A man wakes up early on a Monday, prepares for work, rushes to his car, and drives off. En route, he accidentally collided with another car while maneuvering through the congested traffic.
The body of the car gets ruined and he must repair him or buy a new one. This single event ruins his Monday and the entire week both in productivity and financial loss.
He is an uninsured driver and thus he must bear all the auto costs thereafter. Should he have purchased car insurance, he wouldn’t have to worry.
This is because his repair expenses or new car replacement would have been covered by his vehicle insurance company.
What is a Car Insurance?
Car insurance is also known as vehicle insurance, motor insurance, or auto insurance.
Auto insurance is a legal agreement between you and an insurer that provides financial protection in case of vehicle damage from collision or other unfortunate incidents.
This type of insurance service is meant not only for personal or commercial cars but also for buses, trucks, and motorcycles. So your car insurance company covers the financial loss you might be prone to after a road accident or theft.
This insurance coverage is in exchange for a premium you’ve paid beforehand.
Why Do You Need a Car Insurance?
The primary essence of car insurance is to have a risk bearer that payout your vehicle’s repair cost or buy you a new vehicle if the insured one is severely damaged beyond repair.
You will be required to register with a car insurance company before you benefit from liability coverage according to the insurance policy.
Deductibles will be added to your insurance ID as time elapse and your coinsurance will protect the car from unforeseen risks. Many people give the excuse that car insurance is expensive.
But regardless, it is a necessity for car owners in the US and other developed countries.
Actually, finding the best cheap car insurance is tedious. But don’t worry, TheWealthCircle will take a look at the 15 best cheapest car insurance in 2022.
The list below is based on the rating scores that each insurance company got in the following categories:
- Industry ranking
- Types of insurance available
- Quality of customer service
- Costs and discounts
- Minimum and maximum coverage limits
- Use of technology that meets customer needs
15 Best Cheapest Car Insurance Companies 2022
USAA Car Insurance
This is the Best Car Insurance For Military Families as the overall rating indicates. The limitation to it is that you must be a member of the armed forces or must have a parent, or spouse that’s currently a USAA registered member. USAA has an A+ financial strength rating from AM.
The cost varies widely from the lowest premium rates in the industry to its moderate premium rates for multiple policies. In addition, there are plenty of auto insurance discounts for veterans.
It is the best car insurance provider in 2022 in terms of overall coverage and affordable cost. The types of coverage offered by USAA includes some of the following:
- Roadside assistance coverage: It adds financial backing for emergency car towing, spare tire installation, and lockout services.
- Rental reimbursement: This pays for a rental car after you’ve filed a covered insurance claim. This coverage is temporary until your insured car is repaired or replaced.
- Accident forgiveness coverage: In some states in the US, USAA plan members can buy accident forgiveness insurance to protect their rates after one accident.
- Other insurance products that USAA offers: USAA motorcycle insurance, ridesharing coverage, boat insurance, renters, homeowners, collectible, flood or natural disaster, and life insurance.
USAA has several insurance products and some discounts to go with them. The rates are reasonably affordable for the average person and his family.
It is a perfect option for retired army veterans, and it is recommended for young drivers as well.
Geico Car Insurance
Geico has an A+ rating from the Better Business Bureau (BBB), AM Best financial strength rating, and J.D Power in 2022.
It is an auto insurance company for all drivers because the various plans can appeal to anyone. In addition to the traditional car insurance that it provides,
Geico also offers the following insurance coverage:
- Roadside assistance coverage: Similar to USAA, stranded drivers can request for roadside assistance through Geico’s Emergency Road Service. There’s even an app to do so. The coverage adds financial backing for services like towing, flat tire substitution, jump starts, and lockout services.
- Rental reimbursement: The Rent-A-Car organisation bills Geico Insurance directly to pay for a rental car after you’ve filed a covered insurance claim.
- Mechanical Breakdown Insurance (MBI): The MBI program is just like an extended car warranty. The only exception is that you pay for it with your auto insurance policy. This program covers repair costs for all mechanical parts, but it doesn’t cover your regular maintenance costs. MBI is available for automobiles under 15 months old or automobiles with less than 15,000 miles on it. It can be renewed on a yearly basis for up to 7 years or up to about 100,000 miles.
- Other insurance products Geico offers: These include boat, rideshare, mobile home, overseas, landlord, professional liability, and jewelry insurance.
Typically, you can expect to pay between $1,000 and $1,600 annually for Geico Insurance. It is one of the cheapest car insurance for 2022. And the good thing is that it is available in all US states.
State Farm Auto Insurance
State Farm Auto Insurance is the best cheap car insurance for students.
According to data reports from NAIC, State Farm is the largest US insurance provider holding up to 17% market share in the industry. It hosts countless varieties of insurance policies. As expected, it has an “A” rating from BBB and AM Best Financial Strength rating.
Although its customer service ratings are below average, the company still offers cheap and reliable insurance policies. No wonder young students love this insurer! You can easily get a quote online by using either the Drive Safe & Save app or the Steer Clear app.
Student drivers that take advantage of the constant special discounts save a lot of their parent’s money.
Progressive Car Insurance
Progressive has been around for more than 80 years now. It was one of the first companies to adopt the use of the internet for customers’ ease of use in the 1990s. It is the best cheap car insurance company, especially for high-risk drivers.
According to Progressive’s website, member users pay between $1,500 and $2,000 per year, which is a moderate price even for high-risk drivers.
In addition to the standard vehicle insurance coverage, you may purchase roadside assistance, rental reimbursement, and other insurance products.
Progressive car insurance has many economical plans and features that can save you some bucks.
AAA Car Insurance
To qualify, you’ll need to be a roadside assistance member just at the cost of $50 to $100. Therefore, AAA car insurance is the best cheap auto insurance company for AAA members.
AAA Insurance, although being under the CSAA Insurance Group, has made a name for itself. It has a high AM Best Financial rating and an A+ from BBB.
The small hitch with AAA is that there are different coverage options, quote, and claim processes in different states across the USA.
Liberty Mutual Auto Insurance
Even at number 6 on this list, Liberty Mutual is one of the cheapest auto insurance companies in operation. You can manage your policy online, get a quote online, and file your claim online.
The customer support is good and ratings from multiple financial institutions are “A”. This is of no doubt considering that the company is among the list of Fortune 100 companies in the USA.
You can save as much as 15% or more from purchasing multiple policies as a bundle.
To learn more about the amazing discounts you can benefit from, visit their website or call the customer service line.
Allstate Auto Insurance
Allstate sells a wide array of insurance policies. Some of which are not only car-related. Wallethub gives it a 3.5/5 rating due to its variety of insurance types even within the car insurance sub-niche.
Plan users can assess their accounts via the app. They are also free to get a quote for an insurance product, file a claim, and do other things via the app.
Rates are reportedly cheap and offer the best coverage. Allstate-insured drivers pay out about $1,788 on average for car insurance coverage. Check out their website to get cheap rates.
The Hartford Auto Insurance
Nerdwallet gave The Hartford Car Insurance a ⅘ overall rating. They offer vehicle insurance packages, business insurance, recreational vehicle insurance, flood, renter, and so many other insurance types.
Most cheap car insurance reviews fail to include the perks of patronizing Hartford Insurance. To learn more about their cheap rates and rare discounts, go to their website.
Be sure to check the AARP Auto Insurance Program offered by The Hartford.
Nationwide Car Insurance
Similar to many insurances in this list, Nationwide offers majorly home and car insurance. It deserves to be on this cheap car insurance review as drivers pay about $1,284 annually for coverage.
This price is 3 percent less than the national average of $1,320. Nationwide Car Insurance turns out to be good for drivers and motorists with a poor credit score.
However, due protocol and assessment of your driving records are still going to be conducted. Learn more on the Nationwide Auto Insurance website.
Farmers Auto Insurance
Farmers is a highly rated auto insurance company. According to accurate reports, the average cost of Farmers car insurance is $1,635.
Other great car insurance companies that are cheap and affordable include the following:
- Travelers Auto Insurance
- Root Auto Insurance
- Erie Insurance
- Travelers Auto Insurance
- Auto-owners Insurance
A number of cheap car insurance companies reviews on the web are sponsored. But as a disclaimer, TheWealthCircle is not financially rewarded for this review. We’ll not be responsible for any decision you make based on this shared information.
Nevertheless, you must have realized that having your car does necessarily entail breaking the bank. You have many cheap available auto insurance options out there.
All you have to do is research them and make an informed decision after talking with your financial advisor or tax accountant. You should ensure that you compare the rates of several insurance providers before settling for one.
That way, you the get the best suitable one for you that’s cheap.
FAQs on 15 Cheapest Car Insurance Companies Review
Yes, you do. It is mandatory to have car insurance to drive in all states in the US except Virginia and New Hampshire. The insurance you’ll get should have minimum inclusions such as standard auto insurance coverage, personal injury liability, and property damage coverage. The same requirements go for many other developed countries.
Geico Car Insurance is our most recommended car insurance company. We at TheWealthCircle recommend it because unlike USAA (which is our Number 1 on our list of cheap insurance companies), Geico doesn’t require one to be a veteran or military personnel.
It is popularly used globally and it offers cheap policies which makes it the overall best vehicle insurance company.
Plus, the customer service is okay.
State Farm Insurance offers the best insurance option for teen and student drivers. The requirements are friendly to newbies. You can also consider Liberty Mutual if you’re a new driver who wants to get insured.
The cheapest type is an insurance policy in which the minimum coverage is provided in the state you live in.
In other words, if your state requires a minimum level of liability vehicle insurance, that makes for the cheapest type of car insurance.
Some American states may allow uninsured motorist or car owner coverage and other types of the insurance policy.