Looking for cheap car insurance in the US? Not sure which product to choose? Then you came to the correct article. In this guide, we will give you a simple but detailed explanation of auto policies.
You will learn about its operation, types of policies, forms of payment and more. Finally, you will have the possibility to know the best-selling cheap car insurance of this 2021. Would you like to know more information? So, keep reading …
Types of Auto Insurance in the US
Civil Liability Insurance in US
Who should receive it? Anyone who owns a car must have the minimum protection required in their current state of residence.
This insurance will be your support if you cause an accident; Generally, this coverage includes bodily injury liability and property damage liability . In addition, the insurer must pay the medical bills and vehicle repairs of the other party involved in the loss. It is important to mention that this policy will not protect you or your passengers if any of them are injured. Likewise, this policy does not cover damages caused to your vehicle.
Collision Insurance in the US
Who should have it? Drivers with a car loan or lease. People who cannot afford to cover the cost of the total loss of their car.
This type of coverage pays for the total repair or replacement of your vehicle after a car accident. Generally, coverage extends to damage caused by collision with objects; for example: A tree or a house. Also, in some cases the coverage covers an accident in which there was no object involved; for example: Rollover. It is important to mention that most states in the US do not require a collision policy. Finally, this service is acquired automatically with comprehensive insurance.
Comprehensive insurance in US
Who should have it? Drivers with a car loan or lease. Similarly, it is the most recommended insurance for all those who have their own car.
This coverage protects your vehicle against certain types of damage not caused by an accident. In other words, this policy offers complete protection against theft, a falling object or a natural disaster. Comprehensive insurance is optional as long as the issuer or a lender does not require you to have it. Lastly, this type of insurance is purchased in conjunction with collision coverage .
Uninsured or Underinsured Driver Coverage
Who should have it? P eople with basic liability coverage.
This insurance is extremely important if you do not want to spend money on the recklessness of others. Remember that some drivers will break the law and drive without auto insurance. Therefore, this coverage works in collisions where your car was damaged by an uninsured driver. Likewise, the insurer will pay for medical bills and necessary car repairs. Finally, this policy is required in half of the states within the US.
Personal Injury Protection (PIP)
Who should have it? Anyone who wants to have a specific policy for medical expenses.
This policy covers the medical expenses of an accident and regardless of whether it was your fault or not. Coverage extends to other drivers listed on your policy; for example: Members of your household and passengers. The expenses covered by this policy are: Medical bills , drug prescriptions, lost income, childcare or even a funeral. Currently, only 15 states require PIP insurance on a mandatory basis; however it is available throughout the US
Other types of auto coverage:
- Rent reimbursement . This policy pays for damage to a rental car.
- Roadside assistance . Insurance that covers towing and basic help on the road. For example: Gasoline, loss of keys, change of tires, etc.
- Mechanical breakdown insurance . This type of policy covers the costs of repairing mechanical parts and systems, in addition to the cost of labor to repair the vehicle.
How to compare and quote cheap car insurance in the US?
If you are currently looking for affordable car insurance, you should keep in mind that you need to compare different options before making a decision. That is, thanks to the quotation processes , you can find the best offer that suits your needs and lifestyle. Therefore, keep the following recommendations in mind when requesting a quote:
Constantly look for discounts
Not all insurance companies reveal that they have discounts. Therefore, if you do not see an offer at a glance, request it! If you are a student, retired person , or someone with an impeccable credit profile; This opportunity is for you.
Think twice when it comes to deductible
Not in all cases you need to increase your deductible to feel that you have full coverage . Remember, if you increase the deductible on your policy, it means that you owe more money to the insurer. However, consider increasing this feature if you are a person who rarely drives a car and only needs the policy to comply with the law.
Don’t look for cheaper coverage if you already have auto insurance
This point is really important because it is not worth throwing out a product just because you found another cheaper option. Remember, you need full coverage car insurance to comply with both US law and the terms of a car loan (in case you are looking for a new car). If, on the other hand, you have an old generation car , you only need to have collision and civil liability insurance.
Take advantage of important events to get offers
Many companies give discounts on insurance policies when it comes to newly married couples. This point also applies when you live in suburbs that have a low accident and crime rate.
How to reduce car insurance rates in the US?
There is no secret formula that allows you to easily reduce the rates of an insurance policy . However, when it comes to car insurance quotes, there are some factors you can control. This point is valid when it comes to the premium or monthly insurance fee. Here are some important things to do to help you reduce the overall cost of your auto insurance policy.
- Increase your deductible . If you have purchasing power and can take care of expenses for accidents , injuries and other unexpected events, consider increasing your deductible. The less money the insurance must pay for you, the cheaper your monthly or annual premiums will be.
- Improve your credit score . Insurance companies always carefully check your credit score; This is a measure of how risky you are to your policy issuer, so if you have a higher credit score , you are less likely to file a claim. So if you want cheaper car insurance, pay your bills on time.
- Improve your driving record . Fines and driving violations always affect the final price of an auto insurance policy. In other words, if you are looking to obtain cheaper car insurance, practice safe driving habits and drive at the speed limit established by law.
- Sign up for an incentive program . Many insurance companies offer discounts for trying their programs. For example: Use of applications for phones, interaction on the official company website, driving monitoring programs and more. In fact, there are policy issuers that offer discounts for monitoring your driving and rating your driving skills.
Important: If you had a recent car accident, it is not recommended to apply for new insurance so soon. It generally takes up to 6 years for negative road records to disappear from your record; and this affects your available offer options. In fact, experts recommend that you make new quotes just after 3 to 5 years of getting tickets or traffic violations.
What aspects are important for insurers when calculating the cost of an auto policy?
There are several factors that can alter the total cost of your insurance policy . In fact, to know the price and the final coverage of your car you must provide important information such as:
- Your driving record
- Frequency of use of the car you want to insure
- Where is the vehicle parked? Do you have your own garage or is the car on the street?
- City or state of residence
- Type of car you drive
- Credit score
The best cheap car insurance 2020 in the US
Next, we leave you the most sought-after car insurance of this 2020. This is a choice based on the opinions of hundreds of users on TrustPilot and the annual report of financial portals such as NerdWallet and The Balance Blog .
Insurance carrier Annual premium Reputation Erie $835 4.8/5 Geico $1,198 5/5 StateFarm $1,511 4.4/5 Progressive $1,766 4.2/5 Allstate $1,834 4.3/5
Important: These rates are full coverage policies, that is, they include: Liability, comprehensive, collision, protection of the uninsured / underinsured and any additional coverage required by the state.
The best cheap car insurance according to driving history in the US
Insurance carrier If you have fines With accident record where you were responsible If you drove under the influence of alcohol (DUI) Allstate $2,172 $2,904 $3,301 Geico $1,557 $1,888 $2,743 Progressive $2,281 $2,980 $2,263 StateFarm $1,784 $1,968 $2,549
The best cheap car insurance according to credit history in the US
Before making the final decision, you should keep in mind that your driving history is not the only factor that can increase your rates. In fact, bad credit can have a bigger impact when it comes to paying your annual insurance policy premium. Next, we leave you a table with the estimated premium for drivers with good credit and bad credit.
Insurance carrier Drivers with Good Credit Bad Credit Drivers Annual difference Allstate $1,834 $2,907 $1,073 Geico $1,198 $1,748 $550 Progressive $1,766 $3,238 $1,472 StateFarm $1,511 $3,114 $1,603
Important : Drivers with bad credit pay an average of $ 1,000 more a year than drivers with good credit.
The best cheap car insurance according to the offer of the moment
Insurance carrier Offer for newlyweds Offer for married couples with teenage driver Annual difference Allstate $2,524 $4.682 $2,158 Geico $1.821 $3,188 $1.367 Progressive $2,270 $4,380 $2,110 StateFarm $2,487 $4,540 $2,053
Important: The rates set out in the table above are not exclusive to the 5 insurers that we show you. In other words, the ideal offer for you can come from any other insurance company that suits your needs.
The cheapest car insurance 2021 in the US: Geico
First of all, Geico offers the best rates in terms of annual premiums. In addition, it handles a low cost average for users with the following characteristics:
- Drivers without fines but with bad credit.
- 50-year-old marriage to a teenage driver.
- Drivers with assumed fault accident records.
- Drivers with a speeding ticket.
The Good : This company is currently ranked the best in technology and applications. Likewise, it was the only insurer that obtained a 5-star rating in our count.
The Bad : Geico has few coverage options compared to other auto insurers. In fact, if you have a history of driving under the influence (DUI) your best option will be Progressive or State Farm.
The cheapest car insurance for a DUI 2021 in the US: Progressive
As we mentioned earlier, a DUI on your record means that you have ever driven under the influence of alcohol. In general, having a DUI will make paying your annual premium even more expensive ; The reason is that your profile will reflect a person “at risk” for the insurer. So, if this is your case, we must tell you that, although Geico has the best average rate for almost all the driver profiles we analyzed, Progressive is the cheaper for drivers with this condition.
The good : Rates vary based on different personal factors, they will not judge you by your car registration. In addition, it is the third largest personal auto insurer in the US.
The Bad : According to JD Power , they have ratings considered “average” and “low” when it comes to customer satisfaction and auto insurance claims.
Car Insurance with the Best Customer Service 2021 in the US: State Farm
State Farm customers say this insurer cares about troubleshooting and paying claims on time. According to portals such as JD Power and Consumer Reports . Likewise, the satisfaction surveys include questions about prices, complaints and customer service in general.
The Good : They offer numerous discounts, including two programs: One for safe driving and one for young drivers.
The Bad : According to JD Power , this insurer has ratings considered “average” and “low” because its methodology for purchasing policies and claims assistance is a bit cumbersome.
The car insurance with the best option in additional coverage 2021: Allstate
Allstate offers a wide range of additional coverages such as:
- Sorry for accidents . This optional coverage means that it means that your rates will not increase due to an accident, even if it was your fault.
- Safe Driving Bonus. This count is done every 6 months, drivers with less inconvenience receive a bonus.
- Rewards in deductible . You will earn $ 100 off your deductible if you stay free of violations; You can also win up to $ 500 in discount if you do not suffer a collision for at least 1 year.
- New car replacement
- Roadside assistance
- Shared trip insurance.
The Good : It has generous benefits, including: Accident forgiveness, new car replacement, and a safe driving bonus every six months.
The Bad : Customer satisfaction ratings are “average” compared to other insurers.
Cheap car insurance and its minimum coverage in the US
You can get auto insurance with the minimum coverage within the US However, the essential requirements may vary depending on the state where you are. In most locations in the USA you only need liability insurance that covers property damage and pays for medical bills of others due to accidents you cause. However, some states also require uninsured or underinsured motorist coverage ; In this case, the insurance must pay for your injuries or damages if the at-fault driver does not have an insurance policy.
Next, we show you the minimum payment for the cheapest car insurance of this 2020:
Insurance carrier Annual premium of minimum coverage Annual cost difference Erie $835 $0 Geico $478 $720 StateFarm $624 $888 Progressive $774 $993 Allstate $784 $1050
Quote and compare cheap car insurance US
If this article helped you solve your doubts, share it with whoever may need it! Remember, finding the ideal auto policy for you can be quite a daunting task. On our website Infoinsurances.com we show you the offers available in the current market; You can also know the most requested policies in 2021. Remember, making quotes and comparisons is totally free. We will wait for you!