How to save money on buying car insurance?
Obviously, there are factors – such as age – that you cannot change to enjoy better insurance. Moving to another state of residence could also be complicated. So, what can you do to save money on the purchase of car insurance? The answer is easy:
- Keep an impeccable driving record. The better you drive, the less money you will pay.
- Renew your vehicle from time to time and, if possible, choose an economical and easy-to-repair model.
- Take advantage of market discounts. There are campaigns with offers for university students, newlyweds, etc. Even if you choose the electronic invoicing option, you could save more than a couple of dollars.
- Repair your credit score in case you have a bad one and if you don’t have a score, do not hesitate to start building it.
- Don’t opt for the first option: compare prices. Request several quotes and choose the one that offers you the best coverage in exchange for the lowest price. Remember to take the deductible into account when making comparisons.
- Select one of the cheapest insurance companies in the country. This will greatly reduce the premium you would have to pay to keep your vehicle safe and protected against all risks.
How much does car insurance cost in the United States?
To show you how the price of a premium can fluctuate, we will analyze how age or gender can affect its value. For example, our reference profile of a 25-year-old male driver obtained an average premium for car insurance at $1,669; while that of a 25-year-old female driver obtained an average of $1,593, that is, cheaper.
The lowest representative premium we calculated was $1,229, which was designed for a 60-year-old woman, followed by a male profile of the same age with $1,267. 35-year-old driver rates stood at $1,370 on average for men and women.
Driving history also influences car insurance rates. According to our study, driver profiles with a clean driving history are at an average representative rate of $1,416 per year. The premium for drivers with a speeding penalty is estimated at an average of $1,724 and those who have reported an accident would have an average premium of $2,028.
Note: As for the profiles of drivers with a DUI conviction, the premiums are the highest in the comparison. In fact, they stand at an additional $2,464 or $1,000 per year when compared to clean profile insurance.
The importance of your credit score
You may not have thought about it before, but your credit score also plays an important role in calculating the price of car insurance. For example, our profiles of good credit drivers accessed an average premium of $1,401 per year.
The best car insurance and the cheapest for good drivers
The cheapest car insurer for a driver with a clean record is undoubtedly USAA that has coverage for only $885 a year. The bad thing about USAA is that it is limited to people who have some military affiliation. However, there are still options for drivers who do not qualify for insurance with USAA: Geico.
This car insurer ranks second among the cheapest in the country with an average rate of $1,168. When you read this you may think that the difference between the two rates is abysmal, but the truth is that the two are below the national average.
Note: Being a responsible driver with a good driving history, without accidents, fines or summonses in your registry is the best way to obtain an economical car insurance policy. These citizens are classified by car insurers as a safe bet and are precisely the type of customers that insurance companies are looking for. The reason is simple: this driver profile does not usually file claims and when they do, they are usually for a small amount. In fact, that’s why insurers reward them through the collection of a low rate.
In order to find the average rates of the studio, we built a driving profile with a clean history. These representative profiles were based on men and women of different ages (25, 35 and 60 years old) with 12,000 miles traveled per year.
The best car insurers in 2021
Do you want to know which companies are the cheapest and best for car insurance? As we said earlier, this is our ranking:
- State Farm
- American Family
According to the average annual premiums, these are the cheapest car insurers of 2021:
- USAA: $885
- Geico: $1,168
- State Farm: $1,234
- Travelers: $1,267
- Progressive: $1,373
- American Family: $1,391
- Farmers: $1,682
- Nationwide: $1,864
- Allstate: $1,880
USAA is perhaps the cheapest car insurer. In fact, the insurance company offers the lowest auto insurance rates in the country, this according to our analysis. USAA has a fairly low representative rate of only $885 a year, which is almost $300 less than the next company on the list. The best? USAA has low premiums for almost all driver profiles, and even in cases where it was not the cheapest, it rivaled the cheapest insurer.
Geico is the second cheapest car insurer on the list. This company works at an average rate of $1,168 per year. As you can see, it is a little more expensive than USAA, but it is still 17% cheaper than the national average. Geico also offers good policies for all driver profiles, except those with a history of drunk or drugged driving (DUI or Driving Under The Influence).
This insurance company really knows how to stand out among its competitors, especially when studying the premium for 25-year-old drivers. To give you an idea, Geico’s representative rates for these profiles can be hundreds of dollars cheaper than the car insurance provided by other insurance companies.
State Farm is the third car insurer on our list of cheap companies in the United States. The company works at a representative rate of $1,234 per year, being also lower than the national average. According to our analysis, this insurer is a perfect option for owners with a driving history that does not become stellar, so to speak.
The State Farm rates we study are well below the national average, even for profiles with speeding fines or car accidents. The best? State Farm was the cheapest company of all for people with DUI according to our study.
Travelers is the fourth cheapest car insurer in our ranking. However, its prices are surprisingly higher than those of State Farm or Geico, to give just a few examples. The standard premium stands at $1,267 per year, but still its prices are usually lower than the national average, regardless of the age, sex, credit score or driving history of the owner; and this, without a doubt, is a quite attractive element.
Progressive ranks fifth on our list and for several reasons. The representative rate handled by this car insurer is also below the national average ($1,373 per year).
When analyzing various owner profiles, you can see that Progressive has prices that are below average. Arguably, this insurer is perfect even for drivers with DUI, but it is more expensive for profiles with reported car accidents.
American Family ranks sixth in the ranking of cheapest car insurance in the United States. This company offers policies with premiums of up to $1,391 per year. Of the entire list, this is the last option below the national average. Like Progressive, American Family is below the average of the country’s nine main insurers. Although its prices are a little higher than the previous ones, it has fantastic options for drivers with a bad driving record.
We reached seventh place on the list of economic car insurers in the USA. Farmers has a representative rate of $1,682 per year, a figure 20% higher compared to that of American Family. If you look, it is also a couple of hundred dollars more expensive than the national average, even for farm drivers.
Nationwide is the eighth cheapest car insurer in the United States with an annual rate of $1,864, that is, about $200 more expensive than Farmers’ and $400 more expensive when compared to the national average. To give you an idea, Nationwide has a price that doubles the USAA premium, which is the first insurer on the list.
This insurance company can be expensive for 25-year-old drivers or for those with a bad driving history. For a DUI owner, Nationwide could cost $4,000 a year or in other words, $350 a month.
We finish the list of economic car insurance with Allstate. This company is the most expensive in the ranking, although for little. The company’s representation rate is $1,880, that is, only $1 more than Nationwide’s. Even so, our analysis determined that Allstate is one of the most expensive for driver profiles aged 35-60 years.