Affordable Auto Insurance

January 13, 2021

How To Find Affordable Auto Insurance

Finding affordable auto insurance online can be a hassle if consumers don't know where to turn for accurate, reliable quotes.

Whether it be shopping for auto, home, or health insurance, the process is essentially the same.

Consumers often ask, "what's the most important information to know about affordable auto insurance?" For many, it comes down to monthly costs, which matter tremendously for those with limited or no credit.

What makes matters more complicated is that nearly all states require that drivers carry auto insurance, affordable or not. It's the law.

As such, it's crucial that consumers pay attention to what type of policy they carry, its benefits, and what additional costs may collect.

Affordable auto insurance doesn't have to be confusing when consumers have a helpful platform at their disposal to find the most attractive prices.

Here's the most critical information for those who are looking for reliable, affordable auto insurance quotes.

How much does affordable auto insurance cost on average?

Insurance costs vary widely because each policy, insurance company, and state are unique. Insurance regulations differ from state-to-state, which makes it tricky for consumers to trust online quotes.

For example, if someone performs a Google search for "average cost of auto insurance," they'll see several contradictory facts about the average cost of auto insurance, so which one is correct?

Some sources say the average cost for full coverage is about $1,548 per year; others say it's about $1,099 per year, and another puts the figure at $1,427 per year.

Which price is most accurate? Based on a cursory Google search, it's impossible to tell unless you can compare rates side-by-side.

But according to the experts at BankRate.com – one of the most well known personal finance companies in the country – the average cost for full auto insurance coverage is $1,738 a year at the time of this writing in the fall of 2020.

The insurance industry continuously adjusts pricing based on market conditions, credit checks, and customers' expectations.

To make it more simple to find cheap auto insurance, here are the top five most affordable insurance companies for 2021.

Top five most affordable auto insurance companies for 2021

Insurance companies may serve the same general, nationwide market, but they each have different value propositions. One insurer may make its mark based on affordability; another may do well providing comprehensive, quality coverage.

In 2021, the top five most affordable auto insurance companies are:

  • USAA
  • State Farm
  • Progressive
  • Nationwide
  • MetLife

Some USAA auto policies have premiums as low as $351 a year for liability coverage. A similar MetLife auto policy costs approximately $756 a year for liability insurance.

If consumers want full coverage, the price of the policy will rise. The number of drivers and cars can also impact the cost.

For instance, liability coverage through Nationwide costs about $531 per year, but full coverage costs substantially more at $1,475 per year. That's a three-fold increase within the same company!

Full coverage, which primarily includes provisions for accidents and bodily injury, generally costs much more than liability insurance, even among the most affordable insurers.

That's why many consumers opt for a quality insurance company but choose the lowest rates and minimal liability coverage.

Top five most expensive auto insurance companies for 2021

The top high-end insurance companies, which offer the best range of benefits for the price, include:

  • Allstate
  • Amica
  • Geico
  • Erie
  • Farmers

Many of these companies are household names and can bundle different types of insurance under a single policy. The catch is that consumers have to qualify first, usually through a credit check.

One example would be a small delivery business that uses multiple work vehicles. The owner would ideally want one policy to cover every car, but what about other business insurance?

That's the main difference between high-end insurance companies and more affordable insurance companies. The big players offer consumers more options.

affordable auto insurance

Quality insurance companies fill a particular need in the industry: simplify and consolidate insurance so that the ordinary consumer can understand it – and afford it.

At the time of this writing, the average cost of Allstate liability auto coverage was $570 a year, but full coverage through the same insurer costs about $1,920 a year.

Similarly, the average cost of a Geico liability insurance policy was $363 in 2020. Full coverage, on the other hand, costs an average of $1,325 per year.

Thus, an Allstate full coverage policy is about three times to price of its liability insurance per year. Still, a Geico full coverage policy is four times as expensive as a liability.

What other factors affect the cost of auto coverage?

Affordable auto insurance quotes vary from instance to instance and person to person. That's why it's preferable to find an insurance company that thoroughly explains costs and benefits.

Auto insurance may cost more in some regions of the U.S., like densely populated urban areas. The car's make and model also make a difference, and a consumer's driving history and age matter, too.

With so many factors to consider – price, benefits, and extra perks – what's the best way to find and compare rates?

Where to find affordable auto insurance quotes?

Finding accurate, reliable quotes can be a hassle if consumers don't know where to turn for the best rates. When they need clarity and honesty, they turn to us at OfficialCarInsurance.com to compare rates side-by-side.

Shopping and comparing auto insurance is a lengthy, stressful chore, but this information will make the process far more straightforward and easy to understand.

Visit OfficialCarInsurance.com to start comparing rates today!