One at-fault accident will increase the average driver’s car insurance premium by around 50% for 3-5 years. The penalty is more severe with some insurance companies than others, though. To find the country’s cheapest insurance companies for drivers after an at-fault accident, WalletHub averaged quotes for a 45-year-old, single man with minimum coverage, good credit, and an at-fault accident.
Cheapest Car Insurance Companies After a DUI
Insurers always charge drivers more for coverage after a DUI conviction, given what such an infraction indicates about the driver’s risk profile. To help drivers minimize the cost of car insurance moving forward, WalletHub compared quotes for a 45-year-old, single man with minimum coverage, good credit, and a DUI.
Cheapest Car Insurance Companies for Drivers with Poor Credit
Less-than-good credit can lead to higher car insurance premiums, but there are two ways to avoid paying more than necessary as a result of a poor credit score. One is to work on improving your credit, which WalletHub’s personalized advice can be a big help with. The other is to comparison shop for car insurance. To that end, WalletHub found some of the cheapest car insurance companies for drivers with poor credit by averaging rates for a 45-year-old, single man with minimum coverage and a clean driving record.
Cheapest Car Insurance Companies for Young Drivers
Since young drivers have less experience behind the wheel, insurers tend to charge them higher rates than more mature drivers. On average, most drivers will see their rates drop as they get older, with a considerable decrease once they turn 25 years old.
To help younger drivers keep costs low in the meantime, WalletHub compared quotes from drivers aged 16-24 years old with a clean driving record, minimum coverage, and good credit.
Cheapest Car Insurance Companies for Older Drivers
Although mature drivers pay less for car insurance than teens, older drivers start to see their rates go up as they enter their senior years. By simply comparing quotes, older drivers can save hundreds of dollars per year. To get you started, WalletHub found some of the cheapest insurers nationwide for older drivers by averaging quotes for 55- and 65-year-old, single men with clean driving records, minimum coverage, and good credit.
Cheapest States for Car Insurance
8 Tips for How to Get Cheap Car Insurance
1. Get a car that’s cheap to cover.
Certain car models cost more to insure than others. Cars that are safer and cost less, like minivans and SUVs, are cheaper to insure than expensive, fast sports cars.
2. Be on your best behavior.
Safe drivers with no history of accidents, tickets or arrests can look forward to cheaper rates than people who haven’t been as responsible. Convicted felons will also often have to pay more, even if their record isn’t related to driving.
3. Take advantage of discounts.
You may be able to get discounts if you are a veteran, get paperless statements, have a good driving record, bundle policies, are a student or have an anti-theft system, to name a few.
4. Build good credit.
Your credit score will often factor into your auto insurance rates – people with no credit pay 67% more than people with excellent credit on average. Insurers know that financial responsibility often correlates with responsibility in other areas of life. People with poor credit are more likely to file an insurance claim. To boost your credit score, always pay you credit bills on time and try to use less than 30% of your available credit.
5. Look locally.
There are several big-name nationwide auto insurers with lots of satisfied customers, but you don’t necessarily have to get coverage from a company that takes clients from all across the country. Plenty of car insurance companies only cater to customers in certain regions or states. These local insurers may provide lower rates but are often overlooked. Make sure to include them in your comparison, at least.
6. Choose a higher deductible.
An insurer may lower your monthly rates in return for a higher deductible - the amount you personally have to pay when you make a claim. That can save you money if you never have an accident. This approach makes the most sense for people who are very infrequent drivers.
7. Select less comprehensive coverage.
There are many types of car insurance. You will usually need liability coverage, to pay for the other person’s damages if you’re at fault in an accident. But you may not need collision damage (pays your repairs) or comprehensive coverage (pays for non-accident-related damages). Both pay out based on your car’s current value. If your car is older and will cost more to fix than to buy a new vehicle, it may not be worth it.
8. Consider pay-per-mile plans.
You don’t always have to pay a set amount per month. There are also plans based on how much you drive. If you have a car but rarely use it or only drive very locally, a pay-per-mile plan may be best for you. The insurance company will place a device in your car that tracks your mileage. It may also track things like your speed and braking, which could affect your rates positively if you’re a safe driver and negatively if not.
WalletHub’s analysis of cheap car insurance companies is based on data from the state DMVs and Quadrant Information Services. Together with that data, WalletHub used the characteristics listed below to create a driver profile designed to identify the cheapest car insurance companies nationally. WalletHub compared top car insurance companies that operate in 10 or more states by averaging each insurer's state rank, across all the states that company operates in. In the table below, you can see all of the profile characteristics that were used in WalletHub’s analysis.
Below are additional details regarding the terminology and specific characteristics of the variables in the above table:
Where driver profiles are not specified, WalletHub used the good driver profile, using the above variables. Quote information is from Quadrant Information Services and is representative only. Individual rates will be different.