Is buying dirt-cheap auto insurance safe? (2024)
If you're wondering whether dirt-cheap auto insurance is safe, the answer is yes if the company has good ratings. For example, if you only need liability coverage, Geico, USAA, and State Farm have options starting at $30/mo. We'll help you find dirt-cheap auto insurance online from the top companies.
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Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
UPDATED: Sep 9, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 9, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
With a lot of purchases, you hear sage advice like “buyer beware” and “if it’s too good to be true it probably is,” but when it comes to auto insurance, that need not be the case.
So how do you know whether those dirt cheap auto insurance rates you’ve found are worth it in the long run?
Those rates are safe if your prospective insurance company is basing them on the internal guidelines they’ve set out. Use our FREE quote tool to compare auto insurance companies today.
- Compare rates from various companies to get dirt-cheap insurance
- Many factors affect rates, such as driving history, age, and location
- Research each company’s customer reviews and financial ratings
Things to Consider About Dirt-Cheap Auto Insurance Rates
If you’re seeing really low insurance rates, and are not expecting to, here are some things to consider:
About the Driver
Here are some things to remember when it comes to the driver:
- Driver demographics: One of the first things the auto insurance industry looks at is the age and gender of the driver. Young drivers, owing mostly to lack of experience are responsible for more accidents. Men have more accidents than women. The insurance companies want to work with you, offer rate discounts at 21 or 25 years old.
- Driving record: If your driving record is clean and accident-free, and has been that way for a while, chances are you’ll qualify for a discount with auto insurance companies. Many of them will be looking for accidents within the last 5 to 10 years.
- Driver location: You might have heard anecdotes and jokes about the driving habits in California or New York, or about the frequency of auto theft in Florida or Texas. Insurance companies gather data on accidents and auto theft, revealing that certain states, metropolitan areas, and even specific neighborhoods can lead to either penalties or rewards for residents. For instance, if the person at fault in an accident has no insurance in California, it can significantly affect the claims process and insurance rates.
- Credit score: Car insurers have, as a general practice, started considering credit records when determining rates. They do this because it can be another indicator of how responsible the driver is likely to be. If you have a bunch of debt and you’re not paying it on time, they may wonder how good of a driver you are. (Read More: How Credit Scores Affect Auto Insurance Rates)
As you can see, insurance companies consider various factors about the driver when setting rates.
About Your Car
How old your car is, as well as the type of car it is, play important roles in determining rates.
If you're driving a brand new sports car, you'll pay substantially more than if you're driving a 10-year-old coupe.Daniel Walker Licensed Auto Insurance Agent
A car equipped with safety features such as anti-lock brakes (ABS), airbags, automatic seatbelts, and a theft-deterrent system is likely to receive a better insurance rate than a car without these standard safety features or one considered higher risk (like the Explorer rollovers). The insurance company is usually the cheapest for a 30-year-old, offering the best rates and the cheapest insurance for full coverage.
About the Insurance Company
Here are some things to know about the auto insurance company:
Profession Discounts
– A lot of insurers offer special auto insurance discounts for different types of employment.
Professions such as teachers, public safety officials like police officers and firefighters, government employees, and military personnel often qualify for special insurance discounts. Additionally, young drivers, particularly 17-year-olds in Washington state, typically pay the most for car insurance.
Customer Loyalty Discounts
Having multiple policies (e.g.: life, auto, homeowners; or more than one auto policy) with the same insurance company is often a great way to save on rates.
Similarly, staying with an insurer for a long time demonstrates a loyalty that these companies often reward.
You may even experience the increasingly popular accident forgiveness with these companies, since they consider your comprehensive profile when determining rates.
Special Discounts
Many auto insurance companies provide specialized discounts for various reasons. For example, some companies offer reduced rates to full-time college students who maintain a specific GPA. This can be especially beneficial when considering insurance for a 17-year-old in Ireland or finding the best insurance for an old car.
Insurers also may have affiliate programs that offer special discounts to drivers who are members of a certain club or organization, like AAA or AARP.
About Your Coverage
Here are some things to know about auto insurance coverage:
- Minimums or more: If you are carrying more than the minimum liability auto insurance, your rates will logically be higher. This is also tied to state requirements – some states require more minimum coverage than others. The effects are noticeable in rate comparisons.
- Additional coverage: If you have opted into roadside assistance coverage, free towing, tire protection, windshield protection and special additional coverage for uninsured motorists, then your rates will reflect that. Accordingly, if you don’t have these sorts of additional coverages, your rates will be lower.
- Deductibles: If you have a high auto deductible (the amount you pay out of pocket in the event of damages), then your rates will be lower. It’s something to consider when comparing rates. Lower auto insurance deductibles mean higher rates.
- Risk factors: How far you drive in a year, and whether or not the car is being used for pizza delivery or taxi service will also play a role in rates. If you don’t drive much, or your commuting distances are short and you alternate between driving and public transit, you could be saving quite a bit on your car insurance. (Read More: Pleasure-Use vs. Commuter Auto Insurance)
The types of auto insurance you buy impacts your rates. So, it’s important to only get what you need to keep rates as low as possible.
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Other Considerations When Researching Insurance Companies
If, after reviewing these considerations you are still concerned about taking advantage of dirt cheap car insurance rates, here are some things you to check:
- Fine print: Is the rate offer promotional, or does it require special qualifications? Companies are required to disclose policy conditions prior to purchase, so read carefully.
- BBB: If you’re concerned about the company itself, check the Better Business Bureau‘s online portal and scour the web for information about the insurer you’re considering.
- Business reviews: Sometimes you’ll see dissatisfied customers expressing themselves on websites like Yelp. It can be a great source of reassurance if you’re questioning those cheap insurance rates.
Extremely low insurance rates are quite common and can be exceptionally cheap in some cases. Insurance companies compete by customizing rate quotes to fit your unique profile. While searching for affordable options, it’s important to consider that the most expensive form of car insurance offers extensive coverage. Additionally, Erie has a strong reputation for being good at paying claims.
More About Whether Buying Dirt-Cheap Insurance Is Safe
Auto insurance companies stay competitive by offering competitively low rates. Because of that, the consumer wins. To determine what low rates they can offer, insurers look at:
- Your personal profile
- Your credit profile
- Your driving record
- Your car
- Your coverage
- Special discounts that may apply
After understanding your relative appeal to different insurance companies and conducting some research, you can confidently select dirt cheap auto insurance online with low rates.
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— AutoInsurance.org (@AutoInsurance) November 23, 2023
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Frequently Asked Questions
Should I prioritize cost or coverage when purchasing auto insurance?
Finding the right balance between cost and coverage is essential when buying auto insurance. While affordability matters, it’s equally crucial to ensure that your policy provides adequate protection against potential risks. Evaluate your specific needs, considering factors such as your vehicle’s value, driving habits, and potential financial implications to determine the best level of coverage. This approach helps you identify the most trusted insurance company, choose the best car protection, avoid unnecessary insurance types, and mitigate risks associated with insurance.
What role does my driving record play in obtaining affordable auto insurance?
Your driving history significantly influences your car insurance costs. Maintaining a clean record, free from accidents and traffic violations, can qualify you for lower premiums. Conversely, a history of incidents may lead to higher rates or challenges in finding affordable coverage. Finding the best starter car insurance and identifying the cheapest category for car insurance depend on choosing a type of insurance that covers all potential risks.
Can I negotiate with an insurance provider for a better rate?
While negotiating with insurance providers may be possible in certain situations, the premiums you’re offered typically reflect the company’s assessment of your risk profile and other factors. It’s worth discussing your specific circumstances with an insurance agent or broker to explore available options and potential discounts.
What are the benefits of purchasing a comprehensive auto insurance policy?
Comprehensive auto insurance provides broader coverage compared to cheaper options. It typically includes protection against theft, vandalism, natural disasters, and other non-collision incidents. It can also offer higher liability limits and additional benefits like roadside assistance and rental car reimbursement.
Are there any alternatives to dirt-cheap auto insurance?
Instead of solely focusing on finding the cheapest insurance, it’s advisable to seek affordable policies that offer good value for your money. Consider comparing quotes from reputable insurance providers to find a balance between cost and coverage that suits your needs and budget.
Are cheap car insurance ads legit?
Be cautious of any ads for cheap car insurance. Always research the company and ensure it’s legitimate with good customer service ratings.
At what point is car insurance not worth it?
You might consider reducing comprehensive auto insurance if your car’s worth falls below a few thousand dollars. Nevertheless, you must maintain liability coverage if you plan to drive. This approach ensures you’re adequately covered with the most popular car insurance options and understanding of umbrella insurance coverage and the lowest form of car insurance.
Is it worth shopping around for car insurance?
Yes, you should always shop around to see if you can get cheaper rates from another company.
Is buying more than minimum coverage insurance a waste of money?
If you have a high-value car, full coverage will protect you from paying out of pocket for repairs after an accident.
Should I have full coverage on a paid off car?
If you can’t afford to pay out of pocket for repairs and the vehicle still has a high value, you should keep full coverage.
What is the cheapest car insurance for bad history?
Insurance companies vary in how they assess risk, but generally, companies like Geico, State Farm, and Progressive may offer competitive rates for drivers with a less-than-perfect history.
Who typically has the cheapest car insurance?
Companies like Geico, USAA (for military members and their families), and State Farm often offer competitive rates across different driver profiles.
What is the best insurance for high-risk drivers?
High-risk drivers often find specialized insurance through companies like The General, Dairyland, or companies offering non-standard auto insurance.
What is the cheapest insurance for an 18-year-old?
Rates can differ significantly, but companies like Geico, State Farm, and Progressive often provide competitive options for younger drivers. Choosing the right type of insurance and taking advantage of discounts for good grades or driver training can help lower costs. At a younger age, car insurance is most expensive, so it’s essential to select the insurance that best suits your needs.
What type of car insurance is cheapest?
Generally, liability-only insurance tends to be the cheapest option since it only covers damages to others in an accident.
At what age is car insurance the cheapest?
Generally, car insurance rates tend to be lower for drivers in their 50s and 60s who have a long history of safe driving.
What is the cheapest insurance for full coverage?
Companies like Geico, State Farm, and Progressive often offer competitive rates for full coverage, but rates vary based on location and driver profile.
What is the least amount of car insurance you need?
The minimum requirement varies by state or country but typically includes liability insurance to cover damages to others in an accident you cause.
Which car insurance company has the most complaints?
Companies with higher market share may receive more complaints, but specific complaints vary by region and customer experience.
What is the biggest risk in insurance?
Underwriting risk is one of the three risks associated with insurance, often seen by auto insurance companies as the highest risk. This involves the potential for losses due to unforeseen events or incorrectly priced policies. It’s crucial to understand this risk, especially when considering that age is a factor in determining when car insurance is cheapest.
Which insurance involves the highest risk?
High-risk insurance typically refers to policies for drivers with poor records or specialized needs, where insurers expect higher chances of claims.
What insurance is best for a 17-year-old?
Insurance for teens often benefits from adding them to a parent’s policy or finding insurers offering discounts for good grades or driver training.
Why is Erie insurance so cheap?
Erie Insurance is often perceived as affordable due to its regional focus, efficient operations, and customer-focused approach.
Do I still need CTPL if I have comprehensive insurance?
Yes, CTPL is mandatory regardless of whether you have comprehensive insurance. It covers third-party liabilities not included in comprehensive coverage.
Which brand of car has the cheapest insurance?
Generally, less expensive and safer vehicles tend to have cheaper insurance premiums. Specific brands may vary based on model and region.
What is the cheapest Toyota to insure?
Models like Toyota Corolla or Toyota Yaris may have lower insurance premiums due to their affordability and safety features.
What is the best coverage for car insurance?
The best cover depends on your needs. Comprehensive insurance offers the most protection, including coverage for theft, vandalism, and more.
What is the highest risk age for car insurance?
Younger drivers, typically teens and early 20s, are considered higher risk due to less driving experience and higher accident rates.
What is the most expensive form of insurance?
Life insurance or health insurance with extensive coverage can be among the most expensive forms of insurance due to the higher potential payouts.
What is the cheapest insurance coverage?
Liability-only insurance tends to be the cheapest cover, as it only covers damages you cause to others in an accident.
What is zero car insurance?
Zero car insurance typically refers to “Zero Depreciation Car Insurance,” a type of car insurance policy where the insurer does not consider the depreciation of the car while settling claims. This means that in case of an accident, the full cost of replacing car parts is covered without any deduction for depreciation.
What is considered a classic car?
A classic car is usually defined as a vehicle that is at least 20-25 years old, well-maintained, and preserved. These cars often have significant historical interest, unique design, or collectible value.
What is comprehensive vs. collision insurance?
Comprehensive insurance covers damage to your car caused by non-collision events such as theft, fire, natural disasters, vandalism, and hitting an animal. Collision insurance, on the other hand, covers damage to your car resulting from a collision with another vehicle or object, regardless of fault.
What is the best car insurance for people over 65?
The best car insurance for people over 65 often depends on individual needs, but companies like The Hartford (through the AARP Auto Insurance Program), GEICO, and State Farm are well-regarded for offering competitive rates and discounts for senior drivers. These insurers often provide tailored coverage options and benefits for older drivers.
What type of insurance should you choose?
The type of insurance you should choose depends on your specific needs and circumstances. For basic legal compliance, you need liability insurance. If you want broader protection, consider adding comprehensive and collision coverage. Additional options like uninsured/underinsured motorist coverage, personal injury protection, or gap insurance might be beneficial depending on your situation and vehicle.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
Secured with SHA-256 Encryption
Travis Thompson
Licensed Insurance Agent
Travis Thompson has been a licensed insurance agent for nearly five years. After obtaining his life and health insurance licenses, he began working for Symmetry Financial Group as a State Licensed Field Underwriter. In this position, he learned the coverage options and limits surrounding mortgage protection. He advised clients on the coverage needed to protect them in the event of a death, critica...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.