Get Cheapest Car Insurance in 2020 with Tips from Experts

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Finding the cheapest auto insurance takes some know-how and research. Let’s face it: it’s a tedious task. You may be tempted to skip the legwork and just renew your policy without any savings.

But don’t fret. By making a few, smart decisions, you can find the cheapest auto insurance for your situation, and not compromise the coverage you need to protect yourself financially.

Here we’ll show you how. Comparing car insurance quotes from multiple insurance companies is the most effective way to get cheap car insurance. Our team of insurance experts researched car insurance quotes fielded from major companies for different driver profiles and coverage levels to find the most affordable car insurance rates. The data below show average costs broken down by different variables to highlight factors that might increase or decrease your rates, and to give you an idea of what you can expect to pay.

Who has the cheapest auto insurance?

In our research we found that Geico is the cheapest car insurance company for both full coverage and state minimum coverage policies, among those surveyed by our expert editorial team.

Below, you’ll see the top 5 cheapest car insurance companies listed with their average rates for coverage. Geico was the most affordable among the insurers researched,  and the rest of the companies are all within a $100 of each other. The same holds true when looking at how car insurance companies rank on price for just state required minimum coverage.

Getting cheap car insurance the smart way

Who doesn’t want to get the best deal they can on car insurance? Everyone loves a bargin. And yet, you don’t want to buy cheap car insurance and then be worried that you aren’t sufficiently covered. Cheap car insurance should never be just about price – it means finding the coverage you need at a cost that fits your budget. Our editors and consumer analyst will show you how to find car insurance that has the best value for you at a price that will still net you savings.

When looking for cheap car insurance comparing car insurance quotes to see which car insurance company is the cheapest will save you the most. Rates differ by hundreds of dollars among companies, which is why it literally pays to shop around. For instance, our experts conducted a rate analysis and found the following potential savings, or the difference between the highest and lowest price, for the same policy:

• State minimum liability – average savings of up to 153 percent, or $497
• Full coverage – average savings of up to 138 percent, or $1,127

When broken down by state, savings are even more significant in some cases. For full coverage, drivers in states with the highest average savings can trim $2,000 to $3,000 from their premium just by comparing rates and opting for the lowest one. But even in states where the savings are much lower, you can still avoid overpaying by $350 to $600 -- a 40 percent to 70 percent savings. Read more about average car insurance savings by state

Cheap insurance companies by state

If you’re wondering who has the cheapest auto insurance near you, our rate data can help. Here we show average car insurance rates from major insurers, ranked from least to most expensive, for every state, for a full coverage policy. Geico was the cheapest car insurance company in 37 states. In the table below, you can see how companies rank in your state, from cheapest to most expensive.

Cheap insurance for high-risk drivers

You can still find affordable car insurance even if you’ve had an accident, or have been ticketed for a moving violation, such as speeding, or your credit score isn’t the best it could be. Though these variables generally mean your car insurance company will hike your rate, you can still save by comparing car insurance quotes. That’s because some insurance companies may increase your cost a lot, but others may not, depending on their unique underwriting formulas for pricing policies.

Who has low cost car insurance for bad credit?

Geico has the lowest rate for drivers with bad credit. If you’re looking for cheap car insurance with bad credit, you’ll see in the table below how companies compare. Note that though other companies have a lower percentage increase for bad credit, Geico has the lowest rate. Aside from comparison shopping, keeping dings off your credit history and sustaining a high credit score is one of the best ways to get – and keep – affordable car insurance rates.  Drivers with poor credit pay an average of 71 percent, or about $1,000 more for insurance than those with good credit, according to CarInsurance.com rate data. That’s higher than the premium hike (32 percent) for an at-fault accident that injures someone.

Who has cheap car insurance for drivers with speeding tickets?

Geico has the lowest rate after a speeding ticket (exceeding the limit by 11 to 15 mph) among insurers researched by the experts at CarInsurance.com. Tickets for moving violations affect what you pay for car insurance, so part of keeping costs low is maintaining a clean driving record. Insurance companies check your driving history upon renewal or when you ask for quotes for a new policy, and use that information when pricing policies. Typically, it means higher rates if you’ve had a recent moving violation, such as a speeding ticket. However, each company assesses risk differently, so even with driving infractions on your record, you’ll save if you compare car insurance companies. Let’s break down average increases for speeding tickets by company:

Who has affordable car insurance for drivers with a recent accident?

Cheap car insurance after an accident claim comes only by comparing rates. Again, you'll see Geico has a high percentage increase for drivers with a recent accident, but has the lowest rate. The data below is for a recent accident claim for property damage over $2,000.

Very cheap car insurance with no deposit

To save money, drivers on a budget are often on the hunt for insurance coverage that they can get at a low price (or cheap) that does not require a first payment  (or deposit). But you can’t get insurance without making a first payment, which is often referred to  mistakenly as a deposit. That’s because the first payment is sometimes a bit more than the rest of your regular payments.

The term “no-deposit insurance,” is not an official type of coverage or policy. Rather, the term is used by drivers seeking car insurance coverage that won’t require a pricey first payment. Here’s how it works: you must always make a payment to the car insurance company to put your coverage into effect. The amount of the first payment you make, if you choose to spread out your payments monthly, will vary depending on your age, location, driving history and other factors. In many cases, the first payment will be more expensive than subsequent payments, and this is what is referred to as deposit or down payment.

How to get cheap car insurance quotes: best times to comparison shop

Comparing car insurance rates can help you save hundreds of dollars. That’s because each car insurance company uses its own formula to calculate rates. This means the same policy can have prices that vary significantly among insurers. While there are many factors that influence how much you pay, the life changes listed below are chief among those that can bump your rate up or down significantly. Penny Gusner, senior consumer analyst for CarInsurance.com, suggests comparing car insurance quotes to find the lowest rates at least once a year -- but certainly at these times, when your rates are most likely to change dramatically:

• Purchasing a car
• Putting cars on a multi-car insurance policy
• Adding or removing a driver from a policy
• Marriage or divorce
• Moving
• Adding a teen driver
• Buying a house
• DUI or major violation
• Accident
• Change in credit score

The best car insurance isn’t always the cheapest

Everyone loves a bargain, but you should also consider customer service along with price when comparing car insurance companies. CarInsurance.com’s experts fielded a survey of 3,700 customers, yielding the following results, with all scores out of 100. Our best car insurance companies guide has more detailed rankings that show how the top 20 largest car insurance companies rank on metrics of customer service, claims handling, value and website/app functionality.

7 tips that could reduce your rates and get you affordable car insurance

Gusner offers the following expert tips to help you find low cost car insurance without sacrificing coverage.

• Discounts: Be sure to have all car insurance discounts for which you qualify applied to your coverage. Common auto discounts include those for buying car and home insurance from the same company, paying in full, paying online, insuring a new vehicle, having certain safety features, having more than one car on a policy, continuing coverage for several years with the same company, having a clean driving record for a set number of years and driving few miles.
• Hike your deductible: Another way to get low cost auto insurance is to increase your deductible. This will typically lower your rate. Just be sure to have the cash on hand to pay out the deductible should you need to file a claim.
• Comparison shop at least upon renewal: Compare car insurance quotes at least upon renewal of your policy.
• Check your driving record for accuracy, fix any errors: It’s important to check your driving record and fix it if you see any errors before shopping for coverage because a clean driving record generally means low cost car insurance.
• Check safety ratings and buy a vehicle that’s considered safe by insurance companies: One factor considered when pricing your policy is the type of car you drive. Safer cars have fewer accidents, so generally are cheaper to insure.
• Buy just the coverage you need if you have an old car and few assets: If you don’t own a home, have much savings or a retirement fund, and your car is worth less than $3,000, buying just standard (50/100/50) or state minimum liability coverage is usually sufficient.
• Work diligently to fix bad credit: Here’s how to improve your credit-based insurance score to get cheaper car insurance rates:
• Pay your bills on time. Late payments and collections will hurt you.
• Don’t max out your credit cards. Keep your credit card balances low. The insurance score considers the amount you owe in relation to your credit limits.
• Don't open new credit card accounts. Too many new accounts signals trouble to insurers.
• Don’t cancel all your credit cards. The longer you maintain a decent credit history, the better. Having no or little credit history will lower your score.
• Check the accuracy of your credit report; errors will hurt your score. You can request free copies of your credit reports from the three national credit reporting agencies through AnnualCreditReport.com. Follow directions from the agencies to fix any errors.
• If you're struggling financially and can’t pay your bills, get professional finance advice. You can find free or low-cost help through the nonprofit National Foundation for Credit Counseling.

When you should (and should not) buy cheap car insurance

You might be wondering when it makes sense to buy bare-bones coverage and when you should really buy more insurance to ensure you are financially protected. Going with the minimum liability car insurance required by your state is rarely recommended. The amount of coverage required by state law is low, which means even a minor accident can exceed the amount your insurer will pay out. "You should be careful to have adequate coverage to fully protect your vehicle and other assets so you don't get stuck with out-of-pocket expenses," says Gusner. But there are a few scenarios in which having minimum coverage may be a good strategy. Here are four:

1. Your car is old and not very valuable, so you skip comprehensive and collision

Collision coverage pays to repair your car if you're in an accident. Comprehensive coverage pays to replace your car if it’s stolen and pays for damages from fallen objects, like a tree, and from fire, floods, animal strikes and vandalism. Both of these types of protection are optional. Comprehensive and collision only pay out up to the actual cash value of your car. That’s why these coverages may be unnecessary if the vehicle isn't worth much.

"This is especially true for a car that you aren't driving as much, such as an extra car that sits most of the time and you want to pay as little as possible for insurance," says Gusner. “If you are looking to save to buy a newer car, then by dropping down coverage to state minimum you can put away the money saved for the replacement car."

William Harris, an independent insurance agent in Los Angeles, echoes Gusner, but points out the consequences. "Dropping comp and collision could be reasonable, but remember that, if it's your only car, you'll have to pay for any body work or be prepared to drive around a car that looks like a wreck."

2. You don't drive very much.

If you log few miles on your car, Gusner says minimum coverage may suffice, simply because the less you drive, the less risky your driving experience will be.

"If you are retired, work from home or otherwise don't drive much, then dropping liability coverage to the lowest possible limits can save you money," she says. "You aren't as likely to be in an accident as someone who commutes to and from work each day or drives for work."

She adds that consistently driving few miles each year will likely snag a low-mileage discount.

3. You don't have a home, big savings or other assets to protect.

If you're in an accident, the other driver or drivers can sue you to cover damages beyond what your insurer pays out, which puts all your assets at risk. But if you don't have any assets to target, it's less likely you'll be sued, says Gusner.

But that comes with a strong warning: "Just because you don't have much doesn't mean a lien can't be placed against you, or that your license and registration can't be suspended if you cause an accident and can't pay for all damages," Gusner says. "If you don't want to end up in that type of situation, then it's wise to buy higher liability limits if you can afford it."

4. You want to wait until dings are off your record and full coverage becomes cheaper.

Points are placed on your traffic and insurance record for most moving violations and accidents that are your fault. These points figure into the mix that insurers use to determine how much you pay. High-risk drivers mean higher risks for insurance companies and higher rates for you if you have a less-than-stellar driving record.

These points usually follow you for a few years. Esurance, for one, says moving violations will be used when setting premiums for three years, which gives motorists the opportunity to get lower rates after that time. Most insurers follow similar guidelines.

Until your rates drop, however, you may decide to buy only minimum liability insurance to save money, Gusner says.

"Insurance may be costing you more than average due to violations or accidents on your record," she explains. "While it's always wise to carry higher liability limits if you can, carrying bare-bones basic car insurance is better than nothing. Try to work on keeping a clean record and within three years your rates should drop so that you can afford higher limits."

There are other ways high-risk drivers can find affordable rates. One way to keep costs low is to buy a policy from a company that sells the majority of its policies to high-risk drivers. A company that provides coverage to just a few high-risk drivers will generally charge you more than a company that specializes in high-risk drivers, Gusner says. Typically, car insurance companies that cater to high-risk drivers offer policies with limits. For instance, they may just cover you, and not those you lend your car to, which helps keep their rates low.