If you're shopping around for affordable car insurance, a new report from Clearsurance.com will surely interest you. It ranks State Farm car insurance as the #1 most affordable car insurance provider in 29 states, making it the cheapest insurance provider overall.
The largest insurance provider in the U.S., State Farm writes insurance policies in every state. Clearsurance says other insurance providers may be cheaper in some states, but unlike State Farm, none come close to being the most affordable in 29 states.
Cheapest Insurance Providers for Customer Groups
While State Farm earned the title, Clearsurance.com says these other providers offer competitively priced policies that may be best for specific demographics.
- Erie – Cheapest for drivers with tickets
- GEICO – Cheapest discounts available for drivers
- Auto-Owners – Cheapest for families
- Metromile – Cheapest for drivers with safe records
- Farm Bureau – Cheapest for drivers with poor credit
- USAA – Cheapest option for military families
If you're a driver with a record of accidents or violations, Clearsurance.com suggests going with Erie Insurance. If you get a speeding ticket, Erie Insurance raises rates an average of 7%, which is lower than the industry average of 22%.
If you don't drive much, you might consider Metromile with its usage-based approach. Drivers who put on less than 10,000 miles a year can expect to fit best into Metromile's target demographic.
"The best insurance provider depends on each individual's needs and demographics. There is no one-size-fits-all best company," said Melanie Musson, a nationally recognized insurance expert with Clearsurance.com.
Cheapest Insurance Providers for Full Coverage
When it comes to full coverage, State Farm is not ranked the least expensive out of the major insurance carriers ranked by Clearsurance.com. Full coverage auto insurance provides first-party coverage for the policyholder's insured vehicles. It's typically more expensive than liability-only coverage.
Clearsurance.com places the major insurance providers in this order with their average monthly rates for full coverage.
- GEICO – $154
- USAA – $189
- State Farm – $200
- Allstate – $248
- Esurance – $251
Full coverage is a combination of collision and comprehensive coverage. It pays for repair or replacement following damage from crashes, weather events, vandalism, and more.
Car Insurance Rate Factors
Keep in mind, auto insurance rates aren't the same for everyone. The insurer that may be listed as the most affordable overall or for a specific category doesn't mean it will be the most affordable option for every driver out there. Insurance companies take many things into account when it comes to calculating insurance premiums, including the policyholder's age, gender, driving history, and credit score. The vehicle being insured also plays a role into premiums. Generally the more an expensive the car, the higher the premium for full coverage.
To read more about the report and see the rankings, visit Clearinsurance.com here.
Photo Credit: New Africa/Shutterstock.com.
