Cheap Car Insurance Companies 2022

Cheap Car Insurance Companies 2022

To legally circulate in the United States, you must meet two main criteria: have an approved driver’s license and some type of current basic insurance. So you will need to take out insurance, not only to protect your assets but also to ensure that you meet your obligations as a US citizen. We understand that sometimes the economic situation can be limiting, that is why in this guide we will tell you everything you need to know about cheap car insurance in the USA 2022.

What Is Auto Insurance and How Does It Work?

The operation of car insurance in the United States is very simple, it consists of the insured being protected whenever he is driving his vehicle, this type of policy covers the damages that the driver, the car, and third parties may suffer.

It is very important to mention that having auto insurance is a mandatory requirement to drive in the 50 states and territories of the United States. Consider that if you do not have insurance and cause damage while driving, you will have to be responsible for repairing it, which can involve considerable expenses, in addition, you could face police charges for traffic accidents, speeding, causing injuries to third parties, and/or damaging other people’s property.

Each state establishes its laws on car insurance, however, they all agree that each driver who circulates in the national territory must have the following basic coverage:

  • Civil liability for bodily harm to third parties.
  • Civil liability for damage to third-party property.

Car Insurance Coverage

These are the six main coverages offered by car insurance in the United States:

  1. Liability for Property Damage (PD): Protects for damages that the insured could cause with the vehicle to other cars and third-party property.
  2. Liability for Bodily Injury (BD): Protects in case the insured is responsible for car accidents that cause bodily harm to third parties.
  3. Occupant Medical Expenses: Covers the medical expenses necessary for the care of the driver of the vehicle and its passengers.
  4. Uninsured Motorist (UM) Coverage: Protects the driver and occupants of the vehicle if another uninsured car is responsible for the accident.
  5. Collision Damage: Covers the material damage that your vehicle may suffer as a result of a car accident for which you are responsible.
  6. Complete Coverage: Includes additional coverage that protects your vehicle in case of total theft or material damage caused by events such as fire, acts of nature, and vandalism.

How Much Does Car Insurance Cost in The United States?

Below we share a comparative table of car insurance prices with some of the most prominent insurance companies in the country:

Insurance carrier Annual Price (USD)
Geico $1,158
StateFarm $1,359
Erie $986

Use this information only as a reference, since to quote we have used the following data:

  • Vehicle Features: 2022 Chevrolet Malibu
  • Age and gender of the habitual driver: Male, 30 years old.
  • Insured Location: Los Angeles, California.
  • Type of insurance: Civil liability, collision, and roadside assistance.

 

What Criteria Determine Car Insurance Prices?

When you request a quote, insurance companies use a calculator to determine the price of your insurance taking into account the following criteria :

  • Driver’s driving history.
  • Location of the insured.
  • Features the vehicle.
  • Coverage, sum insured, and contracted deductibles.

 

How to Get Cheap Car Insurance In The United States?

Here are some tips that can help you get cheap car insurance:

  • Create a good driving record :
    • Keep your driver’s license active.
    • Avoid accumulating violations.
    • Do not commit traffic violations.
    • It covers the debts you have with the DMV (Department of Motor Vehicles).
    • Never drive under the influence of prohibited substances.
  • Take out auto insurance with basic coverage, that is, it covers only the damage you may cause to third parties while driving.
  • Opt for low sums insured, in this way your insurance will be much cheaper, however, take into account that the responsibility of the insurance company will end as soon as the sum insured is exhausted and from that moment you will have to be financially responsible for the damages caused.
  • Select higher deductibles to lower the price of your insurance, although this implies that in the event of an accident, you will have to pay a higher percentage of the total damage.

Cheap Car Insurance Companies 2022

You can consider one of these three insurance companies in the USA if you are looking for cheap insurance for your car:

 

1. StateFarm

It is the company with the largest number of insured vehicles and has a presence throughout the country. The prices of the policies it offers are below the average in more than half of the states. An auto insurance policy with basic coverage has an average semi-annual price of 300 dollars.

 

2. Progressive

Progressive currently has more than 27 million clients throughout the country and has managed to position itself as one of the best companies. You can purchase basic coverage insurance with this insurer for around $400 for six months.

3. Geico

This company ranks second in terms of the number of insured vehicles and operates in all 50 states of the country. A policy with basic coverage costs about $360 for six months. You can quote online directly on the official Geico website.

Verdict

Before making a decision, we suggest you compare the different options through the auto insurance quote that makes available to you at no cost. In this way, you make sure you take out insurance that suits your budget and needs.

Read More: 5 Tips to Get the Best Price for Auto Insurance