What Car Insurance Coverage Do I Need?

Decide how much liability coverage is enough for similar type of drivers.

Cheapest Car Insurance

It is a wise decision to purchase cheap car insurance when one cannot afford to spend much for auto insurance. A basic car insurance that meets the regulations in the respective state will be sufficient for a car owner to fulfill the legal requirements. It is wiser to opt for the cheapest car insurance when the car has very low value. Those who drive a car without insurance will be penalized and when there is an accident for which the driver of the uninsured car is responsible, the penalty amount will be huge. There are a variety of affordable car insurance plans and one has to go through a few auto insurance quotes and select the cheapest as well as the best insurance for the car. Depending on the affordability one can add optional coverages to the insurance policy if required. Those who go for the cheapest auto insurance should keep in mind that while the amount of the insurance premiums to be paid every year should not be high, the insurance should ensure protection to the car and enable the car owner to avoid out-of-pocket expenses in case of minor accidents. While the basic car insurance helps to meet the legal requirements with minimum expense, additional coverages are necessary if the assets are to be protected.

Compare the affordable car insurance rates in your state

There are different types of car insurance and one should not be under the wrong impression that all are same. The cheapest auto insurance provides the legally required coverage for the lowest amount of premium. The car insurance coverage that includes minimum liability coverage as per rules of a state will provide the amount of damage of property as well as medical bills when there is an accident. In case the car owner wants more insurance coverage, the premium amount of his car insurance policy will increase because of raising the limit to provide the optional coverages. The rates of annual premiums for the most affordable car insurance plans vary from state to state. The average premium amount for the cheapest car insurance in a particular state can be found out from the table given below.

STATE MINIMUM REQUIREMENTS AVERAGE PREMIUM
AK 50/100/25 $318
AL 25/50/25 $419
AR 25/50/25 $397
AZ 15/30/10 $496
CA 15/30/5 $491
CO 25/50/15 $506
CT 20/40/10 $761
DC 25/50/10 $745
DE 15/30/10 $805
FL 10/20/10 $884
GA 25/50/25 $532
HI 20/40/10 $555
IA 20/4015 $294
ID 25/50/15 $319
IL 25/50/20 $383
IN 25/50/10 $400
KS 25/50/25 $397
KY 25/50/10 $745
LA 15/30/25 $705
MA 20/40/5 $539
MD 30/60/15 $710
ME 50/100/25 $359
MI 20/40/10 $2,012
MN 30/60/10 $579
MO 25/50/10 $409
MS 25/50/25 $398
MT 25/50/20 $323
NC 30/60/25 $347
ND 25/50/10 $363
NE 25/50/25 $329
NH 25/50/25* $485
NJ 15/30/5 $677
NM 15/50/10 $424
NV 15/30/10 $623
NY 25/15/10 $812
OH 25/50/25 $383
OK 25/50/25 $444
OR 25/50/20 $690
PA 15/30/5 $480
RI 25/50/25 $751
SC 25/50/25 $484
SD 25/50/25 $267
TN 25/50/15 $404
TX 30/60/25 $465
UT 25/65/15 $531
VA 25/50/20 $372
VT 25/50/10 $337
WA 25/50/10 $466
WI 25/50/10 $373
WV 25/50/25 $493
WY 25/50/20 $339

The numbers in the column for “MINIMUM REQUIREMENTS” show the liability limits. For example, in the case of Florida (FL) the numbers 10/20/10 indicate the coverage provided by the cheap car insurance.

  • maximum $10000 per individual for medical expenses
  • maximum $20000 per accident for medical expenses
  • maximum $10000 for damage of property

Car owners who want to identify the auto insurance company whose insurance quotes show the lowest rate of premium in a particular state has to compare the car insurance costs of different insurance companies. The table below shows the average annual premium charged by the major insurance companies in each state. It is easy to identify the major insurance provider who offers the cheapest auto insurance in a particular state.

Alaska State Farm $979
Geico $1,075
Progressive $1,080
Allstate $1,304
Alabama Geico $759
Mid Century $1,172
Nationwide $1,197
Allstate $1,257
State Farm $1,572
Progressive $1,840
Arkansas Geico $980
State Farm $1,165
Farmers $1,176
Nationwide $1,483
Progressive $1,594
Allstate $1,821
Arizona Geico $977
Progressive $1,047
Farmers $1,195
State Farm $1,392
Nationwide $1,719
Allstate $1,807
California Geico $944
United Financial $1,128
Nationwide $1,379
Nationwide $1,756
Farmers $1,932
State Farm $1,967
Colorado Geico $813
State Farm $1,241
Farmers $1,516
Progressive $1,559
Allstate $1,889
Connecticut Geico $946
Nationwide $1,254
State Farm $1,463
Progressive $2,026
Allstate $2,462
Foremost $2,478
DC Geico $713
Progressive $1,496
State Farm $1,518
Nationwide $1,977
Allstate $2,913
Delaware Geico $1,134
Progressive $1,333
Nationwide $1,492
State Farm $1,872
Allstate $2,398
Florida Geico $1,192
State Farm $1,611
Progressive $1,754
21st Century Centennial $1,972
Allstate $2,584
Georgia Geico $762
Nationwide $1,303
State Farm $1,372
Progressive $1,563
Allstate $1,701
Hawaii Geico $857
State Farm $1,023
Allstate $1,389
Progressive $1,646
Farmers $2,376
Iowa Amco Ins Co $645
Geico $693
Farmers $933
State Farm $945
Progressive $1,286
Allstate $1,589
Idaho Geico $713
Hawaii State Farm $1,023
Allstate $1,389
Progressive $1,646
Farmers $2,376
Iowa Amco Ins Co $645
Geico $693
Farmers $933
State Farm $945
Progressive $1,286
Allstate $1,589
Idaho Geico $713
Farmers $800
State Farm $845
Progressive $848
Depositors Ins Co $863
Allstate $1,577
Illinois Geico $590
Amco Ins Co $678
State Farm $1,011
Illinois Farmers $1,170
Progressive $1,193
Allstate $1,375
Indiana Geico $651
Illinois Farmers $748
Progressive $854
Nationwide $866
State Farm $1,095
Allstate $1,569
Kansas Nationwide $814
Geico $823
State Farm $1,166
Farmers $1,249
Progressive $1,682
Allstate $1,718
Kentucky Geico $881
Nationwide $1,631
Progressive $1,693
State Farm $1,734
Allstate $2,822
Louisiana Geico $1,540
State Farm $2,023
Allstate $2,316
Progressive $2,881
Massachusetts Geico $865
State Farm $884
Progressive $1,272
Allstate $1,742
Maryland Progressive $1,102
Nationwide $1,114
Geico $1,199
State Farm $1,357
Maryland Allstate $2,177
Maine Geico $517
State Farm $948
Progressive $1,025
Allstate $1,212
Michigan Geico $1,027
Progressive $1,714
Titan $2,177
Allstate $2,849
State Farm $3,135
Farmers $3,999
Minnesota Geico $935
Illinois Farmers $1,030
Allied $1,188
State Farm $1,190
Progressive $1,295
Allstate $1,483
Missouri Allied $724
Geico $800
Farmers $1,051
State Farm $1,279
Progressive $1,303
Allstate $1,769
Mississippi Geico $894
Nationwide $1,184
Progressive Gulf Ins Co $1,268
State Farm $1,353
Allstate $1,917
Montana Geico $848
Progressive $1,112
State Farm $1,149
Depositors $1,238
Mid Century $1,244
Allstate $1,753
North Carolina Progressive $622
Geico $704
State Farm $845
Farmers $1,046
Nationwide $1,071
Nationwide $1,205
Allstate $1,230
North Dakota Allied $753
Geico $897
Progressive $1,047
State Farm $1,132
Allstate $1,502
Mid Century $2,560
Nebraska Allied $711
Geico $978
State Farm $1,003
Mid Century $1,192
Allstate $1,393
Progressive $1,403
New Hampshire Geico $550
Nationwide $867
State Farm $1,036
Progressive $1,465
Allstate $1,588
New Jersey 21st Century Centennial $762
Geico $1,104
Progressive $1,255
Allstate NJ $1,761
State Farm $1,847
New Mexico Geico $894
Progressive $998
State Farm $1,177
Farmers $1,251
Allstate $1,948
Nevada Geico $1,342
Mid Century $1,537
Progressive $1,663
State Farm $1,726
Victoria $1,955
Allstate $2,256
New York Geico $993
Progressive $1,160
Allstate $1,587
State Farm $1,855
Nationwide $2,098
Foremost $2,858
Ohio Geico $619
State Farm $881
Farmers $887
Progressive $999
Nationwide $1,015
Allstate $1,310
Oklahoma Geico $1,050
Farmers $1,327
State Farm $1,416
Allstate $1,918
Progressive $2,506
Oregon Geico $933
State Farm $1,043
Nationwide $1,121
Progressive $1,238
Farmers $1,594
Allstate $1,656
Pennsylvania Geico $703
Nationwide $711
State Farm $1,284
Allstate $1,729
Progressive $3,183
Rhode Island State Farm $1,132
Geico $1,292
Nationwide $1,678
Progressive $2,092
Allstate $2,246
South Carolina Geico $1,050
Allstate $1,178
Nationwide $1,200
Progressive $1,359
State Farm $1,511
South Dakota Geico $708
Nationwide $938
Mid Century $982
State Farm $1,052
Progressive $1,110
Allstate $1,562
Tennessee Geico $764
Nationwide $796
State Farm $1,131
Progressive $1,223
Mid Century $1,576
Allstate $1,794
Texas Farmers $905
Geico $1,027
Colonial $1,247
Progressive $1,328
State Farm $1,348
Allstate $1,949
Utah Geico $684
Mid Century $1,016
Allied $1,119
Allstate $1,353
Progressive $1,503
State Farm $1,518
Virginia Nationwide $744
Geico $894
State Farm $969
Allstate $1,102
Progressive $1,150
Vermont Geico $485
Nationwide $789
Progressive $1,103
Allstate $1,183
State Farm $1,255
Washington Nationwide $1,028
Geico $1,075
Progressive $1,092
State Farm $1,160
Farmers $1,335
Allstate $1,455
Wisconsin Geico $663
State Farm $914
Mid Century $1,021
Artisan $1,176
Allstate $1,484
Nationwide $2,851
West Virginia Geico $1,149
Progressive $1,238
State Farm $1,309
Nationwide $1,327
Allstate $1,853
Wyoming State Farm $1,128
Geico $1,287
Farmers $1,688
Allstate $1,874

Thorough research and comparison of the cheap car insurance quotes are very important for selecting the best insurance option for the car. For those who have very limited finance and are having an old car which has the lowest value, the basic car insurance policy is the best option.

Is it wise to go for the cheapest car insurance?

Many car owners who are in search of affordable car insurance buy in haste the insurance policy which has the minimum liability. However, since the limits are very low, the amount payable by the insurance company will not be sufficient to cover the expenses caused by a minor accident and as a result, the car owner will have to bear out-of-pocket expenses to protect his vehicle. Hence going for the cheapest car insurance is not a solution to all problems. However, cheap auto insurance is suitable for a few situations which are described below.

1. An old car which has very low value

When the insurance needs are more, limit of the insurance policy also will be more and collision coverage and comprehensive coverage are to be included in the plan. With all these coverages, there will be a considerable increase in the annual premium amount to be payable. When the vehicle is new and valuable, it will require all types of protection. Hence the insurance covers for such a car should include repair after an accident, replacement because of damage caused by theft, fallen objects, fire, flood, animals or riots. The maximum payout from optional coverages like comprehensive auto insurance coverage and collision coverage will be equal to the exact value of the car. Hence, when the car doesn’t value much, a cheap car insurance to fulfill the legal requirements is quite sufficient.

2. Car for limited use

If the car runs just for a few miles only daily the chances of an accident are less. In that case, there is not much risk. People who have retired from service or those who work from their homes will not be driving the car as much as those who drive their cars to and from the workplace daily. In such cases, optional coverages are not required. Cheap auto insurance is the best option in such cases.

3. The person who drives the car has no assets or savings

When the driver of the car has caused an accident, the driver of the other vehicle will claim for the damages and in case the amount to be paid is more than the amount which the former receives from the insurance company, he will have to incur out-of-pocket expenses. But, if the driver who caused the accident has no assets or big savings, he cannot be sued for damages. For this kind of drivers, cheapest car insurance is the best option.

4. Not having a creditable driving record

If a driver has a history of causing accidents and violating traffic rules, the same will reflect in his traffic record. In such cases, the insurance companies will consider them as high-risk drivers and will fix higher rates of premium in order to safeguard the interests of the insurance company. However, such drivers can improve their traffic record in the coming years by way of careful driving and strict adherence to traffic rules. Until the traffic records become favorable, these drivers can opt for the minimum liability car insurance so as to avoid paying a big amount every year for car insurance premium.

While it is advisable to purchase the cheapest car insurance for those who face the above-mentioned situations, in normal cases, adequate insurance coverage is essential to ensure the protection of vehicle as well as other assets and also to avoid out-of-pocket expenses in case of accidents.

Getting the cheapest car insurance

Those who want to ensure that they have the cheapest car insurance must be aware of the car insurance discounts. An accident-free traffic record of the driver and the profession of the person who drives the car also help to secure insurance discounts. While going through the cheap car insurance quotes one should bear in mind that the eligibility conditions for car insurance discounts differ among the insurance companies and also that all insurance companies are not providing all types of discounts.

The list of common car insurance discounts is given below:

  • Safe driver
  • Policy renewal
  • Safety features in the car
  • Multi-vehicle insurance
  • Multi-line insurance
  • Theft prevention
  • Defensive driver courses

Those who have records of safe driving are eligible for insurance discounts. Drivers who have not caused accidents for the past 3 – 5 years will be offered discounts as per guidelines of the insurance company. When the driver has a continuous insurance or every year he renews his insurance policy with the same company, he will be given the discount. When the car has various safety features in it, insurance discount will be provided. The safety features include anti-lock brakes, air bags, and stability control. Insurance discount is offered for providing anti-theft devices also like the car alarm, GPS recovery system and windows with VIN, etc. When a person insures two or more vehicles with the same insurance company, he is eligible for the insurance discount. Similarly, those who insure their homes and cars with the same insurance company will get discounts. Drivers who have attended courses in defensive driving are given discounts by the insurance companies.

Those who want the cheapest car insurance quotes from insurance companies should make it clear that they want the cheapest insurance policy for their car. They should go for the minimum liability options and should not ask for optional coverages. Those who shop for cheap car insurance should insist for car insurance discounts. One has to collect all the details pertaining to car insurance discounts offered by the company. It is also very important to compare the quotes from different insurance companies. By way of comparing the prices of car insurance policies offered by the major insurance companies in a state, one can find out the lowest rate available in that particular state.

Car insurance is also influenced by the credit history of the driver. Those who are able to maintain an impressive credit score can easily get the cheapest car insurance. Normally, drivers with high credit scores will not file too many claims and they will be prompt in paying their bills. The insurance companies are favorable to this kind of drives and they offer them the best rates.

Those who carry poor credit scores can improve their credit score by way of avoiding late payment of bills, keeping low balances in credit cards, abstaining from opening new credit card accounts and at the same time not cancelling all the credit cards and ensuring that they receive accurate, error-free credit reports.

Article rating:

5.0/5.0 (12 user votes)

Add new comment

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.

Enter your zip code to get insurance quotes in your area

Wrong zip code
Progressive StateFarm Allstate LibertyMutual
Get Free Quotes