Statistically, GEICO and Progressive have the cheapest auto insurance options. However, just because this is a statistical fact doesn’t mean that they have the lowest auto insurance for you. Many people have found lower rates at places like State Farm, Farmers, smaller local car insurers, or others to be the cheapest options.
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The reason that no one can say with certainty what insurance company will offer you the cheapest rates is because your driving record, as well as number of other factors, will determine what your rates will be.
In addition, certain circumstances, such as claims paid by one insurance company, may affect your rates there but nowhere else. For example, if you have Progressive insurance and you have an accident, then your rates with Progressive will increase.
What’s more, it is possible that your rates will never be as low as they were before because Progressive had to pay a large claim on your behalf.
However, after about a year, if you compare rates with other companies, you may find that your rates are half of what they are at Progressive because the other companies never had to pay a claim on an accident that you have caused. While Progressive may, statistically, be a cheaper company, in your case, they would be more expensive.
That’s why it’s so hard (if not impossible!) to ask for the “cheapest auto insurance review” or to say, “Well, just give me a review of the cheapest auto insurance company!” because, for a family living in Texas with 3 teenage drivers, then what is the cheapest auto insurance for them could be totally different than what will be the cheapest coverage for a family in Pennsylvania that doesn’t have any teenage drivers!
Finding out who has the cheapest auto insurance rates by state or even who has the cheapest auto insurance for teenagers is not always one and the same – on top of that, what you really should be asking yourself is, “Who has the cheapest auto insurance rates for meI” Because, after all, you don’t really care all that much how much everyone else is paying if you can’t find cheap auto insurance for yourself, right? That’s why it’s important to enter in your zip code into the free tool on this page and compare personalized quotes from many top companies side by side.
So, if someone asks you, “What auto insurance company is the cheapest?” then you can reply with, “Well, I know who the cheapest insurance company is for my specific situation…” And then of course, you will direct them to this wonderful little article so that they can start learning and comparing quotes for themselves, right? Right?
Why is car insurance cheaper in some states than it is in others?
Many people are shocked when they move from one state to another to find that their insurance rates skyrocket. The problem is, not only can insurance rates vary from one state to another, they can vary from one zip code to another! The driver who has the lowest car insurance costs probably lives in the middle of nowhere.
So, what state has the lowest auto insurance rates? Well, the rates for the state that you live in start with a limit set by the Department of Insurance or an equivalent government entity. Insurance companies then work within the confines of those caps to determine how much you will pay for your insurance. These caps vary from state to state and change often.
The state gives the insurance company a lot of latitude when it comes to determining how much of an increase they will add to a policy based on their chosen criteria. No state mandates what an insurance company can deem high risk or what they can’t, which is a reason that you often see a vast difference in rates between insurance companies: some offering very low rates and some, quite frankly, not.
One of the criteria used when determining how much insurance will cost in different states, and even different zip codes, is the driving statistics for that area. If you have moved to an area that has a high number of traffic accidents, then your rates will be higher than if you live in an area with low traffic accidents.
The same thing applies to high crime areas. Where there is high crime and, more specifically, high levels of car theft, then you can be rest assured that your rates will be higher than someone who lives in a low crime area.
Why is my neighbor’s insurance so much cheaper than my insurance?
If you find someone who has cheaper auto insurance than you do, you could try asking them what’s different. Once the insurance company determines the rates for the area that you are living in, they start looking at you personally. Your rates depend on a number of factors, such as your driving history.
If you have a long history of traffic tickets and car accidents, for example, then your rates will more expensive than someone in the same neighborhood with an excellent driving record. In addition, the insurance company looks at things like your credit rating, who else is driving your vehicle, what type of vehicle you are driving and more to determine how much you will pay.
Can I contest the rates my insurance company charges me?
If you think that your insurance company is charging you more than they should, your first step should be a phone call to the company to determine why your rates are so high.
There are some instances where the insurance company might make a mistake and charge you more because of a duplicate entry in their records. For example, if you had a car accident on October 1, 2010 but were ticketed on October 11, 2010, then the insurance company may have that as two separate events in their system than one related event.
The insurance company isn’t required to do any legwork to determine the information they receive from the DMV is correct, so it is up to you to ensure that they are only assessing existing accidents and tickets when determining your rates.
You can also talk to your state’s insurance commission but, if the insurance company is within the cap for their rates, don’t expect to get any results this way. The truth is that your best course of action will be to shop around and find better rates elsewhere.
Who has the cheapest auto insurance in you area? There’s only one way to find out! Enter your zip code below and compare auto insurance quotes right now!