Although it’s an expense most drivers have to deal with, you don’t necessarily have to pay a lot for car insurance. In fact, 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.
- Car insurance rates vary based on your personal factors and the company, though it’s possible to get a policy that costs less than $100 per month.
- Liability-only coverage is generally the cheapest option for auto insurance, though it may not provide enough protection.
- Full coverage auto insurance is more expensive, but some top insurers do offer rates below $100 per month.
Which companies offer car insurance for less than $100 per month?
Though your insurance rates will ultimately depend on the personal factors outlined above, some car insurance companies offer cheaper car insurance rates than others.
How much does full coverage car insurance cost per month?
According to CarInsurance.com data, companies car insurance rates around $100 a month for full coverage are listed below. These rates, based on 2022 data, are for a policy with limits of 100/300/100 and a $500 deductible.
- Nationwide: $1,190 per year; $99.17 per month
- USAA: $1,192 per year; $99.33 per month
- Erie: $1,254 per year; $104.50 per month
- Geico: $1,266 per year; $105.50 per month
- American Family: $1,362 per year; $113.50 per month
- Auto-Owners: $1,406 per year; $117.17 per month
- State Farm: $1,436 per year; $119.67 per month
Full coverage refers to a policy that includes liability insurance 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 not really valuable and you have few assets or savings.
How much does 50/100/50 liability-only car insurance cost per month?
If you’re looking for liability-only coverage, which only pays for damage you cause to other vehicles and property, you have many options available from national insurers.
Here are the cheapest companies for 50/100/50 liability-only coverage:
- USAA: $369 per year; $30.75 per month
- Erie: $386 per year; $32.17 per month
- Geico: $423 per year; $35.25 per month
- Auto-Owners: $445 per year; $37.08 per month
- State Farm: $545 per year; $45.42 per month
- Nationwide: $589 per year; $49.08 per month
- American Family: $625 per year; $52.08 per month
- Travelers: $642 per year; $52 per month
- Allstate: $668 per year; $55.67 per month
- Progressive: $682 per year; $56.83 per month
- Kemper: $869 per year; $72.42 per month
- Mercury: $916 per year; $76.33 per month
- Farmers: $956 per year; $79.67 per month
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?
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:
- USAA: $294 per year; $24.50 per month
- Geico: $326 per year; $27.17 per month
- Erie: $334 per year; $27.83 per month
- Auto-Owners: $355 per year; $29.58 per month
- State Farm: $432 per year; $36 per month
- Nationwide: $495 per year; $41.25 per month
- Travelers: $531 per year; $44.25 per month
- Progressive: $551 per year; $45.92 per month
- Allstate: $555 per year; $46.25 per month
- American Family: $563 per year; $46.92 per month
- Kemper: $694 per year; $57.83 per month
- Mercury: $719 per year; $59.92 per month
- Farmers: $751 per year; $62.58 per month
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 claims will help you secure the lowest premiums possible.
- Mileage. The more you drive, the more you are at risk of being involved in an accident.
- 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.
- 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 higher credit scores tend to have better driving records.
- 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 since the insurer will be required to pay out much less if you’re in an accident.
How do you lower car insurance rates to less than $100 per month?
If you haven’t been able to find auto insurance coverage for under $100 a month, you’re not out of luck quite yet. There are a few steps you can take to help lower your rate.
- Shop around. Your first step should be to get several quotes and compare different insurance carriers to see what they have to offer. This can easily be done online. Even if you’re happy with your current insurer, it doesn’t hurt to check out competitors’ rates every now and then to see if you could be paying less.
- Increase your deductible. That’s the amount you pay out of pocket before your insurance coverage kicks in when you file a claim. If you can afford it, carrying a higher deductible for comprehensive and collision coverage can reduce your monthly premium.
- Update your mileage. Maybe you work from home now and no longer have a long commute. If you’re driving less these days, call up 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 cut down on your monthly premium is to pare back on extras.
“Things like rental reimbursement are nice to have, but if you have more than one car on your policy, you might not need a rental car in the event of an accident. That could easily save $10 or more of your policy per month,” says Josh Damico, vice president of insurance operations for car insurance marketplace Jerry.
“A general rule that I recommend is to carry enough coverage to protect your current and future assets – at least $100,000/$300,000 of liability coverage is recommended, but you may need more coverage depending on your financial situation.”
FAQ: Car insurance cost
Should you opt for liability-only coverage to save on car insurance?
It’s definitely possible to get liability-only coverage for less than $100 per month. This is the minimum level of coverage required by most states and is generally the least expensive type of insurance to carry on your vehicle.
In fact, the average rate for state minimum coverage is $511, or about $43 per month. But that doesn’t mean you should – remember, liability coverage only covers the property and injuries of others if you’re in an at-fault accident – it doesn’t cover your own vehicle.
Is $100 a month for car insurance a good price?
The average annual rate for 100/300/100 coverage with comprehensive and collision and a $500 deductible is $1,682, about $140 per month. So if you can find a policy for less than that, it would be very affordable.
You might also be interested inFinal thoughts on the monthly cost of car insurance
Cost is an important 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.
“When looking for car insurance savings, it’s important to make sure you still get the coverage you need to cover damages in an accident,” Damico says. “In general, I don’t recommend the minimum liability to customers, as you may end up paying more – the opposite of what you set out to do when you were looking for insurance savings.”
Resources & Methodology
Methodology:
CarInsurance.com commissioned Quadrant Information Services to pull rates in 2022 for a 40-year-old male driver with a good driving record. The driver has a 12-mile commute to work driving a 2021 Honda Accord LX for auto coverage data by ZIP in 2022 and full coverage insurance.
