Car insurance rates vary based on your personal factors and the insurer. Although car insurance is an expense most drivers have to deal with, you don’t necessarily have to pay a lot for it. It may be possible to get car insurance for less than $100 per month.
Here’s what you need to know about cheap car insurance.
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- You can lower your premiums by taking advantage of discounts for a good driving record, bundling policies and enrolling in a defensive driving course.
- Seniors and experienced drivers with clean driving records are more likely to find affordable rates.
- Teens and drivers with poor driving records are unlikely to find car insurance under $100 due to higher risk.
Can I get car insurance under $100 a month?
You may be able to get car insurance for $100 a month, but it depends on various factors, including your state and your coverage limits. Your state and its laws play a significant role in determining your insurance premiums.
Rates can vary widely by state and even by ZIP code. They’re influenced by accident rates, traffic density and the frequency of insurance claims in the area. Living in an area with fewer accidents and claims can help keep your insurance costs lower.
Choosing the minimum coverage required by your state can lower your monthly premium. However, experts recommend getting more than the state minimums because minimums don’t provide much financial protection if you’re at fault in a costly accident.
Additionally, taking advantage of discounts offered by insurance companies, such as those for bundling policies or having a good driving record, can help.
Which companies offer car insurance for less than $100 per month?
Though your insurance rates will ultimately depend on personal factors, some companies offer cheaper rates than others.
You can get liability-only car insurance for $100 per month with a coverage limit of 100/300/100. These limits mean the following:
- $100,000 per person in bodily injury liability
- $300,000 total for injuries in an accident
- $100,000 property damage liability
While a liability-only policy of 100/300/100 isn’t one that people traditionally pick, it’s a great option if you have an older vehicle that’s not worth a ton but you want plenty of liability protection.
Adding collision and comprehensive coverage will increase the monthly premium, but the extra cost is worth the added protection. Full coverage not only covers liabilities but also helps with repairs or replacement of your car, giving you peace of mind in case of accidents or other incidents.
The table below shows the companies that offer liability car insurance with limits of 100/300/100 for less than $100 monthly and how much extra you’ll have to pay for comprehensive and collision coverage.
| Company | Liability-only (100/300/100) | 100/300/100 with coll/comp deductible | $ difference |
|---|---|---|---|
| Nationwide | $58 | $129 | $71 |
| Travelers | $60 | $134 | $74 |
| GEICO | $56 | $147 | $91 |
| State Farm | $63 | $165 | $102 |
| Progressive | $68 | $166 | $98 |
| Farmers | $94 | $199 | $105 |
| Allstate | $80 | $209 | $129 |
| USAA | $42 | $115 | $74 |
Regional insurers that offer full coverage car insurance for $100 a month
Based on data from CarInsurance.com, the following regional car insurance companies offer full coverage car insurance rates at around $100 per month. These rates are for a full coverage policy with limits of 100/300/100 and $500 collision/comprehensive deductibles.
| Company | Average monthly rates |
|---|---|
| American National | $69 |
| Grange Insurance | $82 |
| Oregon Mutual Insurance | $96 |
| Virginia Farm Bureau | $97 |
| North Carolina Farm Bureau | $101 |
Full coverage refers to a policy that includes liability insurance, any other coverage required by law and comprehensive and collision coverages, which carry a deductible. Full coverage car insurance offers the most protection and is generally recommended unless your car is low value.
How do you lower car insurance rates to less than $100 per month?
If you haven’t found auto insurance coverage for under $100 a month, you’re not out of luck yet. There are a few steps you can take to help lower your rate.
- Shop around. Your first step should be getting several quotes and comparing different insurance carriers to see what they offer. You can do this online. Even if you’re happy with your current insurer, it doesn’t hurt to check out competitors’ rates every six months or annually to see if you could pay less.
- Increase your deductible. The deductible is the amount you pay out of pocket before your insurance coverage kicks in when you file a claim. If you can afford it, carrying higher deductibles for comprehensive and collision coverage can reduce your monthly premium. But make sure you have your deductible amount in savings – you’ll be responsible for it if you have to file a claim.
- Update your mileage. Maybe you work from home now and no longer have a long commute. If you’re driving less, call your insurer and let them know. Your rate should drop as a result.
- Ask about other discounts. Policy, driver and vehicle discounts can help you save money on car insurance.
- Downgrade your coverage. Though you shouldn’t skimp on comprehensive coverage just to get cheap insurance, one way to reduce your monthly premium is to skip the extras like towing and labor or rental car reimbursement.
“Some ways to lower car insurance rates to less than $100 per month are to increase deductibles, decrease coverage, shop for discounts, bundle policies, maintain a clean driving record and consider telematics programs that reward safe driving,” says James Brau, Joel C. Peterson professor of finance at Brigham Young University. “If you have kids or are a student yourself, have them study to get that good-student discount and maybe a scholarship down the road to boot.”
Which factors affect car insurance rates?
There are many factors that auto insurers consider when setting their rates. If you’re looking to get cheap auto insurance, particularly for less than $100 per month, keep these in mind:
- Driving record. A clean record without tickets or accidents will help you secure the lowest premiums possible.
- Mileage. The more you drive, the more you risk an accident and therefore will pay higher rates.
- Where you live: Risk is also based on location, so states and ZIP codes where crime and accidents are more prevalent have higher insurance costs.
- Age. Young, inexperienced drivers are much riskier to insure and pay more for coverage.
- Gender. Teenage male drivers pay higher rates than teenage females. As drivers age, this evens out.
- Type of car. The vehicle you drive will also impact your rate. An older, less expensive vehicle like a sedan will typically be cheaper to insure than a sports car or luxury vehicle.
- Creditworthiness. Car insurance companies evaluate credit because drivers with lower credit scores are more likely to file claims, making them high risk, which influences their insurance premiums. However, this isn’t allowed in every state.
- Type of policy and coverage level. Finally, the details of your policy and how much coverage you have will impact the price. A minimal liability-only policy will be significantly cheaper than a full coverage policy with additional riders or endorsements since the insurer must pay out much less if you’re in an accident.
Types of car insurance coverage available for $100 a month
A $100 monthly budget will likely cover liability insurance but will have limited additional coverage options. Here’s what you can realistically expect for $100 a month:
- Liability insurance: Covers medical expenses and lost wages for others if you’re at fault in an accident. Liability insurance also covers the cost of repairing or replacing another person’s vehicle or property that you damage.
- Uninsured/Underinsured motorist coverage: Some states require uninsured/underinsured motorist coverage; it can be included in a $100 monthly budget, though the limits might be minimal.
- Personal injury protection (PIP): In states where personal injury protection coverage is required, you might be able to include a basic level of this coverage within your budget.
How much does 50/100/50 liability-only car insurance cost per month?
Based on CarInsurance.com’s data analysis, liability-only car insurance costs $54 per month for a coverage limit of 50/100/50.
These limits mean the following:
- $50,000 per person in bodily injury liability
- $100,000 total for injuries in an accident
- $50,000 property damage liability
If you’re looking for liability-only coverage, which only pays for damage you cause to other vehicles and property, you have many options from national insurers. Here are the cheapest companies for 50/100/50 liability-only coverage:
| Company | Average monthly rates | Average annual rates |
|---|---|---|
| GEICO | $47 | $560 |
| Travelers | $54 | $646 |
| Nationwide | $54 | $651 |
| State Farm | $54 | $651 |
| Progressive | $59 | $709 |
| Allstate | $71 | $854 |
| Farmers | $83 | $991 |
| USAA | $36 | $435 |
Note: USAA offers its services only to military members, veterans and their families.
These rates are based on a 50/100/50 policy, which provides slightly more protection than what is required under state laws in most cases.
What’s the monthly cost for state minimum insurance coverage?
According to CarInsurance.com’s rate analysis, state minimum coverage costs an average of $42 per month or $502 a year.
The state minimum limits aren’t advised for most drivers as they don’t provide much financial protection in case of an accident. CarInsurance.com recommends liability limits of 100/300/100.
If you’re looking for bare-bones coverage and the cheapest possible car insurance premiums, these major companies offer policies that meet your state’s minimum liability limits required to drive legally for under $100 per month:
| Company | Average monthly rates | Average annual rates |
|---|---|---|
| GEICO | $34 | $405 |
| State Farm | $42 | $502 |
| Travelers | $43 | $518 |
| Nationwide | $44 | $532 |
| Progressive | $46 | $549 |
| Allstate | $58 | $700 |
| Farmers | $58 | $701 |
| USAA | $28 | $335 |
Note: USAA offers its services only to military members, veterans and their families.
FAQ: Car insurance for less than $100 per month
Is $100 a month for car insurance a good price?
The average annual rate for 100/300/100 coverage with comprehensive and collision coverage and a $500 deductible is $1,895 or about $158 per month. So, if you can find a policy for less than that, it would be a great rate.
Should you opt for liability-only coverage to save on car insurance?
Opting for liability-only coverage can help you save money on car insurance, especially if you drive an older vehicle with a low market value. This type of coverage will pay for damages you cause to others but leaves you responsible for any repairs to your own car in the event of an accident, theft, or other incidents.
While it’s a cheaper option, consider whether you can afford to replace or repair your vehicle out of pocket if needed. If you drive an expensive or new vehicle, it’s wise to opt for higher liability limits and also get comprehensive and collision insurance to protect your investment.
The average rate for state minimum coverage is $502 or about $42 per month. But that doesn’t mean you should – liability coverage only covers the property and injuries of others if you’re in an at-fault accident – it doesn’t cover your vehicle.
Can you get full coverage for $100 a month?
While it is possible to get full coverage for $100 a month, it largely depends on factors including your location, driving record, vehicle type, age and insurance company. In some areas, drivers with clean records may find policies in this price range. However, in many cases, full coverage typically costs because it includes comprehensive and collision.
Can new drivers get car insurance for $100 a month?
New drivers, especially teens or those without previous driving experience, pay higher insurance premiums due to their lack of driving history and higher risk. New drivers are unlikely to find car insurance for $100 a month. However, they may reduce costs by taking advantage of discounts or being added to a parent’s policy.
Can teens get car insurance for less than $100 a month?
Teens are unlikely to get car insurance for under $100 a month. Insurance companies consider teens high-risk, leading to higher premiums. Families can explore discounts for good students, safe driving courses, and bundling policies to lower costs, but reaching a $100 monthly premium is still unlikely.
Can seniors get car insurance under $100 a month?
Seniors may find getting car insurance for under $100 a month easier than teens or new drivers. Insurance companies often offer discounts for mature drivers, especially those with clean driving records and low annual mileage. Additionally, many insurance providers offer senior-specific discounts, making it possible for some seniors to obtain affordable rates.
Is $100 a month car insurance available for high-risk drivers?
High-risk drivers, such as those with multiple traffic violations or accidents, typically face higher insurance premiums. Finding car insurance for $100 a month in this category is challenging. High-risk drivers can look for specialized insurers and work on improving their driving records to lower their premiums over time.
Final thoughts on the monthly cost of car insurance
Cost is an essential factor when it comes to car insurance, but it can’t be the only consideration. Maintain coverage limits that protect you, your property and your family in the case of an accident.
“You could opt for liability-only coverage, which can save on car insurance, but it can be a risky trade-off. It provides minimal protection and may not cover damages to your own vehicle, making it more appropriate for older/cheaper cars or if you’re on a tight budget,” Brau says.
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CarInsurance.com commissioned Quadrant Information Services to pull car insurance rates in 2023 for a 40-year-old male and female driver with a clean driving record and good insurance score. To evaluate the rates, we have compared 53,409,632 insurance quotes from 170 national & regional insurance companies across 34,588 ZIP codes in the U.S.
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