The price of car insurance can vary greatly between states. One company may be expensive in Utah, but inexpensive in New York. In some states, a small, local company could even offer the best price. Below, click through to your state to see which company and cities have the least expensive car insurance based on the numerous studies we've conducted.
Whether you use the vehicle to commute, attend school, or “pleasure;” insurance companies will want to know the frequency and distance that the insured uses the vehicle. You can use tools such as Google Maps to figure out the distance you generally drive to work or school. In most cases, a general ball park will suffice for most insurance companies.
To figure out how much car insurance you need, start by looking at what’s required in your state. Most states require some basic car insurance coverage to cover your liability in an accident. Your liability is the amount of money you must pay as a result of damages you caused to someone’s property, or injuries you caused. Even in the few states that have no car insurance requirement, liability insurance is a good idea, as medical bills from a car accident can run into the tens of thousands of dollars, and you’re not likely to have that kind of money on hand. If you don’t have the money to pay and you don’t have liability insurance, you can be forced to sell your assets, including your house, retirement funds, or collection of “Full House” memorabilia, to pay for those expenses.
Auto insurance comparison websites, which let you instantly compare quotes from multiple insurance providers, can be a huge help in your quest for affordable car insurance. They provide accurate, personalized rates, discounts, and coverage options all on one site—much like your favorite travel comparison site that gives you airline ticket or hotel room options all on a single page.
While price is the single most important factor for a lot of car insurance shoppers, we recommend you look at other factors as well. Choosing a policy based on rates alone could cost far more out of pocket when it comes time to file a claim — which is bound to happen eventually. We firmly believe it pays to get the right amount of coverage no matter how much you use your car, as reducing the miles you drive won’t always decrease your premiums.
It’s possible that you’ll have to worry about solvency if you choose a policy from a small company. If you manage to find a small insurance company with a base level of financial stability that you’re comfortable with, consider how much in price you’re willing to pay for better service. If you value great service, you might prefer a small insurance company. Below, we compared the ten largest auto insurance companies according to their financial strength rating by A.M. Best.
Some insurance companies will provide their customers with a hire car for a limited period of time if their vehicle has been stolen. There is also the possibility of pre-purchasing a ‘discount hire car benefit’ or ‘comprehensive hire car benefit’, which will ensure you have access to a hire car while your vehicle is being repaired from damage caused in an accident.
Travelers is more than 160 years old, making it one of the oldest insurance companies operating today. In fact, Travelers issued its first auto insurance policy in 1897, before the Ford Model-T was invented. The company has over 30,000 employees and 13,500 independent agents and brokers in multiple countries—including the United States, Canada, and Brazil.
Look for discounts that lower your price as you compare car insurance rates online. At Nationwide, we offer discounts on multiple cars, good students and membership in a partner organization. We also offer members the opportunity to participate in our SmartRide program, which rewards safe driving habits. Learn more tips that can help you lower your car insurance premiums.
Keep an eye on your credit score: Maintaining a solid credit score is recommended no matter what, but it’s especially important when your score is being referenced to develop your auto insurance policy. Just as you investigate a car’s accident history before purchasing, insurers are investigating your payment history before doing business with you. The higher the risk, the higher the policy costs.
Although it’s not hugely impactful, drivers with a Masters or Ph.D. save $44 per year on car insurance premiums, compared to those without a degree. Car insurance companies see clients with higher education levels as less risky and reward that decreased risk with a lower premium. The only states that do not consider education when determining rates are California, Massachusetts, Georgia, Hawaii, and Montana.
The Zebra didn’t allow me to customize coverage preferences, forcing me to choose one of four pre-assembled packages. It also didn’t list which companies allowed which discounts, making their earlier list of pre-qualified discounts less useful. On the right side of the page, the site provided an “Insurability Score” listing the factors that insurance companies use to set rates and grading the information I’d provided during the quoting process, which could help drivers looking to improve their rates in the future.
American Modern is backed by GEICO and provides classic and collector car insurance for a wide array of vehicles. American Modern provides flexible mileage plans, including an unlimited one which is perfect for collectors who like to drive their vehicle occasionally. With American Modern, you also get the largest standard spare parts coverage, as well as 'inflation guard' which ensures your policy scales as your car increases in value.
Connecticut residents have the second-highest disposable income of any state in the nation and, as a result, the abundance of luxury cars tends to drive up the rates. It’s also why Connecticut has some of the highest auto repair costs in the nation. This puts greater strain on insurance companies, and they pass that expense onto consumers in the form of higher premiums.
As with any credit check, a record of this search will remain on your file – and your credit rating will affect the amount of APR that you’re charged. If you have a poor credit rating, you may be charged up to 20% APR. And if you’ve struggled to pay credit in the past, or if you have a CCJ to your name, then you may be denied the option to pay monthly. If you think you’ll have issues with your credit rating, you can read our guide on improving your credit score.
If you choose the legal minimum coverage level in Texas, expect to pay an average of $826 annually. This expenditure is more expensive than the nationwide average by 26%. If you opt for better coverage, you can choose a policy with comprehensive and collision coverage, which will protect against the costs of car-on-car crashes, theft and vandalism, or weather incidents. But better coverage comes with a cost: in Texas, a comprehensive insurance policy with a $1,000 deductible costs $1,620, 96% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 120% more than you would for basic coverage.
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