Don’t just focus on premiums when looking for cheap insurance
Drivers looking for inexpensive insurance shouldn’t compromise on price protection. While it’s a good idea to shop around for an affordable auto insurance company, drivers should be wary of giving up optional coverage or only maintaining minimal coverage in order to save on premiums.
While most states only require certain types of insurance, such as liability coverage, individual drivers often need more protection than the minimum coverage. For example, motorists may consider purchasing:
- Collision insurance to pay for damage to their own vehicle if they cause an accident.
- Uninsured / Underinsured Motorist Coverage, which is required in some states and pays for policyholder damage caused by a driver who does not have or enough insurance coverage.
- Comprehensive insurance, which covers theft or damage to the insured’s vehicle resulting from non-collisions (for example, if a tree falls on the car).
Buying the minimum required coverage is definitely less expensive. National average premiums for liability coverage are only $ 764. However, without optional coverage, drivers could be forced to pay to repair or replace their vehicle out of pocket if something goes wrong. Their insurance would only cover losses they cause to others.
Best cheap car insurance for bad credit
Drivers with poor credit undoubtedly face higher insurance costs. Insurers take credit scores into account when setting premiums. That’s why motorists will need to shop more carefully for the most affordable carriers when their credit score is not as high as they would like.
Based on a review of insurance data from several states, the most affordable bad credit insurers include:
- Geico: Geico offers affordable options for drivers with low credit. The average premium for a 35-year-old driver in Florida with poor credit who uses the car for commuting would be $ 2,321. In comparison, the overall average premium for the same driver would be $ 4,144.
- State Farm: State Farm also consistently offers more affordable premiums for low-credit drivers than competitors. For example, a 35-year-old driver in Florida with poor credit would face an average State Farm insurance premium of $ 2,484, well below the overall average.
Best cheap auto insurance for injured drivers
The pricing policies of insurers based on risk. After an accident, a driver will cost more to insure because insurance companies fear another collision will occur in the future, which means the insurer may have to pay another claim.
Some insurers do not penalize drivers as much as others, so motorists with an accident on their record should shop around for coverage. The Ascent researched the best auto insurance options for high-risk drivers, including motorists with a history of accidents, and found the most affordable options:
- State Farm: Average premiums for a driver in Florida with an accident on their record and excellent credit were $ 1,171, compared to an overall average premium of $ 4,531 for drivers with a history of an accident.
Geico: Average premiums for a driver with excellent credit and a history of accidents commuting in their vehicle are only $ 1,467 from Geico – also well below the overall average.
Best cheap auto insurance by state
Auto insurance prices can vary from state to state. In Ohio, for example, average insurance premiums are only $ 1,657, while premiums in more expensive states like Michigan average $ 4,894.
Here are some of The Ascent’s picks for the best cheap auto insurance by state: