Car insurance costs American drivers an average of $1,553 per year, or approximately $129 per month. But that doesn’t mean you can’t pay significantly less. It is feasible to secure a premium significantly lower than the norm by shopping around for the most suitable coverage among many insurers.
Purchasing car insurance coverage that only covers the bare minimum required by your state is one way to save money. You can fulfill the prerequisites while incurring as few costs as possible, but there is a danger that you won’t be adequately covered. If you need a low-cost policy, here’s a look at the best and cheapest car insurance providers in 2023.
Geico offers a low average rate for low-cost basic coverage policies that are available to the general public. Annual premiums average $1,064 ($88.67/month), 27% less than the national average for similar coverage of $1,436. Due to Geico’s national reach, policyholders in virtually every state can choose to insure their vehicles through the company.
Geico has the best rates for drivers with low credit scores. It may not be the ideal option for drivers with a DUI on their record, however, because the premiums are higher than typical.
State Farm’s low-coverage insurance typically costs $1,191 annually ($99.25 monthly). Also, that’s far cheaper than the national average for equivalent protection, although it’s a little higher than what you’ll get with Geico.
According to JD Power’s rankings, State Farm has above-average customer service and performs best in Florida, New York, and the Pacific Northwest. Higher-than-average policy renewal rates likely reflect competitive pricing and excellent service.
However, State Farm’s premiums for drivers with poor credit are often higher than those of other insurance providers. As a result, vehicle owners with credit issues may wish to search elsewhere.
With yearly premiums averaging $1,290 ($107.50 per month), Travelers offers low prices on minimum-standard auto insurance coverage. When compared to rivals, the company’s customer service is solid, but not the best.
The organization has an excellent reputation for managing claims, on par with market leaders like USAA. Customer loyalty is high for the company as a whole, although it isn’t quite as high as it is for other competitors.
Nationwide’s average yearly price for minimum coverage insurance is $1,347 ($111.25 monthly). That’s a little lower than the norm, so the insurer is a little below par. In addition, the company’s claims processing and customer service are top-notch, which has resulted in a loyal customer base.
Nationwide insurance premiums for drivers with a DUI typically cost more than policies from several other insurers. In addition, policies with the bare minimum of coverage are not the cheapest option. Even still, it’s something to think about while comparing prices.