What is Affordable Car Insurance?
Generally, If you’re looking to put some money back into your personal wallet, your auto insurance bill might be one place to look. We evaluated rates nationwide to find the best cheap car insurance among large companies.
The cheapest and affordable option will likely be your state’s minimum car insurance requirements, so we focused our analysis on those minimums. In many states, this is liability-only auto insurance, which pays for property damage and others’ medical bills from accidents you cause.
The absolute cheapest rate we found for minimum car insurance was an average of $29 per month, or $354 per year. But how much you pay for car insurance will vary depending on which state you live in and how clean your driving history is, among other factors.
Affordable Car Insurance
Forbes Advisor’s analysis of 10 large insurers found the cheapest car insurance at USAA and Geico. USAA’s average annual rate for good drivers of $2,141 per year is 27% cheaper than the national average of all companies evaluated. Geico’s average yearly rate for good drivers was also pretty cheap, coming in at $2,182. That is 25% lower than the national average of $2,569.
While USAA often has the cheapest car insurance for a variety of driver types, eligibility is limited to military members, veterans, and their families.
Things to take note of About Affordable
a. Geico is the cheapest car insurance company overall, with an average rate of $29 a month for minimum coverage.
b. Geico’s also the cheapest for drivers with poor credit or a recent accident.
c. American Family is the cheapest after a DUI.
d. The best way to find cheap car insurance is to shop around and compare quotes from at least three insurers.
What are some of the risks of cheap car insurance?
i. Lack of coverage options
ii. High deductible payments
iii. Poor customer service, especially when you need them most
Quality and price don’t have to be a compromise when it comes to choosing between auto insurance companies.
Ways to get an Affordable auto insurance rate.
The price you pay for car insurance depends on a number of factors. It can help to compare car insurance rates to find the most affordable premiums for you. However, there are many ways you could get cheaper car insurance—even with your existing policy:
i. Add multiple cars or drivers to your policy
ii. Combine auto and home policies
iii. Pay for your policy in full
iv. Complete a defensive course
v. Keep a clean driving record
vi. Update your policy information regularly
vii. Review your limits and deductibles
viii. Inform us of safety and anti-theft devices on your car
viii. Consider which type of vehicle you choose when buying a car
Most states require drivers to carry liability insurance. This means that you must carry insurance to cover a medical, injury, or property claim made by another person. The primary reason drivers buy affordable auto insurance is because state law requires it. There is no other way to get a driver’s license, and if a police car pulls you over, you are required to show proof of insurance.
The main advantage of going for affordable car insurance policy is that you will pay a lower amount of monthly premium. To some drivers, the money saved every month can be used to cover other expenses. However, the alleged benefits of a cheap insurance policy may disappear entirely if you ever use it. The savings that come with a cheap policy may cost you far more in the long run.
The problem with cheap car insurance is that if you carry cheap car insurance, you will likely have less coverage and lower policy limits. If you are an individual of moderate to high worth, your assets may be exposed if there is a claim for serious personal injuries by someone who claims you injured them. For example, if you carry a policy insuring up to $300,000 per occurrence, but the injured person sustains serious injuries or an extended hospital stay costs in excess of $300,000, he or she will likely pursue a claim against your personal assets including your home, car, equipment, and business. Again, the money you saved by getting cheap auto insurance costs you more in the long run, and may even cost you your home.