Affordable Auto Insurance Companies

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Auto insurance is a necessary expense for any car owner. Accidents happen, and it’s important to have coverage in case of bodily injury, property damage, or theft. However, with so many insurance companies out there, it can be difficult to find one that fits your budget. In this article, we’ll take a look at some affordable auto insurance companies.

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The Basics of Auto Insurance

Before we get into the companies, let’s review the basics of auto insurance. There are several types of coverage:

Coverage Type
Description
Bodily injury liability
Covers injuries to others if you’re at fault in an accident
Property damage liability
Covers damage to other people’s property if you’re at fault in an accident
Collision
Covers damage to your own vehicle if you’re at fault in an accident
Comprehensive
Covers damage to your own vehicle from non-accident events, such as theft or fire

Most states require at least a minimum amount of bodily injury and property damage liability coverage. However, if you have a car loan or lease, your lender may require collision and comprehensive coverage as well.

How to Find Affordable Auto Insurance

When shopping for auto insurance, there are several factors that can affect the cost:

  • Your driving record
  • The make and model of your vehicle
  • Your age and gender
  • Your location
  • Your credit score

To find affordable auto insurance, start by getting quotes from multiple companies. You can do this online or by contacting agents directly. Make sure you’re comparing apples to apples – that is, that the policies you’re comparing have the same coverage levels.

In addition, look for discounts. Many insurance companies offer discounts for:

  • Safe driving
  • Multiple policies (such as bundling auto and home insurance)
  • Good grades (if you’re a student)
  • Low mileage
  • Membership in certain organizations (such as AAA)

Finally, consider raising your deductible. The deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible can lower your monthly premiums, but be sure you have enough savings to cover the deductible if needed.

Affordable Auto Insurance Companies

Now, let’s take a look at some specific auto insurance companies that offer affordable policies:

Geico

Geico is known for its catchy commercials, but it also offers competitive rates. According to a 2020 study by U.S News & World Report, Geico was the cheapest option for minimum coverage in most states. In addition, Geico offers a wide range of discounts, such as those for safe driving and membership in certain organizations.

Geico also offers a mobile app that allows you to manage your policy, file a claim, and get roadside assistance.

Progressive

Progressive is another well-known insurance company with competitive rates. In addition, Progressive offers several unique features, such as:

  • Snapshot, a program that tracks your driving habits and can result in discounts
  • Name Your Price, a tool that allows you to set your desired monthly premium and see what coverage options are available within that budget
  • Gap insurance, which covers the difference between what you owe on your car loan or lease and the car’s actual cash value in case of total loss

Progressive also offers a mobile app that allows you to manage your policy, file a claim, and get roadside assistance.

State Farm

State Farm is a popular insurance company that offers a variety of coverage options. According to the same U.S News & World Report study mentioned earlier, State Farm was the cheapest option for full coverage in many states. In addition, State Farm offers:

  • Drive Safe & Save, a program that tracks your driving habits and can result in discounts
  • Steer Clear, a program that offers discounts to drivers under age 25 who complete a safe driving course
  • Rideshare insurance, which covers you while you’re driving for a company like Uber or Lyft

State Farm also offers a mobile app that allows you to manage your policy, file a claim, and get roadside assistance.

FAQ

What is the minimum amount of auto insurance required by law?

The minimum amount of auto insurance required by law varies by state, but typically includes bodily injury and property damage liability coverage. Check with your state’s department of motor vehicles or insurance commissioner to find out the specific requirements.

What is a deductible?

A deductible is the amount you pay out of pocket before insurance kicks in. For example, if you have a $500 deductible and you’re in an accident that causes $1,000 in damage, you’ll pay $500 and insurance will pay the remaining $500.

What discounts are available for auto insurance?

Discounts vary by insurance company, but common ones include safe driving, multiple policies (such as bundling auto and home insurance), good grades (if you’re a student), low mileage, and membership in certain organizations (such as AAA).

What is gap insurance?

Gap insurance is a type of auto insurance that covers the difference between what you owe on your car loan or lease and the car’s actual cash value in case of total loss.

What is rideshare insurance?

Rideshare insurance is a type of auto insurance that covers you while you’re driving for a company like Uber or Lyft. Standard auto insurance policies typically don’t cover this type of activity.

Conclusion

Auto insurance is an important expense, but it doesn’t have to break the bank. By shopping around, looking for discounts, and considering your deductible, you can find an affordable policy that still provides the coverage you need. Some of the companies to consider include Geico, Progressive, and State Farm.

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