HOW TO FIND THE CHEAPEST AUTO INSURANCE?

how to find cheap auto insurance

There are various companies out there that provide auto insurance, and it is a very competitive market. Most of the people usually go with the name brands when it comes to getting auto insurance, and that is one of the biggest mistakes they make since name brands cost up to 3X times more than a non-commercialized one.

In order to find the cheapest auto insurance we need to consider the factors that account towards determining one's auto insurance quote.

Auto insurance depends on:

  1. Driving History (including accidents and on record traffic tickets).
  2. Drivers age and gender.  
  3. Area where you reside( based on zip code).
  4. Your car's make, model and year.
  5. Drivers credit score(based on SSN).
I will share a personal experience with you which will give you a very good idea of how big of a factor is driving history and why i placed it at number 1.
I was insured with FredLoya insurance company, and my monthly premium was $168 which was based on having no prior accident history. One uneventful day i had a small accident which brought a minor bump to the victims car, and when he claimed the insurance from Fred Loya, and after my policy renewed with them my monthly payment dramatically went to $230 from $168. Now that is a 36.9% increment in my monthly payments which is huge.

Furthermore, drivers age and gender play a big role. It is quite funny how it is said around the world that women are bad drivers, but the facts say a different story, and because men are more likely to be involved in accidents, men end up paying more for auto insurance than women. 
The relationship of age with insurance is direct. The older you get the cheaper your insurance gets plus you get eligible for more benefits since you stay with the same company for longer period.

Zip codes are a big determinant for auto insurance quotes. I believe it has to do with the tax and property value of the area, and by that they judge how strong is the driver financially. This factor operates in a vice versa way. The richer neighborhood you abode in the higher you are likely to pay for auto insurance. Another factor that goes along with zip code is that for sporty cars the insurance is a bit higher than regular sedans. 
I live in Houston, Texas so let me give you a breakdown of how different neighborhoods have different rates.
areas in houston with different rates of car insurance
Source: ValuePengiun.com
This picture above gives a very good estimation of how the rates differ within the same city within different neighborhoods. These areas are all in the city of Houston, but this reference applies to all states and cities in the US.

Your credit score is also a factor that either causes your insurance quote to go up or doing depending on the situation.
auto insurance rates comparison
Source: Nerdwallet.com
These rates shown in the screenshot above are of drivers with clean driving record and good credit score.
auto insurance
Source: Nerdwallet.com
These rates shown in the screenshot above are of drivers with clean driving record, but having a bad credit score.
It can easily be seen that a driver has to pay more than a $100 extra because they have bad credit.

Let's now compare some auto insurance companies and find out the cheapest one.
This list might not be the cheapest auto insurance for everyday depending on which state you reside in the US.
I am going to rate companies that i have personal experience with ranking them 1-5. Number 1 being the cheapest with the same coverage so the level field can be compared.

  • Fred Loya
I am a resident of Texas and based on my experience in the lone star state i can say that fred loya provides the cheapest auto insurance while still maintaining good customer satisfaction. One of their cons is that you cannot get insurance online. You will have to walk in one of their offices and they will give you the quote and they also take pictures of your car which is to be insured. Same applies when you need to cancel your policy. You will have to walk-in in one of their locations to do the cancellation process.

Benefits with Fred Loya

  1. Prior traffic tickets are not taken into account when determining your insurance quote.
  2. They only keep accident history for 3 years and after that its discarded from the recorded unlike 5 years with most of the other brand companies.
  3. Considerably cheap for young drivers like myself.
Disadvantages with Fred Loya

  1. The company is relatively new compared with its competitors and that's why their availability is not country wide but only limited to the states of Texas, Arizona, Alabama, Indiana, New Mexico, Nevada, Georgia, Illinois, Colorado, and California.
  2. Can't get a quotation online. You either have to call them or have to do a walk-in in one of their locations.
Since this company doesn't operate in all US states, it is not advisable to everyone. Moreover there could be more cheaper auto insurances out there, but make sure you go with a company that's not a scam and has a little repute already built.

  • Try Root Insurance
Root insurance is a very new company that came in this business in 2015, and they call them revolutionary because they believe they can provide drivers with cheapest auto insurance if they are good drivers.
The process is pretty simple, but it takes a good 3 weeks to get your quote because they base your quote on how well you drive, and they do it by monitoring your driving through their root insurance app available on both android and apple app store.

Advantages with Root insurance
  1. Possibly the cheapest auto insurance depending the majority on how well you drive.
  2. They provide free roadside assistance.
  3. A very good option for young drivers since companies like Allstate or Progressive tend to charge them very highly.
Disadvantages with Root insurance
  1. It takes about 3 weeks to be able to get your quote which is a long processing time if you need insurance ASAP.
  2. Company takes forever to clear claims according to some online reviews about the company from their clients.
  3. Only available in 20 states. They are soon expected to expand, but can take many years.
Root insurance only available in these states
You can still give it a shot if you live in one of the states mentioned above, and if you are in no hurry to get your quotation within a few minutes.


  • State Farm
State farm is a very well recognized company all over the US, and they provide more than just auto insurance. They are in multiple businesses. I would recommend you to try them as number 3rd on your list if the first two don't workout for you or you are from a state where root and fred loya don't cover.

Advantages with State Farm:
  1. Old and reputable company that's been in operation 96 years.
  2. They have incorporated similar technology like root insurance to provide its drivers with high savings low quotes.
state farm company life
State Farm has been around longer than Progressive, Geico and Allstate
save with state farm
Drive Safe and Save with StateFarm
Disadvantages with State Farm
  1. It could cost more depending how good or bad your credit score is.
  2. Your driving record is taken into consideration while accessing your quotation.
If you are not satisfied with the 3 companies mentioned here.

Here is a list for you of the auto insurers you could try
rating of auto insurance companies
Source: Nerdwallet.com
Try any of these companies, but a lot of them are state bounded so not all auto insurers are an option to everyone. 
Do your research when looking for the cheapest auto insurance.



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