Purchasing the bare minimum of coverage is unquestionably less expensive. Liability-only insurance premiums in the country cost just $764 on average. Yet without an optional cover, drivers might be compelled to pay for a problem’s repair or replacement out of pocket. Only the losses they cause to others would be covered by their insurance.
Cheapest auto insurance with bad credit available
Undoubtedly, drivers with bad credit will pay more for insurance. When determining premiums, insurers consider credit ratings. When their credit score isn’t as good as they’d like, motorists will need to browse around more carefully to get the most economical carriers.
The cheapest insurers for those with bad credit are as follows, according to an analysis of insurance data from several states:
- Geico: Geico offers affordable options for drivers with low credit. Average premiums for a 35-year-old male driver in Florida with poor credit who uses the car for commuting would be $2,321. By comparison, the overall average premium for the same driver would be $4,144.
- State Farm: State Farm also consistently provides more affordable premiums for low-credit drivers than competitors do. For example, a 35-year-old male driver in Florida with low credit would face an average insurance premium of $2,484 from State Farm — well below the overall average.
Best cheap car insurance for drivers with accidents
Insurance companies base policy costs on risk. After an accident, a motorist will cost more to insure because insurance providers worry that there will likely be another incident in the future, increasing the likelihood that they will have to pay out another claim.
Automobiles with an accident on their record should carefully search around for coverage because some insurers do not penalize drivers as much as others do. The Ascent conducted research on the most cheap options for auto insurance for high-risk drivers, including drivers who have a history of accidents, and discovered the following:
- State Farm: Average premiums for a driver in Florida with one accident on their record and excellent credit came in at $1,171, compared with an overall average premium of $4,531 for drivers with an accident history.
Geico: Average premiums for a driver with excellent credit and an accident history who commutes in their vehicle are just $1,467 from Geico — also well below the overall average.
The Ascent’s best cheap car insurance of 2023
- Nationwide: Best for bundling home and auto insurance
- Geico: Best for rock bottom premiums
- The Hartford: Best for seasoned drivers
- USAA: Best for military members and their families
Nationwide
Nationwide’s average annual premiums for all drivers are just $2,214 — well below the national average.
The insurer also offers some of the best savings when buying bundled coverage, with those who purchase both home and auto saving an average of $646 annually on their coverage.
Pros
- Many different types of insurance policies are available so there are ample options to bundle coverage and earn discounts
- SmartMiles option bases premiums on how much someone drives, so those who don’t use their vehicles often can get more affordable coverage
- Nationwide earned top marks on J.D. Powers shopper satisfaction survey
Cons
- Some reviewers indicated Nationwide was more expensive than competitor policies
- No rideshare insurance available
Geico
The national average premium for all drivers with Geico comes in at $1,758, compared to $2,646 for all insurers, making it one of the most economical insurance providers.
In addition to providing comprehensive auto insurance alternatives at rates that are lower than those of the majority of rivals, Geico guarantees that its clients will save 15% or more on their auto insurance. All 50 states offer insurance, and those who are in the military, a good student, a government employee, a senior, or a member of another specific group or organization may receive additional discounts.
Pros
- Nationwide coverage
- Affordable premiums
- High customer satisfaction
- Efficient claims handling process
- Great online application and account management experience
Cons
- Limited insurance coverage beyond auto insurance
- Fewer local agents than competitors
Stand-Out Coverage Options
- Mechanical Breakdown Insurance, which provides coverage for repairs and is available for new or leased vehicles that are less than 15 months old and have less than 15,000 miles
- Auto Repair Xpress® program can get motorists back on the road faster after an accident as they’ll get priority repairs and streamlined claims processing
- Rideshare insurance is available
The Hartford
Due to Hartford’s partnership with AARP, members who are 50 and older can receive the highest premium savings. Drivers 55 and older may be eligible for monthly premiums as low as $63, which is significantly less than the national average for the age group.
The Hartford’s distinctive disappearing deductible program, which rewards drivers who avoid collisions with lower deductibles that could reach nothing, is advantageous to seniors as well.
Pros
- AARP members can save substantially on premiums
- Disappearing deductible means drivers won’t have to worry as much about large out-of-pocket costs if something goes wrong after several years of safe driving
- Top-notch customer service, recognized by J.D. Power & Associates as number one in shopper satisfaction
Cons
- AARP membership is required to get the best price
- Limited ability to save by bundling policies since it offers few other types of insurance besides business, home, and auto insurance
- No insurance options are available for ridesharers