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The Best Cheap Car Insurance Companies of 2022


Liability


car insurance

 is required by state law. There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three. 

Liability minimum coverage requirements vary by state, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage. Keep reading to learn about the best cheap car insurance companies.

The best car insurance companies of 2022

Insider compiled data from 20 different life insurance companies based on customer service, financial stability, and asset size rankings, along with premium prices where available. From there, we determined the top five.

The full methodology of this ranking is listed below, under “How we determined the winners.”

You will note that a few of the top companies do not have quotes available online. Although it makes it harder to shop and compare, your goal should be to have the best coverage that fits your circumstances.

More on the best car insurance companies

Visit State Farm’s auto website to learn more.

Visit USAA’s auto insurance website to learn more.

Visit GEICO’s auto insurance website to learn more.

Visit Erie’s auto insurance website to learn more.

Visit The Hartford’s auto insurance website to learn more.

Best car insurance based on claims satisfaction

Claims satisfaction refers to how customers feel about how insurance companies settle claims and the claims process. Below are the 2021 rankings from J.D. Power :

Best car insurance based on customer satisfaction

Customer satisfaction with car insurance providers may factor into your decision. Customer satisfaction focuses on five factors: (1) billing process and policy information; (2) claims; (3) interaction; (4) policy offerings; and (5) price.

According to a 2021 J.D. Power survey, these are the top companies in each US region, based on customer rankings:

Average premiums for seniors and teen drivers

Because teen drivers are new drivers with little driving history and more prone to accidents, their rates are high. However, most insurance companies offer discounts to teen drivers for good grades or taking driving safety classes.

Senior drivers typically see an uptick in car insurance premiums as they age, but not as much of an increase as new or teen drivers. If you’re still driving in your 60s and 70s, there are ways to negotiate cheaper auto insurance rates, like pay-per-mile usage.

Data provided by Goosehead Insurance

Frequently asked questions

How did we come up with the best car insurance companies for 2022?

Insider collected data on the top 25 auto insurance companies based on market share from S&P Global Intelligence. We picked our top five based on financial stability ratings, claims satisfaction, market share, and sample premiums.

Claims satisfaction

The J.D. Power 2021 Auto Claims Satisfaction Survey served as the basis of this category. Using the responses from 7,345 auto insurance customers who settled a claim within the past six months prior to taking the survey. 

Financial stability ratings

Several companies and agencies rate the financial strength, stability, and outlook of insurance companies, including Moody’s, A.M. Best, and Fitch Ratings. Insider gathered ratings for each life insurance company from A.M. Best. 

Size of financial assets (market share)

Insider obtained information on the biggest life insurance companies by market share from the from S&P Global Market Intelligence.

Average monthly premiums

Data provided from Savvy in Insider’s average cost of car insurance article.

What are the different types of car insurance?

There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three. Liability coverage is required by law, but if you finance or lease your car, your lender probably requires comprehensive and collision coverage.

Comprehensive coverage replaces or repairs your vehicle if it’s stolen or damaged. Comprehensive coverage typically covers damage from theft, fire, vandalism, or falling objects like a tree.

Collision insurance repairs your car if it’s damaged in a collision with another vehicle or object. 

If you’re involved in an accident, liability insurance covers damage you cause to the other vehicle, driver, and its passengers — not your vehicle. Liability coverage is required by law — except in New Hampshire. 

The two main components of liability insurance are bodily injury and property damage, which most states require. Liability insurance also includes uninsured motorist and underinsured motorist coverage.

How can I find the best car insurance rates for me? 

Everyone’s car insurance rates will vary depending on the coverage you chose. There are other factors that can go into pricing a premium and every car insurance company will evaluate you on different factors and weigh those factors differently like: credit scores, driving history, accidents, type of car, mileage, and where you live.

The best way to find which car insurance company will help you save is to get quotes from several different insurance companies and compare them. 

To find the best one for you out of the quotes you’ve obtained, compare the coverage types, limits, and deductible, or the amount you’ll pay out of pocket if you’re involved in an accident. The policy with the lowest price for coverage, the most coverage types and limits, and the lowest deductible is the best one for you. 

Who offers the cheapest auto insurance rates? 

According to Insider’s research, GEICO is offering the best cheap car insurance in 2021, with Erie as a close second in places where it’s available (see above for details). However, the car insurance company that’s cheapest for one person may not be for another. Before deciding on insurance policies, you’ll want to get four or five quotes from different insurance companies, just to make sure that you’re getting the best price for you. 

What is the best-rated car insurance company for claims satisfaction? 

According to 2021 J.D. Power and Associates data on customer satisfaction, The Hartford and Erie take the top spots.  

Is Progressive or GEICO better? 

There’s a lot of buzz around these two options, but in Insider’s calculations, GEICO comes out on top. Ranked highly for both value and customer service, GEICO tends to stand out. It won out in several of the scenarios above. While you’re shopping, it might be worth getting quotes from both and seeing which one stands out. 

What’s the best car insurance option for students? 

According to Insider’s research, Erie Insurance generally looked to be the best insurance for young adults and new drivers (in states where it’s available). 

One of the best ways to save on car insurance for a teen or young adult driver is to join a family policy. On a family car insurance policy, your premiums will be about 20% lower than having a separate plan, according to reporting by The Balance. If joining a family plan is an option, it might be the best for a teen driver



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