Cheap Car Insurance Reviews: Insurance Offers, Features, Cost, Pros & Cons
If you belong to the majority class who earns $1,000 to $1,300 a month it would be difficult for you to set aside 25% of your monthly income for auto insurance alone. If you’re a vehicle owner within the working class of society, it is mandatory for you to secure an auto insurance policy.
I know what’s on your mind, you’ll go for the cheapest insurance company and sign up just for the sake of having one. You are bound for a big mess then, you might not know what the future holds. You could be facing exhaustion and disappointment on your claims to process in case you need one.
We all don’t want the hassle of following up on your claims from a small insurance company trying hard to fulfill their policy holder’s claims. This is why it is important you sign up only to established insurance companies.
In this article, we prepare for you a guide on how to choose the cheaper auto insurance company without compromising the integrity of your future. We balance off both affordability and quality to help you gauge what will work best for you.
Cheap Car Insurance Reviews: What is Cheap Car Insurance?
Finding a cheap car insurance rate can be hard if you do not understand what you are looking for. It involves factors that’s why it is recommended to study further before availing of the cheap car insurance policy. Factors include the type of coverage you would want to avail, the traffic records and violations that you have, the state that you’re in, and the insurance company itself.
In finding the cheapest car insurance company, you may need to consider your credit score, how big the insurance company is, and your accident record. Auto insurance companies can offer you a cheap car insurance premium if you met all the good characteristics in the risk assessment tool that they have.
Geico Auto Insurance
Upon thorough research, Geico consistently offers the cheapest car insurance company in the United State. However, this may vary depending on what state you are in but mostly they are the cheapest you can find. Geico was founded back in 1936 and since then been providing quality insurance services since then. One of the most trusted insurance companies in the country.
Geico ranked the highest with J.D Power rating with 879 points which is under the service segment category. It also earned the highest rating for AM Best Financial Strength Rating. It has A++ (Superior) rating in the financial strength field. This only shows that a cheaper auto insurance rate doesn’t always have to come from an underdog company. Clearly, Geico is one of the best car insurance companies but manages to offer affordable auto insurance for everybody.
Safe Auto Insurance
Safe Auto Insurance is also significantly cheaper but Safer Auto Insurance Company doesn’t belong to the industry’s top player. Smaller companies like this can offer cheaper rates for them to grow their numbers of policyholders.
USAA Insurance
USAA has the lowest premium rates of all however their service is limited to military personnel, veterans, and their families. If you belong to the uniformed personnel as such, take advantage of their best deal when it comes to auto insurance.
How does Cheap Car Work?
The first thing you need to know in finding affordable car insurance rates is the auto insurance coverage it has. Make sure it has the mandatory liability coverage that is required in every state in America. The insurance cost will be much lesser if you have a good driving history and does not have an accident record under your name
There are other important factors and chances for you to avail of cheap auto insurance coverage. Your credit history should be good, as well as your payment history and a clean driving record. A credit report will be run down every time you apply for auto insurance coverage.
Auto insurance rates differ depending on what state you are in. Geico might not be the cheapest insurance provider in your area as the rate may depend on the state limitation and loss locally
What are the Features of Cheap Car Insurance?
A cheap car insurance service provider has a common ground and that’s affordability. What features should we look for in availing cheap insurance policy without putting at stake the quality of the coverage? Below are the features we should be looking for in having cheap car insurance:
Affordability – First things first, look for the price. How much is the price range to have it considered cheap? Upon careful research on pricing, cheap auto insurance can range to $24 a month or $288 per year for the smaller insurance company. There are big insurance companies that can offer car insurance rates with minimum coverage is only ranging from $32 a month to $380 annually.
Property Damage Coverage – covers the property of other parties such as vehicle damage, pole, yard, or other types of property that have been damaged due to the accident. The coverage will also include rental vehicles of the other party while their vehicle is being repaired in the motor shop. It will also cover the diminishing value or the difference of the value of the vehicle that had never been damaged before.
Bodily Injury Liability Coverage- covers the medical expenses as well as the prescription of the party that has been involved in the accident. It will also cover the lost wages and compensation for the pain and suffering of the other party.
Uninsured and Underinsured Coverage – the most state requires to have this for every vehicle owner in the United States. This feature should be included in their minimum coverage. It has “uninsured motorist bodily injury coverage” that will cover your medical expenses or funeral expenses, compensation for any lost wage, and compensation for the pain and suffering. They also have uninsured motorist property damage coverage in case your car got totaled by uninsured motorist damage will be covered by your insurance provider instead.
Coverage stated above is the minimum required by every State in America. You as a policyholder have now the option to put add ons on your coverage such as collision coverage, spare parts, windshield, force majeur, and other comprehensive coverage for you and your vehicle. By adding other coverage, your insurance premium will go up depending on how many add-ons you added.
How much does Cheap Car Insurance Cost?
A small insurance company that offers cheap auto insurance for a 25-year-old individual with a clean driving record has an average premium cost of $295 annually for the minimum coverage. Full coverage within the same age range has an average cost of $1299 annually with flexible coverage options and comprehensive full coverage.
A top-scale insurance company that offers cheap auto insurance for a 25-year-old individual with a clean driving record has an average premium cost of $410 annually for the minimum coverage. Full coverage within the same age range has an average cost of $1,850 annually with flexible coverage options and comprehensive full coverage.
A small insurance company that offers cheap auto insurance for a 35-year-old individual having a clean driving record under their name has an average premium cost of $288 annually for the minimum coverage. Full coverage within the same age range has an average cost of $1,150 annually with flexible coverage options and comprehensive full coverage.
A top-scale insurance company that offers cheap auto insurance for a 35-year-old individual having a clean driving record under their name has an average premium cost of $380 annually for the minimum coverage. Full coverage within the same age range has an average cost of $1,699 annually with flexible coverage options and comprehensive full coverage.
Kindly note that the actual cost may be different on the insurance calculator as it calculates other risk factors, driver profiles, and the state or the location of coverage. The price provided is average pricing and is most likely to be within the pricing range.
Who is Cheap Car Best For?
Considering to get the cheapest rates insurance quotes if you have an accident record or have incurred significant traffic violation within the past years then your current car insurance premium is expected to blow up. This would be perfect for changing providers and finding cheap car insurance companies instead.
Most of the cheap car insurance provider offers the cheapest for those with accident record while Progressive is the cheapest for drivers who have a DUI record. You can also try smaller insurance companies like Hasting Mutual who also offers cheap car insurance for individuals who have poor credit.
Most of the insurance who offers affordable auto insurance provide a margin of assessment to those who have a poor credit score for them to still afford auto insurance. You have to discuss it with the insurance agent prior to signing up for one.
Cheap Car Insurance Pros and Cons
PROS
- More Savings at Affordable Car Insurance Rates
Release a big chunk of your insurance fee and spend it on something even more essential or save them. Hunting for the cheapest auto insurance company doesn’t mean you are cutting the comprehensive coverage. This only means trying to get the same level of coverage at a significantly lower price.
Get quality auto insurance coverage and save money at the same time. Study the discount details to be able to save more without cutting off additional coverage for you and your vehicle.
- Low Premium After an Accident Report
It will be smart if you will go ahead and find the cheapest auto insurance rate after an accident. This will give you chance to maintain a lower premium rate. There are companies that offer low premiums after an accident report so you can always check with them about their plans and packages.
It is expected that the premium rate is expected to jump up by 46% from the present premium rate after you file an accident report. It is always safe for you to understand when to cancel or make changes to your policy.
- Ability to Ensure More
Save more money and ensure more vehicles under one policy or get multiple types of insurance under the same company at a very affordable price. You can avail of both auto insurance and home insurance for the price you spent on auto insurance alone with your expensive auto insurance provider.
CONS
- Lower Coverage Limits
One of the set back turning to the cheaper rate insurance providers in the lower coverage limits that they have. If you think about it, coverage limits aren’t always used up so having a lower coverage limit may not going to be an issue at all.
- Fewer Car Insurance Companies Option
If you are looking for a cheap auto insurance rate, you might be looking at a limited number of options. Only a few insurance companies have a low premium rate offer for their customers. This will even help you decide faster though.
Cheap Car Insurance Compared to other Insurance Company
| Insurer | J.D. Power Rating | A.M. Best Rating | Multiple Discounts | Gap Coverage |
|---|---|---|---|---|
| Geico (Cheap Car Auto Insurance) | 879 | A ++ | Yes | Yes |
| Farmers | 876 | A- | Yes | Yes |
| Progressive | 868 | A+ | Yes | No |
>>> Read More About Geico Insurance Reviews: Insurance Offers, Features, Cost, Pros & Cons
Cheap Car Insurance
In comparing cheap car insurance, we have chosen Geico as an example to provide relevant data in scaling the options that the consumer has. Please note that Geico belongs to the cheapest within the insurance provider that belongs to the higher tier of companies.
Geico Auto Insurance, being consistently the cheapest auto insurance provider, is a go-to company when it comes to cheaper premium rates. This company belongs to the higher scale insurance companies in the industry.
They have outstanding statistics when it comes to services rating and financial strength. Gaining a top spot at J.D Power with 879 points made them included in the top 5 service providers in the country. Their financial strength has the top most ranking any company could have, this will give a positive impression to the public that your claims will surely be paid off no matter what.
Geico Auto Insurance delivers exceptional service at the best price possible. They have a great customer service team that is always ready to process claims and entertain queries or provide insurance quotes for you. Their online presence also makes it easier for the customers to reach them by requesting online quotes. The newest innovation includes a mobile app for customers’ real-time interaction with the company.
>>> Read More About Geico Insurance Reviews: Insurance Offers, Features, Cost, Pros & Cons
Final Verdict: Cheap Car Insurance
In looking for cheaper auto insurance, you essentially need to weigh and balance the affordability versus its quality. You sure can get the cheapest insurance there is but can this company fulfill the future claims from their customers?
Who are we recommending? Geico has been a good contender, their service consistency has been great. USAA can provide quality auto insurance for a low price but for those in the military service, veteran, and their family members only. State Farm also has attractively affordable pricing you can take a look at. Not to mention the smaller companies who can sell you their policy at an incredibly low price.
Our final verdict goes to Geico as it balances affordability and quality by providing good insurance services to its policyholder at a very affordable rate. Enjoy their discount possibilities with their safe driving discount, military discount, federal employee discounts, student driver discounts, and employee discounts.
Geico’s decade and decades of experience and track record assure their customer of quality service and easy claims processing for them. Their exceptional service has already served thousands of past and current policyholders.
Cheap Car Insurance FAQs
Which is Cheaper to Avail, Minimum or Full Coverage?
Minimum Coverage is basically cheaper than having full coverage. Oftentimes, it only covers the mandatory auto insurance coverage such as property damage coverage, bodily injury coverage, and uninsured and underinsured motorist coverage. Remember that this coverage does not pay you but the other party involved. It covers your obligation and cost responsibility to the other party except for the uninsured motorist coverage.
Full coverage is typically costly than minimum coverage. It has extensive coverage added to the minimum coverage plan. It has collision coverage It can cover the spare parts, the windshield, you, your family, your pet, and other untoward incidents that could happen to you and your car.
How Can an Accident Report Affect My Premium?
An accident report will directly impact your insurance premium. Your premium is expected to increase by 46% from your current annual premium. There is some accident though that is not affected by the possible increase in your premium. Basis should always be who’s at fault at the scene. Better to report and discuss with your insurance provider if it will affect your premium renewal rate.
>>> Read More About Geico Insurance Reviews: Insurance Offers, Features, Cost, Pros & Cons
