Car insurance rates have become a significant expense for many drivers, even if they don’t own a pricey premium vehicle. Even so, some insurers rise above the rest with reasonable prices, but they don’t all operate in every state, and some have restrictive policies that limit the type and number of drivers they accept. MarketWatch’s recent insurance study found that some insurers far undercut others with rates that make the competition look greedy.
MarketWatch’s research found that USAA is the cheapest among national and regional insurers, with an average rate of $1,106.
The top 10 cheapest car insurance companies:
- USAA: $1,106 annually
- Central Insurance: $1,154
- Travelers: $1,191
- Auto-Owners: $1,203
- Country Financial: $1,270
- Erie Insurance: $1,274
- Geico: $1,307
- Nationwide: $1,470
- Progressive: $1,593
- State Farm: $1,703
These are averages, so it’s important to remember that there are people paying far more than those numbers and many paying far less. It’s also good to note that companies like USAA heavily limit the types of drivers they insure, as that provider only works with active or retired military members and their immediate relatives.
Drivers with multiple marks on their records, such as at-fault crashes and drug/alcohol-related offenses, almost always pay more than people with clean driving records. People on the low or high ends of the age spectrum also tend to see higher insurance costs, but the most impactful factors relate to the driver’s record of behavior on the roads.
While insurance rates have risen, there are several steps you can take to help keep your costs at a reasonable level. The first and most important thing is to check your driving habits, making sure to keep your speed in check. If you’re a young driver, it might be wise to check with a parent or guardian to determine if combining policies could help cut your rates. If you have a DUI or other serious traffic offense, there might be little you can do, but it almost always pays to shop around.