Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Apr 24, 2020

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It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We partner with top insurance providers. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to Remember...

  • While researching the best rates, make sure you research big insurance companies as well as small local ones
  • A number of Internet sites exist with free access that provides consumers rough ideas on what premiums cost between insurance providers for various type vehicles
  • The cheapest auto insurance rates are found with research, research, and research

Buying cheap auto insurance takes a bit of research and creativity. Many auto insurance companies enjoy profits because consumers don’t necessarily want to look hard for good values. Consumers are typically conflicted, tired, stressed, and unfamiliar with insurance products in general.

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As a result, the majority look for just price and convenience, moving towards the easiest insurance provider available until something better comes along.

However, there are ways to find cheap insurance with a bit of work. Using everything from comparison charts to understanding how the insurance players in the industry operate can produce significant premium savings for policyholders.

Industry Awareness

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The automotive insurance industry is generally split into two groups. There are big players and then numerous smaller players. The big players include well-known names such as State Farm, Prudential, AAA, USAA, and similar.

It is hard to find inexpensive rates with these providers because their size allows them a bit of arrogance. So what if they lose one customer’s business? They have thousands of customers in total, so the loss is not felt much.

As a result, customers looking for the best price need to focus on smaller insurers who need customer market growth to sustain themselves.

These players will be much more inclined on the natural to have lower auto insurance rates than their much bigger competitors.

In some cases, when various marketing campaigns are in play, many such minor players will offer introductory rates that are even lower than normal offerings. If a consumer is lucky enough to catch the price at such an opportunity, at least a year of auto insurance coverage can be had at a bargain.

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Comparison Charts

A number of Internet sites exist with free access that provides consumers rough ideas on what premiums cost between insurance providers for various types of vehicles.

These comparison systems take general vehicle categories and make some assumptions about a driver’s past (i.e. no marks, one mark, regular passenger car, motorcycle, pickup truck, SUV).

The results are not accurate quotes but they give a customer an idea of which companies charge far more than their competitors when it comes to auto insurance. Save on auto insurance quotes with our ZIP code search!

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Quote Bidding

Alternatively, our ZIP code search works similar to some travel websites. A consumer puts in their ZIP code. Subscribing insurance companies to the website then receive the request and produce a preliminary quote to engage with the particular customer.

The consumer gets a good idea of who offers the lowest insurance for his particular vehicle and need.

The insurance provider gets a customer with very little effort and costs aside from the time involved to produce the quote and email.

State Government Reports

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Every state in the U.S. has a government state agency that operates as an insurance regulator. Almost all of these agencies have significant information available on the Internet on the particular department’s website.

The reports are required and give an idea of which insurance companies are charging rates higher than the others.

That said, the information takes some digging into to find the relevant rate information that would apply to a particular consumer.

However, once found, the right report can provide a very telling comparison of which auto insurance providers will give a consumer the cheapest car insurance plan versus others.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

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Locations Matter

Where you live, regularly drive, and even where you park your car makes a difference in auto insurance cost. These factors are all taken into account when insurance rates are calculated.

As a result, those who live outside of the big city and place their car inside a closed garage are going to on average see lower insurance rates than those who don’t.

So in answering the question of “where” cheaper rates occur, for many the better policies exist with the same companies just in neighborhoods with less congestion and cars on average.

Final Thoughts on Cheap Auto Insurance

The cheapest auto insurance rates are found with research, research, and research. Internet websites that provide comparison data can aggregate this information and cut down on the search work considerably.

Many sites also provide phone assistance to give consumers additional guidance where necessary.

Nobody should just go out and take the first policy offered without at least using some virtual window-shopping first. Doing otherwise is just throwing away hard-earned cash for no good reason at all.

Compare car insurance and save with our FREE ZIP code search below!

References:

  1. https://www.goodfinancialcents.com/best-auto-insurance-companies/
  2. https://www.statefarm.com/
  3. https://www.prudential.com/
  4. http://www.aaa.com/scripts/WebObjects.dll/ZipCode.woa/wa/route
  5. https://www.usaa.com/inet/ent_logon/Logon?redirectjsp=true
  6. http://money.howstuffworks.com/personal-finance/auto-insurance/where-you-live-affect-auto-insurance-rate.htm