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.
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!
Insurer | Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly | GAP Insurance |
---|---|---|---|---|
USAA | $34 | $74 | $1-$1.5 | $269 (flat) |
GEICO | $40 | $98 | $1.2 | None |
State Farm | $52 | $104 | $1 | None |
See more below:
Company | Insuranks Rating | Average Monthly Quote | Best For |
---|---|---|---|
USAA | 4.75/5 | $34 | Military families |
GEICO | 4.5/5 | $40 | Cheapest car insurance quotes if you're not in the army |
State Farm | 4.5/5 | $52 | Peace of mind |
ClearCover | 3.8/5 | $55 | Technology-centric car insurance |
Gabi | 4/5 | $60 | Online auto insurance comparison |
Progressive | 4.8/5 | $63 | Coverage standards and high risk drivers |
Root | 3/5 | $65 | Low rates; Tech savvy drivers looking to get rewarded for improving their driving through the app |
Mercury | 3.9/5 | $70 | Cheapest rates for a basic coverage |
NJM | 4.5/5 | $79 | Best car insurance for DUI in NJ, PA, CT and OH |
Costco Ameriprise | 3.7/5 | $86 | Discounts |
Erie | 4.1/5 | $87 | New Drivers |
Amica | 4.5/5 | $100 | Customer satisfaction |
Travelers | 4.5/5 | $100 | Tailored car insurance policies at affordable rates |
Freeway | 3.7/5 | $100 | High risk drivers, Spanish speakers & drivers in need of SR22 |
- 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.
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly | GAP Insurance |
---|---|---|---|
$34 | $74 | $1-$1.5 | $269 (flat) |
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:
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly |
---|---|---|
$40 | $98 | $1.2 |
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.
Minimum Coverage Monthly | Full Coverage Monthly | Roadside Assistance Monthly |
---|---|---|
$52 | $104 | $1 (approximately) |
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:
Get all the best quotes from leading providers in a click of a button!
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!
Company | Insuranks Rating | Average Monthly Quote | Best For |
---|---|---|---|
Progressive | 4.8/5 | $63 | Coverage standards and high-risk drivers |
USAA | 4.75/5 | $34 | Military families |
GEICO | 4.5/5 | $40 | Cheapest car insurance quotes if you're not in the army |
State Farm | 4.5/5 | $52 | Peace of mind |
NJM | 4.5/5 | $79 | Best car insurance for DUI in NJ, PA, CT and OH |
Amica | 4.5/5 | $100 | Customer satisfaction |
Travelers | 4.5/5 | $100 | Tailored car insurance policies at affordable rates |
Erie | 4.1/5 | $87 | New Drivers |
Gabi | 4/5 | $60 | Online auto insurance comparison marketplace (agency) |
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
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
Parameter | Rating |
---|---|
Time | 5 |
Online | 5 |
Phone | 5 |
Face to face | 5 |
Rates | 5 |
Coverage | 5 |
Choice | 5 |
Speed | 5 |
Savings | 5 |
All States | 5 |
High Risk | 3 |
Ease | 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!
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.
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.
Get all the best quotes from leading providers in a click of a button!
I was hopeful about going with Travelers. My cousin oversees the building of large hotels (the W and Virgin in Nashville) and told me that is who he had used commercially. But after having roof damage from a storm, I have had a really bad experience. From the very first person I dealt with, it became quickly clear from my first dealings and was confirmed throughout the process, is how little they care about the people they insure and how they truly want to pay as little as possible. While my neighbors were having positive experiences with their insurance companies after the storm, mine has been terrible. I would highly recommend staying far away from Travelers Insurance and going with literally anyone else but them. —Jason McAnally
AAA is only good if you never have to use them. My daughter was borrowing my car and got hit by a hit-and-run driver who left the scene. AAA would not pay for damages on my car because she was not on the policy and I didn't have full coverage on my car I did have uninsured motorists but they still would not pay the claim so I have a wrecked car and now AAA is canceling my insurance What a waste of time and money. We reported to insurance board and still nothing was done. I'm going back to allstate, atleast they pay claims.
The quote they gave me was not the correct price. it turned out to be twice the amount they said. Plus the agency is in California 1500 miles away and I received bad customer service.
Horrible, we are DRIV3 Rentals a Car Rental Company in Los Angeles California. One of our clients purchased a Bonzah policy to rent a vehicle from us. An accident occurred where there has been significant damage to our 2021 BMW M4, we proceeded to file a claim with Bonzah. Let me just say the way this company handles claims is from the stone age. They do not contact you anywhere except emails. Our company has been in a 100+ email chain with Paul and Art from Bonzah for at least a month. They have confused our claim with other claims and at times just simply not responded back at all. We supplied all the necessary information needed for the claim and everything seemed ok. Fast forward to last week out of no where Paul stops answering so we call him over and over until he answers at this point he not once told us this by the way that they pulled the police report and our driver isn't listed, this is false as I immediately went to the LAPD police station and found out the report Paul pulled was filed online from one of the other drivers and not an official report from the officer on the scene, the officer on the scene made a statement in which debunks that whole claim and in fact our driver was the driver. I have never in my 20 years in the auto industry been accused of anything like this furthermore Paul stating that oh we don't know if your driver knows the other driver and they could have planned this. Insane really, Paul stated that if we could get a statement from the officer he would expedite our claim and damages check, Paul, Art and Bonzah has since started to ignore us. They don't answer calls, emails, text messages anything for almost 2 weeks now. How ironic that once we debunk their claim of our client not being the driver they stop responding. Don't use this company, stay far away.
We have been with progressive for 18+ but Have to give a one star with this experience. We hit a big rock on the highway. Randell Fergen repair rep . argued with me; claimed I was off roading in my car, which I have never done . Randell told me “this was not an isolated incident”. Because my other wheels had scratches according to him. The auto shop they picked and Randell told me it the wheel just needs a balance . Randell quoted me the price I would have to pay for the balance. I took the car to Discount Tire since the balance is covered. Discount told me “the wheel is bend badly” We called back to the rep Kiera Washington to update her and ask for a new repair rep. She said she could not and when I asked to speak to her supervisor she said “ I’m not dealing with you” and hung up on me ????