Best Cheap Car Insurance of December 2023

There's no doubt that the cost of auto insurance has exploded. Still, it's worth your time to explore which insurers offer lower policy costs without compromising coverage or quality. While premiums for required and optional coverage are less expensive than competitors, the best cheap auto insurance companies still provide top-notch claims handling, an easy quote process, and multiple discount opportunities.

To find the best auto insurance for customers who are looking for a bargain, The Ascent reviewed average premiums, policy availability, and insurer reputation. The goal was to find insurance policies offering low prices for drivers in all different situations and to see which insurance companies provided the top-notch service that all customers deserve.

Don't focus on premiums alone when looking for cheap insurance

Drivers looking for cheap insurance must not compromise protection for price. While it's a good idea to shop around to find an affordable auto insurance carrier, drivers should be wary of dropping optional coverage or maintaining only minimum coverage in order to save on premiums.

While most states only require certain types of insurance, such as liability coverage, individual drivers often need more protection than the minimum coverage would provide. For example, motorists may wish to consider purchasing:

• Collision insurance to pay for damages to their own vehicle if they cause a crash.
• Uninsured/underinsured motorist coverage, which is required in some states and which pays for the policyholder's damages caused by a driver who doesn't have any or enough insurance coverage.
• Comprehensive insurance, which pays for theft or damage to the policyholder's vehicle resulting from non-collisions (such as if a tree falls on the car).

Buying minimum required coverage is undoubtedly less expensive. The national average premium for liability-only coverage come in at just $787. However, without optional protection, drivers could be forced to pay to repair or replace their vehicle out of pocket if something goes wrong. Their insurance would only cover losses they cause to others.

Best cheap car insurance for poor credit

Drivers with low credit undoubtedly face more expensive insurance costs. Insurers take credit scores into account when setting premiums. That's why motorists will need to shop around more carefully to find the most affordable carriers when their credit score isn't as high as they'd prefer.

Based on a review of insurance data from multiple states, among the most affordable insurers for poor credit is:

• Geico: Geico offers affordable options for drivers with low credit. Average premiums for a 35-year-old driver in Florida with poor credit who uses the car for commuting would be $2,814. By comparison, the average premium among all insurers in Florida for the same driver would be $3,688.

Best cheap car insurance for drivers with accidents

Insurers price policies based on risk. After an accident, a driver will be more expensive to insure because insurance companies fear another collision is likely in the future, meaning the insurer may have to pay out another claim.

Some insurers do not penalize drivers as much as others do, so motorists with an accident on their record should shop around carefully for coverage. The Ascent researched the best car insurance options for high-risk drivers, including motorists with an accident history, and found the most affordable options include:

• State Farm: Average premiums for a driver in Florida with one accident on their record and excellent credit came in at $1,320, compared with an overall average premium of $3,264 for Florida drivers with an accident history, but an excellent credit score.
• Geico: Average premiums for a driver with excellent credit and an accident history who commutes in their vehicle are just $1,448 from Geico -- also well below the overall average.

Best cheap car insurance by state

Car insurance prices can vary by state. In Ohio, for example, average insurance premiums are $2,238, while premiums in more expensive states such as Michigan average $5,766.

Here are some of The Ascent's picks for the best cheap car insurance by state:

• Best Cheap California Car Insurance
• Best Cheap New York Car Insurance
• Best Cheap Florida Car Insurance

How to get cheap car insurance

Price is one of the key factors that drive customers' satisfaction with their car insurer, according to J.D. Power & Associates. So if you're wondering, "Where can I get cheap car insurance?" you aren't alone.

To help find cheap car insurance, here are nine steps a motorist can take:

1. Get quotes from several auto insurers: Prices can vary a lot from one insurer to the next. When looking for the best company for auto insurance, aim to get at least three auto insurance quotes. This will let you compare prices. Someone who has their VIN handy will have an easier time receiving more accurate quotes.
2. Choose the right vehicle: Some cars are cheaper to insure than others. Drivers who want cheap auto insurance can opt for a mid-priced vehicle to keep costs down. Ideally, they should choose one with an alarm and lots of safety features.
3. Pay premiums annually: Most insurers offer a discount if a driver pays their insurance premiums annually. If they choose not to pay monthly, they can get the best cheap car insurance without compromising coverage.
4. Make sure your credit history is error-free: Many car insurance companies use a driver's credit history to help set premiums. When shopping for cheap car insurance, motorists should make sure the information on their credit report is accurate. Mistakes could make a driver seem like a riskier borrower. You can contact the major credit bureaus to correct errors.
5. Limit who drives the vehicle: Insurers may charge more if the policyholder has a teen driver on their policy. A driver with a history of accidents or moving violations is also more costly. People who want the best cheap car insurance shouldn't let other people use their vehicles. Insurers could raise rates as a result.
6. Take a defensive driving course: Many auto insurance companies offer discounts for customers who take courses to improve their driving skills. This can be most valuable for teens, but adults can benefit, too.
7. Buy only the necessary coverage: People definitely need liability coverage to protect against losses they cause. But they may not need roadside assistance if they already have AAA. If a driver has an older vehicle, they may also decide to drop collision coverage. This pays for repairs or replacement of the vehicle. Drivers with hefty emergency savings may also opt for higher deductibles. High deductibles lead to lower premiums. But drivers will have to foot more of the bill if they need to use their insurance coverage.
8. Bundle coverage: Drivers can look for a cheap insurance company that sells several types of insurance. People can get significant discounts if they combine auto insurance with other policies, such as homeowners insurance. These can help get the best cheap car insurance.
9. Ask about other discounts: Those looking for the best cheap car insurance will find many insurers offer other savings. For example, young drivers could get good grade discounts. Many companies also offer discounts for having an advanced degree, being married, working for certain employers, or owning a home. Check out The Ascent's guide to discounts on car insurance for some examples of how you can save.

Learn more: How to get very cheap car insurance

Are older cars cheaper to insure?

Motorists looking for the best cheap car insurance may want to drive an older vehicle. These drivers often pay a lower insurance premium for several reasons:

• Their value is lower. The insurance company wouldn't have to pay out as much to replace the vehicle if it's stolen or totaled.
• They may be able to drop some types of coverage. It may not be worth paying insurance premiums for collision coverage on an old vehicle with little market value.
• Older cars may be less likely to get stolen. There's less risk the insurance provider may have to pay out after a theft.

Unfortunately, older vehicles may lack the safety features of new cars. These can include passive restraints or frontal airbags. An insurer may charge more for medical coverage if a driver doesn't have these features, as they'll be at greater risk of serious injury.

Shop around for the best cheap car insurance. Drivers can often find an insurer to cover their older vehicles at an affordable price.