The Chase Sapphire Preferred Card has long been a stalwart in the mid-tier category of cards, consisting of credit cards with annual fees around $100.
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For a long time, American Express had great premium cards (such as the American Express® Gold Card or the many varieties of the The Platinum Card® from American Express) but not a strong competitor to the Sapphire Preferred. When Amex announced a major overhaul to the American Express® Green Card* a few years back, with (positive!) adjustments to its benefits and bonuses, that changed.
However, the Chase Sapphire Preferred Card has recently received a boost in benefits. Check out how the cards currently stack up.
Chase Sapphire Preferred vs. Amex Green Card
Card
Chase Sapphire Preferred Card
American Express Green Card
Rewards rate
5X points on travel booked through the Chase Ultimate Rewards travel portal
3X points on restaurants, select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs)
2X points on all other travel purchases
1X points on other purchases
3X points on travel, transit and restaurants
1X points on other purchases
Welcome bonus
100,000 points if you spend $4,000 in first 3 months
45,000 points if you spend $2,000 in first 6 months
Annual fee
$95
$150
More things to know
Transfer points 1:1 to 13 travel partners
$50 annual hotel credit
Travel insurance
Primary car rental insurance
No foreign transaction fee
$0 authorized user fee
One year complimentary DoorDash DashPass subscription
25% bonus on points redeemed for travel through Ultimate Rewards portal
Transfer points 1:1 to 20 travel partners
No foreign transaction fee
Up to $100 CLEAR credit
Up to $100 LoungeBuddy credit
$0 authorized user fee
Welcome bonus
The most valuable part of signing up for a new credit card is often its initial welcome bonus. Instead of only 1 or 2 points per dollar spent, the initial spend on a new card can often earn 10 or 20 points for each dollar spent toward earning the bonus.
That’s no different from the welcome bonuses on these two cards. Unfortunately, comparing the welcome offers on cards can be tricky, since credit card issuers often change them over time, or you may have access to different offers based on a prior relationship with the card issuer.
Still, we’ll take a look at the welcome bonuses of the Chase Sapphire Preferred versus American Express Green as of writing to compare which card comes out on top.
The current welcome bonus on the American Express Green card is 45,000 Membership Rewards points if you spend $2,000 in the first six months – and some individuals may see a 50,000 points welcome bonus targeted offer on Amex’s website.
For the Chase Sapphire Preferred, the current welcome offer is 100,000 Ultimate Rewards points if you spend $4,000 in the first three months (the highest the card has ever offered).
If you’re able to put $4,000 on the new card in the first three months, then the initial offer on the Sapphire Preferred is a clear winner. If your spending is lower, you might consider the lower spending requirement on the Amex Green card.
Like most Chase cards, the Sapphire Preferred is restricted by the Chase 5/24 rule, so if you’ve applied for five or more personal cards from any issuer in the past 24 months, you are unlikely to be approved for a new Sapphire Preferred card. In that case, the Amex Green card would have a huge edge for you.
Redeeming Amex Membership Rewards vs. Chase Ultimate Rewards
American Express and Chase have competing points programs with their Membership Rewards and Ultimate Rewards systems. Ultimate Rewards and Membership Rewards are widely considered to be two of the top systems of points out there.
Both types of points currencies allow you to either use your points directly for travel or transfer to a variety of hotel and airline transfer partners.
When redeeming your points for paid travel, Chase has a clear advantage. With the Sapphire Preferred, your points are worth 1.25 cents per point, and if you additionally have a Chase Sapphire Reserve card, you can combine your points for free and redeem for 1.5 cents per point. Chase also allows you to pay yourself back for purchases in certain categories at the same 1.25 or 1.5 cents per point value.
With the American Express Green card, you can only use your points directly for travel at a rate of 1 cent per point on airfare or 0.7 cents for hotels, car rentals or cruises. The exception is if you also have The Business Platinum Card® from American Express, where you can pay for airfare at a rate of 1 cent per point but then get 35% of your points refunded to you (on up to 500,000 points per calendar year when booked through amextravel.com), making your points worth 1.54 cents per point.
American Express and Chase also feature a variety of transfer partners. Whether the American Express 20 transfer partners are better than Chase’s 13 transfer partners is a matter of opinion, depending on where you like to fly or stay.
See related: 6 worst ways to redeem your credit card rewards
Comparing perks
The Chase Sapphire Preferred card ($95) and the American Express Green card ($150) have similar annual fees, and neither is waived the first year. Neither card charges foreign transaction fees.
Some of the best perks of the Chase Sapphire Preferred card are its trip delay and rental car insurance. You’ll also get a $50 hotel credit each year and a one-year complimentary membership to DoorDash DashPass.
On the Amex Green card side, helping to offset the slightly higher annual fee are a couple of potential statement credits:
See related: Best credit cards for international travel
Bonus categories and everyday spend
The Chase Sapphire Preferred earns 5 points per dollar on travel booked through the Chase Ultimate Rewards travel (2 points per dollar on other travel purchases), 3 points per dollar on dining and 1 point per dollar on all other purchases. The Amex Green card has similar bonus categories, with 3 points per dollar on dining and travel and an additional 3 points per dollar on transit purchases.
The two cards will earn a similar amount for everyday spend, though the American Express Green card will earn more for people who have high transit spending or a high spending on travel booked directly with hotels or airlines. Whether that is enough to offset the higher sign-up bonus on the Sapphire Preferred card will depend on your particular spending patterns.
Bottom line
Depending on your travel and spending habits, these cards come out pretty similarly. Your choice between these may come down to which points ecosystem you prefer – Amex’ or Chase’s. If you’re still unsure which card is right for you, you can also check out other top travel credit cards to expand your search.
*All information about the American Express Green Card has been collected independently by CreditCards.com. The issuer did not provide the content, nor is it responsible for its accuracy.
Editorial Disclaimer
The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free or cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and six kids.
Two of Chase’s most popular credit cards, the Chase Freedom Flex℠ and the Chase Sapphire Preferred Card, have both earned high praise from savvy rewards hunters who like to squeeze as much value as possible from their spending.
Here we take a look at each card’s value and help you decide which is the best fit for you.
Freedom Flex vs. Sapphire Preferred: At a glance
Card
Chase Freedom Flex℠
Chase Sapphire Preferred Card
Rewards rate
5% cash back on rotating categories (on up to $1,500 in purchases per quarter, then 1%; must enroll)
5% cash back on grocery store purchases (not including Target or Walmart purchases) on up to $12,000 spent in the first year
5% cash back on Chase Ultimate Rewards travel
3% cash back on dining and drugstore purchases
1% cash back on general purchases
5 points per dollar on travel purchased through Chase Ultimate Rewards
3 points per dollar on restaurants, select streaming services and online grocery purchases (excluding Target, Walmart and wholesale clubs)
2 points per dollar on all other travel purchases
1 point per dollar on general purchases
Sign-up bonus
$200 when you spend $500 in the first three months
100,000 points when you spend $4,000 in the first three months
Annual fee
$0
$95
Estimated yearly rewards value (for someone who spends $15,900 and maxes out the Freedom Flex rotating categories)
$493
$376
Card benefit highlights
Cellphone protection
Purchase protection and extended warranty coverage
Travel accident insurance
Free DashPass membership for three months, followed by 50% off next nine months of membership
$50 annual hotel credit when purchasing with Ultimate Rewards
No foreign transaction fee
Points worth 1.25 cents when redeemed for travel through Ultimate Rewards portal
Points worth 1.25 cents when using Pay Yourself Back
Travel accident insurance
Free DashPass membership for one year
Which should you choose?
It depends on how you plan to use it.
The Chase Sapphire Preferred card is known as one of the best travel credit cards with one of the cushiest sign-up bonuses you can get without paying more than $100 on an annual fee. The card charges a yearly fee of $95 and offers 5 points per dollar on travel purchased through Chase Ultimate Rewards, 3 points per dollar on dining purchases and 2 points per dollar on all other travel purchases.
The Chase Freedom Flex card, by contrast, offers a wide array of bonus categories and no annual fee. Though it’s best known for its 5% cash back rate in everyday spending categories that rotate each quarter, such as gas and online shopping (upon enrollment, on up to $1,500 in spending per quarter, then 1%), it also offers 3% back on drugstore purchases. Like the Sapphire Preferred, the Freedom Flex also offers 5% on travel booked through the Chase Ultimate Rewards portal and 3% back on dining purchases.
While the Freedom Flex will likely be a better deal for many cardholders since it charges no annual fee and offers a wide range of rewards categories, there are still good reasons to consider the Sapphire Preferred, including its enormous sign-up bonus.
If you travel regularly and want to maximize your spending, consider applying for both credit cards. Chase lets you pool rewards from different card accounts, and you can get a higher point value when you redeem for travel through the Ultimate Rewards portal with the Sapphire Preferred. If you only have the Freedom Flex, you won’t be able to take advantage of Chase’s transfer partners, which is one way that you can really maximize the value you get from your points.
Best for heavy grocery spenders: Chase Freedom Flex
With the updates in mid-2021 to the Chase Sapphire Preferred, it now also comes with the 5 points per dollar on travel and 3 points per dollar on dining. Previously, those had been differentiators for the Freedom Flex. Additionally, if you now max out your bonus categories, the Freedom Flex earns an average rewards rate of 1.72 points per dollar across its bonus categories, compared to the Sapphire Preferred card’s average 2.1 points per dollar across its bonus categories.
One area where the Chase Freedom Flex shines is that it has a two-part sign-up bonus. In addition to getting $200 if you spend $500 in first three months, you’ll also get 5% cash back on grocery store purchases on up to $12,000 spent in the first year. That 5% back does not include purchases at Walmart or Target, but if you do your grocery shopping elsewhere, you have the chance to score a lot of points. If you max out your grocery spending to the tune of $1,000 per month, the Freedom Flex’s grocery bonus could get you 60,000 Ultimate Rewards points. That same grocery spending on the Sapphire Preferred would only get you 12,000 Ultimate Rewards points.
Best for flexible travel: Chase Sapphire Preferred
If you want more control over how you use your points, the Chase Sapphire Preferred is the clear winner. The Sapphire Preferred not only offers a huge sign-up bonus (worth multiple round-trip domestic flights), but also a more flexible transfer policy that lets you transfer points on a one-to-one basis to a number of Chase travel partners.
For example, frequent flyers of Southwest Airlines, British Airways, Air France, Korean Air, Singapore Airlines, United and Virgin Atlantic can apply their Sapphire Preferred points to their travel loyalty programs. Frequent guests of Marriott Bonvoy, IHG and Hyatt can do the same. And along with the Sapphire Preferred card’s 25% travel redemption bonus when you book through the Ultimate Rewards portal, the card features a long list of travel partners to which you can transfer points and get even higher point values.
For example, the 100,000-point sign-up bonus on the Chase Sapphire Preferred is worth around $1,250 when redeemed for travel through the Ultimate Rewards portal, but if you transferred to United at a 1:1 ratio, your points would be worth $1,520, as we value United miles at 1.52 cents each. You could get even more value transferring to Singapore Airlines ($2,360 at a point value of 2.36 points per dollar) or World of Hyatt ($2,000 at a point value of 2 points per dollar).
For heavy travelers, this perk alone can help make up for the card’s annual fee. You’ll still want to consider whether it makes the most sense to redeem points through the Chase Ultimate Rewards portal or by transferring to partners.
Rewards on $5,000 annual air travel spend
Travel booked through Chase Ultimate Rewards
Transferring points to World of Hyatt
$5,000 x 5 points x 1 cent average point value = $250
$5,000 x 2 points x 2 cents average point value = $200
See related: How to calculate the value of Chase Ultimate Rewards points
Best for earning an influx of rewards quickly: Chase Sapphire Preferred
The Chase Sapphire Preferred card also stands out because of its eye-popping sign-up bonus. New cardholders who spend at least $4,000 in the card’s first three months will receive 100,000 bonus points. Chase points are worth 1.25 cents when redeemed for travel through the Ultimate Rewards portal, making this bonus worth approximately $1,250. The Freedom Flex card, by contrast, offers a $200 bonus (20,000 Ultimate Rewards points, worth 1 cent each) after spending $500 in the first three months.
Best for everyday purchases: Chase Freedom Flex
For cardholders who want to earn rewards on both travel spending and everyday expenses, such as dining, groceries, clothing and gas, the Chase Freedom Flex card is a clear winner. As long as cardholders don’t mind tracking the Chase cash back calendar and enrolling in rotating spending categories, they can earn a significant amount using their Freedom Flex card each time a purchase qualifies for a 5% bonus.
Let’s say, for example, that you average $300 per month on gas. If you use your Freedom Flex card to earn 5% cash back during a quarter that gas qualifies for a bonus and 1% cash back the rest of the year, you’ll earn $72 by the end of the year. By contrast, if you use a Sapphire Preferred card for the same purchases, you’ll earn around $45 worth of rewards on your gas purchases by the end of the year.
Rewards earned on $300 monthly gas spend
Chase Freedom Flex card
Chase Sapphire Preferred card
($300 x 5% x 3 months) + ($300 x 1% x 9 months) = $72
$300 x 1 point x 12 months x 1.26 cent average point value = $45
Pro tip: Use them both
While the Chase Sapphire Preferred and Chase Freedom Flex rewards programs overlap when it comes to travel and dining, the cards can still make a great pairing if you want to maximize the value of your Ultimate Rewards points. You can use the Freedom Flex for much of your everyday spending and the quarterly bonus categories and save the Sapphire Preferred for one-off travel purchases outside of Chase’s portal.
Because Chase lets you pool your rewards from different accounts, you can transfer earnings from your Chase Freedom Flex card to your Sapphire Preferred card and buy travel through Chase Ultimate Rewards with a 25% bonus. You can also transfer your Freedom Flex points to other travel loyalty programs once you’ve transferred the points to the Sapphire Preferred card.
Pairing the Chase Sapphire Preferred with the Chase Freedom Flex ($15,900 annual spend)
5 points per dollar on rotating categories, such as groceries, gas and department store spending
5 points per dollar on Ultimate Rewards travel
3 points per dollar on dining and drugstore purchases
2 points per dollar on general travel purchases
1.68 points per dollar
1.26 cents
$493
Chase Sapphire Reserve card instead could help you stretch your points even further: Ultimate Rewards points are worth 50% more when redeemed for travel through Chase’s travel portal when using the Sapphire Reserve.
Bottom line
Savvy card users will benefit the most from using both cards. But cardholders who want to stick to just one shouldn’t have much trouble squeezing value out of either card.
Unless you’re a heavy traveler, though, the Freedom Flex card has more to offer longtime cardholders – particularly since it doesn’t charge an annual fee. But the Sapphire Preferred card’s plush sign-up bonus and flexible redemption policy make it an ideal choice for cardholders who want to earn a free trip quickly.
See related: Sapphire Reserve vs. Sapphire Preferred, Freedom Flex vs. Freedom Unlimited
Editorial Disclaimer
The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.
Kelly Dilworth is a personal finance contributor and former staff reporter at CreditCards.com. She began her career in journalism at The Atlantic in 2007, then detoured into nonfiction book publishing for several years. She returned to journalism in 2010 and since then has written about everything from 20-somethings with Herculean credit scores to the Federal Reserve’s monetary policy decisions.
Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free or cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and six kids.
The National Association of Realtors (NAR) has released new research on the conversion of hotels and motels into housing. While the study was spurred by a 37% drop in hotel occupancy rates driven by the pandemic, the findings have broader implications. Hotel conversions provide a means to simultaneously create renewed profitability and help address the national housing shortage.
Commercial members surveyed
A survey was sent to 75,000 commercial members of the NAR between February and March of 2021. 168 reported being engaged in the sale, leasing, development, property management or appraisal of converted hotels/motels between 2018 and 2020. Of the reported conversions:
79% were for housing.
12% were for homeless shelters, either temporary or permanent.
6% were for healthcare or quarantine facilities.
3% were for retail, industrial, ranch land or other development.
Success stories
The report ends with five case studies detailing acquisition, zoning, renovations and expected final property values. For those interested in engaging in hotel/motel conversions, they’ll find an excellent road map in this report.
There’s no question that technology is making an impact on the construction industry – even though construction is an industry that’s been historically slow to embrace innovation. The reluctance to change and evolve is due to fragmentation in the industry. With so many small firms specializing in different aspects of the construction process, it’s a challenge to adopt seamless processes and adapt to new technologies.
But recent advances that increase the efficiency, flexibility and adaptability of many emerging construction technologies are making them more cost-effective for firms to adopt. Just a few of the new technologies in use today include modular construction (using free-standing, integrated modules that are manufactured off-site and then transported to a site for installation), geospatial technologies (used to visualize, measure and analyze Earth’s features) and wearable technologies (such as head-mounted displays).
There’s more on the horizon. Some emerging technologies in the construction industry include mass timber (an engineered wood product), construction robotics (using robots to build) and autonomous construction vehicles (equipment operated by a computer).
To read a NAIOP report about new construction technologies, click here.
Securing the #1 spot as a top performer may not be easy, but it’s possible. Success isn’t necessarily something that just happens to you. It’s actually, quite the contrary. When you get the opportunity to learn the ropes from others who have implemented key methods that have helped them become #1 in their field, you can’t help but notice a theme. #WhatIf there are methods you could execute, day to day, and mindsets you could put into practice, right now, that could elevate your game 121%? #WhatIf you had the chance to sit down with a seasoned entrepreneur who has weathered the uncertainties of life and business and has come out on top?
Here’s your chance. Recently, we had the opportunity to speak with someone who’s taken success, by the horns, and hasn’t looked back. Joe Villaescusa is not only the Owner of CENTURY 21 Allstars in Pico Rivera, California, but he’s a top performer; and not just any top performer but, a #relentless one.
Don’t believe us? Read on.
Last year, Joe’s office closed over $18 million in sales with over 1800 closings. If that’s not enough, CENTURY 21 AllStars is on track to knock it out of the park again this year. To top that off (we know, right?) Joe has recovered from COVID19 and has worked each day to regain his momentum and build his strength. As you can see, it’s not just Joe’s tenacity but it’s the grit and grind mindset he’s taken on, day in and day out.
So here’s what you’ve been waiting for. Here are our top three confessions from Joe that he says has helped him to become a #1:
Show yourself accountable every day.- “We didn’t get into this business to be average.” Joe believes you don’t become complacent overnight. Over time, when you aren’t accountable to mentors and leaders, complacency can have a way of sneaking up on you. Allowing this to go on without the right accountability can lead to an overall lack of motivation before you realize it. Surround yourself with others who have reached milestones and goals, you’d like to achieve, to help you to push yourself and remain motivated.
Remove your choices so you have to do it “this way.”- When you have too many options, it can become second nature to choose the easiest route. The housing market crash of 2006, Joe says, helped him to develop a discipline in making decisions to help with his personal development and the growth of his business. “When your options are eliminated, you are forced to make decisions with what you have,” Joe says. During the crash, the options available to expand Joe’s business was greatly diminished. This put him in a position to have to choose the more difficult routes, in making day to day decisions. He’s been able to carry this mindset with him, even after the market made a turn for the better. When making decisions, it’s not uncommon to have a mix of easier and difficult choices among your options. Try removing the easier choices that don’t carry character developing challenges.
Get enough sleep.- This goes without saying. According to the CDC, one-third of adults don’t get enough sleep. Joe recommends getting a good night’s rest to get your day started bright and early. “If you can get out of the bed, you are 50% of the way there,” he says. Being intentional about getting adequate rest can help avoid playing the “catch up game” and set your things in motion to start your days off strong.
It’s a slow and steady pace that can lead one to a #1 spot but it’s not impossible. Be patient with your journey and surround yourself with others that are crushing goals you hope to accomplish. Being intentional about your growth and success is key and can help you #AlwaysElevate your game!
Thanks to the pandemic, the number of employees who work from home swelled over the past year. Even though offices are beginning to open, with workers returning to the workplace, surveys show that many plan to telework at least part-time in the future.
Apartment owners and managers need to take notice of this trend. After all, at a time when unemployment remains high, remote workers are employed – and capable of paying their rent. They also represent a large pool of prospective tenants, so targeting them can turn into a competitive advantage.
Here are three things you can do to attract the work-from-home cohort:
Provide the tools teleworkers need. High-speed internet service and reliable cell phone reception are a must. The 2020 NMHC/Kingsley Apartment Resident Preferences Report found that 92% of tenants want high-speed internet access, while 91% said the community amenity they most desire is reliable cell phone reception. Tenants are even willing to pay higher rent for high-speed internet — $35.05 per month more, the survey found.
Tweak your marketing plan. Help the prospect envision working in your space. Stage model units (live or virtually) to include work spaces in bedrooms, or create zoom-worthy spaces on balconies or rooftops.
Don’t focus only on attracting new tenants; meet the needs of existing ones. Happy tenants are more likely to renew their leases, saving you the cost of turnover. They also can be a source of referrals. Convert business centers from open spaces to individual offices, and add programming designed to meet the needs of remote workers, such as a poolside yoga class to relieve stress or an online time-management workshop. People are craving human interaction these days, and programming can enhance a sense of community.
A balance transfer card can be a shortcut to getting out of debt faster if it means paying a lower interest rate.
While many card issuers have pulled back on balance transfer offers, largely due to financial uncertainty surrounding the COVID-19 pandemic, there are still 0% APR deals to be found.
“Balance transfers are tools,” says Howard Dvorkin, personal finance expert and Debt.com chairman.
Dvorkin says in the best-case scenario, you execute a 0% APR transfer and pay the balance down before the promotion expires.
Getting approved for a balance transfer card isn’t always a lock, however. Learn why your balance transfer application may be denied and what you can do to increase your approval chances.
See related: 9 things you should know about balance transfers
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Why are balance transfers denied?
Generally, there are two scenarios that can keep you from executing a balance transfer successfully:
Your application for a balance transfer card is turned down by the card issuer.
Your application for a balance transfer card is approved, but when you try to transfer a balance to the new card, the transfer is declined, or the credit limit you were approved for is insufficient to cover the amount you want to transfer.
Here’s a closer look at some specific reasons for a balance transfer denial.
1. Applying for a balance transfer card with the same card issuer
Trying to transfer balances between two cards from the same bank could be a roadblock to your balance transfer goals.
“Most card issuers won’t allow a balance transfer between two cards that they issue,” says Marshall Armond, CEO of consumer credit education site CreditRevo.
That’s because credit card companies rely on balance transfers to make money through fees and interest charges. There’s little financial incentive for a card issuer to allow you to transfer balances between cards if you’re likely to pay the balance off before the promotional period expires.
“While this might seem like a way of simplifying the task by staying with an institution you know, it’s actually just a guaranteed way of getting your application rejected,” says Tina Hay, founder and CEO of Napkin Finance.
2. Having a low credit score
A too-low credit score could keep you from making the approval cut, even if you were prescreened for a balance transfer offer.
Armond says that while there are some balance transfer offers geared toward people with fair or average credit, most promotions are designed for people with scores in the good to excellent range.
“Generally, they like to offer balance transfer promotions to customers they don’t think will default on their balance,” says Armond.
Applying for balance transfer requests too frequently could also block your way to approval if multiple hard inquiries ding your credit score.
Every balance transfer credit card is different regarding the minimum score it requires for approval.
For example, the Citi Rewards+ Card offers a 0% introductory APR on balance transfers for 15 months from the date of your first transfer (then a variable APR of 13.49% to 23.49% after that) but you’ll need excellent credit to qualify for the card.
By comparison, it’s possible to get approved for a balance transfer with the Discover it® Secured card with bad to fair credit. This card doesn’t offer a 0% APR balance transfer, but you can get an introductory APR of 10.99% for six months if your transfer posts to your account by July 10, 2021. (After the introductory period, there’s a variable APR of 22.99%.)
Hay offers a good rule of thumb to follow: “The better your credit, the more likely it is that you’ll be approved, and be approved for better terms.”
She says the same things that can dim your chances of approval for other loans or lines of credit also apply to balance transfers. That includes late or missed payments and accounts that are close to their limit or maxed out.
Having a thin credit file could also be problematic. Credit card companies may not be willing to approve a balance transfer if you’ve only been using credit a short time or have just one or two active credit accounts.
3. Balance transfer requests that exceed your credit limit
You might be approved for a balance transfer credit card, only to be told later that your transfer request didn’t go through.
Not having enough available credit to complete the transfer could be the reason, says Armond.
It’s possible to be denied if you’re requesting a balance transfer for a larger amount than your credit card company allows.
Banks can limit balance transfer requests to a set dollar amount or percentage of your new credit line. USAA, for example, caps balance transfers at 95% of the balance transfer card’s credit limit.
Before requesting a balance transfer, it’s helpful to ask what your credit limit and balance transfer limits will be with the new card. This way, you can request a transfer amount that’s likely to be approved.
What to do when your balance transfer is denied
Getting denied for a balance transfer card may be inconvenient, but you can recover by taking the right steps.
First, you could ask the credit card company to reconsider. Whether you get the green light depends largely on why you were denied to begin with.
If you’re planning to ask the credit card company to give your balance transfer request a second look, be prepared to make a case for approval. For example, if you have a strong credit score or a low debt-to-income ratio, those things might work in your favor.
If a denial is due to poor credit or low income
You may be able to succeed in getting a reversal if you can offer extenuating circumstances to explain negative marks on your credit report.
The same goes if your request was denied because of low income, but you have other sources of income that weren’t reported on your initial application.
If your request was denied due to a lack of available credit
Armond says you can resubmit your original request using a smaller dollar amount. You’d then have to decide whether to pay off any remaining balance to the first card or apply for a second balance transfer card elsewhere.
How to increase your balance transfer approval odds
If you’re interested in getting a balance transfer, you’ll need good credit to do it, as offers have become more competitive.
These tips can help as you prepare to apply for a balance transfer card.
Fix credit reporting errors. Credit report errors are not uncommon, and they can damage your credit. If you spot a mistake on yours, file disputes with the three major credit bureaus – Equifax, Experian and TransUnion.
Know the issuer. If you have a card or two in mind for a balance transfer, scout out the card issuer’s transfer policies. You don’t want to waste time (or risk a potential credit score ding) applying for a balance transfer if it’s likely to be denied because you already have a card with that bank or because the amount you want to transfer is more than the credit card company allows.
Review your credit limit. Make sure your card has enough room to accommodate a balance transfer.
Toe the line with your existing credit accounts. If your score isn’t quite what it needs to be to get approved for a balance transfer, work on doing what you can to improve it. “Make at least the minimum payments on time,” says Dvorkin, and focus on paying down some of your credit card debt to improve your credit utilization.
Carefully consider how additional applications will affect your credit. If you apply for too many credit cards within a short time frame, you could damage your score via multiple hard inquiries. And a flurry of card applications could send a signal to prospective lenders that you’re too reliant on credit.
Bottom line
Balance transfers can save money on interest charges, but getting approved for one can be tricky if you have a lower credit score or your approved credit limit is lower than expected. When applying for balance transfer offers, consider your budget and how much you’ll be able to pay each month. This can help ensure that you’re not left with a remaining balance once the introductory rate period ends.
The search for the best car insurance company entails digging into such factors as price, coverage options and customer satisfaction. And things get more complicated when you are choosing auto insurance in Florida. That said, we break down how you can choose insurance you’ll afford while feeling comfortable with your choice in auto insurance carrier.
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Florida has some of the highest car insurance rates in the nation due to factors like its weather, its no-fault insurance law and the high rate of uninsured drivers. In fact, the Insurance Information Institute reports that Florida had the sixth highest in uninsured drivers in 2019 at 20.4%, the year with the most recent data.
That said, you can still find an insurance company in Florida that provides excellent coverage within your budget. We took a look at the best insurance carriers that serve Florida and picked our five favorite ones, including the best overall auto insurance company in Florida. (Spoiler alert: It’s Geico.)
The factors that influence how much car insurance companies will charge you include your age, marital status, driving history and even ZIP code. Each insurer weighs those factors differently. The best strategy for finding cheap car insurance in Florida will always be to compare quotes. Just make sure the quotes you get are comparable in coverage, and of course, check out our reviews below.
In this article
Methodology
When comparing Florida auto insurance companies, we used our SimpleScore Methodology to consider factors such as discounts, coverage, support, customer satisfaction and accessibility.
We also looked at authoritative reviewers and gatherers of auto insurance statistics such as J.D. Power, Bankrate, Insurance Information Institute and Consumer Reports. Bottom line: We’ve worked to give you the best advice about car insurance in Florida.
The best car insurance companies in Florida
These insurers were ranked at the top of J.D. Power’s 2020 U.S. Auto Insurance Study in the Florida region. J.D. Power is a global leader in customer service surveys. These insurance providers also have excellent marks on our own SimpleScore and have gained the notice of Consumer Reports and the Insurance Information Institute.
Geico — Best overall for Florida auto insurance
State Farm — Best for Florida auto insurance claims customer service
Allstate — Best overall for Florida auto insurance customer service
Progressive — Best for Florida auto insurance coverage options
Liberty Mutual — Best for Florida auto insurance discounts
Best overall for Florida car insurance – GEICO
When compared to other Florida auto insurance providers, Geico got top marks both from J.D. Power and Consumer Reports. Why? This carrier’s scores for claims and non-claims service were excellent. In fact, Geico is our favorite all-round Florida auto insurance carrier.
J.D. Power Rating
3/5
AM Best Rating
A++
Standard & Poor’s
AA+
SimpleScore
4.8 / 5.0
SimpleScore GEICO 4.8
Discounts 5
Coverage Options 5
Customer Satisfaction 4
Accessibility 5
Among the auto insurance carriers we track, Geico’s premiums were among the lowest for average minimum coverage, at $433 (per Bankrate’s 2020 data), which is actually also one of the lowest among the Florida providers we like best.
In addition to ranking among the best with J.D. Power for auto insurance companies in Florida (846 out of a score of 1,000) in 2020, we found that Geico was one of the largest auto insurance providers in 2019, according to the Insurance Information Institute, with almost 14% market share. We found that coverage options were robust, with 11, and discounts were quite plentiful, with 16.
Best for Florida car insurance claims customer service – State Farm
We consider State Farm to be the best in claims service satisfaction, an assertion backed up by its strong ratings with Consumer Reports.
J.D. Power Rating
4/5
AM Best Rating
A++
Standard & Poor’s
AA
SimpleScore
4.6 / 5.0
SimpleScore State Farm 4.6
Affordability 4
Coverage Options 5
Customer Satisfaction 4
Accessibility 5
State Farm’s wide reach can be a major attraction for some, with more than 19,000 independent agents and over 16% of the market share among auto insurance direct premiums written. This ensures that such benefits as the number of coverage options (we counted 13) is at your fingertips.
Over at Consumer Reports, we found that State Farm gets a 4 out of 5 for both claims and non-claims service satisfaction, although the company doesn’t rank as well for premiums and policy review satisfaction.
Best overall for Florida car insurance customer service – Allstate
When compared to other Florida auto insurance carriers for overall customer satisfaction, Allstate landed on top, with a J.D. Power score of 851 out of 1,000.
J.D. Power Rating
3/5
AM Best Rating
A+
Standard & Poor’s
A-
SimpleScore
4.4 / 5.0
SimpleScore Allstate 4.4
Discounts 3
Coverage Options 5
Customer Satisfaction 4
Accessibility 5
Allstate is a solid provider of car insurance, with good coverage options, customer support and accessibility. This carrier offers two apps: QuickTrip, which provides support for routing daily trips and maintenance reminders, as well as Allstate Mobile, which can be used for filing claims and other tasks.
This carrier is not a favorite for premium prices: Consumer Reports only gives Allstate a 1 out of 5 in that category, although the company ranks well with claims satisfaction, with 4 out of 5.
Best for Florida car insurance coverage options – Progressive
Progressive is the best in coverage options in our estimation, when compared to other Florida insurance providers, with 13 at our count.
J.D. Power Rating
3/5
AM Best Rating
A+
Standard & Poor’s
AA
SimpleScore
4.2 / 5.0
SimpleScore Progressive 4.2
Discounts 4
Coverage Options 5
Customer Satisfaction 4
Accessibility 4
When it comes to claims satisfaction, Progressive performs well, says Consumer Reports, with a 4 out of possible 5. The Progressive app is also robust, with the ability to get roadside assistance, file a claim and more.
Progressive is middle to top of the pack in premium costs for Florida auto insurance. Bankrate found that average minimum coverage was $1,356, near the top of the providers we follow, while full coverage was middle of the pack at $2,573. That said, Progressive has definite advantages as a large, established insurer.
Best for Florida car insurance discounts – Liberty Mutual
Of the Florida auto insurers we compared, Liberty Mutual won out with its insurance discounts (we counted 17). Options include such discounts as rewarding you for driving a hybrid or electric vehicle and even if you get a quote from this company before your policy runs out.
J.D. Power Rating
3/5
AM Best Rating
A
Standard & Poor’s
A
SimpleScore
4.8 / 5.0
SimpleScore Liberty Mutual 4.8
Discounts 5
Coverage Options 5
Customer Satisfaction 4
Accessibility 5
Liberty Mutual is also one of our strongest in coverage options, with 18 counted. One nice feature is that you can have the option for original manufacturer replacement parts, which means that if you have a Toyota Camry, you can get parts made by Toyota, not an after-market manufacturer.
Consumer Reports found that Liberty Mutual did not enjoy the satisfaction in premium prices that you might hope for, but satisfaction in claims processing was strong with 4 out of 5.
[ Read: Steps to Switch Car Insurance Companies ]
Choosing your Florida car insurance provider
One of the first decisions you’ll have to make when signing up for car insurance is whether to choose a local or national carrier. Both come with advantages and disadvantages.
Local carrier
Pros
A personal relationship with your agent.
Services that are specific to your location.
Cons
Fewer discounts.
Fewer digital tools.
Slower claims process.
National carrier
Pros
More discounts.
Faster claims process.
More money to invest in digital tools.
Cons
May not have an individual agent.
Less of a personal touch.
Florida’s minimum insurance requirements
Florida’s minimum insurance requirements are the lowest in the U.S., with 10/20/10 in bodily injury liability and property damage liability. That’s as of March 2021.
What does that mean? Coverage must include up to $20,000 for everyone in an accident (middle number), subject to a limit of $10,000 for one person (the first number), and $10,000 for property damage (the last number). Also, instead of policy limits, policyholders can satisfy the requirement with a combined single limit policy.
By comparison, Maine’s and Alaska’s minimum required coverages are at 50/100/25. (For Maine, policyholders must also carry coverage for medical payments.)
Property damage
Florida requires that all drivers carry a minimum of $10,000 in property damage liability insurance. This coverage will protect other drivers from financial loss in case you are at-fault for an accident and damage another vehicle. Failure to do so can result in the suspension of your registration or driver’s license.
Personal injury protection
Florida is one of a handful of no-fault auto insurance states. This means that regardless of a car accident, each driver is responsible for covering their own medical bills. As a result, the state requires that all drivers carry at least $10,000 in personal injury protection. This coverage will pay for 80% of medical expenses from a covered accident.
Taxi insurance
Florida requires that taxis carry extra car insurance to protect their passengers. Vehicles registered as taxis in the state must carry at least $125,000 bodily injury liability per person, $250,000 bodily injury liability per accident, and $50,000 property damage liability per accident.
How much does car insurance cost in Florida?
Drivers in Florida pay $2,364 annually for full coverage and $1,101 annually for minimum coverage, according to Bankrate records.
Florida car insurance can get high depending on the ZIP code, as much as $3,314 in Miami, the state’s largest metropolitan area. (Miami-Dade is one of the largest counties in population in the U.S., with almost 2.8 million in 2018, according to the U.S. Census.)
Meanwhile in North Florida, Tallahassee has some of the cheapest premiums for the state, according to Bankrate.
City
Average annual premium for full coverage
Jacksonville
$2,230
Miami
$3,314
Orlando
$2,405
Tampa
$3,027
Tallahassee
$2,043
St. Petersburg
$2,662
Bankrate uses Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record and good credit.
Car insurance FAQs
Florida drivers face a variety of unique circumstances that make car insurance rates more expensive. Factors that cause Florida car insurance rates to be high include:
The state’s no-fault insurance law.
A high rate of older drivers.
A high rate of uninsured drivers.
High rates of inclement weather.
Florida requires that drivers carry $10,000 of both property damage liability and personal injury protection coverage. But you can certainly choose to purchase more insurance, and you may want to. Florida’s minimum requirements don’t provide any protection for your vehicle, only for other drivers. If you want your car to be covered in an accident, increase your coverages.
Both collision and comprehensive coverage protect you in case of damage to your vehicle, but they apply to very different situations. Collision coverage protects you in case of a car accident. Comprehensive applies to situations where your car is damaged for a reason other than an accident, such as vandalism, theft or inclement weather.
Too long, didn’t read?
Florida has some of the highest car insurance rates in the nation, making it all the more important for drivers to shop around before choosing a policy. There are plenty of good options available. Whether you’re looking for a company with outstanding coverages, top-notch customer service or low rates, there’s a carrier for you.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at [email protected] with comments or questions.
Last editorial update – December 7, 2020, updated car insurance reviews and editorial buying guide.
When it comes to shopping around for car insurance, it can be difficult to figure out the pricing structure. Part of the issue is that the price varies significantly by where you live, the minimum coverage requirements and a number of other factors.
Your auto policy and the premium will also depend on such factors as age; car year, make and model; driving record; location; and gender, which we get into more later.
The average cost of car insurance in the United States is $1,758 per year, which works out to about $146.50 per month. In Florida, the average monthly cost is 29% higher than the national average. A car insurance policy in Alaska, on the other hand, will cost you much less on average, at just $77.88 per month. Even ZIP codes in the same town can differ.
This means that your insurance premium and the premium of your friend living across town will likely be quite different.
With all those factors, how do you know what to expect when it comes to the cost of auto insurance? Well, we’ve got your back. We’ll go into how much auto insurance costs by state and by insurance provider, dive into the other factors, and talk about what you can do to save money on auto insurance.
Research Methodology
The Simple Dollar analyzed millions of car insurance rates in every U.S. ZIP code to determine the average cost by state, carrier, coverage amount, credit score, and other factors from Coverage.com.This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ based on your unique driving profile.
In this article
What decides the cost of auto insurance?
Here, we’ll get into details about factors that decide the cost of your car insurance. They can be:
Age
Gender
Where you live
The car you drive
Your driving history
Education level
Profession
How long you’ve been driving
Your credit score
Your driving habits
The amount of coverage you choose
The type of coverage you choose
[Read: The Simple Guide to Car Insurance]
1. Why does where I live affect the cost of car insurance?
Car insurance rates vary dramatically by state and even ZIP code.
Let’s look at Louisiana. That state offers the most expensive rates for full coverage, with an average annual rate of $3,279.18. One of the reasons why car insurance is so expensive in Louisiana is because the state has one of the highest accident rates. The number of fatal accidents and frequency of collisions in the state is significantly higher than the national average, which leads to higher auto insurance rates.
State car insurance rates are also determined by the number of uninsured drivers on the road. This leads Florida to be the most expensive state for minimal coverage — 26.7% of drivers don’t have car insurance. Uninsured drivers create more risk and ultimately increase the price of insurance for everyone.
Most expensive full and minimum coverage costs per state
State (Full coverage cost)
Average Full Coverage Cost
Average Full Coverage Monthly Cost
State (Minimum coverage cost)
Average Min. Coverage Cost
Average Min. Coverage Monthly Cost
1. Louisiana
$3,279
$273
1. Florida
$1,544
$129
2. Florida
$3,289
$266
2. Michigan
$1,525
$127
3. Maryland
$3,079
$257
3. Maryland
$1,489
$124
4. Michigan
$2,730
$227
4. Louisiana
$1,488
$124
5. New York
$2,609
$217
5. Rhode Island
$1,445
$120
6. Pennsylvania
$2,493
$208
6. Connecticut
$1,309
$109
7. New Jersey
$2,471
$206
7. New York
$1,245
$104
8. California
$2,417
$201
8. New Jersey
$1,162
$97
9. Rhode Island
$2,394
$200
9. Delaware
$1,017
$85
10. Colorado
$2,346
$196
10. Nevada
$989
$82
Which states have the cheapest car insurance?
At an average premium of just over $300 each year, Iowa drivers pay the least amount for minimal coverage –– by a significant amount. Iowa’s low population density is one of the main reasons costs are so low. The majority of the state is made up of “dense rural” areas, rather than urban areas. With fewer drivers on the road, there is less risk of accidents overall.
Cheapest full and minimum coverage cost per state
State (Full coverage rank)
Average Full Coverage Cost
Average Full Coverage Monthly Cost
State (Minimum Coverage rank)
Average Min. Coverage Cost
Average Min. Coverage Monthly Cost
1. Idaho
$1,094
$91
1. Iowa
$306
$26
2. Maine
$1,242
$103
2. South Dakota
$382
$32
3. Hawaii
$1,264
$105
3. North Dakota
$390
$32
4. Iowa
$1,275
$106
4. Wyoming
$393
$33
5. Vermont
$1,366
$114
5. Nebraska
$412
$34
6. Ohio
$1,397
$116
6. Idaho
$429
$36
7. Nebraska
$1,397
$116
7. Hawaii
$439
$37
8. North Carolina
$1,417
$118
8. Montana
$441
$37
9. North Dakota
$1,419
$118
9. Ohio
$462
$38
10. New Hampshire
$1,487
$124
10. North Carolina
$482
$40
2. What are my choices of insurance coverage and which are more expensive?
Though every state sets its own regulations, there is a minimum amount of insurance you must carry in each of the 48 states that require car insurance. (New Hampshire and Virginia don’t require insurance.) You can choose to carry higher limits, which will result in a higher premium.
What type of auto insurance coverage should I choose?
You can also choose to add collision and/or comprehensive coverage to your policy to create “full coverage.” While minimum coverage only protects you against liability claims from others, full coverage also protects your vehicle. Collision coverage, as the name suggests, protects your vehicle when it collides with another vehicle, building or other objects. Comprehensive coverage protects your vehicle in non-collision incidents, such as theft or a natural disaster.
Not everyone needs full coverage. Here are some things to consider if full coverage is right for you:
Older vehicles may not need full coverage since the deductible could be higher than the value of the car.
Full coverage may not be worth it if you rarely drive and have little to no history of accidents.
If you have a lease or a car loan, check with your lender. You may be required to maintain full coverage.
Your policy limits and deductible will fine-tune your car insurance costs, whether you choose minimum or full coverage. The policy limits are how much the insurance company will pay for each type of incident. The deductible is how much you are responsible for paying before the insurance company starts to pay.
Should I choose minimum coverage vs. full coverage?
Minimum coverage car insurance differs in every state, but it usually includes: bodily injury, liability coverage and property damage liability coverage at a minimum. This is the cheapest coverage you can buy, and you can’t legally carry less than the minimum amount.
Full coverage car insurance, on the other hand, is more expensive because it offers significantly more protection. However, it’s worth the added cost. If you settle for the state’s minimum insurance requirements, you run the risk of being underinsured.
Full coverage car insurance, on the other hand, is more expensive because it offers significantly more protection. However, it’s worth the added cost. If you settle for the state’s minimum insurance requirements, you run the risk of being underinsured.
Full coverage car insurance usually includes:
You will see coverage amounts listed as three numbers separated by slashes, such as 30/50/30. These numbers represent, in order, bodily injury liability per person, bodily injury liability per accident and property damage liability per accident, in thousands of dollars. So 30/50/30 insurance covers $30,000 of bodily injury per person, $50,000 of bodily injury per accident and $30,000 of property damage per accident.
Drivers can also elect to purchase additional coverage for things like roadside assistance, rental car reimbursement and accident forgiveness.
If you get into a costly accident, there’s no guarantee that you’ll have enough coverage to pay for the full extent of the damages. In that case, you would be financially responsible for paying the difference, which would come out-of-pocket.
3. Can my credit score impact the cost of car insurance?
Your credit score can have a massive impact on your car insurance rates, regardless of other factors. Only three states — California, Hawaii and Massachusetts — ban insurers from factoring in credit score, while in many states your rates could more than double if your credit is poor.
Car insurance cost: poor credit vs. good credit
Carrier
Good Credit Full Coverage Average Cost
Poor Credit Full Coverage Average Cost
Difference
Allstate
$2,457.21
$3,528.41
$1,071.19
American Family
$1,728.63
$2,897.22
$1,168.59
Farmers
$1,534.08
$2,560.31
$1,026.23
Geico
$1,336.58
$2,197.10
$860.52
Nationwide
$1,379.07
$1,931.89
$552.82
Progressive
$1,915.07
$2,976.39
$1,061.32
State Farm
$1,902.69
$2,701.59
$798.90
Travelers
$1,952.91
$2,635.82
$682.91
USAA
$1,178.28
$3,486.49
$2,308.21
Average Difference
$1,058.96
Need to boost your credit score and improve your car insurance rates?
Become an authorized user on someone else’s credit card (if they have good credit).
Pay down at least one balance or request a limit increase. Either will give you points for having more available credit.
4. Do my age and gender affect the cost of auto insurance?
In a word, yes. Even your basic demographics can have a strong impact on your car insurance costs. Most (though not all) states allow drivers to be rated based on:
Age: Younger drivers and those over the age of 75 generally pay more.
Gender: Among drivers under age 25, men typically pay more than women — this discrepancy tends to go away for more experienced drivers.
Marital status: Married people are considered lower risk, and thus tend to pay less for car insurance.
5. Can my type of car affect the cost of my insurance?
Which car you choose can have a surprisingly big effect on your insurance rates.
Less expensive to insure
Big vehicles
Family vehicles such as SUVs or sedans
More expensive to insure
Small cars
Sports cars, especially those that are considered high-performance
6. How can my driving history affect the cost of auto insurance?
As you might expect, insurance companies don’t particularly like paying claims. So if your driving history is poor, you can expect higher premiums. In order of costliness, some things that could raise your rates include:
7. Do auto insurance companies care about my driving habits?
Statistically, the more you drive, the more likely you are to get into an accident. Likewise, parking on the street is more likely to result in damage than parking in your own garage. To save money on car insurance, consider:
Taking public transportation to work
Reducing your commute
Carpooling
Paying for off-street parking
8. How does the car insurance company I choose affect my cost of auto insurance?
Of course, all insurance carriers are free to set their own prices. Some carriers offer discounts for which you might qualify, such as safe driving bonuses or discounts for military families, and some may rate your particular risk level lower than others. So it always pays to shop around.
As you can see below, most major car insurance providers are in the same ballpark for rates, but there are some clear outliers. You’ll get the most expensive full coverage auto insurance premium from Allstate, and the most affordable from USAA.
On the opposite end of the spectrum, Travelers offered the most expensive minimum coverage rate of $815.41, and USAA offers the cheapest rate by far – just $487.04 each year. This makes USAA seem like the obvious choice, but USAA doesn’t provide coverage to just anyone — it has strict military and immediate family restrictions.
Carrier
Full Coverage Average Cost
Full Coverage Monthly Cost
Minimum Coverage Average Cost
Minimum Coverage Monthly Cost
Allstate
$2,457.21
$205
$800.53
$67
American Family
$1,728.63
$144
$813.48
$68
Farmers
$1,534.08
$128
$614.64
$51
Geico
$1,336.58
$111
$568.88
$47
Nationwide
$1,379.07
$115
$830.00
$69
Progressive
$1,915.07
$160
$742.80
$62
State Farm
$1,902.69
$159
$801.81
$67
Travelers
$1,952.91
$163
$815.41
$68
USAA
$1,178.28
$98
$487.04
$41
How can I save on car insurance?
There are a few tricks for saving on auto insurance, including lowering the amount you drive, improving your credit score, and of course, driving more safely. You can also get a host of discounts, depending on your choice in insurance provider.
To get the best deal for your circumstances, conduct a car insurance comparison.
Different insurers offer different discounts. Insurers like Geico, State Farm and Progressive are frequently recognized for having cheaper car insurance rates.
Common discounts include:
Good student savings
Certain organization membership
Active duty military
Bundling other policies with the same company
Driving a low-risk car
Infrequent driving
Having a good credit score
Boost your credit score
Taking the steps to improve your credit score is another way to save money on your car insurance. As an added bonus, it will help reduce costs in other areas like credit card APRs. Start by paying all of your bills on time, checking your credit report for errors and paying down high interest debt. Remember, improving your credit score is a marathon, not a sprint. It will take some time to see your score increase.
[Read: Car Insurance Rates Are Up – Here Are Eight Ways to Get Yours Back Down]
Car insurance cost FAQs
It varies by state, but in general, you can expect to need coverage for bodily injury liability, property damage liability and uninsured/underinsured motorist protection. States like New Hampshire don’t require car insurance, though additional requirements are in place.
It depends on a few factors. You should consider the likelihood of your car being damaged (based on your area, your vehicle’s age and similar factors) and your ability to pay for repairs if damages were to occur. Also think about how often you drive. From the start, driving more will put you at a higher risk for an accident.
After an at-fault accident, you can expect to see a 42% rise in your premium, according to data from InsuranceQuotes and Quadrant Information Services. Unfortunately, these rates were measured from people with relatively clean driving histories. If you have a less-than-perfect record, you may be subject to even higher premium increases. How much your rate will increase will depend on the claim type, if you were at fault, your carrier and what state the accident took place in.
Too long, didn’t read?
How much you’ll pay depends on a number of factors and will vary by company. But that doesn’t mean your rate is entirely out of your control. While there are factors you can’t easily change –– your age and where you live, there are still some things you can do to find savings.
We welcome your feedback on this article and would love to hear about your experience with the car insurance we recommend. Contact us at [email protected] with comments or questions.
It’s your first car; your first foray into the automotive world. You’re excited, eager, and you spend your time looking for cars that you can show off to your friends, cars made for speed, power, performance.
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But none of those things really matter when you’re buying your first car. Your main goal should be function and cost; a car that can do what you need it to do without costing the earth. And when price is your priority, car insurance is just as important as fuel economy and maintenance, potentially saving you up to 50% on your premiums.
The Cheapest Cars for Car Insurance
Before we look at the types of cars that insurers prefer, the types that offer the cheapest rates, let’s focus on the cars that are consistently generating the lowest insurance quotes.
Most of these vehicles are SUVs, as they score the highest average ratings in safety tests, but once you venture outside the top 10, you’ll find some sedans and luxury cars as well.
Honda Odyssey: A highly rated minivan with a retail price that begins at around $31,000.
Jeep Wrangler Sport: A sporty, convertible SUV with an average cost of around $35,000.
Subaru Outback: A powerful SUV with a suggested retail price of less than $30,000.
Mazda CX-3 Sport: A low-cost, powerful and sleek subcompact SUV.
Honda HR-V: A 1.8l SUV that begins at less than $21,000.
Honda CR-V LX: Another safe and affordable Honda SUV.
Jeep Renegade Sport: A cute and powerful Jeep for less than $23,000.
Ford Escape: Compact, with an engine size ranging from 1.5l to 2.5l.
Subaru Forester: 182 horsepower and an MSRP of less than $25,000.
Jeep Compass Sport: Yet another stylish Jeep. This one packs 180hp into a compact design.
Other Cars
The aforementioned vehicles aren’t the only ones that come with low car insurance quotes. The Subaru Crosstrek, Jeep Cherokee, Nissan Frontier, GMC Canyon, and Chevrolet Traverse are all up there, and you’ll also get good deals on a host of other reliable vehicles, such as those manufactured by Hyundai, Fiat, Kia, and Toyota.
But as soon as you venture into sports car territory, such as more expensive vehicles made by the likes of Mercedes, Porsche, BMW, and even the higher-end car models offered by Nissan (Nissan GT-R) and Ford, those car insurance premiums increase.
How Are Car Insurance Rates Calculated?
The goal of all insurance companies is to ensure that premiums are higher than projected costs. Underwriters use a series of statistics to calculate these premiums, knowing that probability is always on their side.
This is true for all types of insurance and allows these companies to operate at a profit even in the face of extreme outliers and exceptions. With term life insurance, for instance, they’ll look at your age, sex, medical conditions, and smoking status to predict if you are likely to die during the term; with homeowner’s insurance, it’s all about the risk factors in your area, as well as the size and cost of the house.
Where auto insurance is concerned, there are many factors that insurers can consider and these either revolve around you or your vehicle. They know, for instance, that a driver under the age of 18 is more than twice as likely to have an accident than a driver over the age of 18. They also know that renters and individuals with low credit scores are more likely to be involved in an accident.
Many of these factors can’t be influenced by the policyholder. They can promise to drive safely and insist they are not as reckless as their peers, but until they have established a long and clean driving record, the insurer won’t care.
However, the policyholder can influence the risks associated with the vehicle. By choosing a safer, more sensible ride, they can win favor with the car insurance company and potentially save hundreds of dollars on annual insurance premiums.
When judging the safety of a particular vehicle, car insurance companies will consider the following:
Anti-Theft Features
New cars are fitted with a host of features designed to make criminals’ lives harder. In the old days, cars could be stolen with a wire hanger/screwdriver and a little persistence. These days, thankfully, they’re much harder to crack and these features provide insurers and owners with a little peace of mind.
Safety Features
The National Highway Traffic Safety Administration (NHTSA) applies rigorous safety tests to all new vehicles, giving them a safety rating of between 1 and 5 stars, with 5 being the highest.
The NHTSA runs collision checks to see how the vehicle fares when hit from the front or the side, while also looking at stability, air bags, tires, and additional safety features. The higher the rating, the lower the insurance premiums, at least in theory.
Repair Costs
How much does your car cost to repair, are the parts widely available, does the car have any specific features or requirements that make a mechanic’s job harder? All these things will be considered during the underwriting process.
It’s one of the reasons sports cars have higher insurance premiums. Not only are they faster and involved in more high-speed accidents, but they’re also very expensive cars to fix.
Statistics
Underwriters don’t simply focus on safety ratings, repairs, and built-in features. They want to know how the car fares in the real world; how those features translate into practical costs. Generally speaking, a new car with advanced anti-theft features will be stolen less often than an older car.
However, if the statistics suggest otherwise, for whatever reason, you may not be offered the low premiums you’re expecting. Maybe there is a serious security flaw in the car’s anti-theft mechanism, and this has resulted in a spate of thefts; maybe it’s just really popular with criminals.
Whatever the reason, a car’s safety mechanisms are only as good as their real-world applications.
Other Things to Consider
Your driving record and type of car aren’t the only things that can impact insurance costs, nor are they the only things you can influence:
Driving Courses: Defensive driving courses can reduce the cost of your insurance policy as it proves you’re a capable driver and suggests you’re less likely to be involved in an accident.
Parking Your Car: Where you park your car on an evening can have a serious impact on your insurance premiums.
How Much you Drive: It stands to reason that a policyholder who drives for one or two hours a week is less likely to be involved in an accident than someone who spends all day on the road.
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