Where to Find the Cheapest Auto Insurance in 2020
by Maddi Butler
There are so many factors that go into determining how much you’ll pay for car insurance: Age, driving record, location, the type of car...it’s no wonder that people rarely change insurance. Shopping for car insurance is challenging and complicated. However, drivers need to know that they may be leaving a better rate on the table by not shopping around. In fact, comparing quotes from multiple providers is one of the fastest and easiest ways to save money on your car insurance.
Why is that? Well, because premiums always shift slightly from year to year, it means different insurers might change their rates to be more competitive. And it is competitive—the seven biggest insurance companies hold more than 65% of the market for individual auto policies in the United States. You might recognize their names, which include State Farm, Progressive, Famers, Geico, Liberty Mutual, Allstate, and USAA. (However, USAA is only available to active military members, veterans, and their families.)
A recent study showed that the amount you’ll pay at each of these companies can vary a lot. For example, USAA policies are among the cheapest available, costing $1,023 per year on average. Quotes for each insurer were gathered from zip codes all over the United States and then averaged. So, without further ado, here are the average yearly insurance rates you might see from major auto insurance providers, from most to least expensive.
- Farmers: $1,865
- Allstate: $1,834
- Liberty Mutual: $1,778
- Progressive: $1,766
- State Farm: $1,511
- Geico: $1,198
However, these rates are just for one type of driver. Other factors can still cause your rate to fluctuate. For example, if you’re a good driver but have poor credit, you might pay more for a Progressive policy than you would for a Farmers policy. So, while this list indicates a trend, what may be the cheapest for one person might not be the cheapest for someone else.
See now why it’s so important to shop around?
The importance of shopping around isn’t just limited to the major providers, either. There are thousands of smaller, more local companies that might be able to get you a great rate, too. For example, the average Grange policy is nearly half of what a Geico policy costs! Plus, you might find better, more personal customer service with a small, local company.
If comparing car insurance still sounds like a pain, we have great news. Comparing car insurance is easier than ever with online tools. All you have to do is enter basic information (we swear it’ll take less than two minutes!) and you’ll automatically get quotes. Then, all you have to do is compare to find the best rates in your area.