Why is it so hard to find cheap auto insurance? (2024)
It’s hard to find cheap auto insurance since new cars cost about $20,000 and are expensive to replace. Additionally, hospital bills after an accident can run about $1,000. Learn how to find cheap auto insurance rates and what affects your costs.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
UPDATED: Sep 5, 2024
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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 5, 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.
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Auto insurance is required by law but often feels like another bill you’d rather not pay. Why is car insurance so expensive all of a sudden? Our analysis of the price-checking process answers will tell you how to find affordable car insurance — turns out that many factors that increase your rates are out of your control.
For example, it’s hard to get car insurance for cheap when you live in a big city with heavy traffic and multiple auto accidents, even if you’re a safe driver.
Why is it so hard to find cheap auto insurance? Uncover the best answers for cheap car insurance in this helpful guide. Enter your ZIP code above to start comparing affordable insurance companies near you.
Why Auto Insurance is Expensive
Most states require you to hold some form of auto insurance policy for your car in the event of an accident, theft, or another disaster that befalls your vehicle.
Car insurance is mandatory across the United States for three reasons:
- A car is a big-ticket item that tends to cost a lot to repair or replace.
- Cars are very dangerous and can cause significant property damage or personal injury to drivers and innocent bystanders.
- Automobile accidents are among the leading causes of death and disability in the United States, and auto insurance laws lessen the strain on society.
So why is it so hard to get car insurance at an affordable rate? It is easy to lay the blame for expensive auto insurance on greedy corporate executives who only want to steal your money, but the truth is that cars often cause a significant amount of damage. A new car typically costs around $20,000; used cars typically value around $10,000.
Hospital bills are often around $1,000 per passenger, but could be significantly greater, while vehicle repairs may range from $500 to $2,000, per vehicle.
If someone gets into an accident that effectively totals his or her car, that person may be on the hook for around $30,000, all told. Consider that the average auto insurance premium is about $1000-$1500 per year, this means that if you get into an accident once every 20-30 years, your insurance will pay for itself.
Compensation for an insurance agent to work on your vehicle typically runs a few hundred dollars per person involved, and if you live in a tort state, there are court costs to consider as well.
Of course, not all insurance is expensive. Recent advances in insurance analysis indicate that there are certain types of high-risk individuals that tend to get in more crashes than others.
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Comparing Auto Insurance Costs
Is it hard to get car insurance? It can be difficult to find cheap auto insurance rates if you live in a big city or have accidents on your record. Cheap rates indicate that a company sees you as a low-risk driver who will likely never have to make an insurance claim. You can still find low-price auto insurance by using our easy comparison tool.
Who has to pay the most for car insurance? Take a look at the costs and motivations of auto insurance companies below. Each insurance company calculates risk differently and finding inexpensive auto insurance often amounts to finding the insurance company that sees you as the lowest risk possible. Being informed is the best way to ensure you are getting the best rate.
Cheap Auto Insurance by State
What is one thing that would cause your car insurance to increase? Moving. Where you live has a huge impact on auto insurance. The driving behavior of those around you, as well as auto theft rates and commute times in your city, can raise or lower your rates.
Why is it hard to get car insurance in California? Recent natural disasters and extreme weather events are increasing property insurance costs throughout the state, making it hard for local drivers to find low-cost auto insurance.
Cheap Auto Insurance for High-Risk Drivers
High-risk drivers have multiple accidents, claims, or DUIs on their records and often pay three times more than safe drivers of the same age. If your driver’s license is suspended, you will need SR-22 auto insurance. Unfortunately, finding cheap auto insurance with SR-22 is difficult because not all companies will file SR-22 for their customers.
Cheap Auto Insurance for Young Drivers
Cheap auto insurance for teens and young drivers is the hardest to find. Insurance providers consider drivers under 25 to be high-risk due to their inexperience behind the wheel.
At what age is car insurance most expensive? Sixteen-year-old drivers pay the most for auto insurance.
Cheap Auto Insurance for Seniors
Auto insurance tends to be more expensive for seniors due to the increased likelihood of health issues affecting driving ability. Insurance companies also factor in the statistically higher accident rates among older drivers.
Cheap Auto Insurance by Credit Score
Does credit score affect car insurance? Yes. Some studies suggest a link between credit history and driving behavior, and bad credit can raise auto insurance rates because insurers often view individuals with poor credit as higher risk.
You may also need a high credit score to lease a car or buy a new vehicle.
Cheap Auto Insurance by Vehicle
What color cars are more expensive to insure? Fortunately, the color of your vehicle has nothing to do with your rates. By staggering costs according to statistically significant probabilities, insurance companies can offer inexpensive insurance policies for safer models and older vehicles.
What car has the highest insurance cost? Luxury and sports vehicles tend to cost more to insure, but rates will vary by company and vehicle make and model. The best cars to buy for cheap auto insurance are older models with high safety ratings.
If you want to buy a new or used car, understand how it will change your insurance rates. The best time to buy a car is at the end of the year, but quotes are typically higher due to several factors:
- Higher Value: New cars have higher market values, which means insurance companies may need to pay out more in the event of an accident or theft.
- Repair Costs: Newer vehicles may have higher repair costs due to specialized parts and technology, leading to higher insurance premiums.
- Advanced Safety Features: Advanced safety features, such as collision avoidance systems and adaptive cruise control can lead to discounts as they reduce the likelihood of accidents and injuries but still cost more to repair after an accident.
Can you buy a car in another state? How will that affect insurance? Insurance rates are based on where you register the vehicle, but you may be subject to taxes in both states, which can get expensive. Transportation costs are also another factor to consider in your budget, but you can buy a car in another state and drive it home yourself.
Finding Cheap Auto Insurance
Why is it so hard to get insurance? If you don’t end up comparing insurance the easy way, it will be very hard for you to find an inexpensive insurance company. This is because insurance companies don’t all have the same prices for everyone.
The average insurance website is a mess of sales pitches, caveats, and forms. If you can find the forms that you need to fill out, you may spend about 15-30 minutes providing all your information. This includes your address, demographic info (age, gender, etc.), car make and model, workplace, average time spent driving, car title, driving record, and more.
If you call an agent on the phone, it may take even longer, as the agent will be trying to get your sale with every breath.
Once you fill in your information, you will have to further navigate all the options you might want on your policy. Some websites let you mix and match after you’ve provided your information, but some force you to go through all that for each policy you choose.
This means that any given company may take several hours to understand its pricing structure. If you’re trying to compare prices, you may have to spend several hours on all the insurance sites you’re interested in, amounting to an entire weekend sitting at the computer or on the phone with an agent.
The Bottom Line: Why is it so hard to find cheap auto insurance?
What day is car insurance cheapest? You can find very cheap car insurance with no deposit any day of the week when you shop online for insurance quotes. Request quotes from popular providers to find cheap full coverage car insurance near you.
Why can’t you get an auto insurance quote online with certain providers? Some insurance companies closely guard their algorithms for determining your auto insurance costs. Because this may ultimately save you money, it’s best not to complain too much.
Instead of worrying about “Why can’t I get an insurance quote?”, you need to answer the question: “Where do I easily find cheap auto insurance quotes online?”
It’s simple — just use our FREE insurance comparison tool. Take a few minutes to enter your information once, and we will submit that information to all the insurance sites in your area for every type of policy you’d like to compare.
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Frequently Asked Questions
How much do most Americans pay for car insurance?
Most drivers pay around $180/mo for full coverage and $40 for minimum coverage.
Why is it challenging to find cheap auto insurance?
Finding cheap insurance can be difficult due to various factors that influence insurance premiums. Some reasons include:
- Risk assessment: Insurance companies assess risk based on factors such as driving record, age, location, vehicle type, and claims history. If you are considered high-risk, such as having a poor driving record or living in an area with a high rate of accidents or theft, it can be more challenging to find affordable coverage.
- Coverage requirements: Each state or jurisdiction has specific minimum coverage requirements. Meeting these requirements while seeking additional coverage options can increase the cost.
- Personal factors: Individual characteristics, such as age, gender, marital status, and credit history, can impact insurance rates. Factors like being a young driver, male, single, or having a lower credit score may result in higher premiums.
- Cost of claims: Insurance companies consider the potential cost of claims when setting premiums. Rising healthcare and auto repair costs, along with increased legal fees, can contribute to higher insurance rates overall.
- Competitive market: Auto insurance is a competitive industry, and rates can vary among different insurance companies. While some may offer lower premiums, they may have different coverage options or customer service quality.
- Coverage needs: The level of coverage and types of optional coverages you choose can affect the cost of your insurance. Adding comprehensive, collision, or additional coverage options can increase premiums.
Should I shop around for cheaper car insurance?
Yes. Obtain quotes from multiple insurance companies to compare rates and coverage options. Each company evaluates risk differently and may offer different discounts or incentives.
What is the best time to search for car insurance?
The best time to get cheap auto insurance is when your coverage is about to renew, typically 6-12 months after you purchased your original policy.
What month is auto insurance cheapest?
It doesn’t really matter what month you buy cheap auto insurance, but some companies may adjust rates for the new fiscal year. So, consider comparing quotes online between October and December to get the lowest rates.
When is the best time to buy a car?
Just like insurance, you’ll get the best deal on a new or used car if you buy between October and December.
Why did my car insurance go up when nothing changed?
If nothing changed on your policy or in your driving history, where you live might be to blame. Auto insurance rates can go up based on the traffic, commute time, and the number of claims, thefts, and auto accidents in your ZIP code.
Are there loopholes to get cheap car insurance?
Yes, there are several actions you can take to potentially find cheaper auto insurance:
- Review your coverage: Assess your coverage needs and consider adjusting your coverage limits or deductibles. However, ensure that you maintain adequate coverage to protect yourself financially.
- Bundle policies: Consider bundling your auto insurance with other policies, such as homeowners or renters insurance, with the same company. Many insurers offer discounts for multi-policy customers.
- Improve your driving record: Avoid accidents, traffic violations, and claims, as a clean driving record can lead to lower premiums over time.
- Take advantage of discounts: Inquire about available discounts, such as safe driver discounts, good student discounts, or discounts for safety features in your vehicle.
- Consider usage-based insurance: Some insurers offer usage-based insurance programs that assess premiums based on your actual driving habits. If you are a safe driver who drives less, this may result in lower rates.
Is cheap car insurance always the best option?
While finding affordable auto insurance is important, it’s crucial to consider the overall value and coverage provided. Cheaper insurance may have lower coverage limits, higher deductibles, or exclusions that could leave you underinsured in case of an accident. Balancing cost with the coverage and protection you need is key. It’s advisable to assess your personal circumstances and insurance requirements and choose a policy that offers adequate coverage at a reasonable price.
Who typically has the cheapest car insurance?
Geico and State Farm are the cheapest and most popular auto insurance companies in the country. However, you can use our free comparison tool below to find cheap auto insurance online from companies near you.
Can I negotiate with insurance companies for lower rates?
Insurance companies typically determine rates based on actuarial calculations and risk assessments, so negotiation for lower rates may not always be possible. However, you can discuss available discounts and review your coverage options with insurers to find ways to reduce your premiums. Some insurers may be open to adjusting rates or providing additional discounts based on your circumstances.
Is it cheaper to insure an older car?
Yes, most companies lower rates for older vehicles because they cost less to repair. Dropping coverage on an older vehicles is another way to get more affordable car insurance rates.
Can you buy a car with a credit card?
You can possibly buy a car with a credit card if the dealership accepts these types of transactions. Ask your dealership about its payment methods to determine the best way to buy your next vehicle.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Michael Leotta
Insurance Operations Specialist
Michael earned a degree in Business Management degree with an insurance focus, which led to a successful 25-year career in insurance claims operations and support. He possesses a high-level of business acumen across multiple areas of the insurance industry. Over the course of his career, he served in multiple roles supporting claims operations including: Claims Specialist, Claims Trainer, Claim Au...
Insurance Operations Specialist
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.