Cheapest car insurance quotes for 2022
There are many factors that determine how much you pay for car insurance. In order to make sure you get the best price, you should know what these factors are before comparing your coverage options.
I’ve included a chart below showing the five biggest reasons that you pay more for car insurance in the US:
Factor 1: Your location
If you live in a less populated area, your rates are usually lower than in areas with a high population. This is because the fewer people who drive in an area, the fewer accidents there will be, which lowers your risk and means less expensive premiums.
As you move to a higher-populated area, it is more likely that you’ll be involved in an accident. This means more claims, which leads to more lawsuits, higher prices, and more expenses.
Factor 2: Car value
The more expensive your car, the more expensive your insurance is. This is because the likelihood of you being involved in an accident is higher and a high-end car is typically more expensive to repair.
For this reason, you’ll pay more for comprehensive coverage, which includes repairs in the event of an accident.
Factor 3: Vehicle type
If you have a high-performance sports car, it is likely that you’ll be involved in an accident, which will cost you more in the long term.
Because you’ll be spending money on repairs and legal fees in the event of an accident, you’ll be forced to choose between paying off your vehicle’s debt, and paying your insurance bill.
Car insurance providers like State Farm offer policies tailored to your particular situation, so you don’t have to buy a standard policy just because you drive a certain car.
Factor 4: Driver age
Younger drivers tend to cause fewer accidents, which reduces your risk and saves you money.
However, young drivers are also considered to be more prone to poor driving habits and negligence, which increases your chances of being involved in a car accident.
Older drivers tend to have a higher risk of accidents and make a lot more claims.
Find cheap car insurance quotes
The current state of the US car insurance market is best described as a highly centralized system that is prone to monopolization.
The biggest players in this industry are well-established companies that are largely unaffected by changes in the industry. And while this isn’t necessarily a bad thing, it is a huge problem.
Because of this, customers have limited options when it comes to shopping around for a better deal.
This situation has left many consumers with an outdated and highly expensive car insurance policy.
So, how can you find cheaper car insurance premiums for 2022? There is no one definitive answer to this question. Typically, you can find cheaper car insurance premiums by researching different providers and comparing rates. Additionally, you may be eligible for discounts or offers from certain car insurance companies if you meet specific criteria, such as having a good driving record.
Cheapest car insurance for you
While there is no perfect way of finding cheap car insurance, below you will learn exactly what you need to do to get the best prices.
You’ll see the best car insurance prices by location and by state, and you’ll also get tips and tricks for keeping costs down.
To help you get started, here is a table of average annual premiums for auto insurance.
Average cost is based on 2016 data from the National Association of Insurance Commissioners.
Location Cost Comments
All $1,800 The average cost of car insurance for the whole country is $1800 per year.
Mountain States $2,050 The average cost of car insurance for the mountain states is $2050 per year.
New England $1,700 New England pays about $1700 each year for auto insurance.
Midwest $1,600 Midwest averages $1600 each year.
North Central $1,500 North Central averages about $1500 each year.
South $1,400 South pays an average of $1400 per year for auto insurance.
Southeast $1,400 The southeast averages $1400 each year.
West $1,000 The West pays about $1000 each year.
Why does it matter? If you’re searching for cheap car insurance in one of the categories listed above, you’ll find the best prices.
Here’s how it works.
Insurance companies compete for business, and they do this with a variety of tools. One way they do this is through pricing.
When they see a new customer, they compare their quote to the average premium for the area they are in. This way they can see who is charging too much and who is charging too little.
They then tweak their rates to keep up with the market.
Cheapest car insurance for young drivers
Getting cheap car insurance can be hard if you don’t have perfect credit, a solid driving record, and a steady income.
However, it’s still possible to save money on your car insurance premiums, especially if you live in an area with a high cost of living.
The reason for this is because car insurance companies tend to target a specific market.
Car insurance companies know that older, more experienced drivers have higher rates because they are statistically more likely to claim in an accident than a younger driver.
As a result, car insurance companies charge higher rates to drivers under the age of 25 years old.
While this is an unfortunate situation, there are ways you can fight against this injustice.
Save money with free insurance programs
The key to saving money on your car insurance premium is to join a group that provides free insurance programs.
These insurance providers are often sponsored by insurance companies that provide discounted premiums for active members.
It’s important to note that these discounts do not apply to every insurance provider.
However, these programs are usually quite popular and offer the most benefits.
Most people can expect to save an average of more than 30% off the standard car insurance premium.
Cheapest car insurance for first time buyers
Buying car insurance for the first time can be intimidating. You may not know what type of car you want, what coverage is most important, or what kind of driver you are.
Fortunately, your insurer can guide you through the maze of new policies and options with a simple phone call.
I’ll show you how to get the best insurance rate possible, even if you’ve never owned a car before.
One option is to go to www.vehicleprice.com and enter your zip code. This will give you a list of insurance companies in your area. You can then compare rates and choose the best one for your needs.
Cheapest car insurance for older drivers
Older drivers are usually at greater risk of becoming involved in a car accident, so it stands to reason that they should have more affordable auto insurance.
Unfortunately, this is not always the case.
It seems that most insurers set the price of auto insurance according to the age of the driver and the number of miles they drive every year.
As a result, a young person with a clean driving record and the minimum mileage might pay more than an elderly person who drives thousands of miles every year.
Cheapest car insurance for teenagers
Teenagers are more prone to making risky decisions than older drivers.
In addition, they have less experience behind the wheel and may need to borrow their parents’ or grandparents’ cars.
All these factors make teenagers very dangerous on the roads.
As a result, car insurance for teenagers is a lot more expensive than for adults.
However, the good news is that we’re seeing a gradual decline in the cost of car insurance for teenagers.
A few years ago, the cost of car insurance for teenagers was significantly higher than for adults.
Nowadays, there are many car insurance companies offering special discounts for young drivers, which is the reason why we see this price decrease.
Cheapest car insurance for new drivers
Many auto insurance companies have begun implementing new discounts and pricing models for new drivers. Some offer discounts as long as you are a loyal customer. Others charge higher premiums if you haven’t had a car accident in the past.
However, if you have a clean driving record, you may be able to find much better deals. Here are some tips to follow.
Check out your credit score
Credit scores can range from 350-850. Your credit score is based on how you’ve handled credit over time. A low credit score indicates that you’re less likely to handle credit well.
It is important to remember that a low credit score does not mean that you cannot get car insurance.
However, a low credit score can increase your insurance costs.
Shop around for multiple quotes
Car insurance companies have changed their policies since the last recession. Today, you may find yourself with more options.
Don’t just rely on your current insurance provider. Get quotes from multiple insurance companies so you’ll have a list of prices to choose from.
Get a good discount on your current policy
Before you purchase new car insurance, contact your current car insurance provider and ask for a discount.
You may find that they can provide a discount to current customers who do not plan on renewing their existing policy.
This is a great way to save money while you are saving for your new car.
Drive fewer miles
Insurance companies are increasingly looking at the miles that you drive. If you drive fewer miles, you are more likely to be a safe driver.
A safe driver can reduce the cost of car insurance premiums.
Be a frequent flier
This has become popular in the past year, but insurance companies are now offering rewards programs that reward your loyalty.
This means that if you buy a ticket or get an auto loan, you get extra rewards points. These points can translate into discounts for your car insurance.
Cheapest car insurance for women
According to an article in Forbes, the average woman pays almost $900 per year for car insurance compared to a man who spends just over $300.
This huge difference in pricing can be attributed to the fact that women tend to be involved in car accidents less often.
This leads to a lower chance of being sued for damages following a crash.
With no financial liability on the other hand, men are more likely to insure their vehicles with higher premiums.
Another reason for higher costs is that women tend to drive smaller cars that are usually cheaper to insure.
A good way to find cheap car insurance for women is by asking a family member, friend or coworker who has bought their own car insurance.
Cheapest car insurance for men
According to the American Automobile Association, about 40% of car insurance claims in America are made by men, and for good reason.
Men tend to be much riskier drivers than women, and this means that they get the heaviest penalties when they violate the rules of the road.
As a result, they are often penalized with higher car insurance premiums.
It turns out that women, on the other hand, actually pay more in car insurance premiums than men do.
Why? Because women are more likely than men to drive safely and be careful drivers.
However, this doesn’t necessarily mean that you should only be buying car insurance for women.
What’s more, you should consider the fact that the car insurance industry has changed a lot over the last decade.
Car insurance companies have become much more willing to compensate drivers for minor violations or safety improvements such as automatic emergency brakes and lane control systems.
So if you’re driving a safer vehicle, there is no reason to pay a higher premium.
Moreover, if you can prove to a company that your vehicle is an excellent driver, you can sometimes be offered a lower rate.
Conclusion
The cheapest car insurance you can get on the market doesn’t cost a lot. But even so, there are some things that you should look for when trying to compare rates.
Most importantly, your premiums should vary based on your driving record and age. If you drive over 30,000 miles per year and are older than 40, you might have to pay more than someone who drives 10,000 miles less and is younger than 30.
As the insurance companies go, there are plenty of options. I’ll mention some of them later in this post. But the best thing to do is to make sure you have the coverage you need.
