Best & Cheapest Car Insurance Companies at KILLER Rates! (2022)

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After the global COVID-19 pandemic bursted followed by its economic impact, it’s safe to say that most people are searching for new ways to save money and reduce their overall costs and expenses more than ever now. One of the best ways to put some spare change in your pocket at the end of the month is to switch insurance companies and find an insurer that provides similar (or better) coverage with cheaper car insurance quotes . 

Recent surveys have found that 70% of all Millennial and Gen Z policyholders were unsatisfied with their insurance rates, and that they would be willing to spend at least an hour comparing policies if it meant they could save at least $100 on their policy. The good news is that with today’s online car insurance quote comparison platforms and marketplaces , it’s easier than ever to get instant offers from multiple auto insurers! 

In this article, we’re going to cover 2 major topics for those who are seeking for a new and cheaper auto insurer:

• What are the cheapest car insurance companies? (based on average policy cost)

• What are the best car insurance companies? (based on ratings)

If you’re ready to start saving money and find an auto insurance company that you can be happy with at the end of the day, then keep on reading to find out some of the best insurers in the nation.

What Are The Cheapest Car Insurance Companies? 

The first topic we’ll examine is what are the cheapest car insurance companies. While customer service is certainly an important factor and having an excellent coverage is more important, most policyholders are more concerned about how to save money on their auto insurance than they are with getting top-notch service and coverage. While the following providers do have positive customer reviews as far as service goes, as well as excellent coverage options, they’re better known for their affordable premiums , driver discounts, and fair pricing. Let’s take a deeper look! 

Top 3 Cheapest Car Insurance Companies

See more below:

- As you can see at this car insurance rate comparison table, the cheapest car insurance company is USAA with an average car insurance cost of $35 per month and no competitors. The only thing is you have to be in the military or be related to someone in the military to enjoy it.

Auto insurance companies determine your rates based on many different factors, like age, gender, state of residence and location, vehicle type, driving record, driving habits, credit score, coverage type and amount and so much more. Although the prices vary due to these factors, these car insurance quotes can be predicted. 

 

 

USAA

The United Services Automotive Association was started in 1922 , shortly after World War I, when automobiles became popular in the United States. > USAA was founded by 25 military members and to this day is only available for members of the armed services and their immediate families. 

Although they’ve been encouraged to open their policies up to civilians, they’ve stayed firm in their commitment to only provide service to the military. Their explanation? By catering to a smaller group of individuals, which also happen to be highly disciplined, they’re able to keep their costs low for their policyholders. 

It’s not just a marketing gimmick! Our average car insurance cost per month research shows that the average cost for a one year USAA full coverage car insurance policy was just $885 per year, or $74 per month, or even $405 per year or $34 per month for minimum liability coverage , which is 50% to 75% cheaper than other major insurers like Nationwide and Allstate . 

Read more:  

• How much is USAA car insurance

• USAA insurance reviews

 

GEICO

GEICO is an anagram that stands for Government Employees Insurance Company. It was actually founded by one of the founding members of USAA, Leo Goodwin Sr . Frustrated by the fact that he couldn’t be promoted to a large shareholder due to his civilian status, he decided to start his own competing insurance company in 1936. 

Since then, GEICO has grown into one of the nation’s largest insurers, serving both military and civilians alike (although they do offer considerable discounts to military service members). The average price for a six-month GEICO car insurance policy is $40 per month. 

 

State Farm

The second most affordable auto insurer in the country was State Farm. The average six-month policy costs $310, making it just incrementally more expensive than USAA. State Farm was started in 1922 by a farmer turned insurance broker and has since grown to the largest property and casualty insurer in the United States. State Farm is also known for its exceptional customer service.  

Read more:  

• How much is State Farm car insurance: cost, rates, etc.

• State Farm insurance reviews

What Are The Best Car Insurance Companies?

Now that you’ve had a chance to see what are the cheapest car insurance companies, it’s time to look at another side of the coin. Namely, the best insurance companies, based on overall customer satisfaction and reviews. While saving money is certainly important, some customers would rather pay a little extra in return for a higher level of customer experience, financial strength, etc.

Let’s take a quick look!

#1 - Progressive Car Insurance: 4.8/5

Progressive is the 3rd largest car insurance provider in America and has ranked as our #1 best car insurance company on all aspects (see below).

Average car insurance cost per month : $63

Read more:

How much is Progressive car insurance cost

Progressive Insurance Reviews

PROS

- Excellent coverage as standard

- Unbelievable choice of options

- Brilliant range of online resources, including the quote tool

CONS

- Not the best option for high risk drivers

BEST FOR: Setting fantastic standards for any type of coverage, as long as you are not a driver of high risk.

We used 1-5 scale ratings:

• 5: Excellent

• 4: Good

• 3: Fair

• 2: Bad

• 1: Very bad

#2- USAA: 4.75/5

Are you surprised to see USAA ranked in our top three cheapest and best list? Well, you shouldn’t be. The reason that USAA is ranked among the cheapest insurers in the nation is the same reason they’re ranked among the best overall insurers in the nation- their focus on catering to military personnel.

USAA only has around 12.8 million members, which is less than half of what Statefarm and Geico have. However, their smaller client base allows them to provide more personal, friendly, and complete service to their policyholders. If you’re in the military (or have a military spouse) then you and your kids are eligible to be insured!

#3- Amica Mutual Insurance: 4.5/5

Amica Mutual Insurance is a mid-size insurer and is actually the oldest automobile insurance provider in the United States! Founded in 1907, Amica Mutual has been in business for well over a century, rank #3 with a 4.5/5 rating on our test, has an ‘A+’ ranking by the Better Business Bureau , and a 4.6/5-star rating by Bankrate , one of the leading financial journals in the country.

Amica Mutual is known for providing high-end service to its policyholders and offers a number of additional auto insurance benefits that most other insurers don’t offer, including:

• Free airbag repairs

• Free lock repair and re-keying

• Free repair of damaged auto glass

• Compensation for time spent in court claims

• Up to $1,000 towards bail bonds

Other companies that ranked #3 with 4.5/5 on our review: State Farm, GEICO, Travelers and NJM.

#4- Erie Insurance: 4.1/5

Like Amica Mutual Insurance, Erie Insurance is another mid-sized insurer. The average cost for a six-month policy is just $195, which also makes it one of the cheapest insurers as well! The one drawback of Erie Insurance is that they currently only serve twelve states .

If you do live in one of the twelve states that are covered by Erie Insurance, though, we definitely recommend checking them out. The company has won numerous awards for its commitment to equality both in the workplace, overall customer service, and the opportunities they provide minority customers with.

Another provider (not a company) worth noting is digital auto insurance marketplace Gabi , that scored 4/5 on our review thanks to delivering some of the better rates and customer experience in the industry.