5 Cheapest Car Insurance Companies (January 2023)
5 Cheapest Car Insurance Companies (January 2023)
How much you pay for car insurance will depend on a number of factors, including your age and driving history. Here’s a look at the cheapest car insurance for certain types of drivers.
Cheap car insurance companies for good drivers
These rates are based on good drivers with a clean driving record, meaning no at-fault accidents or traffic violations. USAA offers the lowest average rates for good drivers and the cheapest full coverage car insurance, but it is open to only military members, veterans and their families.
Related: Best Car Insurance of 2023
Cheap car insurance for drivers with a speeding ticket
A speeding ticket will mean an insurance increase of about 24%, based on nationwide averages. Our analysis found the cheapest car insurance from Geico, Erie and State Farm, with USAA a top choice for people with a military affiliation.
Cheap car insurance for drivers who have caused an accident with injury
Expect your car insurance rates to go up at renewal time if you have caused an accident, especially one that injured someone else. Nationally, the average rate goes up 47%, which translates to paying about $735 more per year compared to a driver with a clean record.
USAA offers good rates to military members and veterans. For other drivers, State Farm and Erie had the cheapest car insurance in our analysis. Erie is a regional insurer that serves 12 states.
Cheap car insurance for drivers with a DUI
Among the likely consequences after a DUI conviction is a higher auto insurance rate. Car insurance companies usually pull motor vehicle records before your policy renewal time to check for tickets and convictions, and then apply increases based on your record.
A DUI conviction leads to an average increase of more than $1,000 a year. Even with a DUI conviction, you can shop around for cheap car insurance. State Farm, Travelers and Erie had the best rates in our analysis, with USAA another possible good option for military members and veterans who qualify.
Related: Cheap DUI Car Insurance
Cheap car insurance for drivers with poor credit
Having poor credit can be one of the biggest hurdles to getting cheap car insurance quotes—even if you have an excellent driving record. Poor credit can cause higher auto insurance rates than even having a DUI or at-fault accident on your record.
Average rates go up more than 80% for drivers with poor credit compared to those with good credit.
With potentially exorbitant rates, it’s especially important to shop around. Geico and Travelers had the cheapest car insurance for drivers with poor credit, among the companies we analyzed. USAA is a good bet for military members and veterans.
Cheap car insurance for seniors
Geico offers the cheapest car insurance for senior drivers between ages 65 to 85, according to our analysis of rates from 10 large insurers. However, the best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
Our analysis found you can expect your car insurance premium to increase by about 6% to 12% every five years after age 65. By age 85, your premium may have increased 43% above the rate you were paying at age 65.
Cheap car insurance for young drivers
It’s not cheap to add a teenage driver to your car insurance policy because young new drivers pose a greater risk to insurers. We analyzed rates from 78 car insurance companies nationwide to find the cheapest car insurance for teens and found that adding a teenage driver to a parent policy will increase the premium by an average of $2,121 a year.
This amount typically doubles the parent’s premium. But it is still usually less expensive to add a young driver to a parent policy rather than for the teen driver to get their own.
