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Cheapest Cars for Car Insurance

  • Car Insurance

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.

  1. Honda Odyssey: A highly rated minivan with a retail price that begins at around $31,000.
  2. Jeep Wrangler Sport: A sporty, convertible SUV with an average cost of around $35,000.
  3. Subaru Outback: A powerful SUV with a suggested retail price of less than $30,000.
  4. Mazda CX-3 Sport: A low-cost, powerful and sleek subcompact SUV.
  5. Honda HR-V: A 1.8l SUV that begins at less than $21,000.
  6. Honda CR-V LX: Another safe and affordable Honda SUV.
  7. Jeep Renegade Sport: A cute and powerful Jeep for less than $23,000.
  8. Ford Escape: Compact, with an engine size ranging from 1.5l to 2.5l.
  9. Subaru Forester: 182 horsepower and an MSRP of less than $25,000.
  10. 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.


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.


Cheap Car Insurance for High-Risk Drivers

  • Car Insurance

Insurance companies profit by carefully calculating probability and then accounting for it. Your insurance premiums are closely tied to your risk factors; the more at-risk you are, the higher those premiums will be. But that doesn’t mean that you can’t get affordable insurance just because you’ve had a few violations.

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What Makes you High-Risk?

You may be deemed high-risk if you have received a violation of any kind. There are minor and major violations, ranging from parking fines, moving violations and traffic violations to drunk driving and more. The most serious and destructive violations include:

Driving Under the Influence (DUI)

A DUI, also known as a DWI, can have a big impact on your car insurance premiums. It’s a citation that results in more bodily harm and property damage than any other, and it’s also connected with more death benefit payouts than any other type of driving citation, making DUIs a huge red flag for all insurance companies.

If you have a recent DUI conviction on your record, you’ll struggle to get comprehensive insurance coverage for a reasonable price, but there are a few things you can do, as discussed in our guide to Getting Car Insurance with a DUI.

Racing and Speeding

Speeding increases your risk and many insurance carriers will charge you over $100 more for every speeding ticket that you receive. If you’re charged with “Racing”, the penalties are more severe and you may be charged an additional $1,000 a year.

It only makes sense, as street racing turns you into a high-speed liability. Your car insurance premiums increase because you’re more likely to do harm to yourself, your car, your passengers, and all innocent bystanders. It doesn’t matter how good of a driver you think you are, in the eyes of an auto insurance company, you’re an expensive disaster waiting to happen.

At-Fault Accident

A car accident that was caused by you and led to significant payouts by the insurance company can have a massive impact on your auto insurance rates. 

Collision coverage and liability coverage are essential components of any insurance policy and if there is extensive property damage and motorist injuries, resulting in major repair work and liability claims, the provider will be hit with a sizable bill.

It should come as no surprise, therefore, that an at-fault accident can increase your insurance premiums by over $600 a year.

Reckless Driving

If you’re cited for reckless driving, your premiums may increase by anywhere from $300 to $1,000 a year. The risk of bodily injury and property damage increases, as reckless driving is defined as driving without care and putting yourself and others in danger.

Other High-Risk Factors

You are also considered to be a high-risk driver if you’re young and male, as young drivers are significantly more likely to claim than drivers aged 25 or older and male teen drivers are twice as likely to claim as females. That’s why young drivers pay higher car insurance rates on average.

But your demographic and driving record aren’t the only things that can prevent you from getting a cheap auto insurance policy. You’ll also be charged higher rates if you:

Have a Poor Credit History

Your credit score impacts pretty much everything that you do financially. It can reduce your chances of getting a credit card or mortgage; it can stop you from getting security clearance and securing the job of your dreams. 

Believe it or not, your credit score is also considered by your insurance provider, as studies suggest that bad credit policyholders are more likely to claim.

Live in a High Claim Area

The best safety features and the safest cars won’t matter much if the driver lives in a high claim area and drives a car that is frequently stolen. In this case, you’re paying for the mistakes of others as the insurance company tries to balance its books.

Have no Driving Experience

Your experience is key, so your driving history will always be factored into the equation when applying for car insurance quotes. If you have some experience behind you and haven’t made any claims, you can secure lower premiums. If not, you have no proof that you’re a good driver or a safe driver and will be considered a risk.

Live in Rented Accommodation

Your credit score isn’t the only surprising criteria considered by insurance carriers. They will also consider whether you are a tenant or a homeowner, with the latter offered lower premiums on average. Again, it all comes down to probability, as studies suggest that renters are more likely to claim than homeowners.

How to Get the Cheapest Car Insurance

As noted above, all insurance companies calculate risk and probability to determine how much of a liability you are. This is true for life insurance, homeowner’s insurance, and pretty much all other forms of insurance. Your goal, therefore, is to reduce that risk, keep that liability to a minimum, and make sure you look like a prime candidate in the eyes of car insurance companies.

To get cheap car insurance, therefore, just keep the following in mind and you can secure some car insurance discounts:

Choose the Right Car

A new car can reduce your premiums, especially if it comes with a high safety rating and has anti-theft features installed. SUVs have the highest safety ratings and can save you a lot of money when dealing with major insurers like Geico, State Farm, and Allstate, but there are some highly insurable sedans and smaller cars as well.

Look for the safety rating, check for an anti-theft device, and scour the rates before you buy your car.

Get Training

By completing a defensive driving course, you can prove to your insurers that you are a safe driver who knows what they are doing on the road, thus securing a lower rate than you would get if you didn’t have that all-important certificate.

Improve your Credit Score

A few points can make a big difference, netting you a policy discount and giving you more options if you ever need to apply for a new line of credit or loan. 

Multi-Policy Discount

By taking out different types of coverage with the same provider, you can benefit from bulk rates, known as “bundling”. Like a multi-car discount, you’re essentially getting wholesale rates on your insurance policies.

Providers like Progressive, Nationwide, State Farm, and Geico offer discounts when you bundle car insurance with home insurance, life insurance, and more.

Bide Your Time

Time is your friend when looking for the best car insurance rates. If you have multiple violations and you’re still a teenager, then making do without a car for a while could save you a small fortune. Not only will those violations expire, but you’ll be a little older and will therefore not be considered as much of a risk.

You’ll still be considered high risk as a new driver, but there will be significant savings to make, nonetheless.

Bottom Line: Getting the Cheapest Insurance Policy

Being high risk doesn’t mean you can’t get insured. It just means your car insurance policy will cost more than someone who has a clean driving record and ticks several other boxes with regards to the ideal policyholder. By searching, comparing, and doing what you can to decrease your liability, you can keep those insurance costs to a minimum and save hundreds of dollars a year.


Life Events that Impact Car Insurance Rates

  • Car Insurance

Insurance is a numbers game. Underwriters base their rates on the likelihood of an insured making a claim; the more likely you are to claim, the higher your insurance premiums will be. It’s as simple as that. To get the best rates, therefore, you need to present yourself as a low-risk customer. 

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But what can you do to reduce this risk; what major life events are impacting your chances of getting affordable car insurance cover?


Your 18th and 25th birthday have a massive impact on your auto insurance policy. After these dates, your risk plummets, and your rates soon follow. Car insurance companies base their rates on probabilities, as discussed above, and a 16- to 17-year-old is twice as likely to have a car crash than an 18- to 19-year-old. 

At this young age, you pay a higher deductible because your insurance needs are greater, but as soon as you turn 18, you can secure lower rates and bring those car insurance costs down.

A teen driver is between 2 and 5 times more likely to have an accident and suffer bodily injury than a driver aged between 25 and 35, so car insurance costs will reduce even further once you reach 25.

The cheapest rates tend to be reserved for policyholders aged between 50 and 60. At this age, insurance premiums cost around $1,200 on average, compared to the $5,000+ paid by the average 16- to 18-year-old teen driver. However, costs begin to increase again after this age. Even if you have a relatively clean driving record, auto insurers will consider you to be a greater risk and will increase your premiums as you age.

Motorists over the age of 80 can expect to pay roughly the same as those aged between 20 and 29, for example.

Getting Married

Your marital status is considered by underwriters for most insurance policies, including homeowners insurance. Again, it’s all about probability, and statistically speaking, married policyholders carry less risk than their single counterparts. Where car insurance is concerned, this is even more poignant, as you’re more likely to use your spouse’s car. 

Your insurance company may also provide you with a multi-car discount, allowing you to save even more on your car insurance policy. Speak with your provider to discuss potential savings and benefits. 

As an example, a married couple will pay around $1,600 on average for a joint policy with Geico, and if they have more than two cars between them, they can shave up to 25% off the cost.

By the same token, however, these rates may increase if you get divorced, with the average increase being around $120 to $140.

Buying A Home

In the eyes of an insurance company, you’re more responsible when you buy a home and your rates may decrease as a result. However, the best thing about this life event is that it allows you to take advantage of multi-policy discounts. 

If you take out many different policies with the same provider, you can shave hundreds of dollars off your annual premiums and will be covered for everything from property damage to medical costs, physical injuries, vandalism, and breakdowns, all with the same company.

Buying a home also improves your chances of securing credit and it gives you more options when times are tough. Homeowners can tap into their home equity whenever they need a little cash and because they can use their home as collateral, they can also benefit from low-interest secured loans.

Buying a home is one of the biggest life changes you can make and it’s also a costly one as it leaves you with substantial and long-term debt, but it’s a decision that generally carries more positives than negatives.

Getting a Job

As an employee you can benefit from company discounts and policy offers, potentially saving on a host of insurance policies and shaving dollars off your car insurance policy. This isn’t true for all jobs and all employers, but it’s worth looking into.

Ask your employer if there is any way you can save money on your insurance and if there are any other benefits you can take advantage of.

Paying Off Debt

Repaying debt is a huge accomplishment, especially when you consider that three-quarters of all Americans will die with substantial debts and many of those will have lived with debt throughout their adult life. 

Repaying debt provides you with a little more financial freedom and is a significant weight off your shoulders, but it can also reduce the price of your auto policy by improving your credit score.

Bad credit increases your risk significantly and is factored into a lot of calculations, including job applications and security clearances.

How Much Does Car Insurance Cost?

The exact price of your car insurance policy will depend on a number of factors, from coverage limits to your age, personal circumstances, driving history, and type of car. Whether you have a new car or a used car will impact the price, but whether it has features such as emergency braking, anti-lock brakes, and airbags, will also make a difference.

Discuss your options with insurance agents, compare rates from multiple companies, and don’t forget to consider extras such as rental car expenses and collision coverage. Your goal is not to simply get the cheapest auto insurance premiums and move on. You need to think about what will happen if you ever have an accident and file a claim. If you’re cheap today you could be hit with some costly expenses in the future.

Summary: Comparison Shop and Benefit

Every time a major life event occurs, you should consider changing your insurance policy. Car insurance isn’t like life insurance or health insurance; it doesn’t increase as you age and the cheapest policy isn’t the one you’re offered at the first time of asking. If anything, the opposite is true, because as discussed above, teen drivers and young drivers pay huge premiums every month.

Comparison shop, negotiate, and don’t be afraid to look for a new provider. Car insurance companies do everything they can to compete with one another and switching is a great way for policyholders to take advantage of different circumstances and secure reduced premiums.


How to Get Free Car Insurance Quotes

  • Car Insurance

Choosing the right car and getting an auto loan is only half the battle. You still need car insurance coverage and finding the right insurance policy is a taxing, boring, and often expensive process. But if you keep some simple tips and techniques in mind, you can find affordable car insurance quotes and save yourself a fortune on insurance premiums. 

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How Can You Get a Free Car Insurance Quote?

Car insurance quotes should be provided free of charge. That’s not the case for all of them, but there are plenty of companies and services that will provide you with a free quote. You can then compare these quotes to help you find the best policy.

Online car insurance quotes are generally free, so if you’re being charged a fee, take your business elsewhere.

How to Find Cheap Auto Insurance Quotes

There are a few simple steps to getting a free quote and using this to secure the cheapest car insurance rates:

1. Be Prepared

To save yourself some time when dealing with car insurance companies, make sure you have some essential information, including:

  • Personal Information: You’ll need to have your basic information at hand when dealing with insurance companies. This includes your driver’s license and the details of everyone else included in the auto insurance policy.
  • Vehicle Information: Make a note of the mileage and the date that you purchased the vehicle, as well as the make and model.
  • Vehicle Identification Number (VIN): You can get the VIN from the dealer or seller.
  • Driving Record: Note down all accidents and claims, as well as any driving courses you have completed.
  • Insurance Record: Finally, many car insurance policies will insist on at least 6 months of insurance before they supply you with a new policy.

2. Understand What They’re Looking for

Knowing what car insurance companies are looking for can help you prepare and allow you to secure some cheap and comprehensive coverage. Generally speaking, the things that have the biggest impact on your quote include:

  • Age: Young drivers are significantly more likely to be involved in an accident and to make a claim, so they can expect to pay more for motorist coverage. Policies should get cheaper as you age, but this changes once you reach your 50s and you will start receiving more expensive quotes thereafter.
  • Coverage: The extent of your coverage is key to the price of your policy. Do you need roadside assistance, how much liability coverage do you need, and what other coverage options should you consider?
  • Car Insurance Discounts: A safe driver in a new car with no claims can secure some big discounts on an auto insurance policy. There are even student discounts for teen drivers and policyholders who have completed defensive driving courses.
  • Location: Your location has a major impact on the cost of your auto policy, and whether you’re in California or Hawaii, Florida or New York, could impact your policy by tens of dollars.
  • Marital Status: You’re more likely to get cheap car insurance quotes if you’re married, as you’re statistically less likely to make a claim.
  • Renter vs Homeowner: A homeowner pays less, on average, than a renter.  The difference is slight but could save you tens of dollars a year.

3. Improve Your Chances of Getting Cheap Insurance

You can’t magically make yourself a few years younger (if only!) and if you’ve already made a claim on your insurance there’s not much you can do to reverse time and undo that claim. However, there are a few ways you can reduce your premiums and bring those insurance costs down, including:

Check Your Credit Score

Your credit score plays an important role in pretty much every financial decision that you make, whether you’re applying for a credit card, looking into life insurance or getting an auto insurance quote. 

A good credit score shows that you’re a trustworthy individual who knows how to handle your finances. It also suggests that you’re less impulsive. 

Of course, that’s not always the case and having a bad credit score doesn’t mean you’re impulsive and reckless. Far from it. However, insurance is based on statistics and probability, and statistically speaking, an individual with bad credit is more likely to be reckless than an individual with good credit.

Check Your Auto Insurance Coverage

There’s no point paying for full coverage if you’re driving a cheap car that costs less than $500. Be careful how you structure your auto insurance with regards to liability, collision coverage, and auto repair. Make sure you weigh the pros and cons against your car and the likelihood of encountering an issue and use these to set realistic and affordable premiums.

Look for Insurance Discounts

You can secure auto insurance discounts for a variety of reasons. One of the best of these is a multi-policy discount, which is offered to policyholders who have several different policies with the same insurance provider. For instance, you can purchase life insurance, property liability insurance, and more, with the insurer essentially offering you a wholesale discount.

There are also discounts for multi-car and driver policies, whereby you add several cars or drivers onto the same policy. But the reductions don’t stop there, and you should also look into the following:

  • Good driver discounts
  • Discounts for student drivers
  • Discounts for paying in full
  • Paperless discount (provided when you agree to paperless billing)
  • Company and employee-based discounts
  • Military discounts

Shop and Compare

Don’t accept the first policy you’re offered; don’t assume they’re giving you the best price and complete coverage. Work with different insurance agents, check multiple providers, and run some searches on comparison websites.

Bottom Line: Free Auto Insurance Quote

Most auto insurance companies provide you with auto insurance quotes for free, and there’s no reason why you should be paying money for these quotes. Be wary of any companies or sites that charge you for this service, remember to compare several quotes from several different companies, and once your policy begins, keep searching for discounts and doing what you can to reduce quotes in the future.


How to Get the Best Car Insurance Discounts

  • Car Insurance

Car insurance rates can be impacted by everything from your driving record to your age, and as you get older and more experienced, you may be entitled to auto insurance discounts. These discounts are often available when you renew, but you can also take advantage of them before you apply.

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In this guide to car insurance discounts, we’ll tell you what discounts you’re likely to be entitled to, how you can get them, how much they can save you, and more. 

Car insurance quotes can be astronomically high for some applicants, but armed with this advice you can bring those rates down and shave tens and even hundreds of dollars off your policy.

What are Car Insurance Discounts?

​Auto insurance companies base their prices on a series of risks and probabilities. They use statistics to determine the likelihood of each applicant applying, and this allows them to earn a profit when all policyholders have been considered.

If you’re young, drive frequently, and have a history of road traffic accidents, you’re a higher risk as you’ll likely cost them more over the term. If you drive less, claim less, and reach an age where you’re deemed to be low-risk, you will cost them less so they can save you more.

In some states, a driver discount is required by law. State law requires these benefits to be offered to encourage good driving, as many policyholders take their driving records very seriously.

What Types of Discount Can You Get?

There are many types of car insurance discounts available, all of which can help you to save money on your insurance policy. These discounts relate to everything from your driving record to your loyalty and more.

Driving Record

You can get better rates if you can prove that you’re a low-risk driver, which typically means you have driven for several years without claims. A good driver who has never been in a car accident can shave over 25% off their insurance premiums. The types of discount and potential savings include:

  • No Accidents (up to 25%): You need to be accident-free for at least 3 years. However, this only applies to chargeable or no fault accidents, which is essentially an accident for which the insurance company needs to payout.
  • Low-mileage (2%): If you drive between 5,000 and 15,000 miles a year, you could qualify for a low-mileage car insurance discount.

Age and Gender

Driving habits are closely tied to your age and gender. A man between the age of 16 and 18 is significantly more likely to be involved in an accident than any other demographic. And that’s not the only difference, as the likelihood of claiming decreases for each decade until a certain point, after which it begins increasing again.

You can save huge sums of money by changing your provider or your policy as you age, and all this stems from the following car insurance discounts:

  • Good Student Discount (up to 25%): Work hard in high school and college, secure some good grades and you could qualify for a good student discount, reducing your policy by anywhere from 15% to 25%.
  • Students Away from Home (up to 30%): Students who study a long way from home (typically over 100 miles) can qualify for discounts as they are less likely to use the vehicle.
  • Homeowner Discount (up to 15%): Homeowners are deemed to be more responsible than renters. This might seem a little harsh, but it all comes back to statistics and they suggest that you’re less likely to claim if you own your own home.
  • Low Income (varies): Car insurance companies are required to offer discounts for policyholders in low-income employment, and these discounts can differ considerably.
  • Senior (up to 35%): Car insurance companies are also required to offer discounts to applicants aged over 65, even though the risk of claiming on an auto insurance policy increases above the age of 60.

Brand Loyalty

Many companies offer loyalty discounts these days and your insurance provider is no different. You can save money on your auto policy just because you have stuck by a single provider for a number of years, with discounts for all the following:

  • Multi-Policy (up to 10%): You can get a multi-policy discount when you purchase several different insurance options from the same company. Speak with an insurance agent to discover how much you can save by combining homeowner’s insurance, car insurance, and more from the same company. The biggest car insurance providers (GEICO, Allstate, State Farm) provide numerous options. This is also known as “bundling”.
  • Multi-Car Policy (up to 25%): Add all the drivers in your home onto the same policy. This can make things complicated if you have young drivers on the policy, but it’ll be cheaper than if you were to get separate policies for them. A multicar discount could net you a saving of up to 25% on comprehensive coverage, so it’s well worth looking into.
  • Renewal (up to 10%): Renew with the same provider at the end of the term and they might offer you a discount, offsetting the extra cash you might spend by going elsewhere.

Driver Training and Safety Features

Everything from training courses to safety equipment can reduce your likelihood of claiming. And this goes beyond seat belts, airbags and the insistence that your driving is better than average. You need to make a concerted effort if you want to secure some serious safe-driver discounts:

  • Anti-lock Brakes (10%): An important safety feature that could reduce your car insurance policy by as much as 10%.
  • Anti-Theft Features (up to 20%): Theft is a common occurrence, with roughly 230 thefts for every 100,000 car owners. This simple feature could net you some vehicle discounts by reducing the likelihood of your car being stolen.
  • Green Car (10%): Driving a green or hybrid car can save you money on gas while also reducing your auto insurance premium.
  • New Car (10%): Newer cars are more likely to have an anti-theft device installed and also offer better safety features and other benefits. They are less likely to breakdown, as well.
  • Airbags: While we joked that you won’t receive a discount just because your car has airbags, there is an exception. You may require more car insurance coverage if you have an old car with no airbags, but if you have factory-installed airbags in an old car you can save on this feature. This discount is also known as passive restraint.
  • Driving Training (Varies): Take a defensive driving course to prove you can handle yourself better. A defensive driver is less likely to claim and the money you save by taking this course is likely to offset its cost.


Simply being associated with certain companies or associations can reduce your auto insurance premiums, as outlined below:

  • Company Affiliation (up to 25%): Membership clubs, schools, and workplaces may have discount programs in place to help you save.
  • Military (up to 90%): Military vets can save up to 10%, but this increases significantly for anyone actively employed, with discounts going as high as 90%.

Payment Options

A few simple adjustments to the way you pay for your car insurance premiums could net you a substantial saving on your policy.

  • Auto-Pay (Varies): Schedule an auto-pay to ensure you never miss a payment and your provider may give you a percentage discount or some cash back.
  • Paperless (3%): Go paperless to reduce waste and to save your auto insurance provider a few dollars in the process. There really is no need to get paper statements in this day and age, so this is something that every policyholder should consider.
  • Paid in Full (up to 10%): If you pay your annual policy up front you may be offered a sizeable discount. These discounts are nearly always provided by subscription services as it keeps you locked in and allows them to collect all the cash straight away. By offering you a discount, they can pass some of the savings on.

How Much Can I Save?

We have given you a few examples of how much you can save, but that’s all they are, examples. You shouldn’t take this as fact and assume that your provider will offer you these discounts. 

Talk it through with them or with your insurance agent, see what discounts they can offer you, and if you’re not happy with what’s on the table then don’t be afraid to look elsewhere.

You can also improve your auto insurance quote by increasing your credit score and shopping around for the best car insurance. There are dozens of major providers nationwide and once you factor the smaller players into the equation that number stretches well above 100. Don’t assume that you’re getting the best offer possible just because the same company has offered you a good rate for other types of insurance.

It’s also worth noting that the cost will be impacted by your location, with car insurance prices and discounts differing considerably from state to state.


How Much Auto Insurance to Buy?

  • Car Insurance

The average driver pays around $1,500 a year in car insurance premium, but these costs can vary greatly depending on the extent of the coverage, as well as factors such as the driver’s age, state, and driving record. But how do you know how much insurance you will need; should you opt for comprehensive coverage right off the bat or can you settle for something less, saving yourself a small fortune on premiums in the process?

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The Types of Auto Insurance

To understand how much auto insurance you need, we first need to look at the many types of coverage that can be added to your policy.

Bodily Injury Liability

If you hit and injure someone with your car, you may be held responsible. They can sue you and claim financial compensation for medical bills and lost earnings, as well as emotional and physical support. This type of coverage is essential, because if you’re hit with hefty legal bills and medical payments, you could lose your house, car, and every other asset you have.

Many auto insurance quotes include minimum liability coverage in the tens of thousands, and this is often capped at around $500,000. Liability limits are entirely up to you, but many experts recommend that you cover yourself with a minimum amount of at least $100,000.

Collision Coverage

One of the most common and essential aspects of your auto insurance policy, collision coverage will payout in the event that you hit or are hit by another vehicle. The rate you pay typically depends on the size of your deductible and the age of your car.

If you have a brand-new and high-value car, these premiums may be higher as it will likely cost more to repair. By the same token, if you have an old car, you may want to rethink the size of the deductible. There’s no point paying a $1,000 deductible if the car is only worth $1,500 or $2,000.

Property Damage Liability

Most states require a minimum amount of liability insurance for property damage, but this is rarely enough to cover you when such issues occur. In New Hampshire, for instance, the required minimum for property damage is just $25,000, but the actual cost could be much greater. An Umbrella Policy can help you here, providing extra liability cover than what is required under state law.

If you damage someone else’s property, this insurance will come in handy, so plan carefully when calculating the amount of coverage you need.

Medical Payments Coverage

In the event of a car accident that harms you and/or your passengers, medical payments coverage will ensure that medical bills are covered. The limits are often fixed at a few thousand dollars. This is the amount that each person in the vehicle can claim in the event of a car accident.

Uninsured Motorist Coverage

If you are involved in an accident with an uninsured motorist, you can get additional coverage to make up the difference, bringing their coverage to the same level as yours and ensuring you don’t lose out because of their mistakes. 

This is an important addition to your auto insurance policy, as America has one of the highest rates of uninsured drivers in the United States, with between 10% and 15% of the population said to be without even the most basic coverage.

Roadside Assistance

Drivers have multiple options when it comes to towing and roadside assistance services, but these can also be added to existing car insurance policies and provide some much-needed peace of mind. Depending on the type of policy, they may fix your car on the roadside or tow it to the nearest garage. From there, you may be offered a rental car while your own car is being fixed.

Comprehensive Auto Insurance Coverage

If your car is damaged from fire, flood or vandalism, you may not be protected by any of the policies outlined above. However, a comprehensive policy will cover you for these issues and more. This is offered by most car insurance companies and combines collision insurance, liability insurance, personal injury protection, and more, into one complete auto policy. 

Of course, because you’re getting everything under one policy, you can expect to pay much more than if you were to opt for minimum coverage.

How Much Car Insurance Do You Need?

Consider everything we’ve discussed above, speak with an insurance agent, and get some quotes to determine the best coverage limits for your needs. Car insurance coverage can vary greatly and if you’re on a tight budget you’ll need to cut corners where possible without setting yourself up for failure down the line.

Use insurance comparison sites to compare different car insurance companies and the policies they provide; speak with the experts and ask around. It’s also important to switch providers when your circumstances change. For instance, there is a massive difference between drivers aged 16 and drivers aged 18, and it could add up to tens of dollars a month. Rates also drop when you hit 25 and the older you are and the cleaner your record is, the more options you will have and the lower your premiums will be.

What are the Risks of Being Underinsured?

If you don’t have enough motorist coverage your expenses may be significantly greater when the need arises. You could be tasked with paying a higher deductible or covering most of the costs, and if you suffer from bodily injury and resulting medical expenses, those costs can spiral out of control.

Of course, this doesn’t mean you should automatically opt for all possible coverage options. It might not be possible to have too much insurance as far as your coverage is concerned, but it’s definitely possible with regards to your budget.

Summary: Your New Insurance Policy

Insurance is often essential, always expensive, and never easy. This is true for pretty much all forms, including health insurance and life insurance, but it’s also true for car insurance. The good news is that if you have made it this far, then you’ll know all you need to know about finding the best car insurance rates on your new car. 

Use the information we have provided and start looking for comprehensive insurance coverage with the best insurance companies today.


Penalties for Driving Without Car Insurance

  • Car Insurance

There are close to 250 million drivers in the United States and every day they suffer from over 6,000 injuries resulting from tens of thousands of car accidents. For the most part, medical bills, property damage, and liability will be covered by insurance and all drivers will go their separate ways with minimal financial loss.

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But uninsured drivers throw a spanner in the works and can cause big problems for over 200 million insured drivers. These high-risk drivers lack even the most basic liability insurance and this puts everyone at risk. 

Uninsured drivers cause chaos for other drivers and for insurance companies. They drain money from the US economy every year and they also harm themselves, as there are severe penalties for anyone found to be driving without insurance.

Penalties for Uninsured Drivers (First Offense)

What follows is a list of state laws concerning uninsured motorists and the penalties that will be enforced when they are found to be uninsured.

In most cases, you will be fined a small sum, face a license and registration suspension, and be required to prove that you have insurance coverage before your license is reinstated.

  • Alabama = Fine of up to $500; imprisonment of less than 3 months, license suspension ($200 to reinstate).
  • Alaska = Suspension of driver’s license for at least 3 months.
  • Arizona = Fine of $500 or more; driver’s license suspended for at least 3 months.
  • Arkansas = Fine of between $50 and $250. Can’t register until insurance is acquired and proof is supplied.
  • California = Fine of between $100 and $200. Vehicle may be impounded.
  • Colorado = Fine of $500 or more. Community service may be ordered.
  • Connecticut = Fine of between $100 and $1,000. License may be suspended for 1 month, after which proof of insurance must be provided.
  • D.C. = Different penalties for operating and owning, with fines ranging from $150 to $500 and license suspension that can last for up to 30 days.
  • Delaware = Fine of between $1,500 and $2,000. License suspended for up to 6 months
  • Florida = License suspended until insurance is acquired and reinstatement fee of $150 is paid.
  • Georgia = Fine of between $200 and $1,000. Can face prison time of up to 12 months. License can be suspended for 60 days, after which as reinstatement fee of $200 is due.
  • Hawaii = Fine of $500. License may be suspended as well, and community service can also be ordered.
  • Idaho = Fine of $75. License will be suspended until proof of insurance or financial responsibility is provided.
  • Illinois = Fine of over $500 and no more than $1,000. License suspended for 3 months; reinstatement fee of $100.
  • Indiana = License can be suspended for up to a year and for no less than 3 months, with a reinstatement fee of $150.
  • Iowa = Fine of $250 (or community service). Car can also be impounded.
  • Kansas = Fine of more than $300 and less than $1,000. Can also face imprisonment, with a reinstatement fee before the license is returned.
  • Kentucky = Fine of more than $500 and no more than $1,000. Imprisonment is also possible along with, or in lieu of, a fine.
  • Louisiana = Fine of no more than $500. Suspension, reinstatement fee and impoundment also possible.
  • Maine = Fine of between $100 and $500. License suspended until insurance is acquired.
  • Maryland = Fine begins at $150 but can increase by $7 per day after a fixed period, reaching as much as $2,500. Restoration fee is also levied.
  • Massachusetts = Fines of $500 paid to both the city and risk plan. Imprisonment of up to 1 year also possible and license can be suspended for 2 months.
  • Michigan = Fine of between $200 and $500 and/or imprisonment of less than 1 year.
  • Minnesota = Fine of between $200 and $1,000 and/or imprisonment of no more than 90 days. License suspended until proof of insurance is provided. Community service and impoundment may also be ordered.
  • Mississippi = Fine of $500, license suspended for 1 year or until proof of insurance is provided.
  • Missouri = Fine of no more than $300; license suspended until proof of insurance and a $20 fee are provided.
  • Montana = Fine of between $250 and $500 and/or imprisonment for up to 10 days.
  • Nebraska = License and registration suspended until reinstatement fee of $50 each is paid.
  • Nevada = Fine of between $250 and $1,000; reinstatement fee of $250.
  • New Hampshire = No laws concerning mandatory car insurance.
  • New Jersey = Fine of between $300 and $1,000. License suspended for up to 1 year. Community service may be ordered.
  • New Mexico = A fine of less than $300 and/or imprisonment of up to 90 days.
  • New York = Fine of between $150 and $1,500 and/or imprisonment for 15 days. License and registration will also be suspended, with escalating fees that increase by the day.
  • North Carolina = $50 fine, probation, license suspension and restoration fee of $50.
  • North Dakota = Fine of no less than $150 and no more than $1,000. Proof of insurance must be provided for reinstatement.
  • Ohio = License is suspended until proof of insurance is provided. Reinstatement fee of up to $100 is also charged.
  • Oklahoma = Fine of less than $250 and/or imprisonment for up to 40 days. Impoundment also possible.
  • Oregon = Fine of between $130 and $1,000.
  • Pennsylvania = Fine of $300. Registration will be suspended until a $50 restoration fee is paid.
  • Rhode Island = Fine of at least $100 and no more than $500. License and registration suspended until fees of between $30 and $50 are paid for each.
  • South Carolina = License and registration suspended until reinstatement fees of $550 are paid and proof of financial responsibility is provided.
  • South Dakota = Fine of up to $500 and/or imprisonment for up to 30 days. License and registration will also be suspended pending reinstatement fee of $50.
  • Tennessee = Fine of less than $100. License and registration suspended until proof of financial responsibility is provided.
  • Texas = Fine of between $175 and $350.
  • Utah = Fine of at least $400. License and registration suspended until a $100 reinstatement fee is paid.
  • Vermont = Fine of $250 to $500. License and registration suspended until proof of insurance is provided.
  • Virginia = Fine of less than $500. License and registration suspended until $500 fee paid.
  • Washington = Fine of $250 plus additional fees of $37.
  • West Virginia = Fine of no less than $200 and no more than $5,000 and/or imprisonment for at least 15 days and no more than 1 year. License and registration suspended until reinstatement fees are paid.
  • Wisconsin = Fine of up to $500.
  • Wyoming = Fine of between $250 and $750 and/or imprisonment for less than 6 months.

Penalties for Uninsured Drivers (Additional Offenses)

The penalties for being uninsured increase significantly for all additional offenses, especially if they occur within a few years of the last offense. There is a greater risk of your driving privileges being revoked for an extended time and you may also face jail time depending on the severity of the issue and the punishment imposed by the court.

  • Alabama = Constitutes a Class B Misdemeanor, which can result in fines up to $3,000 and imprisonment of up to 6 months. License and registration may also be suspended for between 4 and 6 months.
  • Alaska = License suspended for over a year if occurs within 10 years of last offense.
  • Arizona = Fine of at least $750 if occurs within 36 months of last offense. License and registration also suspended for 6 months. If a third offense is committed, fines increase and offenders risk jail time.
  • Arkansas = Fine of up to $500; registration suspended. If a third offense is committed, fines increase and offenders risk jail time.
  • California = Fine of up to $500 in addition to penalty costs if it occurs within 3 years of the first incident. Can also result in the vehicle being impounded.
  • Colorado = Fine of at least $1,000 if it occurs within 5 years of last offense. License and registration suspended for up to a year.
  • Connecticut = Fine of up to $1,000. License and registration suspended for up to 6 months.
  • D.C. = Fine increases by 50% for each additional offense.
  • Delaware – Fine can go as high as $4,000 for each subsequent offense that occurs within 3 years of the last one.
  • Florida = License and registration suspended until reinstatement fee is paid. Fines increase steadily with each offense.
  • Georgia = Same as first offense, but license and registration will be suspended for longer and with a higher reinstatement fee if occurs within 5 years of the last offense.
  • Hawaii = Fines increase, as does the risk of imprisonment and impoundment. By the third offense, these risks are substantial.
  • Idaho = Fine of up to $1,000 if offense occurs within 5 years. May also face up to 6 months in jail.
  • Illinois = Doesn’t change for second offense, but fines and penalties increase substantially for third and subsequent offenses.
  • Indiana = License and registration suspended for up to 1 year. Reinstatement fees of at least $225. Applies to all cases that occur within 5 years of the last.
  • Iowa= N/A
  • Kansas = Up to $2,500 in fines for offenses that occur within 3 years of the last.
  • Kentucky = Up to $2,500 in fines for offenses that occur within 5 years of the last. Offender may also face jail time of 6 months. License and registration will be suspended for 1 year.
  • Louisiana = Fines and fees increase.
  • Maine = N/A
  • Maryland = N/A
  • Massachusetts = Fines of up to $5,000 to the city and $500 to the risk plan. License and registration suspended for 1 year and offender also faces up to 1 year in jail.
  • Michigan = N/A
  • Minnesota = Risk and fines increase significantly for third offense committed within 10 years of the first two.
  • Mississippi = N/A
  • Missouri = Fines and risk increase with each subsequent act. By the third, offenders can face fines of up to $300 and jail time of up to 15 days.
  • Montana = Fines and risk of jail time increase for subsequent offenses that occur within 5-year period.
  • Nebraska = N/A
  • Nevada = Fines of up to $1,000 and reinstatement fee of up to $750 depending on the number of previous offenses.
  • New Hampshire = N/A
  • New Jersey = Fine of up to $5,000 and/or jail time of 14 days. License and registration suspended for 2 years and community service may be ordered.
  • New Mexico = Fine of up to $1,000 and jail time of up to 6 months may be ordered.
  • New York = N/A
  • North Carolina = Fines increase slightly, along with risk of jail time, for every subsequent offense committed within 3 years.
  • North Dakota = Maximum fines and penalties may be levied by the third offense, but the risk is also great for the second offense.
  • Ohio = Second offense can result in license and registration being suspended for a year and this increases to 2 years for the third offense if they occur within 5 years.
  • Oklahoma = N/A
  • Oregon = N/A
  • Pennsylvania = N/A
  • Rhode Island = Fine for second offense is $500, followed by 6 months suspension. This offense can result in a fine of $1,000 and a suspension of 12 months.
  • South Carolina = Additional offenses that occur within 10 years will increase the fines and could lead to jail time of 30 days for the second offense and no less than 45 days for the third.
  • South Dakota = N/A
  • Tennessee = N/A
  • Texas = Additional offenses can result in a fine of up to $1,000 and a suspension. Vehicle may also be impounded for 180 days.
  • Utah = Fine of at least $1,000 if occurs within 3 years.
  • Vermont = N/A
  • Virginia = N/A
  • Washington = N/A
  • West Virginia = Same as first offense with harsher suspensions.
  • Wisconsin = N/A
  • Wyoming = Fine of up to $1,500 and/or jail time of no more than 6 months.

Bottom Line: Uninsured Drivers in the US?

According to official statistics, there are 32 million uninsured drivers in the United States, which is roughly 13% of all drivers. This is a staggering statistic for the developed world and if you are in an accident, there is a one in seven chance it will involve one of these drivers.

The good news, however, is that insurance laws are on your side for the most part. Minimum insurance requirements mean that all drivers are required to have some form of cover and, as discussed above, face severe penalties if they do not. 

So, don’t take the chance, don’t leave it to fate, and make sure you get the necessary liability coverage. It will cover you and anyone you’re in an accident with and it will also prevent you from being stung with severe fines and other penalties.


Teen Car Insurance: Cheap Car Insurance

  • Car Insurance

Teen drivers are significantly more likely to claim on a car insurance policy than adults. Car insurance companies offset these costs by charging higher rates, often 3x or 4x more than adult drivers. But by shopping smartly, comparing prices, and utilizing a few simple tricks, a teenage driver can save hundreds on car insurance premiums without sacrificing coverage.

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Why Young Drivers Pay More

Insurance is all about risk and probability. The more likely you are to claim, the higher your insurance costs will be. And because they can’t look into the future, they have to base this probability on statistics. They know, for instance, that a driver aged between 16 and 18 is between 1.5x and 2x as likely to claim as one aged between 18 and 20, and more than four times as likely as one over the age of 25.

A teen driver is three times as likely to be involved in a fatal crash than someone aged 20, and, according to the CDC, this age group accounts for 8% of the total cost of road traffic accidents, even though they make up for just 6.5% of the total population.

It’s not just the age group, either, as research also suggests that male drivers are twice as likely to claim as female drivers. All of these statistics are taken into account when establishing insurance premiums, which is why they tend to be much higher.

Cheap Car Insurance Quotes for a Teenage Driver

New drivers can expect to pay considerably more than experienced drivers with a safe driving record. This is especially true for 16-year olds, who are charged more than any other age range.  To give you an idea of just how different costs can be, take a look at these premium averages:

  • 16 = $3,900
  • 17 = $3,500
  • 18 = $3,100
  • 19 = $2,200
  • 20 = $2,000

Your age, car, record, and discounts (discussed below) will typically have more impact on the policy cost than the insurance provider you choose, but the rates still differ considerably. After getting a free quote from several top providers, we found that the following offered the cheapest rates on average:

  1. Geico
  2. State Farm
  3. Nationwide
  4. Progressive
  5. Allstate

Teen Car Insurance: Adding a Young Driver to your Policy

One of the best ways to save money with young driver insurance is to add them to your policy. If you have been with the same insurer for a number of years, there’s a chance they will contact you when your child is ready to drive. They likely know your children’s ages and use automated promotions to send them offers as soon as they are of age.

If not, contact them and get a quote and then compare this to quotes received from affordable car insurance providers.

Generally speaking, the average household can expect a price rise of around 150%, and the rate is much higher if the new driver is a male. 

Insurance Discounts for Teens

If you’re a good driver and a safe driver, you can save money on your quotes, even when you’re a teen driver added to your parent’s policy. There are numerous discounts that can help you, including:

Good Student Discount

If you have good grades, you can get cheap car insurance, it’s as simple as that. The rates will still be higher than what you’d be quoted as an adult, but good student discounts can save you between 5% and 10% every year. Generally speaking, you need at least a B average to take advantage of these discounts.

Living Away

If you’re a student living away from home, you can qualify for a discount. Some insurance companies offer as much as 30% off, but the average is around half this. To qualify, you need to be living away from home, such as on campus, while at school.

Defensive Driving

If you have completed a defensive driving course or other driver training, then you can get the best car insurance for less. These courses prove that you can handle yourself on the road and they greatly reduce your chances of making a claim.

Type of Car

One of the biggest things influencing car insurance rates is the type of vehicle you drive. A new car typically comes fitted with anti-theft and safety features, securing you a driver discount by reducing the chances of that car being stolen or involved in a serious accident.

The safest cars are all SUVs, which might not be the best or cheapest choice for new teen drivers. However, as long as you focus on a relatively new vehicle, and don’t opt for a sports car, you can secure a good price.

Low Mileage

You can get cheap car insurance if you drive very little and agree to a telematics device being added to your car. This device will be used to monitor your driving habits, focusing on how many miles you do. 

If you’re a teen driver doing just a handful of miles a day, this could be a great option and may save you between 30% and 50%.

Things that Could Increase Auto Insurance Rates

Numerous things can increase the cost of insurance coverage and this is true whether the young driver has their own policy or has been added to a household policy.

  • Minor Violation: A minor violation can increase your auto insurance premiums by as much as 40%. These violations include speeding tickets, which are far more common in younger drivers.
  • Major Violation: A major violation could double the cost of those premiums. These violations include DUIs and road traffic accidents.
  • Claims Record: How many claims you have will dictate how much your auto insurance coverage costs, so keep this in mind the next time you apply.

Bottom Line: Cheap Car Insurance for Teen Drivers

Teen drivers can be very expensive and if you need to add one to your policy, you can expect those rates to climb considerably. However, your kids need to learn somehow; they need to build a safe driving record, get some experience, and prove to auto insurance companies that they deserve a discount in the future.

So, let them get their learners permit, help them buy their first car, and encourage them to collect car insurance discounts and drive safely. That way, in just a few years, they’ll have the experience and the record needed to get even cheaper insurance.