These days, there are so many options for car insurance and if you aren’t sure what you’re looking for, it can get overwhelming. Premiums and deductibles can vary depending on what types of coverages you carry. If your priority is to find the lowest rates, we got you covered. In the sections below, we will discuss how you can find the best car insurance rates.
Evaluating Car Insurance Rates
No two car insurance companies function exactly the same. Every company uses their own formula for calculating rates. Here are some of the factors they consider when determining a price range:
- Where you live.
- Age.
- Driving record.
- Claims history.
- Credit score and open accounts.
- The type of car you drive.
- The coverages that you have selected for your plan.
- Annual mileage and/or how often you drive.
- Discounts.
You will often find that rates fluctuate considerably between various insurance companies, even for the same kind of coverage. Insurers could have different discounts and offers depending on what they value the most. This is why it’s crucial to shop around first in order to make a good selection. Normally, you won’t know how good your insurance is until you make a claim.
Coverage Rates For 25-Year-Old Drivers
We’ll start off by comparing the average minimum and full coverage rates for drivers around the age of 25 years old. Since this demographic generally tends to have a higher incidence of accidents than other demographics, it’s important to compare rates if you or someone in your household is around this age. The chart below outlines the rates from least to greatest.
| Company | Full coverage | Minimum coverage |
| Geico | $1,420 | $429 |
| USAA | $1,423 | $496 |
| Travelers | $1,440 | $502 |
| Nationwide | $1,502 | $673 |
| American Family | $1,585 | $725 |
| State Farm | $1,663 | $585 |
| Farmers | $1,859 | $629 |
| Allstate | $2,588 | $786 |
As you can see, there is a pretty significant difference in price between Geico’s $1,420 full coverage rate and Allstate’s $2,588 coverage rate. It’s important to note that USAA is only available to military families and veterans.
Coverage Rates For 40-Year-Old Drivers
Turning 40 is a huge milestone for many Americans, and it definitely has its perks. By the age of 40, your chances of getting into an accident tend to decrease significantly. For this reason, you will notice lower rates across all of the major companies. The chart below shows you what you can expect to pay for car insurance if you are around the age of 40.
| Company | Full coverage | Minimum coverage |
| USAA | $1,118 | $397 |
| Geico | $1,210 | $364 |
| Travelers | $1,277 | $474 |
| Nationwide | $1,309 | $567 |
| American Family | $1,418 | $636 |
| State Farm | $1,426 | $509 |
| Progressive | $1,619 | $592 |
| Farmers | $1,717 | $584 |
| Allstate | $2,368 | $765 |
Other than USAA, which is only for military and veterans and their families, Geico has the cheapest rate for car insurance if you are around 40 years of age. Allstate comes in last place for the cheapest rate, which is $2,368.
Car Insurance Rates For Drivers With A DUI
It’s a no brainer that DUIs should be avoided at all costs. Driving under the influence can wreak financial havoc, cause damage, and potentially serious harm. For this reason, once you get a DUI, your car insurance will sky-rocket. A DUI can hurt your car insurance rates for 3 to 10 years, which is why you should compare rates before choosing an insurance company.
| Company | Drivers without a DUI | Drivers with a DUI |
| USAA | $1,118 | $1,940 |
| Geico | $1,210 | $3,015 |
| Travelers | $1,277 | $2,100 |
| Nationwide | $1,309 | $2,613 |
| American Family | $1,418 | $1,751 |
| State Farm | $1,426 | $2,385 |
| Progressive | $1,619 | $2,001 |
| Farmers | $1,717 | $2,388 |
| Allstate | $2,368 | $3,606 |
Once again, keep in mind that USAA is only for military families and veterans. The above table gives you a picture of how much your DUI can affect the price of your insurance. Some companies will raise their rates more than others.
Car Insurance Rates For Drivers With Poor Credit
As you can expect, your credit has a lot to do with how your car insurance rates will be calculated. There are a few states who do not determine car insurance rates based off of your credit score, which are:
- California
- Hawaii
- Massachusetts
- Michigan
Note that every state differs in how much they will consider your score when it comes to setting a price. In the table below, you can see the average differences in price between a policyholder with good credit and a policy holder with bad credit.
| Company | Drivers with good credit | Drivers with bad credit |
| USAA | $1,118 | $2,110 |
| Geico | $1,210 | $1,715 |
| Travelers | $1,277 | $2,154 |
| Nationwide | $1,309 | $1,806 |
| American Family | $1,418 | $2,286 |
| State Farm | $1,426 | $3,195 |
| Progressive | $1,619 | $2,854 |
| Allstate | $2,368 | $3,437 |
Note that USAA is only available to military families and veterans. While some states have banned the utilization of credit scores in setting prices for insurance, many states still use it as a factor in their decision-making process. These prices may not be the same as the prices you are offered in your state.
Tips For Saving Money On Car Insurance Rates
Now that you have a general idea of how certain factors can contribute to your car insurance rates, you’re probably wondering what your options are when it comes to getting the best bang for your buck. Fortunately, no matter what happened in your past to cause your insurance rates to be high, there are still ways you can cut back on spending.
Here are some of the ways you can save money on car insurance:
- Multiple-car discounts: Some companies will give breaks to policyholders who have multiple drivers on their plan. If you inquire about insurance rates for just one vehicle, you might actually get quoted a higher price than you would have if you had inquired about multiple vehicles. Ask your agent to see if you qualify.
- Be a safe driver: There are many obvious reasons why you should prioritize being a safe driver, but did you know that it can help you get discounts? Most insurance companies will reward safe drivers with discounts.
- Complete a defensive driving course: Taking a defensive driving course might win you some brownie points with your insurer. Some companies will give you a discount if you can prove that you completed a state-approved defensive driving course.
- Use public transportation whenever possible: It might seem counterintuitive, but the less miles you drive, the better chance you have at getting a low car insurance rates. Certain companies might consider you low risk if your annual mileage is on the lower side.
- Pay a higher deductible: The higher your deductibles, the lower your monthly premium will be. If you do your best to be a safe and responsible driver, chances are you probably won’t have to worry too much about out-of-pocket costs too much anyway.
Always shop around and do your research before signing a contract with an insurance company. If you already have car insurance, ask your agent if you qualify for any of the above discounts.