Teen Drivers: 10 Things You Must Know About Your First Car Insurance Policy

  • Car Insurance

You’ve got your license and your first car, now it’s time to get your first car insurance policy. The problem is, car insurance for teen drivers is expensive and as you’re approaching it without a great deal of experience or knowledge behind you, it can also be confusing. 

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To help you get the best auto insurance as a new driver, keep these ten top tips in mind.

1. You Will Pay More

It doesn’t matter how good of a driver you think you are or how much you try to convince them that you’ll be safe on the roads, as a teen driver and a new driver, you will pay more.

Auto insurance, like all forms of insurance, is about probabilities. A life insurance company sets your death benefit and insurance premiums based on the likelihood that you will die during the term. If there is a high likelihood, your premiums will increase your death benefit will decrease. It is a similar story with car insurance, only this time they’re measuring the probability of you making a claim.

The underwriters will look at your age, gender, job, and driving experience and then compare these to the national average to determine how likely you are to claim. They know, for instance, that inexperienced drivers are significantly more likely to be involved in an accident. They also know that the risk increases greatly for drivers under the age of 20.

Simply put, you will pay more because drivers your age and experience level cost the insurance company more.

2. Good Grades Can Help

An A or B average could net you a sizeable discount on your car insurance discounts. Known as good student discounts, these encouraged students to perform well and, in some cases, it can shave as much as 25% off your premiums.

Insurance providers differ with regards to what sort of discounts they provide and how big these discounts are, but if you have the grades and you shop around, you will find a good student discount.

3. Driver Education Can Help

Driver’s education courses can save you money on your auto insurance premiums. Defensive driving courses, in particular, could net you some sizeable discounts, as it proves that you’re committed to improving your driving habits and staying safe on the road.

Take a training course, prove you’re a safe driver, and reduce that “high-risk” tag and you could save a lot of money on your premiums.

4. Your Vehicle Can Make a Big Difference

A flash sports car will always cost more than a safe car fitted with a host of safety features and anti-theft features. The former is much more likely to be involved in fatal crashes and other costly incidents, which increases the risk and drives the costs high.

Think about what kind of car you’re driving. Not only can you save yourself a few grand by purchasing a cheaper, safer car, but you’ll also save a small fortune on your premiums.

5. You Can be Added to a Parent’s Policy

It may be much cheaper for you to be added to your parent’s policy than to get a policy of your own. Your parents’ policy premiums will increase, but it will be a much cheaper option for the family than getting a brand-new policy.

Make sure you get quotes for your own policy and a separate policy, seeing which one is cheapest.

6. College Could Save You

If you leave your car at home when you go to college and you spend most of your time on campus, you can get discounts on your premiums. If

Source: pocketyourdollars.com

How to Get the Best Car Insurance Discounts

  • Car Insurance

Car insurance rates can be impacted by everything from your driving record to your age, and as you get older and more experienced, you may be entitled to auto insurance discounts. These discounts are often available when you renew, but you can also take advantage of them before you apply.

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In this guide to car insurance discounts, we’ll tell you what discounts you’re likely to be entitled to, how you can get them, how much they can save you, and more. 

Car insurance quotes can be astronomically high for some applicants, but armed with this advice you can bring those rates down and shave tens and even hundreds of dollars off your policy.

What are Car Insurance Discounts?

​Auto insurance companies base their prices on a series of risks and probabilities. They use statistics to determine the likelihood of each applicant applying, and this allows them to earn a profit when all policyholders have been considered.

If you’re young, drive frequently, and have a history of road traffic accidents, you’re a higher risk as you’ll likely cost them more over the term. If you drive less, claim less, and reach an age where you’re deemed to be low-risk, you will cost them less so they can save you more.

In some states, a driver discount is required by law. State law requires these benefits to be offered to encourage good driving, as many policyholders take their driving records very seriously.

What Types of Discount Can You Get?

There are many types of car insurance discounts available, all of which can help you to save money on your insurance policy. These discounts relate to everything from your driving record to your loyalty and more.

Driving Record

You can get better rates if you can prove that you’re a low-risk driver, which typically means you have driven for several years without claims. A good driver who has never been in a car accident can shave over 25% off their insurance premiums. The types of discount and potential savings include:

  • No Accidents (up to 25%): You need to be accident-free for at least 3 years. However, this only applies to chargeable or no fault accidents, which is essentially an accident for which the insurance company needs to payout.
  • Low-mileage (2%): If you drive between 5,000 and 15,000 miles a year, you could qualify for a low-mileage car insurance discount.

Age and Gender

Driving habits are closely tied to your age and gender. A man between the age of 16 and 18 is significantly more likely to be involved in an accident than any other demographic. And that’s not the only difference, as the likelihood of claiming decreases for each decade until a certain point, after which it begins increasing again.

You can save huge sums of money by changing your provider or your policy as you age, and all this stems from the following car insurance discounts:

  • Good Student Discount (up to 25%): Work hard in high school and college, secure some good grades and you could qualify for a good student discount, reducing your policy by anywhere from 15% to 25%.
  • Students Away from Home (up to 30%): Students who study a long way from home (typically over 100 miles) can qualify for discounts as they are less likely to use the vehicle.
  • Homeowner Discount (up to 15%): Homeowners are deemed to be more responsible than renters. This might seem a little harsh, but it all comes back to statistics and they suggest that you’re less likely to claim if you own your own home.
  • Low Income (varies): Car insurance companies are required to offer discounts for policyholders in low-income employment, and these discounts can differ considerably.
  • Senior (up to 35%): Car insurance companies are also required to offer discounts to applicants aged over 65, even though the risk of claiming on an auto insurance policy increases above the age of 60.

Brand Loyalty

Many companies offer loyalty discounts these days and your insurance provider is no different. You can save money on your auto policy just because you have stuck by a single provider for a number of years, with discounts for all the following:

  • Multi-Policy (up to 10%): You can get a multi-policy discount when you purchase several different insurance options from the same company. Speak with an insurance agent to discover how much you can save by combining homeowner’s insurance, car insurance, and more from the same company. The biggest car insurance providers (GEICO, Allstate, State Farm) provide numerous options. This is also known as “bundling”.
  • Multi-Car Policy (up to 25%): Add all the drivers in your home onto the same policy. This can make things complicated if you have young drivers on the policy, but it’ll be cheaper than if you were to get separate policies for them. A multicar discount could net you a saving of up to 25% on comprehensive coverage, so it’s well worth looking into.
  • Renewal (up to 10%): Renew with the same provider at the end of the term and they might offer you a discount, offsetting the extra cash you might spend by going elsewhere.

Driver Training and Safety Features

Everything from training courses to safety equipment can reduce your likelihood of claiming. And this goes beyond seat belts, airbags and the insistence that your driving is better than average. You need to make a concerted effort if you want to secure some serious safe-driver discounts:

  • Anti-lock Brakes (10%): An important safety feature that could reduce your car insurance policy by as much as 10%.
  • Anti-Theft Features (up to 20%): Theft is a common occurrence, with roughly 230 thefts for every 100,000 car owners. This simple feature could net you some vehicle discounts by reducing the likelihood of your car being stolen.
  • Green Car (10%): Driving a green or hybrid car can save you money on gas while also reducing your auto insurance premium.
  • New Car (10%): Newer cars are more likely to have an anti-theft device installed and also offer better safety features and other benefits. They are less likely to breakdown, as well.
  • Airbags: While we joked that you won’t receive a discount just because your car has airbags, there is an exception. You may require more car insurance coverage if you have an old car with no airbags, but if you have factory-installed airbags in an old car you can save on this feature. This discount is also known as passive restraint.
  • Driving Training (Varies): Take a defensive driving course to prove you can handle yourself better. A defensive driver is less likely to claim and the money you save by taking this course is likely to offset its cost.


Simply being associated with certain companies or associations can reduce your auto insurance premiums, as outlined below:

  • Company Affiliation (up to 25%): Membership clubs, schools, and workplaces may have discount programs in place to help you save.
  • Military (up to 90%): Military vets can save up to 10%, but this increases significantly for anyone actively employed, with discounts going as high as 90%.

Payment Options

A few simple adjustments to the way you pay for your car insurance premiums could net you a substantial saving on your policy.

  • Auto-Pay (Varies): Schedule an auto-pay to ensure you never miss a payment and your provider may give you a percentage discount or some cash back.
  • Paperless (3%): Go paperless to reduce waste and to save your auto insurance provider a few dollars in the process. There really is no need to get paper statements in this day and age, so this is something that every policyholder should consider.
  • Paid in Full (up to 10%): If you pay your annual policy up front you may be offered a sizeable discount. These discounts are nearly always provided by subscription services as it keeps you locked in and allows them to collect all the cash straight away. By offering you a discount, they can pass some of the savings on.

How Much Can I Save?

We have given you a few examples of how much you can save, but that’s all they are, examples. You shouldn’t take this as fact and assume that your provider will offer you these discounts. 

Talk it through with them or with your insurance agent, see what discounts they can offer you, and if you’re not happy with what’s on the table then don’t be afraid to look elsewhere.

You can also improve your auto insurance quote by increasing your credit score and shopping around for the best car insurance. There are dozens of major providers nationwide and once you factor the smaller players into the equation that number stretches well above 100. Don’t assume that you’re getting the best offer possible just because the same company has offered you a good rate for other types of insurance.

It’s also worth noting that the cost will be impacted by your location, with car insurance prices and discounts differing considerably from state to state.

Source: pocketyourdollars.com

Cheapest Cars for Car Insurance

  • Car Insurance

It’s your first car; your first foray into the automotive world. You’re excited, eager, and you spend your time looking for cars that you can show off to your friends, cars made for speed, power, performance.

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But none of those things really matter when you’re buying your first car. Your main goal should be function and cost; a car that can do what you need it to do without costing the earth. And when price is your priority, car insurance is just as important as fuel economy and maintenance, potentially saving you up to 50% on your premiums.

The Cheapest Cars for Car Insurance

Before we look at the types of cars that insurers prefer, the types that offer the cheapest rates, let’s focus on the cars that are consistently generating the lowest insurance quotes.

Most of these vehicles are SUVs, as they score the highest average ratings in safety tests, but once you venture outside the top 10, you’ll find some sedans and luxury cars as well.

  1. Honda Odyssey: A highly rated minivan with a retail price that begins at around $31,000.
  2. Jeep Wrangler Sport: A sporty, convertible SUV with an average cost of around $35,000.
  3. Subaru Outback: A powerful SUV with a suggested retail price of less than $30,000.
  4. Mazda CX-3 Sport: A low-cost, powerful and sleek subcompact SUV.
  5. Honda HR-V: A 1.8l SUV that begins at less than $21,000.
  6. Honda CR-V LX: Another safe and affordable Honda SUV.
  7. Jeep Renegade Sport: A cute and powerful Jeep for less than $23,000.
  8. Ford Escape: Compact, with an engine size ranging from 1.5l to 2.5l.
  9. Subaru Forester: 182 horsepower and an MSRP of less than $25,000.
  10. Jeep Compass Sport: Yet another stylish Jeep. This one packs 180hp into a compact design.

Other Cars

The aforementioned vehicles aren’t the only ones that come with low car insurance quotes.  The Subaru Crosstrek, Jeep Cherokee, Nissan Frontier, GMC Canyon, and Chevrolet Traverse are all up there, and you’ll also get good deals on a host of other reliable vehicles, such as those manufactured by Hyundai, Fiat, Kia, and Toyota.

But as soon as you venture into sports car territory, such as more expensive vehicles made by the likes of Mercedes, Porsche, BMW, and even the higher-end car models offered by Nissan (Nissan GT-R) and Ford, those car insurance premiums increase.

How Are Car Insurance Rates Calculated?

The goal of all insurance companies is to ensure that premiums are higher than projected costs. Underwriters use a series of statistics to calculate these premiums, knowing that probability is always on their side.

This is true for all types of insurance and allows these companies to operate at a profit even in the face of extreme outliers and exceptions. With term life insurance, for instance, they’ll look at your age, sex, medical conditions, and smoking status to predict if you are likely to die during the term; with homeowner’s insurance, it’s all about the risk factors in your area, as well as the size and cost of the house.

Where auto insurance is concerned, there are many factors that insurers can consider and these either revolve around you or your vehicle. They know, for instance, that a driver under the age of 18 is more than twice as likely to have an accident than a driver over the age of 18. They also know that renters and individuals with low credit scores are more likely to be involved in an accident.

Many of these factors can’t be influenced by the policyholder. They can promise to drive safely and insist they are not as reckless as their peers, but until they have established a long and clean driving record, the insurer won’t care.

However, the policyholder can influence the risks associated with the vehicle. By choosing a safer, more sensible ride, they can win favor with the car insurance company and potentially save hundreds of dollars on annual insurance premiums.

When judging the safety of a particular vehicle, car insurance companies will consider the following:

Anti-Theft Features

New cars are fitted with a host of features designed to make criminals’ lives harder. In the old days, cars could be stolen with a wire hanger/screwdriver and a little persistence. These days, thankfully, they’re much harder to crack and these features provide insurers and owners with a little peace of mind.

Safety Features

The National Highway Traffic Safety Administration (NHTSA) applies rigorous safety tests to all new vehicles, giving them a safety rating of between 1 and 5 stars, with 5 being the highest.

The NHTSA runs collision checks to see how the vehicle fares when hit from the front or the side, while also looking at stability, air bags, tires, and additional safety features. The higher the rating, the lower the insurance premiums, at least in theory.

Repair Costs

How much does your car cost to repair, are the parts widely available, does the car have any specific features or requirements that make a mechanic’s job harder? All these things will be considered during the underwriting process.

It’s one of the reasons sports cars have higher insurance premiums. Not only are they faster and involved in more high-speed accidents, but they’re also very expensive cars to fix.


Underwriters don’t simply focus on safety ratings, repairs, and built-in features. They want to know how the car fares in the real world; how those features translate into practical costs. Generally speaking, a new car with advanced anti-theft features will be stolen less often than an older car. 

However, if the statistics suggest otherwise, for whatever reason, you may not be offered the low premiums you’re expecting. Maybe there is a serious security flaw in the car’s anti-theft mechanism, and this has resulted in a spate of thefts; maybe it’s just really popular with criminals. 

Whatever the reason, a car’s safety mechanisms are only as good as their real-world applications.

Other Things to Consider

Your driving record and type of car aren’t the only things that can impact insurance costs, nor are they the only things you can influence:

  • Driving Courses: Defensive driving courses can reduce the cost of your insurance policy as it proves you’re a capable driver and suggests you’re less likely to be involved in an accident.
  • Parking Your Car: Where you park your car on an evening can have a serious impact on your insurance premiums.

How Much you Drive: It stands to reason that a policyholder who drives for one or two hours a week is less likely to be involved in an accident than someone who spends all day on the road.

Source: pocketyourdollars.com

Cheap Car Insurance for High-Risk Drivers

  • Car Insurance

Insurance companies profit by carefully calculating probability and then accounting for it. Your insurance premiums are closely tied to your risk factors; the more at-risk you are, the higher those premiums will be. But that doesn’t mean that you can’t get affordable insurance just because you’ve had a few violations.

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What Makes you High-Risk?

You may be deemed high-risk if you have received a violation of any kind. There are minor and major violations, ranging from parking fines, moving violations and traffic violations to drunk driving and more. The most serious and destructive violations include:

Driving Under the Influence (DUI)

A DUI, also known as a DWI, can have a big impact on your car insurance premiums. It’s a citation that results in more bodily harm and property damage than any other, and it’s also connected with more death benefit payouts than any other type of driving citation, making DUIs a huge red flag for all insurance companies.

If you have a recent DUI conviction on your record, you’ll struggle to get comprehensive insurance coverage for a reasonable price, but there are a few things you can do, as discussed in our guide to Getting Car Insurance with a DUI.

Racing and Speeding

Speeding increases your risk and many insurance carriers will charge you over $100 more for every speeding ticket that you receive. If you’re charged with “Racing”, the penalties are more severe and you may be charged an additional $1,000 a year.

It only makes sense, as street racing turns you into a high-speed liability. Your car insurance premiums increase because you’re more likely to do harm to yourself, your car, your passengers, and all innocent bystanders. It doesn’t matter how good of a driver you think you are, in the eyes of an auto insurance company, you’re an expensive disaster waiting to happen.

At-Fault Accident

A car accident that was caused by you and led to significant payouts by the insurance company can have a massive impact on your auto insurance rates. 

Collision coverage and liability coverage are essential components of any insurance policy and if there is extensive property damage and motorist injuries, resulting in major repair work and liability claims, the provider will be hit with a sizable bill.

It should come as no surprise, therefore, that an at-fault accident can increase your insurance premiums by over $600 a year.

Reckless Driving

If you’re cited for reckless driving, your premiums may increase by anywhere from $300 to $1,000 a year. The risk of bodily injury and property damage increases, as reckless driving is defined as driving without care and putting yourself and others in danger.

Other High-Risk Factors

You are also considered to be a high-risk driver if you’re young and male, as young drivers are significantly more likely to claim than drivers aged 25 or older and male teen drivers are twice as likely to claim as females. That’s why young drivers pay higher car insurance rates on average.

But your demographic and driving record aren’t the only things that can prevent you from getting a cheap auto insurance policy. You’ll also be charged higher rates if you:

Have a Poor Credit History

Your credit score impacts pretty much everything that you do financially. It can reduce your chances of getting a credit card or mortgage; it can stop you from getting security clearance and securing the job of your dreams. 

Believe it or not, your credit score is also considered by your insurance provider, as studies suggest that bad credit policyholders are more likely to claim.

Live in a High Claim Area

The best safety features and the safest cars won’t matter much if the driver lives in a high claim area and drives a car that is frequently stolen. In this case, you’re paying for the mistakes of others as the insurance company tries to balance its books.

Have no Driving Experience

Your experience is key, so your driving history will always be factored into the equation when applying for car insurance quotes. If you have some experience behind you and haven’t made any claims, you can secure lower premiums. If not, you have no proof that you’re a good driver or a safe driver and will be considered a risk.

Live in Rented Accommodation

Your credit score isn’t the only surprising criteria considered by insurance carriers. They will also consider whether you are a tenant or a homeowner, with the latter offered lower premiums on average. Again, it all comes down to probability, as studies suggest that renters are more likely to claim than homeowners.

How to Get the Cheapest Car Insurance

As noted above, all insurance companies calculate risk and probability to determine how much of a liability you are. This is true for life insurance, homeowner’s insurance, and pretty much all other forms of insurance. Your goal, therefore, is to reduce that risk, keep that liability to a minimum, and make sure you look like a prime candidate in the eyes of car insurance companies.

To get cheap car insurance, therefore, just keep the following in mind and you can secure some car insurance discounts:

Choose the Right Car

A new car can reduce your premiums, especially if it comes with a high safety rating and has anti-theft features installed. SUVs have the highest safety ratings and can save you a lot of money when dealing with major insurers like Geico, State Farm, and Allstate, but there are some highly insurable sedans and smaller cars as well.

Look for the safety rating, check for an anti-theft device, and scour the rates before you buy your car.

Get Training

By completing a defensive driving course, you can prove to your insurers that you are a safe driver who knows what they are doing on the road, thus securing a lower rate than you would get if you didn’t have that all-important certificate.

Improve your Credit Score

A few points can make a big difference, netting you a policy discount and giving you more options if you ever need to apply for a new line of credit or loan. 

Multi-Policy Discount

By taking out different types of coverage with the same provider, you can benefit from bulk rates, known as “bundling”. Like a multi-car discount, you’re essentially getting wholesale rates on your insurance policies.

Providers like Progressive, Nationwide, State Farm, and Geico offer discounts when you bundle car insurance with home insurance, life insurance, and more.

Bide Your Time

Time is your friend when looking for the best car insurance rates. If you have multiple violations and you’re still a teenager, then making do without a car for a while could save you a small fortune. Not only will those violations expire, but you’ll be a little older and will therefore not be considered as much of a risk.

You’ll still be considered high risk as a new driver, but there will be significant savings to make, nonetheless.

Bottom Line: Getting the Cheapest Insurance Policy

Being high risk doesn’t mean you can’t get insured. It just means your car insurance policy will cost more than someone who has a clean driving record and ticks several other boxes with regards to the ideal policyholder. By searching, comparing, and doing what you can to decrease your liability, you can keep those insurance costs to a minimum and save hundreds of dollars a year.

Source: pocketyourdollars.com

How Much Auto Insurance to Buy?

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The average driver pays around $1,500 a year in car insurance premium, but these costs can vary greatly depending on the extent of the coverage, as well as factors such as the driver’s age, state, and driving record. But how do you know how much insurance you will need; should you opt for comprehensive coverage right off the bat or can you settle for something less, saving yourself a small fortune on premiums in the process?

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The Types of Auto Insurance

To understand how much auto insurance you need, we first need to look at the many types of coverage that can be added to your policy.

Bodily Injury Liability

If you hit and injure someone with your car, you may be held responsible. They can sue you and claim financial compensation for medical bills and lost earnings, as well as emotional and physical support. This type of coverage is essential, because if you’re hit with hefty legal bills and medical payments, you could lose your house, car, and every other asset you have.

Many auto insurance quotes include minimum liability coverage in the tens of thousands, and this is often capped at around $500,000. Liability limits are entirely up to you, but many experts recommend that you cover yourself with a minimum amount of at least $100,000.

Collision Coverage

One of the most common and essential aspects of your auto insurance policy, collision coverage will payout in the event that you hit or are hit by another vehicle. The rate you pay typically depends on the size of your deductible and the age of your car.

If you have a brand-new and high-value car, these premiums may be higher as it will likely cost more to repair. By the same token, if you have an old car, you may want to rethink the size of the deductible. There’s no point paying a $1,000 deductible if the car is only worth $1,500 or $2,000.

Property Damage Liability

Most states require a minimum amount of liability insurance for property damage, but this is rarely enough to cover you when such issues occur. In New Hampshire, for instance, the required minimum for property damage is just $25,000, but the actual cost could be much greater. An Umbrella Policy can help you here, providing extra liability cover than what is required under state law.

If you damage someone else’s property, this insurance will come in handy, so plan carefully when calculating the amount of coverage you need.

Medical Payments Coverage

In the event of a car accident that harms you and/or your passengers, medical payments coverage will ensure that medical bills are covered. The limits are often fixed at a few thousand dollars. This is the amount that each person in the vehicle can claim in the event of a car accident.

Uninsured Motorist Coverage

If you are involved in an accident with an uninsured motorist, you can get additional coverage to make up the difference, bringing their coverage to the same level as yours and ensuring you don’t lose out because of their mistakes. 

This is an important addition to your auto insurance policy, as America has one of the highest rates of uninsured drivers in the United States, with between 10% and 15% of the population said to be without even the most basic coverage.

Roadside Assistance

Drivers have multiple options when it comes to towing and roadside assistance services, but these can also be added to existing car insurance policies and provide some much-needed peace of mind. Depending on the type of policy, they may fix your car on the roadside or tow it to the nearest garage. From there, you may be offered a rental car while your own car is being fixed.

Comprehensive Auto Insurance Coverage

If your car is damaged from fire, flood or vandalism, you may not be protected by any of the policies outlined above. However, a comprehensive policy will cover you for these issues and more. This is offered by most car insurance companies and combines collision insurance, liability insurance, personal injury protection, and more, into one complete auto policy. 

Of course, because you’re getting everything under one policy, you can expect to pay much more than if you were to opt for minimum coverage.

How Much Car Insurance Do You Need?

Consider everything we’ve discussed above, speak with an insurance agent, and get some quotes to determine the best coverage limits for your needs. Car insurance coverage can vary greatly and if you’re on a tight budget you’ll need to cut corners where possible without setting yourself up for failure down the line.

Use insurance comparison sites to compare different car insurance companies and the policies they provide; speak with the experts and ask around. It’s also important to switch providers when your circumstances change. For instance, there is a massive difference between drivers aged 16 and drivers aged 18, and it could add up to tens of dollars a month. Rates also drop when you hit 25 and the older you are and the cleaner your record is, the more options you will have and the lower your premiums will be.

What are the Risks of Being Underinsured?

If you don’t have enough motorist coverage your expenses may be significantly greater when the need arises. You could be tasked with paying a higher deductible or covering most of the costs, and if you suffer from bodily injury and resulting medical expenses, those costs can spiral out of control.

Of course, this doesn’t mean you should automatically opt for all possible coverage options. It might not be possible to have too much insurance as far as your coverage is concerned, but it’s definitely possible with regards to your budget.

Summary: Your New Insurance Policy

Insurance is often essential, always expensive, and never easy. This is true for pretty much all forms, including health insurance and life insurance, but it’s also true for car insurance. The good news is that if you have made it this far, then you’ll know all you need to know about finding the best car insurance rates on your new car. 

Use the information we have provided and start looking for comprehensive insurance coverage with the best insurance companies today.

Source: pocketyourdollars.com

Life Events that Impact Car Insurance Rates

  • Car Insurance

Insurance is a numbers game. Underwriters base their rates on the likelihood of an insured making a claim; the more likely you are to claim, the higher your insurance premiums will be. It’s as simple as that. To get the best rates, therefore, you need to present yourself as a low-risk customer. 

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But what can you do to reduce this risk; what major life events are impacting your chances of getting affordable car insurance cover?


Your 18th and 25th birthday have a massive impact on your auto insurance policy. After these dates, your risk plummets, and your rates soon follow. Car insurance companies base their rates on probabilities, as discussed above, and a 16- to 17-year-old is twice as likely to have a car crash than an 18- to 19-year-old. 

At this young age, you pay a higher deductible because your insurance needs are greater, but as soon as you turn 18, you can secure lower rates and bring those car insurance costs down.

A teen driver is between 2 and 5 times more likely to have an accident and suffer bodily injury than a driver aged between 25 and 35, so car insurance costs will reduce even further once you reach 25.

The cheapest rates tend to be reserved for policyholders aged between 50 and 60. At this age, insurance premiums cost around $1,200 on average, compared to the $5,000+ paid by the average 16- to 18-year-old teen driver. However, costs begin to increase again after this age. Even if you have a relatively clean driving record, auto insurers will consider you to be a greater risk and will increase your premiums as you age.

Motorists over the age of 80 can expect to pay roughly the same as those aged between 20 and 29, for example.

Getting Married

Your marital status is considered by underwriters for most insurance policies, including homeowners insurance. Again, it’s all about probability, and statistically speaking, married policyholders carry less risk than their single counterparts. Where car insurance is concerned, this is even more poignant, as you’re more likely to use your spouse’s car. 

Your insurance company may also provide you with a multi-car discount, allowing you to save even more on your car insurance policy. Speak with your provider to discuss potential savings and benefits. 

As an example, a married couple will pay around $1,600 on average for a joint policy with Geico, and if they have more than two cars between them, they can shave up to 25% off the cost.

By the same token, however, these rates may increase if you get divorced, with the average increase being around $120 to $140.

Buying A Home

In the eyes of an insurance company, you’re more responsible when you buy a home and your rates may decrease as a result. However, the best thing about this life event is that it allows you to take advantage of multi-policy discounts. 

If you take out many different policies with the same provider, you can shave hundreds of dollars off your annual premiums and will be covered for everything from property damage to medical costs, physical injuries, vandalism, and breakdowns, all with the same company.

Buying a home also improves your chances of securing credit and it gives you more options when times are tough. Homeowners can tap into their home equity whenever they need a little cash and because they can use their home as collateral, they can also benefit from low-interest secured loans.

Buying a home is one of the biggest life changes you can make and it’s also a costly one as it leaves you with substantial and long-term debt, but it’s a decision that generally carries more positives than negatives.

Getting a Job

As an employee you can benefit from company discounts and policy offers, potentially saving on a host of insurance policies and shaving dollars off your car insurance policy. This isn’t true for all jobs and all employers, but it’s worth looking into.

Ask your employer if there is any way you can save money on your insurance and if there are any other benefits you can take advantage of.

Paying Off Debt

Repaying debt is a huge accomplishment, especially when you consider that three-quarters of all Americans will die with substantial debts and many of those will have lived with debt throughout their adult life. 

Repaying debt provides you with a little more financial freedom and is a significant weight off your shoulders, but it can also reduce the price of your auto policy by improving your credit score.

Bad credit increases your risk significantly and is factored into a lot of calculations, including job applications and security clearances.

How Much Does Car Insurance Cost?

The exact price of your car insurance policy will depend on a number of factors, from coverage limits to your age, personal circumstances, driving history, and type of car. Whether you have a new car or a used car will impact the price, but whether it has features such as emergency braking, anti-lock brakes, and airbags, will also make a difference.

Discuss your options with insurance agents, compare rates from multiple companies, and don’t forget to consider extras such as rental car expenses and collision coverage. Your goal is not to simply get the cheapest auto insurance premiums and move on. You need to think about what will happen if you ever have an accident and file a claim. If you’re cheap today you could be hit with some costly expenses in the future.

Summary: Comparison Shop and Benefit

Every time a major life event occurs, you should consider changing your insurance policy. Car insurance isn’t like life insurance or health insurance; it doesn’t increase as you age and the cheapest policy isn’t the one you’re offered at the first time of asking. If anything, the opposite is true, because as discussed above, teen drivers and young drivers pay huge premiums every month.

Comparison shop, negotiate, and don’t be afraid to look for a new provider. Car insurance companies do everything they can to compete with one another and switching is a great way for policyholders to take advantage of different circumstances and secure reduced premiums.

Source: pocketyourdollars.com

How to Get Free Car Insurance Quotes

  • Car Insurance

Choosing the right car and getting an auto loan is only half the battle. You still need car insurance coverage and finding the right insurance policy is a taxing, boring, and often expensive process. But if you keep some simple tips and techniques in mind, you can find affordable car insurance quotes and save yourself a fortune on insurance premiums. 

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How Can You Get a Free Car Insurance Quote?

Car insurance quotes should be provided free of charge. That’s not the case for all of them, but there are plenty of companies and services that will provide you with a free quote. You can then compare these quotes to help you find the best policy.

Online car insurance quotes are generally free, so if you’re being charged a fee, take your business elsewhere.

How to Find Cheap Auto Insurance Quotes

There are a few simple steps to getting a free quote and using this to secure the cheapest car insurance rates:

1. Be Prepared

To save yourself some time when dealing with car insurance companies, make sure you have some essential information, including:

  • Personal Information: You’ll need to have your basic information at hand when dealing with insurance companies. This includes your driver’s license and the details of everyone else included in the auto insurance policy.
  • Vehicle Information: Make a note of the mileage and the date that you purchased the vehicle, as well as the make and model.
  • Vehicle Identification Number (VIN): You can get the VIN from the dealer or seller.
  • Driving Record: Note down all accidents and claims, as well as any driving courses you have completed.
  • Insurance Record: Finally, many car insurance policies will insist on at least 6 months of insurance before they supply you with a new policy.

2. Understand What They’re Looking for

Knowing what car insurance companies are looking for can help you prepare and allow you to secure some cheap and comprehensive coverage. Generally speaking, the things that have the biggest impact on your quote include:

  • Age: Young drivers are significantly more likely to be involved in an accident and to make a claim, so they can expect to pay more for motorist coverage. Policies should get cheaper as you age, but this changes once you reach your 50s and you will start receiving more expensive quotes thereafter.
  • Coverage: The extent of your coverage is key to the price of your policy. Do you need roadside assistance, how much liability coverage do you need, and what other coverage options should you consider?
  • Car Insurance Discounts: A safe driver in a new car with no claims can secure some big discounts on an auto insurance policy. There are even student discounts for teen drivers and policyholders who have completed defensive driving courses.
  • Location: Your location has a major impact on the cost of your auto policy, and whether you’re in California or Hawaii, Florida or New York, could impact your policy by tens of dollars.
  • Marital Status: You’re more likely to get cheap car insurance quotes if you’re married, as you’re statistically less likely to make a claim.
  • Renter vs Homeowner: A homeowner pays less, on average, than a renter.  The difference is slight but could save you tens of dollars a year.

3. Improve Your Chances of Getting Cheap Insurance

You can’t magically make yourself a few years younger (if only!) and if you’ve already made a claim on your insurance there’s not much you can do to reverse time and undo that claim. However, there are a few ways you can reduce your premiums and bring those insurance costs down, including:

Check Your Credit Score

Your credit score plays an important role in pretty much every financial decision that you make, whether you’re applying for a credit card, looking into life insurance or getting an auto insurance quote. 

A good credit score shows that you’re a trustworthy individual who knows how to handle your finances. It also suggests that you’re less impulsive. 

Of course, that’s not always the case and having a bad credit score doesn’t mean you’re impulsive and reckless. Far from it. However, insurance is based on statistics and probability, and statistically speaking, an individual with bad credit is more likely to be reckless than an individual with good credit.

Check Your Auto Insurance Coverage

There’s no point paying for full coverage if you’re driving a cheap car that costs less than $500. Be careful how you structure your auto insurance with regards to liability, collision coverage, and auto repair. Make sure you weigh the pros and cons against your car and the likelihood of encountering an issue and use these to set realistic and affordable premiums.

Look for Insurance Discounts

You can secure auto insurance discounts for a variety of reasons. One of the best of these is a multi-policy discount, which is offered to policyholders who have several different policies with the same insurance provider. For instance, you can purchase life insurance, property liability insurance, and more, with the insurer essentially offering you a wholesale discount.

There are also discounts for multi-car and driver policies, whereby you add several cars or drivers onto the same policy. But the reductions don’t stop there, and you should also look into the following:

  • Good driver discounts
  • Discounts for student drivers
  • Discounts for paying in full
  • Paperless discount (provided when you agree to paperless billing)
  • Company and employee-based discounts
  • Military discounts

Shop and Compare

Don’t accept the first policy you’re offered; don’t assume they’re giving you the best price and complete coverage. Work with different insurance agents, check multiple providers, and run some searches on comparison websites.

Bottom Line: Free Auto Insurance Quote

Most auto insurance companies provide you with auto insurance quotes for free, and there’s no reason why you should be paying money for these quotes. Be wary of any companies or sites that charge you for this service, remember to compare several quotes from several different companies, and once your policy begins, keep searching for discounts and doing what you can to reduce quotes in the future.

Source: pocketyourdollars.com

How Much Auto Insurance Should You Buy?

  • Car Insurance

How much car insurance should I buy? It’s a question on the lips of countless drivers, especially those climbing behind the wheel for the first time. It’s a tricky question, as there are many elements to consider, from state minimum requirements to whether or not you need those optional extras and, if so, how far you can go?

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State Minimum Coverage

Firstly, the bare minimum car insurance requirements are set according to state law and dictate how much auto insurance you need to be legally insured. If you want to be fully covered (and you should, as you could face fines and penalties if you’re not) then you will need to meet these minimums.

We have covered all minimum state auto insurance requirements elsewhere and won’t get into that again here, but generally, you need to have the following types of coverage:

Bodily Injury Liability Insurance

Two types of body injury liability insurance are needed: per person and per accident. This cover will be fixed to a maximum amount, which means the insurer will pay all money up to that point. In most states, the minimum cover is $25,000 per person and $50,000 per accident.

Bodily injury insurance provides cover when individuals (not you) are injured in a car accident.

Property Damage Liability

Property damage liability insurance is required in most states and is often a minimum of $25,000. While bodily injury covers the individuals, property damage covers the vehicle.

Personal Injury Protection (PIP)

PIP covers you for medical expenses if you are involved in an accident and can also cover you if that accident results in a loss of work. With PIP, you don’t even need to be the driver, as it will cover you if you are a passenger in someone else’s car.

Underinsured/Uninsured Motorist Coverage

An estimated 13% of US drivers don’t have insurance, leading to all kinds of legal and financial problems if they are ever involved in an accident.

With uninsured and underinsured motorist cover, the insurer will cover the costs that stem from being in an accident with an uninsured driver, while also paying the difference if they don’t have enough insurance.

Medical Payments

Although rare, some states also require medical payments coverage. This works in a similar way to PIP, but there are many more exceptions and it focuses specifically on medical costs. 

The requirements for this type of cover are often much less. In Maine, for instance, the minimum is $2,000, while in New Hampshire it is $1,000, and in no state does it exceed $5,000.

How Much Cover Should You Buy?

The state minimums are important but may leave a lot to be desired if this is the only cover you have. The recommendation is that you either purchase a 25/50/25 split or a 100/300/100 split depending on your situation and your vehicle.

The 25/50/25, in most cases, will be the minimum requirement. This is ideal for drivers with cheaper/older cars, as well as those on a budget that don’t drive a great deal, such as students and seniors. In fact, drivers in this demographic may find themselves being quoted high insurance premiums because of the increased risk, so keeping to these liability limits and skipping additional coverage can help.

As for middle-income earners with some savings and an expensive or new car, the 100/300/100 rule, which means $100,000 for bodily injury per person, $300,000 per accident, and $100,000 for property damage, may be the better options.

This is a significant increase from the minimum liability but doubling the cover doesn’t mean you will double the premiums, and once you get those minimums out the way, additional liability cover is much cheaper than you might think.

Additional Car Insurance Coverage

Once you get the minimum liability cover out of the way, you need to start thinking about optional coverage. As discussed above, some of this is also required by the state, but even if it’s not, there are times when it should be considered:

How Much Collision Coverage and Comprehensive Coverage?

Collision insurance covers you in the event that you hit another vehicle, a tree, a guardrail, and a number of other objects (it does not, however, including collisions involving animals). Comprehensive coverage, on the other hand, covers you for everything else, including vandalism, weather damage and accidents involving animals. 

No state requires a minimum amount for either of these options and it’s entirely up to you if you want to add them to your auto policy.

Generally, they should be considered if you have a relatively new car (less than 10 years old) that you can’t easily afford to replace or repair. Comprehensive coverage should also be considered if you live in a state with extreme weather and a risk of hurricanes or floods (New Jersey, California, New York) or a state with a lot of animal collisions (West Virginia, Michigan, South Dakota, Wisconsin, Montana, Iowa).

You will be required to pay a deductible on this type of cover, with a higher deductible leading to a lower quote. Just remember that if the cost of repairs is less than the deductible, you will be hit with the entirety of the bill.

How Much Uninsured/Underinsured Coverage?

On average, you can expect to pay just $70 to $90 a year for underinsured/uninsured motorist cover. If you are in an accident with an uninsured driver, it could help to cover your medical bills and, in such cases, may seem like a wise addition to your policy.

But it’s not essential in all states and it’s entirely up to you whether you want to add it or not. In some states, having health insurance and collision insurance will negate the need for underinsured/uninsured motorist coverage, but it can be a useful addition to your policy if you can afford it.

What About Medical Payments and PIP?

If you don’t have health insurance and can’t afford to take time off work following an accident, these additional options should be considered. PIP is especially important if an injury will lead to great financial stress, which is often the case for individuals who need to work to get paid, such as freelancers and contractors.

Medical payments coverage is generally very cheap and could cost you just $20 a year. PIP will cost around 10 times this much, so it’s something you need to consider carefully.

Bottom Line: Try to Save

As outlined above, the extent of cover you need will depend on your state, your income, the value of your assets, the value of your car, your demographic, and your monthly budget. In the end, what matters the most is that you get the best cover for the lowest possible price, so whatever option you choose, keep the following tips in mind:

  • Shop around; compare multiple insurance companies and speak with insurance agents.
  • Look into multi-car policies or bundling if they apply to you.
  • Consider raising your deductibles.
  • Look for car insurance discounts.
  • Save on roadside assistance by getting it from credit cards, bank accounts or membership clubs.

Source: pocketyourdollars.com

The Cheapest Car Insurance Companies in the US

  • Car Insurance

Which car insurance providers offer the best rates, cheapest comprehensive coverage, and best car insurance discounts? How do these insurance costs differ from state to state and what are the best ways to get affordable car insurance? In this guide, we’ll answer all those questions and more.

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The Cheapest Car Insurance Companies by State

We have recommended the cheapest car insurance providers for every state, covering all of the big names, along with a few local providers, to ensure you get the cheapest. 

As you will see, Geico has the cheapest car insurance quotes in most of these states and can be found in the top 10 for nearly all of them. However, that doesn’t mean they will always have the best rates for you, as it all comes down to your age, driving record, and other key parameters.

  • Alabama = Geico leads the way for good drivers, bad credit, good credit, and many other discounts and demographics.  Auto Owners, Safeway, Allstate, and Travelers also have cheap options for most drivers in this state.
  • Alaska = State Farm and Allstate have consistently cheap options, but good drivers should also look into Umialik, which offers insurance in 20 states.
  • Arizona = Geico and Safeco head the pack in Arizona, but CSAA and American Family are not too far behind.
  • Arkansas = Geico, Safeco, and State Farm. The Arkansas Farm Bureau may also provide a cheap alternative.
  • California = CSAA is a good option for many struggling applicants and worth trying if you have had accidents or have bad credit. Other than that, Geico heads the pack.
  • Colorado = Geico and Esurance followed by State Farm and Allstate.
  • Connecticut = Amica seems to be a good option for car insurance in CT. State Farm and even MetLife may also tick a lot of boxes for certain discounts.
  • Delaware = State Farm, Progressive, Travelers, and Geico are the best options and the cheapest providers in Delaware.
  • D.C. = Erie is a cheap option for getting car insurance in D.C. Geico, as always, is up there as well.
  • Florida = State Farm, MetLife, and Direct Auto join Geico as the cheapest car insurance providers in Florida.
  • Georgia = A local company, the Georgia Farm Bureau, often has the best rates and should be considered before any other.
  • Hawaii = Take a look at Island Insurance, Liberty Mutual, and Allstate, as well as Geico, to ensure you get the cheapest rates.
  • Idaho = Geico and Safeco are the cheapest two providers here for most applicants.
  • Illinois = Geico and Safeco, along with Erie and Perkin, have some of the lowest rates in IL.
  • Indiana = Erie has some of the best insurance rates for most demographics.
  • Iowa = Auto Owners, IMT, and Farm Bureau Financial Services should all be considered and compared against the biggest providers.
  • Kansas = Be sure to include Farm Bureau Financial Services, along with the main providers, and you should secure the cheapest rates.
  • Kentucky = The Kentucky Farm Bureau, along with big names like Geico.
  • Louisiana = The Louisiana Farm Bureau seems to have the cheapest car insurance premiums in this state.
  • Maine = Frankenmuth, Concord Group, and MetLife offer cheap rates across the board.
  • Maryland = Erie, Geico, Travelers, and Progressive will be the cheapest option for many.
  • Massachusetts = Plymouth Rock and The Hanover will be the best for most demographics.
  • Michigan = Geico leads the way again.
  • Minnesota = North Star, Auto Owners, Geico, and American Family.
  • Mississippi = Compare Safeco and Direct Auto with the Mississippi Farm Bureau.
  • Missouri = The Missouri Farm Bureau has low rates for good drivers and good credit drivers.
  • Montana = Farmers Union, Geico, and Safeco top the list in Montana.
  • Nebraska = The Farmers Mutual of Nebraska and State Farm.
  • Nevada = Geico and Safeco have the cheapest rates for most needs.
  • New Hampshire = Concord Group has great rates for most needs, along with State Farm, MMG, and Amica.
  • New Jersey = Plymouth Rock, NJM, and the ever-reliable Geico.
  • New Mexico = Geico, Progressive, and State Farm.
  • New York = The big names, including Geico and Allstate, often have the cheapest rates here, but make sure you compare all of these with The New York Central Mutual as some drivers will get lower premiums there.
  • North Carolina = Geico, State Farm, North Carolina Farm Bureau and National General.
  • North Dakota = Local insurance company, Nodak, has some of the best rates for drivers in North Dakota.
  • Ohio = Grange and Erie, along with Geico.
  • Oklahoma = American Farmers & Ranchers will have the best rates for many, but the Oklahoma Farm Bureau also has competitive rates.
  • Oregon = Country Financial, State Farm, Progressive, and Geico have the cheapest depending on the type of driver.
  • Pennsylvania = Penn National has some of the most competitive rates in the state.
  • Rhode Island = Few insurers can top Geico and Travelers in the state of Rhode Island.
  • South Carolina = Auto Owners, Allstate, and Geico, along with other big-name insurers.
  • ​South Dakota = Farmers Mutual of Nebraska is one of the most competitive in South Dakota.
  • Tennessee = In addition to big names like Erie, Geico, and State Farm, compare rates to the Tennessee Farm Bureau to find the cheapest premiums.
  • Texas = Texas Farm Bureau, Geico, and State Farm.
  • Utah = Safeco, Bear River, Auto Owners, and Geico.
  • ​​​​Vermont = Union Mutual and Co-Operative may tick all boxes if you need a cheap provider.
  • Virginia = Erie, Progressive, State Farm, and Geico.
  • Washington = Geico, Progressive, and Pemco.
  • West Virginia = Westfield, State Farm, and Erie top the bill for cheap providers in West Virginia.
  • Wisconsin = The Auto Club Group and Wisconsin Farm Bureau have great options for all types of drivers.
  • Wyoming = Geico, State Farm, MetLife, and Safeco.

Cheapest Auto Insurance Quotes

In the list above, we only considered the cheapest auto insurance rates based on the average drivers, including those with good/bad driving records and very few discounts. But once you start including multi-policy discounts, multi-car discounts, and membership discounts, cheaper options may lie elsewhere. For instance, the USAA often tops the list for cheap auto insurance quotes if you can qualify.

That’s why it’s important to compare all available auto insurance companies and not to simply zero-in on the one you have been told is the cheapest. Auto insurers can differ greatly from state to state and even from person to person, and the only way to guarantee you’ll get the cheapest is to compare.

Here are a few of the biggest and cheapest providers:


Geico is huge and accounts for a massive share of the market. It’s one of the highest rated and best car insurance companies in the United States and can offer a wealth of coverage options.

With Geico, you can get a cheap car insurance policy with lower rates than many other providers. These rates will drop even further with good student discounts and a clean driving history.


Allstate is always a good option. It may not be the cheapest in all states, but always offers competitive rates for minimum coverage and optional coverage. 

Allstate is also one of the best if you are bundling policies, both because of the variety of insurance products available and the discounts provided.


Esurance was one of the first insurance companies to successfully sell insurance directly to the consumer, as opposed to going through insurance agents. This is a model that Esurance continues to adopt, and while it can help to have an agent answering your questions, Esurance has made the process of applying and managing car insurance very easy.

State Farm

State Farm is one of the biggest providers of liability insurance in the United States and offers cheap rates in most states. You can apply directly through the website or the mobile app, and you can also go through one of their many insurance agents if you prefer the old-school method.


USAA as a high rating from J.D. Power and if you’re lucky enough to be a military member, you should definitely consider USAA for your auto insurance. It didn’t appear on our list because it is a specialized provider, but if you qualify then it will likely be the cheapest option in your state.

Liberty Mutual Group

The Liberty Mutual Group offers an extensive range of insurance products across the United States. Safeco, an insurer that is part of this group, consistently appeared as one of the cheapest auto insurance providers on our state list.


Erie offers a wealth of insurance options, including life insurance and auto insurance, across 12 states. It was founded nearly 100 years ago and sells insurance products via over 10,000 insurance agents across the United States.


Progressive is one of America’s favorite auto insurance providers. You might not find them on a list of the cheapest providers in your state, but that changes once you add some car insurance discounts. You can get very good rates if you have a clean driving record, pay upfront and in full, and take advantage of bundling offers.


​Nationwide is one of the biggest insurance providers in the industry and offers a host of motorist coverage options for all types of drivers. Nationwide is consistently ranked as one of the best insurance companies in the United States.

Amica Mutual

Amica is a great option if you can get it. It provides great options and extends cover that you won’t be offered elsewhere, including cover for the interior of your vehicle. The problem is, Amica feels a little archaic at times, with limited online and mobile options.

What’s more, Amica tends to only offer insurance to drivers with a clean record and a high credit score. If you meet the requirements and can get a quote, go for it, but a lot of you simply won’t qualify.

The Hartford

You need to be a member of the AARP to get cheaper car insurance through The Hartford, which is why we didn’t include this insurance provider in our state list above. The Hartford has been around for a couple of centuries at this point and offers members a wealth of features and coverage options.

Auto-Owners Insurance

Auto-Owners isn’t one of the biggest and it doesn’t make a big song and dance about its service. It operates an agent-only model, which means you will need an insurance agent to apply.

However, this company has been going strong for over 100 years now, has a high rating from reviewers and experts alike, and offers affordable liability coverage in many states.

Options to Consider for Cheap Auto Insurance

​If you’re confused about the many different elements of a car insurance policy and have more questions than answers, an insurance agent can help. But to point you in the right direction, here is a short list of the sort of coverage options that go into a car insurance policy.

State Minimum Cover

All states require a minimum amount of car insurance cover. This can differ considerably, but generally, you’ll be required to have a minimum of $25,000 bodily injury cover (per person and per accident amounts may be required) and $25,000 property damage cover. 

In addition, some states require minimum cover for personal injury protection, medical payments, and underinsured/uninsured driver. 

Liability Insurance

Liability insurance covers both bodily injury and property damage. You can be insured up to a specific amount, but this only applies to other drivers and other vehicles, and not to you or your vehicle.

Collision Coverage

Whereas property damage liability covers the other driver’s car in the event of an accident, collision insurance covers yours. It means you will be covered if you are in an accident that doesn’t involve another car, such as if you drive your car into a tree or wall.

Comprehensive Coverage

Comprehensive insurance covers your vehicle in the event of a weather issue, something that doesn’t relate directly to a crash. It’s full coverage and will ensure you get paid if your car is damaged by vandalism or bad weather, but it’s also not mandatory and can be expensive.

Personal Injury Protection (PIP)

Personal Injury Protection covers you for personal injury claims when you are injured in a car accident. It also covers you as a passenger and may even cover you if you’re hit by a car while walking on the road.

With PIP, you will be covered whether you were at fault for the accident or not.

Underinsured/Uninsured Cover

It has been estimated that as many as 1 in 7 drivers are uninsured. Underinsured/uninsured coverage is designed to cover you if you are hit by someone who is not insured or doesn’t have enough insurance to cover all the costs.

Roadside Assistance

Roadside assistance will cover you if you break down, run out of fuel, and experience other issues by the side of the road. However, it’s not always essential, as this service is provided by many automobile membership clubs, and you may even be offered roadside assistance through your credit card.

Tips to Get the Cheapest Policy for You

Getting car insurance can feel like running an obstacle course and you look forward to it as much as you look forward to doing your taxes. Or stubbing your toe. But it’s a necessity, and if you put a little time, effort, and thought into the process, you can save yourself a lot of money. 

1. Compare All Providers

Geico has the cheapest car insurance for most providers, but that doesn’t mean it has the cheapest auto insurance for you. By all means, get a quote from this massive insurer, but don’t stop there.

Look into other major national providers, including State Farm and Allstate, and then work your way through the local providers. In some states, as you can see from our list, these localized providers offer the best rates.

2. Join a Club and Cash in On Benefits

If you’re a senior or a member of the military, there are clubs you can join to secure super cheap car insurance, as well as a host of optional extras. 

Your credit card and bank account may also offer you some discounts and deals. In this case, you’re unlikely to get cheap liability coverage, but you can get roadside assistance and other benefits, and these will reduce the cover you need to pay for.

3.  Ask for Discounts

If you qualify for discounts, ask for them; if you don’t, ask for them anyway. You don’t get what you don’t ask for.

The best discounts are offered to members of the military, good drivers, and those who have yet to be involved in an at-fault accident. But you could also secure a discount if you have a good credit score, have completed a defensive driving course, have good grades or agree to pay your premiums upfront.

Ask the insurer what sort of discounts they are able to offer you and then compare these to what other providers offer.

4. Calculate What Cover You Need

It’s essential that you get the minimum coverage required for your state, be that liability, PIP or uninsured coverage. Beyond that, everything else is optional and you need to weigh the pros and cons carefully to determine whether it’s a good fit for you.

Typically, this will depend on what sort of car you drive. If you drive a brand-new, expensive vehicle, you’ll want to consider comprehensive coverage because if that car is damaged by a flood or vandalism, you could be left to foot the bill. With new cars, you’re more inclined to pay up, because you can’t simply walk away from a vehicle that cost you tens of thousands of dollars.

But if your car is many years old and only cost a few hundred dollars, this cover isn’t essential. If anything happens to your car and you’re hit with a $2,000 bill, you can just scrap it and use that money to get a different vehicle.

5. Think About Your Car

The car you drive is one of the biggest factors in determining how extensive your coverage limits need to be and how expensive your policy will be. A new car may be fitted with safety features and anti-theft features, making it more appealing to insurers, who will then offer you much cheaper premiums.

If you don’t have a car just yet, think carefully about what you will purchase. A sports car may fulfill a dream of yours and give you something to impress your friends, but it could also leave you with huge premiums and more expensive cover.

6. Change Following a Major Life Event

Every time you experience a major life event, such as a marriage, divorce or move, you should look into changing your car insurance policy as it could save you a lot of money.

There are some quirks to the car insurance underwriting process, including the fact that married policyholders and policyholders with a mortgage are less likely to make a claim. As a result, they can get cheaper rates from most insurers.

It doesn’t make much sense on the surface, but it doesn’t need to. All that matters are that you can get a discount as soon as these things apply to you.

Bottom Line: Getting a Cheap Auto Insurance Policy

There are clearly a lot of things to consider when looking for cheap car insurance. But this is a competitive industry and if you have good credit, a safe car, and a clean driving record, you can take your pick of the best companies and policies.

For more information on car insurance, take a look at the dozens of other guides we have on this subject, covering everything you need to know.

Source: pocketyourdollars.com

Cheap Car Insurance for Seniors: Best Providers and Discounts

  • Car Insurance

Car insurance generally gets cheaper as you age, but it can begin to creep up again once you hit 60, as statistics suggest you’re more likely to be involved in an accident than someone in their 30s and 40s. However, with the right information and the right providers, you can get cheap car insurance beyond the age of 65.

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The Cheapest Insurance Companies for Seniors

The following companies all have cheap senior car insurance policies and should be considered when you apply for a new policy.


You could be forgiven for thinking that we had some sort of affiliation with Geico. After all, this provider tops many of our lists of the cheapest insurance coverage. But the simple fact is that Geico consistently has the cheapest rates for applicants with clean driving records.

Geico offers something known as a Prime Time contract, which guarantees renewal and offers fantastic rates. It’s available in most (but not all) states, and is offered to drivers who meet the following criteria:

  • Are aged 50 or over
  • Have no drivers below the age of 25 in their household
  • Have been accident-free for at least 3 years
  • Do not use any vehicles for commercial reasons

In addition to consistently cheap rates and senior discounts, Geico offers other driver discounts and benefits, including:

  • Accident forgiveness program
  • Defensive driving course discount
  • Multi-car and multi-policy discount
  • A good driving history for at least 5 years
  • Discount for current and former members of the military


A couple of car insurance providers are cheaper than Allstate, but if you can take advantage of their multi-policy discount, known as “bundling”, you’ll make some substantial savings. Allstate also offers the follow car insurance discounts:

  • Discount when you pay in full or autopay
  • Discount for cars that have safety equipment and anti-theft devices (anti-lock brakes, front and side airbags) as well as new cars.
  • Safe driving discounts
  • Multi-policy and multi-car discounts


Progressive is one of the cheapest car insurance companies for mature drivers. In addition to a host of discounts, Progressive offers something known as the SnapShot program. This is a type of usage-based insurance. The insurer will install a telematics device in your car to track your mileage and your driving habits, before adjusting your rates based on the information recorded.

If you’re a safe driver and a good driver and/or you don’t spend a lot of time behind the wheel, this could be a great way to get lower rates. Like Allstate, Progressive also reduces rates if you purchase multiple policies with them (such as life insurance and home insurance).

Other Cheap Providers

The Hartford, Farmers Insurance Group, and State Farm are also worth considering and may offer cheaper rates than the insurers above depending on your location and driving habits.

Military veterans should also consider the USAA, as they will nearly always offer the best rates, while occasional drivers should look into Metromile. This insurer offers low mileage discounts for all drivers, but it is not available in all states.

How to Find the Cheapest Insurance Quotes as a Senior

A little research and preparation go a long way and where car insurance is concerned, it could save you hundreds of dollars. Keep these top tips in mind when applying for car insurance as a senior:

1. Compare Auto Insurance Rates

Older drivers are more likely to renew their policies and stay with the same auto insurance companies. But as you age, it’s even more important to keep comparing and to make sure you get the absolute best auto insurance quotes available to you.

Fortunately, it has never been easier to get free quotes and to quickly compare rates from all available providers.

2. Join a Club

Club membership discounts are some of the best ways to save money on your car insurance. For instance, as a member of the AARP, you are entitled to special discounts from The Hartford, and can secure a host of other benefits as well.

3. Think About Your Car

Your vehicle is one of the main things influencing your car insurance premiums. If you drive a car fitted with a host of safety features, you’re less likely to crash and to suffer serious injuries, which means the insurer will reward you with discounts and cheaper rates. You can also get discounts for driving a new car.

At the same time, however, a new car may need collision coverage and comprehensive coverage, and you may be more inclined to set a lower deductible. All these things need to be considered when shopping for a new car and looking to get it insured.

4. Bundle Policies and Cars

If you have several cars and drivers in your household, consider adding them all to the same policy. Your current insurer can discuss this option with you and give you an idea of how much you can save. What’s more, if you’re dealing with one of the bigger providers, you can add several different insurance products together and secure “bundling” discounts.

5. Check all Discounts

Insurers offer a wealth of discounts. Some of these are big, such as military discounts and good driver discounts, but others are small, such as discounts offered for paying in full or setting up autopay. The more of these you get, the more you will save, so ask your insurance agent or provider about all of them and see how much you can save.

Average Cost of Senior Auto Insurance by State

The average senior driver spends between $1,400 and $1,500 on car insurance premiums per year. The state minimum requirements are much less, around $600 per insurance policy, but many senior citizens choose additional coverage options, which bumps the costs up a little.

As we have discussed before, car insurance quotes differ considerably from state to state. For an idea of how much you can expect to pay based on your location, take a look at these averages:

  • Alabama = $1,400
  • Alaska = $1,300
  • Arizona = $1,450
  • Arkansas = $1,450
  • California = $1,850
  • Colorado = $1,600
  • Connecticut = $1,850
  • Delaware = $1,650
  • Florida = $2,300
  • Georgia = $1,300
  • Hawaii = $1,000
  • Idaho = $1,050
  • Illinois = $1,150
  • Indiana = $1,150
  • Iowa = $1,000
  • Kansas = $1,300
  • Kentucky = $1,500
  • Louisiana = $2,500
  • Maine = $850
  • Maryland = $1,700
  • Massachusetts = $1,150
  • Michigan = $2,700
  • Minnesota = $1,200
  • Mississippi = $1,300
  • Missouri = $1,200
  • Montana = $1,500
  • Nebraska = $1,100
  • Nevada = $1,800
  • New Hampshire = $1,200
  • New Jersey = $1,450
  • New Mexico = $1,300
  • New York = $1,750
  • North Carolina = $1,150
  • North Dakota = $1,000
  • Ohio = $950
  • Oklahoma = $1,650
  • Oregon = $1,400
  • Pennsylvania = $1,450
  • Rhode Island =​​​​ $2,300
  • South Carolina = $1,600
  • South Dakota = $1,100
  • Tennessee = $1,200
  • Texas = $1,600
  • Utah = $1,200
  • Vermont = $1,000
  • Virginia = $900
  • Washington = $1,250
  • West Virginia = $1,300
  • Wisconsin = $1,050
  • Wyoming = $1,300

Bottom Line: Best Car Insurance for Seniors

Seniors can be considered a high-risk and if you’re over the age of 75 and have a few blemishes on your record, you may find yourself in this category. However, most drivers won’t face any issue when applying for car insurance and with the right preparation, there’s no reason they can’t save hundreds of dollars on their insurance premiums.

Source: pocketyourdollars.com