Looking to save on your car insurance policy? We’ve researched auto coverage amounts and insurance companies to help you find the cheapest car insurance that does not compromise your protection. Check out the best cheap car insurance companies for 2021 according to Ndwompafie.
Our Top Picks for Cheap Car Insurance Companies of 2022
These are the companies with the best cheap auto insurance options of 2021 according to Ndwompafie:
- GEICO: Cheapest Rates
- Progressive: Best for Families
- Liberty Mutual: Best Discount Variety
- State Farm: Best Rates from Local Agents
- The General: Best for Accident History
- Root: Best for Safe Drivers
- Travelers: Best for Hybrid-Electric Vehicles
- USAA: Best for Military Families
- Allstate: Best for Fast Claims Service
- Farmers: Best for High Mileage Drivers
- Quote Wizard: Comparison Marketplace
What Types of Car Insurance Coverage Are Available?
To find the best cheap car insurance options it helps to understand how auto coverage works. A car insurance policy includes six basic types of coverage:
- Liability Coverage: If you cause a wreck, this part of your auto policy pays to repair the damage you caused — both property damage and bodily injury to someone else.
- Comprehensive Coverage: This protects your auto investment from theft or damage from hail, animals, or vandalism.
- Collision Coverage: This coverage kicks in to protect your own car in an accident.
- Uninsured Motorist/Underinsured Motorist Coverage: If the driver who causes a wreck has no liability coverage or does not have enough liability, this part of your policy could help cover your losses.
- Personal Injury Protection (PIP): This element of your coverage could pay medical expenses for you and your passengers regardless of who was at fault.
Of these six types of coverage, the most important are liability, comprehensive, and collision. These cover most of the situations you could get in as a motorist and auto owner.
How To Find The Cheapest Car Insurance
| There is a connection between lower credit scores and higher instances of claims. | |
| Age | Statistics show that the youngest and oldest drivers are involved in more wrecks than other drivers. |
| Gender | Males are involved in more accidents and are most likely to pay more. |
| Telematics | Insurers collect actual data about your driving habits to measure your risk of having a wreck. |
| Car Make and Model | Some cars cost more to insure than others because they have higher repair costs or tend to cause more damage in collisions. |
| Car Age | Since newer cars would cost more to replace, policies for newer cars tend to cost more. |
| Car Safety Features | Anything that can prevent an accident could help lower your premiums and help you get more affordable coverage |
| Geography | Insurers factor in your risk theft, the number of cars on the highways near you, and even the weather patterns to assess the risk of paying a claim on your vehicle |
| Frequency of Driving | Driving more could increase your rates because you’re more likely to be involved in a wreck |
Use-Based Car Insurance Coverage
Use-based insurance either tracks how you drive, tracks mileage, or both. Either strategy could save you money.
There are two types of use-based insurance:
1. Pay-How-You-Drive (PHYD) Insurance: This uses your driving habits and patterns to generate part of your premium. Data can include vehicle speed, fuel levels, tire pressure, braking patterns, and trip distances, among others.
2. Pay-As-You-Drive (PAYD) Insurance: This option considers only the miles you drive per day and charges part of your premium accordingly. The other part of your premium is not affected by your mileage. It’s based on the other underwriting factors we’ve already discussed.
Who has the cheapest car insurance?
Based on our analysis, Geico is the insurance company offering the cheapest rates.
