The Cheapest Car Insurance Companies in 2021| Automobile Insurance

 The Cheapest Car Insurance Companies 2021

Did you know the exact same driver could be charged $50 per month by one insurance company and $150 per month by another?

Our car insurance analysis — based on hundreds of thousands of quotes collected across the country — backs that up. Read on to find out the cheapest companies in the country, in your state and for certain types of drivers.

Beyond the data, the best advice we can give drivers looking for their best car insurance rates is to shop around. No single insurer will be the cheapest for every driver, but our research will give you a good foundation to start your search.

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What are the Cheapest Car Insurance Companies

Our analysis found that USAA, Amica, Geico, State Farm and Allstate are the most affordable major insurers in the country. 

• USAA Car Insurance Company

USAA cost an average of $220 for a six-month policy, 55% below the national average. State Farm cost $360 (24% below the national average) for a six-month policy.

Although USAA is easily the cheapest option among major insurers, only active military members, veterans or their families will qualify for a policy.

• Digital Experience

Believe it or not, USAA actually offers a great digital experience through the USAA website and mobile app. Through the USAA website, customers can use the free quote tool and receive rates without even providing an email address or phone number. The site also includes lots of information about coverage options, planning and calculating tools, and general insurance and money management advice. The USAA mobile app also provides secure access for customers to pay their bill, access digital ID cards and insurance policies, or even start the claims process. 

• Amica Car Insurance Company

Amica has exceptional customer ratings and stands out for its dividend policies. 

Amica is one of the few providers that offer drivers an option to receive up to 20% back on their annual premiums through dividends. Dividend policy benefits include lowering your long-term policy cost as well as offering flexible dividend payment options, typically ranging from 5%-20% of your annual premium. Amica policyholders even have the option to apply the dividends to future years’ policy premiums.

• Digital Experience

Overall, Amica’s website and mobile app are very basic and don’t do anything overly impressive. Still, they are easy to navigate, and you can do the standard tasks, like pay bills or access ID cards. Amica also allows its customers to file claims through the app and online. Customers can also request roadside assistance through the app.

• Geico Car Insurance Company

Geico earns the top Bank rate score, is available to drivers nationwide and provides one of the best mobile policy-management apps.

Geico offers insurance in all 50 U.S. states and Washington, D.C., with offices set up in more than 10 major cities. For each of the 11 U.S. regions examined within the 2020 J.D. Power Auto Insurance Satisfaction Study, Geico ranks within the top five for overall customer satisfaction, which is one of the key reasons we include among the best car insurance providers. In the North Central, North West and Southwest regions, the company either has the highest score or ties with other high ranking best car insurance providers.

• Digital Experience

In addition to their great discount offerings, one of the other reasons why people love GEICO is because of its mobile app. Although many car insurance companies have gone digital, GEICO is on the cutting-edge when it comes to communication, provides state-of-the-art online tools and ease of service through both the company website and mobile app.

• State Farm Car Insurance Company

The provider is an excellent option for those seeking local agents to offer in-person insurance advice if desired.

State Farm retains the largest market share of private passenger car insurance writers. The insurance provider often ranks well on J.D. Power auto studies. For example, State Farm ranked particularly well as being the number one company in the Mid-Atlantic and New York regions in the 2020 Auto Insurance Satisfaction Study. AM Best gives it a A++ (Excellent) rating, signifying superior financial strength.

• Digital Experience

In comparison to some of the other top insurance companies, State Farm is a bit behind when it comes to a streamlined digital experience. What that being said, State Farm started a partnership with Sales Force back in 2018 to enhance the online experience for its customers. Like most other insurance websites, you can now manage your account through the State Farm customer portal.

• MetLife Car Insurance Company

MetLife is a great option for those who want to bundle both their home and auto policies as it offers both standard and more comprehensive options to protect your property, with policies that are buildable to individual needs.

Among the top 15 insurers in market share, MetLife has provided auto and homeowners insurance since 1972. It is available in all 50 U.S. states and Washington, D.C., and in the 2020 J.D. Power Auto Claims Satisfaction Study, MetLife landed the fifth overall spot with a score of 886 out of 1,000 for customer satisfaction. In addition to its basic coverage, the company offers a good amount of coverage options including rental car coverage, gap insurance, major parts replacement and legal defense fees coverage. 

• NationWide Car Insurance Company

Nationwide is the seventh-best car insurance company, according to our consumer survey. This insurance provider generally earned low scores across the board, as many respondents weren't satisfied with Nationwide's status updates during the claims process or with how their claims were resolved. Nationwide earned especially low marks for value.

• Insurers with Small National Footprint

Among insurers that have a smaller national footprint, Farm Bureau Insurance, at $220 for a six-month policy, and Erie, at $230, rank as the cheapest.

These insurers don't have the same name recognition as some of the companies you may recognize from national television campaigns, but could help you find savings if you're looking for the cheapest rate.

How to Choose the Best Car Insurance Company

In a perfect world, you wouldn't need to have auto insurance, because collisions wouldn't happen. Unfortunately, the odds of you making it through life and never having at least a fender bender or worse are low. In rare cases, you could have a much worse collision that causes lots of damage to your vehicle or serious injuries to you or your passengers. For both scenarios, you want to make sure you have the best auto insurance company you can find to aid you through a trying time.

Others use local agents who can meet with you and talk you through the process of buying a policy and personally handle any claims you have. Some companies use a mix of the two. Make sure you find a company that has the type of service you want.

Cost is another major consideration you’ll have when choosing the car insurance company that’s best for you. After all, you need insurance you can afford. While you should compare rates from several companies, make sure you’re comparing rates for your situation. Insurance companies can charge drastically different rates depending on a person’s age, gender, driving record, credit history, ZIP code, the number of miles they drive per year, the value of their car, and other factors.

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