Finding the cheapest auto insurance company is an exercise in individuality. What this means is that the cheapest car insurer is typically the one that offers – you – the best rate. This rate depends on a lot of different mainly personal factors. Therefore, it would be almost impossible for two different drivers to get the same premium quote.
Yet, there are still some averages that help you make informed decisions, and on average provide you with the top 3 choices for the cheapest auto insurance companies in a specific demographic of drivers. These demographics are broken down into several driver categories, where insurance companies treat drivers radically different in their pricing algorithms than ‘standard’ drivers.
Find out which are the ‘Top 3 Cheapest’ car insurance companies in each driver category as explained below. Follow up your research by getting quotes using our online auto insurance comparison tool above.
- Good Drivers
Typically, ‘Good Drivers’ are the most widely quoted and studied in the industry and usually refer to a driver without any tickets or claims within the last five years. We have an extensive listing of the ‘3 Cheapest Car Insurance Companies by State’ that provides a much more in-depth view of cheap auto insurance companies than can be listed here. If you want to drill-down to the cheapest insurer in your state, head over to that article.
However, it is easy to see from that study, provided by CheapAutoInsurance.net that the best car insurers for Good Drivers nationwide are:
- State Farm
These three companies showed up in that report more than any other insurer, making them on average the cheapest across all states for Good Drivers. However, regional or local insurers may still provide cheaper quotes for your situation.
- Experienced Drivers
An experienced driver is a driver over the age of 25 with several years of driving experience. An experienced driver also usually refers to one that is also without claims, is accident free and has no existing tickets on their driver abstract. NerdWallet conducted a national survey of the cheapest car insurance companies for experienced drivers and came up with the following:
- State Farm
Allstate came in fourth. Rates in the study ranged from the ultra-low GEICO at $1,297 to Allstate’s $3,182 annually.
- Senior Drivers
If you are over 70 years old, you may find getting affordable coverage is getting a lot more difficult. However at the age of 55, you can start taking advantage of cheaper insurance with insurers that offer a senior discount, retired premium package or low mileage discount. These discounts typically stay on your premium even after you turn 70 until something happens, such as an accident or ticket.
- Allstate, offers 10% senior discounts
- Liberty Mutual, offers a retirement discount
- AARP Auto insurance through The Hartford
- Young Drivers
Less than 25 years old can be an expensive age for drivers. Although teenage drivers typically pay the highest premiums, this group of drivers still pay sizable premiums, especially unmarried males. The worst states for young drivers include New Hampshire and Rhode Island according to a recent study. The study showed that young drivers in these states will have to work 174 hours to pay for their insurance compared to just 56 hours for young drivers in Illinois. Lower the number of hours you need to work by trying out these three car insurance companies with young drivers discount programs:
- Nationwide Auto Insurance
Each company has a different young driver program that may or may not work for your situation.
- Student Drivers
The great news about being a student is the plethora of companies that offer good grade discounts. If you are a student with an above average GPA, there is a good likelihood that you will pay less automobile insurance for it. Find out if you qualify at these top discounters and the most affordable vehicle insurance companies for students:
– has a 15% good student discount and an 8% discount fraternity/sorority program
– offers an unprecedented 25% to students up to the age of 24
– offers 20-25% discounts for a high GPA
- High Risk Drivers
This category of drivers in the industry is referred to as nonstandard drivers. Almost every major insurance company has a wholly owned subsidiary or separate company to deal with these drivers. The reason is so these driver’s claims do not drive up premiums for ‘standard’ drivers vehicle insurance. GEICO Casualty Co. or GEICO Indemnity are just two examples in the non-standard auto insurance companies list that includes a few subsidiaries of large high risk insurers. The market is also highly fragmented with no company having more than 10% market share, yet it is concentrated in just three states: California, Texas and Florida that make up 59% of nonstandard premiums. Try these major players out for affordable car insurance for high risk drivers in the nonstandard market:
- Bristol West
- GEICO Indemnity
There are a number of smaller firms that may be worth getting a quote from including: Access, Affirmative, Alliance United, Safe Auto, and Infinity. If you cannot even get nonstandard insurance, you will have to go through your state-sponsored auto insurance plan, found here.
- Families with Teen Drivers
Families that are adding new drivers to their policies as their children start to learn how to drive, often reel in sticker shock at the price of these new driver’s premiums. Part of the reason is simply; teenage drivers have the highest accident and fatality rate of any demographic of driver. Start with your car insurance shopping with these cheapest auto insurance companies for families with teen drivers:
- State Farm
- Military Personnel
Lastly, if you serve your country as part of the United States Military, you and your family will enjoy one of the best automobile insurance rates of any demographic or any company due to the rates and service from just one company:
There is simply no reason to include any other company in the listing, as in almost every study USAA is named the most affordable company with the best service hands-down across the board. There is only one catch, you or a direct family member must be a member of the military.