We compared quotes from five of the largest auto insurance companies in the U.S. and found that Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864.
Published March 17, 2021|4 min read
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The best way to get cheap car insurance coverage that fits your needs is to compare quotes from multiple companies. You may be quoted $150 a month by one insurance company while the same coverage can cost you just $75 a month at another.
If you want the cheapest coverage no matter where you go, you can also set lower coverage limits and higher deductibles. But be careful when choosing a bare-bones policy — the less insurance you have to cover you in case of an accident, the more you’ll have to pay out of pocket, meaning a cheaper policy can actually cost you in the long run.
Compared to four other large-and-in-charge auto insurance companies in the U.S., we found Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864
According to the National Association of Insurance Commissioners, Maine, Idaho, Iowa, Wisconsin, and North Dakota are the states with the cheapest average car insurance rates
If you want to find the best auto insurance, we recommend comparing quotes at multiple insurers to find the most coverage for the cheapest price
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We compared quotes from five of the largest auto insurance companies in the U.S. and found that Progressive had the cheapest rates for a “full coverage” policy with an annual premium of $864. Here’s how Progressive’s annual insurance rates compare to some of its top competitors:
|CAR INSURANCE COMPANY||ANNUAL CAR INSURANCE PREMIUM|
The sample driver used for the above rates was a single woman, age 35, driving a 2014 Toyota Camry, with a clean driving record. Rates vary based on these factors, so a married man with the same car might get a different quote from the same insurer. Rates can also vary across insurance companies, so while Progressive was the cheapest option for our sample driver, it may not be the cheapest option for every driver.
A “full coverage” policy is one that includes comprehensive coverage , for damage to your car that’s not caused by a collision, and collision coverage , for damage to your car after an accident, in addition to liability coverage . Most states require a minimum amount of car insurance for you to legally drive, but those minimums don’t provide enough coverage to ensure your full protection in case of an accident, and don’t include comp and collision, which are recommended for most drivers.
You can get the cheapest full coverage car insurance policy by setting low limits for liability coverage. You can set your liability coverage limits as low as your state’s required minimum, but if you cause an accident that results in more damage than your policy limits, you’ll be on the hook for the rest. We recommend choosing at least $50,000 per person and $100,000 per per accident in bodily injury liability and at least $50,000 per accident in property damage liability.
|BASIC COVERAGES||POLICY LIMITS|
|Bodily injury liability||$50,000 each person, $100,000 each accident|
|Property damage liability||$50,000 each accident|
|Medical payments coverage||$5,000 each person|
|Uninsured/underinsured motorist||$50,000 each person, $100,000 each accident|
Setting high deductibles on comprehensive and collision, meaning how much you must pay up front before that coverage can kick in, can also help you save money in the short-term by lowering your rates, although it can cost you if you wind up needing to use that coverage. Comp and collision deductibles can typically be set to either $500 or $1,000. A lower deductible means you pay less money out of pocket when your claim is accepted, but your rates will be higher, while a high deductible means paying more in the event of a claim, but your rates will be lower.
According to the National Association of Insurance Commissioners, Maine, Idaho, Iowa, Wisconsin, and North Dakota are the states with the cheapest average car insurance rates. 
Generally speaking, the cheapest states for car insurance are also some of the least densely populated, and car insurance requirements in these states tend to be lower.
The make and model of the car you drive, in part, determines the cost of your car insurance. In a 2020 study, AAA examined the ownership costs associated with different types of vehicles and found that small SUVs, minivans, and medium SUVs were the cheapest cars to insure .  Here’s a look at the insurance premiums for each vehicle-type compared in the study:
|TYPE OF CAR||ANNUAL COST OF CAR INSURANCE|
You can reduce your car insurance rates by earning discounts for anything from driving safely to bundling policies with the same insurer. Different insurance companies offer different discounts, so check with yours to see which ones you are eligible for. The most common types of car insurance discounts include:
Safe driver discount - A history of safe driving with no accidents or violations can save you big bucks when you apply. You might also be eligible for a discount by completing a driver’s education course
Claims free discount - Drivers who’ve gone a certain amount of time without filing a claim can earn a discount
Safety and security equipment discounts - You may be able to get a discount for having an anti-theft device in your car, such as an alarm system or a GPS tracker
University or military affiliation discounts - Being affiliated with a sorority, fraternity, or university can result in premium discounts with certain insurers. A similar discount may also be extended to drivers who have served in the military or who work for certain employers
Bundling discounts - You can save big when you bundle your home and auto insurance policies. You may also be able to save by bundling your car and motorcycle policy or your auto and renters policy
Paying in full - You may be offered a discount if you decide to pay your annual car insurance premium up front rather than monthly
When it comes to car insurance, some companies have better customer satisfaction ratings than others, and it might be worth paying a little extra if it means a better experience when it comes time to file a claim.
It helps to consider third-party ratings like the J.D. Power 2020 U.S. Auto Claims Satisfaction Study,  which rates how happy drivers are with the claims service from their car insurance company, from filing to repairs to settlement amounts.
|INSURANCE COMPANY||J.D. POWER RATING|
|NJM Insurance Co.||909|
|Auto Club of Southern California Insurance Group||866|
|CSAA Insurance Group||862|
|Automobile Club Group||858|
If you want to find the best and cheapest auto insurance, we recommend comparing quotes from multiple insurers to find the most coverage for the cheapest price. A number of factors determine what your insurance premiums will be, including your age, driving history, ZIP code, and the make and model of your car. But the same driver will still get different quotes from different insurers, which is why it’s important to shop around.
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