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Cheap car insurance quotes | Auto insurance quotes (prices)

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I must warn you that my opinion in this write-up is biased towards 1-2 countries and more especially to the USA. But you can gain great insights by reading on because principles remain the same or a little different.

Alright.

It is no secret that every one of us loves the possibility of paying the lowest price for any service or commodity we intend to buy. This is because small savings quickly add up to large sums of money leading to a bigger budget for other necessities.

Just like any other services you may be interested in, you need cheaper car insurance premiums, after all some people never make any claims at the end of the year. I imagine a situation where you are paying $1500 annually and you do not claim your insurance policy! kind of hurt, right?

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Because of improving today’s technology, you can easily compare quotes from different companies in minutes and easily come out with the cheapest car insurance quotes. Websites like GoCompare and others make this an enjoyable experience. But of all things, what does insurance refer to?

 

Page Contents

What do you mean by insurance?

The term insurance refers to a contract (policy) in which the insurance company offers financial protection of reimbursement to an individual or entity against anticipated losses.
Risks from several clients are pooled and this makes claims payout affordable for you the insured.

Why do you need auto insurance?

You never know when a calamity befalls you while driving your car. According to the Yearly snapshot website, more than 38,824 people died in car crashes last year. The USA department of transportation most recently estimated a total loss of $242 billion due to car crashes. According to the report, the leading causes of auto accidents were 

Is auto insurance worth it?

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According to valuepenguin.com, approximately more than 14% of drivers drive their cars with no insurance coverage. This value goes even higher in some states like Florida where approximately 26% of drivers are uninsured.

According to data from the yearly snapshot, 54,272 vehicles were involved in 35,766 car crashes in the year 2020. Coupled with many losses like property damage, death, injuries, lost wages, permanent disfigurement and many others, the person who got involved in the car crash badly needs financial support and protection of his property in the case he is found at fault for the auto accident.

Is car insurance affordable for all?

Car insurance is not cheap at all. According to nerdwallet.com, an analysis in 2022 revealed $1,630 per year as the average cost of car insurance in the USA. That’s not cheap to a common person taking into account current economic crises. There are big economic losses that result from a car crash especially if you are deemed at fault.

How much will you pay in a car crash lawsuit?

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According to Crouppen law firm, $41,783 is the approximate settlement amount for a car crash. This amount is even higher for track accidents at $42,900 and highest for motorcycle accidents at $67,500. Are you not surprised settling for a motorcycle accident is much more expensive?

The question is, do you always have that money handy such that you will be in a position to compensate the person you injured, or whose property you damaged in the car accident? Do you have enough money to replace your car, do car repairs and pay those exorbitant medical bills? If the answer to any of those is no, better buy car insurance today.

Putting the 14% drivers with no insurance in the equation implies that anytime you may be hit by someone with either no insurance or insufficient insurance coverage to compensate you financially.

What are the 3 main types of car insurance?

There are of course many different insurance policies being sold by different insurance companies.

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Liability / third-party insurance coverage.

If you are found at fault in the car crash, you will be financially responsible for property damage, bodily injuries and liabilities arising out of deaths. This insurance coverage helps to cover losses you cause to the other driver and passengers (third party). This policy covers the following;

  • Cost of repairs/replacement of the damaged car belonging to the other driver.
  • Medical bills for the third party.
  • Any other liabilities arising out of deaths.

In the USA and many other countries, it is illegal to drive with no insurance coverage. This insurance policy is the minimum coverage requirement to drive on roads.

Collision or own vehicle damage coverage.

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Whereas third-party insurance covers the other vehicle you are at fault for the accident, you will need to make claims for the repair or replacement of your vehicle from a collision auto insurance policy. Collision coverage carries a deductible(the amount of money you initially pay out of your pockets before your company steps in to clear the remaining amount). This policy pays for the cost of repairs or the market value of your totaled car at the time accident.

Comprehensive car insurance coverage.

Apart from losses due to car crashes, you could suffer losses when your car is stolen, hit a deer, falling trees, extreme weather, vandalism and many others. A comprehensive insurance policy covers such potential losses. There are other policies you will likely buy but the above 3 remain the important ones. You should assess your insurance needs and ask for the best coverages. For instance, leased or financed cars required additional coverage, and your flashy expensive car probably needs beyond the basic insurance needs.

Online cheap car insurance quotes.

Apart from losses due to car crashes, you could suffer losses when your car is stolen, hit a deer, falling trees, extreme weather, vandalism and many others. A comprehensive insurance policy covers such potential losses. There are other policies you will likely buy but the above 3 remain the important ones. You should assess your insurance needs and ask for the best coverages. For instance, leased or financed cars required additional coverage, and your flashy expensive car probably needs beyond the basic insurance needs.

As I have been saying in other posts on this website, buying your policy online is quick and cheaper compared to when you buy your policy from an independent insurance agent. Car insurance agents charge certain fees, and renewal discounts make your premiums a little higher.
But, in case of a car accident and you want to make a claim, this process will be smoother through your insurance agent.

Which type of car insurance is the cheapest?

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I mentioned earlier that each country or state has its minimum insurance coverage requirement you will buy before driving on the road. Third-party also commonly known as liability is mandatory in many countries though I do not know if this is true wherever you come from. For instance, in California, the minimum car insurance coverage is as follows;

What's the minimum car insurance in California?

Minimum bodily injury liability coverage of $15,000 for each individual and $30,000 for each accident. Minimum $5,000 in property damage liability coverage. Minimum bodily injury coverage for uninsured drivers is $15,000 per person and $30,000 per accident.

What's the minimum car insurance in Florida?

Are you living in Florida? You must maintain the following minimum coverage limits in Florida: Liability for property damage of $10,000 per incident. $10,000 in personal injury insurance.

What's the minimum car insurance in Texas?

Texas mandates that all motorists carry the following minimum levels of auto insurance: Liability for bodily injury is $30 000 for each individual and $60 000 for each accident. Liability for property damage is $25,000 and PIP of $2,500 unless you decide not to get this coverage.

What's the minimum car insurance in New York?

In New York, it is mandatory for all drivers to carry car insurance with minimum liability limits of 25,000/50,000/10,000 and a variety of other coverages. This comprises $25,000 for each person’s physical harm. $50,000 in physical harm per incident.

From the above examples given for different cities in the USA, we see liability being mandatory coverage for all drivers. So we can conclude that the cheapest auto insurance is liability coverage because it is dictated by the state or country you come from.

how to get cheap car insurance quotes

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In my last articles on this site, I already mentioned how tough it is to get cheaper insurance prices. This is because every insurance company out there aims at profit maximization. You will all agree with me that buying insurance coverage is hassle-free, but getting a payout after a car crash is a nightmare. Nevertheless, the smarter will always be at the advantage side.

To get cheaper car insurance quotes, do the following;

  • Maintain good driving records. previous accidents or tickets lead to higher premiums.
  • If you are driving an old machine, be sure to drop comprehensive and collision coverage because if you do not, in case of a car crash, your claim payout will be less than the premiums you have been paying!
  • Take advantage of all the discounts you qualify for. For instance, your teenager has good grades, many years without any claim, paying your premium in wholesome, Building a garage for your car, taking defensive driving classes, installing driving monitoring gadgets, low mileage, and so many others. All these will earn you various discounts hence cheaper auto insurance quotes.

 

cheap car insurance quotes for young drivers

It is no secret that auto insurance premiums tend to be higher for young drivers because statistics show that, these drivers are prone to higher accident rates compared to seniors. If you are a young driver, you may not be having lots of driving experience and this results in high price quotations too. If you are looking for cheaper prices, head to MoneySuperMarket and get quotes from different companies. Standard insurance requirements for young drivers remain the same as for seniors or more experienced drivers with here and there add-ons.

Is Geico really the cheapest?

Geico is one of the oldest and most popular insurance companies in the USA. Its been in service since 1936. According to NerdWallet, Geico offers the cheapest insurance policies in the USA. According to a recent analysis, Geico’s annual rate is around $354 equating to $29 monthly.

cheap car insurance quotes in Florida

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If you are living in Florida, you will most likely buy your insurance from companies like State Farm, Progressive, Allstate, Geico and others. State Farm’s average annual coverage premium is $2,055 and this translates to a monthly average full coverage of around $171.25. What comes close is Geico at $2,103 average annual coverage and $175.25 as the monthly average full coverage. Simply put, State Farm is the cheapest car insurance company in Florida.

Is Progressive or Geico cheaper?

Progressive charges $2,986 as the average annual full coverage and this translates to a monthly average full coverage of $248.83. Comparing this to Geico at $2,103 average annual coverage and $175.25 as the monthly average full coverage, the winner is Geico! You will save lots of bucks if you chose to ditch progressive in favour of GEICO. What I need to remind is the following.

Car insurance cheap prices Vs customer care

  1. A certain car insurance company may be best for young drivers but sucks on policies offered to seniors. For instance, some insurance companies are harsh on people with poor past driving records while others appear lenient. Make choices wisely.
  2. A company with the cheapest price does not necessarily mean they have the best customer care. Do not just blindly look at cheaper prices you are quoted.
  3. Do not underestimate small and upcoming insurance companies. These companies usually have the best customer care and your claim payout probably will take little time to be paid out. 

What car has the lowest insurance rate?

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We all know that car insurance premiums also depend on the type of car, model, year and how expensive is your car. Flashy and expensive cars cost a lot to insure compared to cheaper wheels.

According to WalletHub;

  1. It costs $1,774 annually to insure a Subaru Forester.
  2. Dodge Grand Caravan insurance premiums add up to $1,786 annually. 
  3. Annually, you will fork out $1,800 in total to ensure your Honda Odyssey.
  4. Ford Escape costs $1,877 annually for full coverage.

Of those few vehicles mentioned, Subaru Forester is the cheapest to insure.

What car has the highest insurance rate?

From my research, The Maserati Quattroporte is a premium sedan with insurance rates that frequently exceed $2,500 for a period of six months, making it the most expensive car to insure in 2022. Other expensive to insure vehicles include Nissan Altima 2.0 S at $2,130, Tesla Model 3 Standard Plus at $2,447 and Volvo XC90 T8 Inscription at $2,456.

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In summary, if you act smart, you can easily get cheap car insurance quotes and save some money. All in all, You must keep clean car driving records. I also recommend you shop around from 1-3 companies and do this after every 1-3 years. I have heard some companies do not value royalty so sticking blindly to one insurance company makes no sense.

This write-up is a bit biased towards car insurance in the USA. Though some principles remain the same, I encourage you to do a more independent google search and find out how things are being done in your country.