Insurance is a major expense for most households.
Whether it’s car insurance, home insurance, life insurance, or all of the above, monthly insurance payments can result in a big hit on our wallet.
With the number of accidents and false claims on the rise, the price of insurance has gone up in almost every state.
Unfortunately, driving without car insurance is a crime. If you make such a mistake, you are likely to face additional monetary penalties and automobile seizure by law enforcement.
In short, there is no way around insurance. Everybody has to get it – even if it’s the bare minimum – i.e., car insurance.
But if you conduct proper research and do your homework, you will be surprised by how many cheap insurance options are available out there.
Here is a list of 15 cheap insurance policies and why you should consider them:
Erie operates in only 9 states in the U.S. and is the 13th largest car insurer in the country.
While Erie may not offer services in all of U.S., they do have one of the lowest insurance rates.
Drivers in the North East (e.g., Pennsylvania, Virginia) often pay 40% less compared to the national average when they are insured with Erie.
Erie offers a range of insurance policies including auto, leisure, home and property, life, and business insurance.
The majority of people insured by Erie indicate that the company is the best and the cheapest.
Not only does it provide cheap insurance, but it also has reliable customer service.
The company personnel is easy to reach both online and via telephone. The online hotline is streamlined and operates 24/7.
Greater Discounts for Bundled Policies
You can get some great discounts when you bundle multiple policies. Erie offers many types of policies combined with car insurance.
For example, it offers full pet coverage, roadside assistance, free accident forgiveness for first-time sign-on, and deductibles if you have winter tires and car theft protective devices installed.
New customers at Erie are offered a Rate Lock program that allows the same rate of car insurance for the first three years. This is applicable as long as you have the same car and reside at the same address.
Discounts offered by Erie are comparable to the large national insurers like State Farm.
Erie also offers high deductible for anti-lock brakes, young drivers, anti-theft devices and seniors.
If you live in a state where Erie operates, this is definitely one cheap insurance company that you should check out.
Unfortunately, Erie only operates in Indiana, Illinois, New York, Maryland, Ohio, North Carolina, Pennsylvania, Virginia. Tennessee, West Virginia and Wisconsin.
The one downside with Erie is that they thoroughly vet the driver and the application process, therefore, car insurance may take time.
However, the company does offer cheap auto insurance and superior service if you qualify.
It operates in every state and on average, Geico insured drivers save 20-50% compared to other auto insurers.
Geico is known to be an affordable insurance option for people in search of cheap insurance.
The rates are not just mildly lower than the competitors but significantly lower.
However, do keep in mind that because of their low cost, Geico insurance policies do not come with a very wide range of coverage or additional discounts.
Moreover, their customer service is also nothing to rave about, but if you’re looking for a cheap insurance company, this one should probably make the top 5 in your list.
3. American Family
American Family is not well known, but it operates out of most cities in the U.S.
It is the third cheapest auto insurer after Erie and Geico.
Drivers in the NW (e.g., Colorado and Washington State) can save nearly 30% compared to the national average when they are insured by this company.
Individuals looking for affordable insurance should definitely call American Family for a quote.
Progressive on average is slightly more expensive than Erie or Geico, but it is considered to be the best auto insurer after a motor vehicle accident.
Surveys indicate that Progressive offers the best rates for people who have had recent car accidents compared to other auto insurers.
Their rates are cheaper by 10-29% compared to the national average.
The other benefit of signing on with Progressive include its online presence, ability get an online quote, and speaking to an agent 24/7.
The company offers quick coverage once you complete the required forms.
However, the one negative about Progressive is the customer service which is slow if you have to make a claim or deal with them after a car accident.
Progressive is generally recommended for individuals who have already had a recent car accident and want a relatively cheap insurance rate.
You might have to put up with the cumbersome customer service, but it might be worth it if you have been involved in an accident and the rates offered by other companies are too high.
Progressive can end up being an affordable insurance provider for those with a history of accidents.
Metromile is a great option for seniors and people who rarely drive and want to pay the lowest rate possible for their insurance.
This company offers insurance based on how much distance one drives annually. In general, if you drive less than 7,500 miles a year, check out Metromile.
Its rates are among the best in the country for those who drive occasionally.
However, be warned because if you do get into an accident, Metromile is one of the slowest to process claims.
Metromile only operates out of seven states: California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington.
But if you live in the countryside and don’t have a significant mileage, you might want to check out Metromile as it can offer you some of the cheapest rates in the country.
6. USAA Auto Insurance
Americans who are or were in the armed forces, or have parents or other relatives in the military, may be eligible for USAA auto insurance.
This is a great company for people in the armed forces because it offers huge discounts.
In addition, surveys indicate that USAA has a great customer service and claims handling process.
Unfortunately, USAA does not cover the ordinary American driver, but if you are a military family, you might be able to get some great discounts and really cheap insurance.
7. AARP: The Hartford
Hands down the best auto insurer at handling claims is AARP: The Hartford.
For several years, AARP has been voted the best at handling claims, ensuring prompt car repairs and final settlements.
For those who seek a smooth claims process but slightly higher car insurance than Geico, this is the company you should seek.
Its insurance rates are only a few hundred dollars more than what Geico offers, but they might be cheaper in the long run if you have a tendency of making claims.
8. Liberty Mutual
For those who are seeking flexible auto insurance policies that are also relatively cheap, one should go with Liberty Mutual.
This company has been rated as an equal to Erie when it comes to its flexible policies.
In addition, Liberty Mutual is staffed by some of the friendliest online agents.
If you are not located in an Erie insured area, go with Liberty Mutual, because it offers services nationwide and offers really cheap rates for those who have never been in an accident.
Lemonade is another insurance provider that works with an advanced and new insurance model. The biggest difference between Lemonade and other insurance providers is that it treats the premiums that you pay as your money.
They charge customers a flat fee and are super-fast when it comes to claims processing.
Any money that is left over is given to causes.
Lemonade has an easy-to-use an app called Maya which can come up with insurance quotes for you really fast.
Lemonade operates on social philosophy, and this is part of its legal mission.
For more information about Lemonade, see also: Lemonade Renters Insurance Review 2018: $5-Per-Month Renters Insurance
10. Ethos Insurance
Ethos is a life insurance provider that has given a modern touch to life insurance.
The company offers term life insurance.
They offer rates based on technological assessment and have very low costs and high quality.
Ethos term life insurance lasts between 10 and 30 years. This is ideal for people who are still in the prime of their life.
If you’re in search of cheap and quick life insurance, you should definitely check out Ethos.
11. Amica Insurance
Amica is the oldest mutual automobile insurer in the U.S.
They also offer homeowners insurance, personal excess liability insurance, and marine coverage.
The company has been recognized for its excellent service.
Their rates might not be as low as Erie or Gieco, but they have an excellent reputation, and you might be able to get some great savings if you bundle up.
12. Auto-Owners Insurance Group
The Auto-Owners Insurance Group has been around for a long time. They are well-recognized both for their financial strength and stability.
Auto-Owners Insurance is one of the largest insurers in the U.S., with nearly 3 million policyholders to date.
They offer life, home, auto, and business insurance.
The company has received numerous awards for customer service and quality.
People can get very good rates if they bundle up multiple insurance policies.
13. MetLife Insurance
MetLife Insurance offers auto, dental, disability, home, life, vision, and accident and health insurance.
They also offer employee insurance policies for businesses.
MetLife has been in the insurance business for a very long time.
It operates in nearly 50 countries around the globe with approximately 100 million customers worldwide.
Esurance is backed by Allstate and is a multiline insurance company that offers vehicle and property coverage.
The company is known for its reliable services, as well as excellent customer care.
Claims are processed 24 hours a day, 7 days a week.
Customers have access to their information through an online portal and can get updates about their insurance policy and pending claims quickly and easily.
Safeco offers 24/7 claims service.
It also offers customers the option to get annual policies or six-month policies.
Customers who bundle on both home and auto insurance can save nearly 15% on their monthly payments.
Customers also have access to other rewards and discounts.
Online Platforms to Search and Compare
One of the best ways to get the cheapest car insurance is to first go online and do a search.
Almost every insurance company has a website, and they offer instant quotes online.
All you have to do is fill out the basic information, and you will receive a quote in a matter of minutes.
Best Tools to Compare Policy Prices
There are online agencies that can help you compare quotes from different companies, so you know which company is the cheapest.
Platforms like Gabi or Insurance Hunter function like your personal insurance concierge.
These platforms can help you compare different insurance options so that you can find the policy that is most suitable for you.
These companies employ licensed insurance brokers who know what they’re doing and who will help you get the best deals.
The Zebra functions as an insurance search engine that compares insurance rates from over 200 companies.
Think about the Coverage You Need
It is important to understand that getting cheap insurance is not always the answer, even if it may help you save money in the short term.
There are some insurance policies that you have to get regardless of the price. Auto insurance is a legal requirement.
In almost every state, one needs property damage liability and bodily injury liability (except Florida).
It is also important to have coverage against uninsured motorists.
In addition, if your automobile is worth more than $2,500, you should get collision and comprehensive.
If you can afford it, you should also get personal injury protection with medical coverage.
To put it simply, while price is an important consideration, you also need to consider the type of coverage you need before choosing an insurance provider.
Before you leave, make sure to check out these resources:
What insurance provider or providers are using? Are you happy with their services?
Let us know in a comment below!
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