The simple answer to who or which company has the cheapest car insurance rates is that there is no answer. Each company sets its rates based on their own risk formula. This means that your friend might get a good rate from Company A, your mom from Company B yet Company C turns out to be the cheaper for you.
The only true way to find out who has the cheapest car insurance rates is to get multiple quotes from various insurance companies. You do that either online using the form at the top of our page or by phone by contacting a local insurance agent.
Now just because no one company has the lowest rates for everyone does not mean car insurance rates are just set randomly. There are many factors that affect how much you pay to insure your vehicle. To give you an idea of the general ballpark you can expect to pay for your coverage it is helpful to look at a few averages.
The Cheapest And Most Expensive Places To Insure a Vehicle
Overall it can be a bit difficult to find the average price people pay for auto insurance in a year. According to the Insurance Information Institute in 2008 the average auto insurance premium was $789 per year, whereas CarInsurance.com claims the average rate for 2011 is $1,440.
The cheapest state is state is Vermont with premiums of just $892 per year with the most expensive being New York state with premiums of $2,788 per year. The most expensive city is Detroit with average premiums coming in at a staggering $5,948 per year and the least expensive is Wapakoneta, OH with annual premiums of just $865.
So, what does this tell you? Again pretty much nothing. It is nice to know where you stand in relation to other people but you’re not going to change states just to save money on auto insurance. If you’re interested in more detailed information from your home state then I suggest you look at our car insurance quotes by state page.
Another common question people have is who has the cheapest car insurance for bad drivers? Again the answer is the same. No one company can offer across the board deals to all drivers. It really depends on what type of bad driver you are.
A DUI conviction or being found at fault in an accident are the two things that are going to make coverage a whole lot more expensive. It can also make getting insurance more difficult as in most states you’ll have to submit an SR-22 form to your local DMV proving you have proper liability insurance.
More minor convictions for things like speeding will also have an impact on your policy, but hopefully not as much. The solution is always going to be to shop around since it is impossible to say who will have the best rate at any given moment.
Lowering Your Rates
There are a whole host of ways you can lower your car insurance rates, but going over all of them would take a whole other article. The good news is that we have written one titled: How Can I Save Money On My Car Insurance Premiums?. It includes 17 different ways you can save money on your car insurance policy.
If you’re too busy to read the whole thing right now here are a few quick tips. Raising your deductible, dropping unnecessary coverage, maintaining a good credit score, avoiding accidents and of course getting free online quotes are just some of the ways you can lower your rates in the short term.
You can get a free instant car insurance quote right now just by selecting your state from the list below. It really is the best place to start seeing some savings.