Cheap Car Insurance Guide
If you are not actively shopping around your car insurance at renewal time you could be missing out on a big savings. Auto insurance rates are changing all the time and it is important to make sure you are paying the cheapest price possible. We have found the more quotes you get the better your chances are of saving money. There are new auto insurance companies entering the market all the time and a lot of them offer a large amount of discount opportunities.
Many websites you will see names the cheapest auto insurance companies in order from the research they have done. But the truth is there is no such thing as the “cheapest auto Insurance company”. No insurance company can be the cheapest in every situation, it's impossible. There are so many factors that determine your insurance prices and every auto insurance company specializes in different risk segments. Here at Cheapest Auto Insurance we never claim to have the cheapest price for every customer but we do make sure we give every customer the cheapest auto insurance quote within our power.
The research we have done is based in our experience in Texas and Oklahoma. We have done some test cases for you to gage which companies can provide you with the cheapest auto insurance prices for your situation.
First case is an adult with 1 car and 1 driver policy with prior insurance and a clear driving record with liability only. Here are the companies we found in Texas that have the cheapest rates:
- State Farm
- Fred Loya
Second case study is an adult with 1 car and 1 driver with no prior insurance history and a clear driving record and liability only coverage living in Texas. Here are the companies we found to have the cheapest prices:
- Fred Loya
Third case study is an adult in Oklahoma with a basic full coverage policy with a $500 deductible and continuous insurance coverage for one year with good credit. Here are the carriers we found to have the cheapest rates:
- State Farm
The fourth case study is an adult with no previous insurance and 8 points on his driving record wanting basic full coverage in Oklahoma. Here are the auto insurance companies we have found to have the cheapest rates:
- Save Money Car Insurance
- Safe Auto
The fifth case study is an adult in Texas with no prior insurance wanting liability only with 8 points on their driving record. Here are the cheapest auto insurance companies for this situation that we found:
- Save Money Car Insurance
In all of the research we have done we have concluded no auto insurance company can be declared the cheapest. Our research just does not back that up. Every auto insurance company has their niche and specific situations they are the cheapest in.
If you take our 5th case for example, Venture was the cheapest auto insurance company we found in Austin but Save Money Car Insurance was cheaper in Houston. So, how can a company claim to be the cheapest? They can’t but we have some research to help you find the cheap auto insurance you deserve.
What discounts should I ask for on my auto insurance quote?
There are several key factors that goes into finding cheap auto insurance. One of the core things we have found not matter what company we got a quote from is to ask for all the discounts possible. Many of the auto insurance companies don’t offer all the discounts they can up front. Here are some of the discounts we have found you can ask for when looking for auto insurance quotes:
- Set your payments on auto pay
- Sign up for paperless billing
- Try to bundle you home or renters with your auto insurance policy
- Military discount
- Keep your auto insurance continuous for at least 6 months so you can get the prior insurance discount
- Pay you policy in full for 6 months so you can avoid extra billing fees
Obviously, every insurance company is different and certain ones offer specific discounts. These above are just the most common that we found that seem to be universally honored.
The more auto insurance quotes the better
The one thing we have found is the more auto insurance quotes you receive the better your chances are at saving money. But we understand getting insurance quotes can be very annoying and time consuming. So, we have a few ways to help you manage your time while still finding cheap auto insurance. Here are a few thoughts:
Lead Aggregators- A lead aggregator site is a site that allows you to put in your insurance info one time and it is sold to numerous auto insurance companies and agencies for them to contact you with tons of different prices from different companies. But the downside is you will get lit up with phone calls, texts, and emails. So, I guess it depends on how badly you want to find cheap auto insurance whether or not this option is worth it. When you see ads on Facebook and google advertising auto insurance for $29 monthly you will know this is more than likely a lead aggregator. And FYI your car insurance will never be $29 monthly.
Auto Insurance Brokers- An auto insurance broker is an independent auto insurance agency that is contracted with numerous auto insurance companies to provide with you the lowest possible price. But the customer service and claims services on some auto insurance companies can be a little shaky because they have no control over what the company does. Some of your larger auto insurance brokers work with hundreds of different companies so the quotes they give can be very cheap. Its important to always ask the broker what company they are quoting you through and then research that company’s reviews. Because the auto insurance broker themselves might be a good company but the auto insurance carrier they are writing you through may be terrible.
The key to making your auto insurance quote process more efficient is to make sure you are calling the best company for your situation. For example, if you have 3 accidents and horrible credit it may not be in your best interest to not get quotes from a Preferred Insurance company like State Farm but instead contact a non standard auto insurance company that specialized in this type of risk. And on the other side of the spectrum if you have great credit and own your home with 5 full coverage vehicles you would not want to contact a non standard auto insurance company but instead your cheapest quotes will be with a more national company like State Farm or Farmers. It is very important to find out what the auto insurance company you are getting quotes from specializes in as far as their niche market. This will help you save a ton of wasted time.
It is also important remember that just because an insurance company spends millions of dollars a year on advertising that they have the cheapest rates. Sometimes yes, the bigger companies are the cheapest but definitely not all the time.
Factors that affect your auto insurance rates the most
A variety of factors affect your auto insurance rates, here are some of the main factors we have found that affect your auto insurance:
- Driving record
- Automobile type
- Credit rating
- Coverage types requested
- Previous insurance history
As you can see there are many factors that affect your quotes so it is nearly impossible to say which company is truly the cheapest. Keep all these factors in mind before you start searching for auto insurance quotes.
How your age affects your auto insurance prices
The largest factor on your auto insurance rates we have found is your age. Younger drivers pay the most for auto insurance by a substantial amount. Auto insurance companies charge more to insure younger drivers because they have less driving experience and present a greater overall risk to have a claim. Here are a few things we have found young drivers can do to still get cheap auto insurance:
- Take a drivers ed or defensive driving course
- Keep a 3.0 or above GPA
- Do not get your own policy, try to be added to a parent or legal guardian’s policy.
How your location affects your driving record
The location you live in has a big impact on how much you pay for auto insurance. A good example is a driver in Houston, Texas compared to a driver in Sherman, Texas pays a lot more for their auto insurance. Living in a large metroplex like Houston auto insurance companies are more susceptible to paying out a large number of claims for uninsured motorists and accidents resulting from heavy traffic congestion. The higher the traffic is the more accidents that will happen. Here are the cities in Oklahoma and Texas that have the highest auto insurance rates:
- San Antonio
- Fort Worth
How your driving record affects your car insurance prices
How many tickets and accidents you have on your driving record has a very large impact on your auto insurance rates. Most every auto insurance company will run a Clue report to find out how many claims you have had the last 3 years and will price your auto insurance accordingly. They will most of the time run an MVR report that pulls all the tickets you have had the last 3 years. They use this feature to try to predict the likelihood that you will have an accident in the future. Some companies have started looking back 5 years on your driving record and charging accordingly. It is important to be honest about your driving record up front when getting auto insurance quotes. Some run these reports after you pay for and start your policy. If you don’t disclose your accurate driving record then your next bill could be dramatically higher than the initial quote you received.
Concluding thoughts on finding cheap auto insurance
We agree finding cheap auto insurance is very important especially if you on working on a tight budget, every dollar counts. Tough economic conditions make it even more important to save every dollar you can. But just as important as finding cheap car insurance is finding quality auto insurance. Sometimes if an insurance company is way cheaper than everyone else there is a reason. The customer service and claims service can reflect this in some cases. Also, if an auto insurance company is 50% lower than everyone else for every quote scenario, be prepared for them to either raise your rates or be out of business in the future. No solid insurance company can be 50% cheaper than competition on every quote and stay in business. Obviously, some auto insurance companies have niches and are much cheaper than other companies for certain niche segments and this is normal. Just be aware of those fly by night auto insurance companies that price themselves so cheap because they may not be around very long. Always read google and Facebook reviews on the auto insurance company you are getting quotes from. Auto insurance companies can advertise all they want about being the best but what matters is what their customers say about them and the best way we have found to check this out is google and Facebook reviews.