How to Find the Cheapest Car Insurance Companies in 2021

A car accident occurs every 60 seconds in the United States.

While shopping for car insurance isn't anyone's idea of fun, it's a necessary part of our lives.

What if we told you that you might be overpaying for car insurance? Saving money on car insurance is easier than you think.

Keep reading to learn more about how you can compare rates to find the cheapest car insurance companies. 

Understanding Your Coverage Options

Before you start shopping for auto insurance quotes, you should make sure you have a solid understanding of your different coverage options.

Some coverages are must-haves and others you might be able to do without. When you shop online for cheap auto insurance, you can get the best deals. However, if you are shopping on your own without an agent, you want to make sure you are informed.

Each state has its own minimum insurance requirements, so be sure to check this before you compare quotes. If you took out a loan for your vehicle or have a lease, your lender may also require you to carry certain types of insurance.

You can save money by adjusting your limits or skipping coverages that you don't really need. Let's take a look at the main types of coverage your auto insurance quotes will include.

Bodily Injury Liability

This covers expenses related to bodily injury to other drivers or pedestrians if you cause an accident. Almost every state requires this coverage.

Property Damage Liability

This covers expenses related to property damage to other parties if you cause an accident. Every state requires this coverage. 

Collision

This covers damage to your vehicle that results from a collision with another vehicle or object that is your fault. It does not cover normal wear and tear. 

Comprehensive

This covers theft and damage that is not the result of a collision. Common examples include falling trees, rocks, hail, fire, flood, and vandalism. 

Uninsured/Underinsured Motorist

This coverage kicks in if you are the victim of an accident caused by a driver who has little or no insurance. It may also pay for damages from a hit and run. 

Personal Injury Protection (PIP) or Medical Payments

A requirement in some states. This coverage pays for medical expenses and lost wages for you and your passengers. 

Glass

This coverage pays for damage to windshields, side and rear windows, and sunroofs. 

Finding the Cheapest Rates

The best way to find cheap auto insurance from the best auto insurance companies is to compare rates side by side. This is easy to do online.

Remember to do an analysis of your assets and any applicable requirements before you start shopping. You don't want to pay for coverage you don't need, but you also want to make sure you have enough coverage if an accident does occur. You might find that you can get much higher coverage limits for a very small premium increase.

You'll also want to decide how you want to balance premiums and deductibles. If you have the money set aside to cover your deductible if an accident occurs, you may be able to save on premiums by choosing a lower premium option.

On the other hand, if you don't have the ability to save for a high deductible, a higher premium option might be right for you. Make sure to compare rates from as many insurers as possible. The biggest players in the United States market are:

• State Farm
• Allstate
• Liberty Mutual
• Farmers
• Geico
• Progressive
• USAA

Each company offers different policies, premiums, coverages, deductibles, and discounts. Comparing the same policies side by side is the best way to choose the cheapest one.

The cost of auto insurance depends on a number of factors including where you live. You may also have local and regional companies that offer policies in your area. 

Lowering the Cost of Insurance

As we mentioned above, where you live can play a big role in how much you pay for auto insurance. However, it's not the only factor. Other factors that affect how much you pay for a policy include:

• Your age
• Your driving history
• Your financial history
• The car you drive

While you can't do much about your age, there are some things you can do to lower your rates. Improving your financial history and maintaining a good driving record can lower the cost of a policy. Avoid speeding and never drive distracted.

Some insurers offer discounts if you agree to have your driving monitored.

When it comes to buying insurance, discounts are your best friend. Most auto insurance companies offer discounts for things like safe driving, bundling multiple policies, good grades for students, no accidents, and more. When you compare auto insurance quotes, be sure to look for applicable discounts. 

Along the same lines, some insurance companies only offer coverage for special populations. The best example is USAA, which only offers coverage to members of the military and their families. Pay attention to any coverage limitations like this when shopping for a policy. 

Are You Looking for the Cheapest Car Insurance Companies?

If you're looking for the cheapest car insurance companies, it's important to compare quotes side by side.

While the cheapest policies might save you money upfront, you need to be sure they offer enough coverage. Comparing rates directly can help you choose the best policy for your needs and save you money.

Click here to get started today with your free quotes.