Finding the cheapest auto insurance company is an exercise in individuality. What this means is that you need to find the one that offers – you – the best rate because it depends on a few mainly personal factors. Therefore, it would be almost impossible for two different drivers to get the same quotation. However, they would be subject to similar pricing if they fall into the same risk bracket.
So, there are some averages that help you make informed decisions, and provide you with the top 3 choices in a specific demographic of drivers. They are broken down into several categories, where they are treated radically differently in their pricing algorithms than ‘standard’ applicants.
Most motorists can identify with one of the driver risk groups below so knowing the cheapest insurers in that category can help them bring their premiums down a bit by getting quotes from those providers and a few others. It is important to note that the names and places can change over time and therefore it is best to look at them as a guide.
- Good Drivers
Typically, they are the most widely quoted and considered in the industry and usually refer to someone without a ticket or claim within the last five years. In other words, they are a fairly safe bet and that is why they enjoy the lowest prices. Most carriers would be very happy to sharpen their pencils for these applicants. If you want to drill-down to the most competitive ones in your state, you can get a few quotes from others as well and see the latest position tailored for you.
The best automobile insurers nationwide for the preferred risk tier are:
- State Farm
These three showed up in that report more than any other, making them on average the most economical across all states. However, regional or local names may still provide better quotes for your situation. The advantage of falling into this type is that you will have plenty of alternative sources to pick from.
- Experienced Drivers
It refers to motorists over the age of 25 with several years of experience and also accident free and has no existing tickets on their abstract. NerdWallet conducted a national survey of the best priced auto insurance providers for experienced category and came up with the following:
- State Farm
Allstate came in fourth. Prices 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 lower rates with a senior, retired or low mileage discount. These savings typically stay even after you turn 70 until something happens, such as an accident or ticket.
Try these three, known for their cheap seniors car insurance programs:
- Allstate, offers 10% senior discounts
- Liberty Mutual, offers a retirement discount
- AARP Auto through The Hartford
Older people are generally very careful and this makes them still a very profitable clientele.
- Young Drivers
Less than 25 years old can be an expensive age. Although teenagers typically pay the highest, this group still pays sizable premiums, especially unmarried males. The worst states for young motorists include New Hampshire and Rhode Island according to a recent study. It showed that in these states they will have to work 174 hours to pay for their coverage compared to just 56 hours for youngsters in Illinois. Lower the number of hours you need to work by trying out these three with young drivers discount programs:
- Nationwide Auto
Each has a different program that may or may not work for everyone.
- Student Drivers
The great news about being a student is the plethora of companies that offer good grade discounts. If you have an above average GPA, there is a good likelihood that you will pay less to insure an automobile. Find out if you qualify at these top savers and the most affordable vehicle insurance carriers for students:
– has a 15% good student and an 8% fraternity/sorority program discount
– 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 in the industry is referred to as nonstandard as they are riskier than the rest for this or that reason, including poor records, unusual licenses and of course age. Almost every major name has a wholly owned subsidiary or separate entity to deal with them. The reason is that claims from more perilous drivers do not push up premiums for ‘standard’ motorists. GEICO Casualty Co. or GEICO Indemnity are just two examples in the non-standard auto insurance companies list that includes a few subsidiaries. The market is also highly fragmented with nobody 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 this market segment:
- 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 in here, you will have to go through a state-sponsored plan.
- Families with Teen Drivers
Families that are adding new names to their policies as their children come of age, often reel in sticker shock at the additional premiums. Part of the reason is simply; teenagers have the highest accident and fatality rate of any demographic. Start with policy shopping with these cheapest vehicle insurance companies for families with newly licensed children:
- State Farm
- Military Personnel
Lastly, if you are in the United States Military, you and your family will enjoy one of the best rates of any demographic due to just one company:
There is simply no reason to include any other in the listing, as in almost every study USAA is named the most affordable 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.