Who Has the Cheapest Car Insurance?

Who Has the Cheapest Car Insurance

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Ever wonder who has the cheapest car insurance? Let’s be honest – most of us don’t have car insurance premiums on the top of our minds. Still, one thing almost all of us have to pay for every single year is car insurance.

When I was in my 20s, I tried to find every possible way to save money. In fact, I put it on my calendar annually to call up the insurance companies and see if I was getting the best deals. I would ask about available discounts and if I could get a better rate.

I found if I was willing to switch to another company, then I could save myself a few hundred dollars. That’s why right now is the perfect time of year to get a few car insurance quotes. In just a few short minutes, you can possibly save yourself a lot of money.


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Who Has the Cheapest Car Insurance?

No two car insurance policies are exactly the same, so it can be difficult to find who has the cheapest car insurance. There are multiple factors that play into how much you pay for car insurance including: 

  • Age & gender
  • Marital status
  • Credit score
  • Recent accidents or tickets
  • Type of car you drive

Car insurance policies include many types of coverage. For example, depending on the state where you live, there can be a minimum amount of coverage you might be required to have for the following areas:

  • Liability Coverage–if you cause an accident, then you are responsible for any damage you cause, including injury to the other drivers & passengers. 
  • Collision Coverage–this is insurance that kicks in if you damage your own vehicle. Most people don’t have the money to go buy another car if they get into an accident. Therefore, it’s a good idea to have collision coverage on your vehicles. 
  • Comprehensive Coverage–this generally covers fire, theft, glass breakage, and vandalism. You’ll be covered if somebody stole your car, if there was a fire, or if something random happened like your car was parked in a garage and a tree fell on it. You want to have this type of insurance coverage for all the “what if” scenarios.
  • Optional coverages–there are other insurance coverages that are optional. One extra cost that we usually look for is roadside assistance coverage and rental car coverage.

Keep these types of insurance coverages in mind when you’re shopping around. It is also important to know your current level of coverage, so you can compare “apples-to-apples” rather than just the lowest-priced premiums.

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How Can I Get the Cheapest Car insurance?

One of the best ways to figure out how to get the cheapest car insurance is by regularly shopping around. Insure.com provides insurance quotes for multiple companies including the bigger names like Geico, State Farm, Progressive, Allstate, etc. 

They ask for some personal details including your zip code, age range, if you’re currently insured, if you’re a homeowner, if you’re married, and if you have multiple vehicles. What I really like is that Insure.com gives you both big name insurance companies along with a few you might not recognize. All of these insurance companies are competing for your business, and that’s how you save money.

Who Has the Cheapest Car Insurance?

Don’t forget to click the button that says “See More Carriers” – you’ll be able to click and see the rates for one company and then choose another company to do a comparison. If you’re already insured, you can pull up your current policy and see how much you’re paying for the same amount of coverage with a different company.

Why is My Car Insurance So High?

As you fill out your information, there are several factors that can increase or decrease your car insurance rates: 

  • Age: Age plays a factor in the cost of your car insurance, and rates are typically higher when you start driving at age 16 until around age 25. Once you get to that optimal age of 25, car insurance rates don’t typically creep back up until you have kids in the house who are driving. Then, as you get older, rates start to increase again because you might be more prone to an accident if you’re an elderly driver. 
  • Location: Where you live matters. If you live in a rural area and there’s not a lot of traffic or tickets written, then you might find that your car insurance rates are lower. Of course, your premium might go up if you move from one area to another such as a more crowded city.
  • Vehicle Make/Model: The type of vehicle you drive can impact your car insurance rates. For example, if you drive a sports car it’s going to be more expensive to insure than if you drive a minivan or a station wagon. Repair and replacement costs are taken into consideration, so that expensive sports car costs more to insure.
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What Things Should I Look for in a Car Insurance Company? 

Besides an affordable policy, it’s important to ask yourself what things you should look for in a car insurance company. Good customer service is very important, especially when it comes to dealing with an accident or loss.

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If you’ve never heard of some of the companies that are popping up as you compare rates, I encourage you to do your own due diligence. Call their 800 number and see how long it takes someone to answer. Also, check their reviews because if an accident ever happens, you’ll want somebody on the phone quickly to help you.

Comparing rates online is great because you don’t have to talk to dozens of people on the phone and give them all of the same information over and over. Using a website like Insure.com, you can compare rates in the privacy of your own home.

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Key Takeaways

On average, current car insurance rates cost people over $1,000 per vehicle per year. Your car insurance can be drastically different from someone who lives down the street from you because of all the factors that go into car insurance rates. Taking all those factors into play, there are still ways to save money. 

Once a year, I recommend checking your car insurance premiums and making sure your rates aren’t increasing. If you notice rates have gone up, then get a few quotes from Insure.com to see if you can save yourself some money by making a switch.

Also, don’t be afraid to ask for a discount from your current car insurance company. There are many different types of discounts out there for things like your profession, having a good student in your house, being accident free, or even having special features on your vehicle.

Let’s be honest, talking about car insurance is not the most interesting topic. But if you’re looking to build wealth there are a couple of ways to do it – make more money or save more money. Taking a closer look at car insurance costs is a great way to make sure you’re saving as much money as possible on something that’s a necessity for almost everyone.

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As always, I’m Rich and until next time.

“TeachingMillionaires.com has partnered with CardRatings for our coverage of credit card products. TeachingMillionaires.com and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities. Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered. I am not a financial advisor. The information I share is for educational purposes only and shouldn’t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.”

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