Who has the cheapest car insurance? The answer may surprise you.

Who Has the Cheapest Car Insurance?

Looking for the best deal on auto insurance?

In this article, we’ll find out who has the best car insurance for you and your budget.


Whether you own your car outright or you have a monthly payment, just about everybody is looking to save money on car insurance.

But if you’re typing “Who has the cheapest car insurance?” into Google, you might be asking the wrong question.


Who Has the Cheapest Car Insurance?

My job as an insurance agent would be a lot easier if I had a ready answer to this question. But that’s not how the insurance industry works.

While every insurance carrier has underwriters and actuaries to crunch the numbers and determine the cost of your premiums, each insurance carrier uses different factors to arrive at that number.

One company may have determined that teenagers get into the most accidents, another one may argue that senior drivers do. One company might rank your zip code as carrying a lot of risk while their competitor thinks the neighboring zip code is more risky.

If you're wondering "Who has the cheapest car insurance?" you're asking the wrong question.

Now, some companies have built a business on offering rock-bottom introductory rates…only to issue massive increases after the first year or two. So you might start off thinking you have the cheapest car insurance available, only to have your premium skyrocket later on.

This isn’t the same thing as having “the cheapest car insurance.” It’s just another instance of the age-old “bait and switch” tactic.

Long story short: there’s no one company that is consistently cheaper than any other company on the market. The one that offers the lowest rates for your neighbor or relative may not offer the same rates to you.


So Where Do I Get the Cheapest Car Insurance?

There’s nothing wrong with being frugal, but car insurance is one of those things where the old adage “you get what you pay for” is true.

Instead, the question you should be asking is: “Why do I want the cheapest car insurance?”

With insurance—as with anything else—a cheaper price typically comes with lower quality. Think about the last thing you described as “cheap.” Was it used as a compliment? In all likelihood, you spat out the word with a derogatory hatred meant to indicate that the item was flimsy, malfunctioning, or just poorly made.

With insurance policies, “bad quality” usually looks like higher deductibles, less coverage, more exclusions, and even bad customer service.

What you should really be looking for is the best value. Getting the best bang for your buck, so to speak, will balance an affordable price with the type of coverage that will actually protect you after an accident, theft, or other form of loss.


How To Get the Best Value on Car Insurance

First, let’s talk about what not to do.

There’s a common misconception that you will pay the lowest rates by purchasing “bare bones” insurance policies with the minimum coverage required by law. In many cases, this tactic may cause you to pay more per month!

DON'T stick with "bare bones" coverage to save money. It might actually be costing you MORE.

This is because insurance carriers offer their best rates to policyholders they see as being more responsible. And buying more coverage usually indicates that a policyholder is more responsible than someone who purchases only the state minimums.

We always advise our clients NOT to reduce their insurance coverage in an effort to save on car insurance. No one can predict when damage or loss will occur; the only way to properly protect yourself is with adequate insurance coverage.


Independent Insurance Agents: Your Best Bet!

There are a ton of car insurance companies out there. Many of them you might not have even heard of. So how do you find the time to compare your rates and coverage with each one of them?

Luckily, you don’t have to.

By seeking the assistance of a local independent insurance agent, you can get a curated collection of quotes that are customized to your unique insurables, risk factors, and budget. In short, your agent can find the best policy for you at a price you can afford.

And because they’re an independent agent, they aren’t tied to offering policies by one particular carrier.



So who has the cheapest car insurance? One could make the argument that they all do!

Each of them looks at different things, so there is no one insurance carrier that will be the cheapest every time. In fact, that’s why there are so many insurance companies. If there was one single company that consistently offered the best product for the lowest price, it would (eventually) be the only insurance company in existence.

The fact that the insurance industry has so many companies testifies to the fact that there’s a place (and a customer base) for all of them.

But all this choice can lead to one thing: decision fatigue! Fortunately, this is exactly where an independent insurance agent can help.

An independent agency, like Harry Levine Insurance, can sort through a myriad of policies and find the ones that are the best fit for you. Give us a call to get a free quote.

About the Author

Jason received a Masters of Science & Management in Risk Management & Insurance from Florida State University. He has been with Harry Levine Insurance for 9 years and handles the leadership of daily operations. He was the 2013-2014 Florida Association of Insurance Agents Young Agent Council's Agent of the Year. Currently serves on FAIA Board of Directors.

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