightly more expensive than State Farm's on average, you can pay less overall if you qualify for their many car insurance discounts. WalletHub compared car insurance quotes from companies in all 50 states and found that the cheapest car insurance companies are Geico, USAA, and Erie. The best way to get cheap car insurance is to compare quotes, and you can start your search with WalletHub's picks for the cheapest car insurance overall and by category. Geico is very cheap because they sell insurance directly to consumers and offer a lot of discounts.
Direct-to-consumer sales eliminate the cost of middlemen and allow Geico to have significantly fewer local offices and agents than companies like State Farm and Allstate. This reduces their overall costs so they can pass those savings on to consumers. Each insurance company determines its rates differently, so while Geico is among the cheapest car insurance companies, the best way to make sure you get the cheapest rate is to compare quotes from several insurers. For more information, see the WalletHub Geico review and see the full Geico profile. Both Geico and Progressive offer cheap car insurance to drivers across the country. Geico rates tend to be lower overall, but Progressive tends to offer better prices to those with a recent DUI, at-fault accident, or speeding ticket on their driving record.
Insurance companies use credit-based insurance scores, where permitted by state law, as studies have shown that these scores effectively indicate the likelihood of a driver filing a claim. Getting quotes from multiple insurers each time you need to renew your policy can help you realize if you're overpaying for the same amount of coverage. If you have an accident at fault, State Farm is a good place to start looking for cheap insurance. You can compare rates and learn more about which companies offer the cheapest premiums with WalletHub's guide to cheap car insurance. State Farm and Progressive are also relatively affordable options for drivers looking to get minimal car insurance. It's a good option for people who are generally safe drivers, but who can't find cheap rates elsewhere because they're young, have poor credit, live in a congested city, or have other risk factors that increase their insurance rates. Expect your car insurance rates to increase at the time of renewal if you have caused an accident, especially one that injured another person.
Car insurance premiums are based on drivers' individual risk factors, as well as the types of coverage and limits they choose. Your insurer will likely offer discounts that you can take advantage of, such as fare reductions for safe driving or bundling policies. Other types of coverage, such as deficit insurance and roadside assistance, cost less than liability insurance but generally cannot be purchased on their own and the cost will be above your liability insurance premiums. USAA has highly competitive car insurance rates for motorists with many types of driving records, making it a good company for multiple driver profiles. Some California insurance companies charge a little more for monthly premiums, and there may also be payment processing fees. If you're looking for an alternative to USAA that still offers cheap insurance for military members, GEICO also tends to have good rates thanks to its 15% military discount. For example, State Farm offers one of the best home and car package discounts on the market with an average savings of 25%.