This blog talks about all the important things to know about the cheap auto insurance companies. Learn more about the good points.
We’ve taken the guesswork out of choosing the cheap auto insurance and reliable companies by carefully looking at important factors that will affect your customer experience.
We looked at the major auto insurance companies based on their average premiums for different types of drivers, the types of coverage they offered, the number of complaints they got, and the ratings for collision claims they got from experts in auto body repair.
List of the trusted auto/car insurance providers. Read more.
1. State Farm
State Farm’s premiums are often below average for most drivers, and its rates are very competitive for drivers with a DUI or accident on their record, as well as for young drivers. But people with bad credit may want to look at other insurance companies. The average premium for a driver with bad credit is $3,654, which is about $900 more than the national average.
Remember that your age, location, driving history, credit history, and the kind of car you drive all affect how much your auto insurance will cost.
Pros:
- Overall, the policy renewal and customer service got high marks.
- Rates that are low for most drivers
Cons:
- The rates are higher for drivers with bad credit.
2. Travelers
Many insurance companies have premiums that are below average in a number of ways that we look at, and policyholders give high marks for how well claims are handled. But Travelers does not do as well when it comes to customer service.
Most of the demographic profiles we looked at and the average for the whole country show that insurance premiums are getting cheaper overall. Policyholders say that the insurance company is the best when it comes to handling claims.
Pros:
- Based on data from customer surveys, rated No. 1 for processing claims
- The normal premium is less than the average premium across the country.
Cons:
- Policyholders get bad customer service
- less likely than other insurance companies to accept customer ideas
3. USAA
USAA stays at the top for the second year in a row because its customers love it so much. Drivers who are eligible for USAA insurance often get lower premiums, better handling of claims, and better than average customer service. Customers of USAA are the happiest and most likely to renew their insurance and recommend USAA to other drivers.
Pros:
- Rates for drivers who are, on average, not very good
- The best insurance in terms of customer service is
Cons:
- Only USAA members can get it.
4. Erie Insurance
Erie has good coverage options, and the way it handles claims for car repairs after an accident got high marks. The prices of Erie’s car insurance, which depend on your driving record, are more than made up for by these benefits.
Pros:
- If you keep your rate the same until you make specific changes to your policy, like adding or taking away a car, it’s easy to budget your expenses.
- Average prices that are fair for people who have had a ticket for speeding or an accident.
- It’s good for people who just bought a new car because it gives them gap insurance and coverage for their new cars.
- Erie also offers extra coverage options like accident forgiveness and deductibles that go away over time. Crash experts gave it a high score for how it handles claims.
Cons:
- Rates are usually high for people who have bad credit.
- Adding a teen driver to your policy will cost you a lot.
- More than usual complaints about its car insurance have been sent to state insurance departments.
5. Auto-Owners Insurance
Compared to the top competitors, Auto-Owners Insurance has prices for safe drivers that are a bit better than average. When it comes to average rates for safe drivers, State Farm and Geico do better than Farmers, Progressive, and Allstate. Auto-Owners does better than Allstate, Farmers, and Progressive.
Good drivers are preferred by insurance companies because they are less likely to file claims. Still, you can save money on auto insurance by shopping around when your policy is up for renewal to see if you can find a better rate.
Pros:
- On average, it gives a nice 14% discount.
- Add-ons to the policy include accident forgiveness and a deductible that goes down over time.
- Covers the cost of replacing your car with a new one.
- Auto-Owners’ TrueRide program, which is based on how drivers use their cars, could help good drivers save money on their car insurance.
Cons:
- Rates were high for drivers with DUIs.
- When a teenager is added to a policy, the cost goes up by an average of about $3,580.
What Kinds Of Cheap Auto Insurance Do You Need?
States usually make people buy the following kinds of car insurance.
Most states require you to have liability insurance. Liability insurance for your car pays for injuries you cause to other people and damage to their property. As a good rule of thumb, you should buy enough liability insurance to cover any damages that could be given to the other person in court.
Uninsured motorist protection (UM): Some states require it, and others let you choose to get it. If a driver hits you and doesn’t have liability insurance, uninsured motorist insurance will pay for your and your passengers’ medical bills and other costs. When a driver with not enough insurance causes a crash that hurts you or your passengers, a related plan called underinsured motorist coverage helps pay your medical bills and those of your passengers.
You must have full coverage collision insurance if you have a car loan or lease. These two different types of coverage are often offered together. Collision and comprehensive insurance will pay for repairs if there is an accident, theft, fire, flood, extreme weather, falling objects, vandalism, or a collision with an animal.
Some states require people to have insurance for injuries. In some states, there is no-fault auto insurance. No matter who was at fault, in these places you can use your auto insurance to pay for smaller injuries, no matter who was at fault. These claims are covered by personal injury protection, which is required in some no-fault states and available in others.
Wrapping up
Taking everything into account, our data and the results of our customer poll show that USAA is the best auto insurance company. USAA insurance products are only available to people who are in the military or who have been in the military, and their families. State Farm, which came in second place in our poll, is the best auto insurance company for drivers who can’t join USAA.
Even though USAA and State Farm are at the top of the list, it’s a good idea to compare a few of the other insurance companies that made our list of the Best Car Insurance Companies.
