The largest auto insurer is also the most affordable in many cases, but there are more competitive options for good drivers, military and other demographics.
State Farm, the nation’s largest auto insurance provider, was identified as the most affordable option in 29 states in a recent report by Clearsurance.com.
The study highlighted that while State Farm leads in overall affordability, other insurance providers offer more competitive rates for certain customer demographics. For instance, Erie Insurance is the go-to option for drivers with tickets, offering an average rate increase of only 7% post-speeding ticket compared to the industry average of 22%. GEICO stands out for its significant driver discounts, while Auto-Owners is most favorable for family policies.
The report showed the cost-effectiveness of Metromile for drivers with a safe record and those driving less than 10,000 miles annually. This usage-based insurance model aligns well with the needs of low-mileage drivers. Additionally, Farm Bureau offers the most cost-effective options for drivers with poor credit, and USAA is the best choice for military families.
“The best insurance provider depends on each individual's needs and demographics. There is no one-size-fits-all best company,” said Melanie Musson, insurance expert with Clearsurance.com.
The report also compared average monthly rates for full coverage auto insurance, which includes both collision and comprehensive coverage. GEICO leads with the lowest average rate of $154 per month, followed by USAA at $189 and State Farm at $200. Full coverage is more expensive than liability-only but offers extensive protection against various damages.
The cheapest insurance option may vary based on multiple factors, including age, gender, driving history, credit score and the type of car insured. For instance, more expensive cars typically attract higher full coverage premiums.
For a comprehensive view of the best and cheapest car insurance companies of 2023, interested readers can refer to the full report on Clearsurance.com.