As we move further into 2024, finding affordable car insurance remains a top priority for many drivers. The cost of car insurance can vary widely depending on a number of factors, including your age, driving history, location, the type of car you drive, and the coverage limits you choose. Shopping around and comparing quotes from multiple insurers is the best way to find the cheapest car insurance rates in 2024.
According to the latest data from Forbes Advisor, the average cost of full coverage car insurance in the United States as of June 2024 is $1,758 per year, or about $146 per month. However, drivers can often find much cheaper rates by comparing quotes and taking advantage of available discounts.
Let’s dive into some tips and strategies for comparing cheap car insurance quotes in 2024.
Understanding Car Insurance Costs in 2024
The cost of car insurance is influenced by a variety of factors, many of which have changed in recent years. Some of the key factors that impact car insurance rates in 2024 include:
Age and Experience
Younger and less experienced drivers generally pay higher car insurance rates than older, more experienced drivers. Insurers view younger drivers as higher risk, so they charge them more. In 2024, the average annual full coverage car insurance rate for a 25-year-old driver is $2,132, compared to just $1,440 for a 40-year-old driver.
Driving Record
Your driving history plays a major role in determining your car insurance rates. Drivers with a clean record, free of accidents and moving violations, will qualify for the lowest rates. On the other hand, drivers with a history of accidents, speeding tickets, DUIs, or other infractions can expect to pay significantly more for coverage.
Type of Vehicle
The make, model, and year of the vehicle you drive also impact your car insurance costs. Vehicles that are more expensive to repair or replace, as well as those with higher safety ratings, tend to have lower insurance costs. Sports cars, luxury vehicles, and trucks often come with higher insurance premiums.
Coverage Levels
The amount of car insurance coverage you choose will directly affect your rates. Policies with higher liability limits, comprehensive coverage, and collision coverage will cost more than minimum-limits liability-only policies. Drivers can often save money by choosing lower coverage levels, though this comes with more risk.
Location
Where you live is a major factor in car insurance costs. Rates can vary significantly by state, city, and even zip code based on factors like population density, accident rates, crime rates, and the cost of living. Drivers in urban areas tend to pay more for car insurance than those in rural areas.
Discounts and Bundling
Car insurance providers offer a wide range of discounts that can help drivers save money. Common discounts include safe driver discounts, good student discounts, discounts for being a homeowner, discounts for being affiliated with certain employers or organizations, and discounts for bundling auto insurance with other policies like homeowners or renters insurance. Taking advantage of available discounts can significantly reduce your car insurance costs.
Strategies for Finding Cheap Car Insurance Quotes in 2024
Now that we’ve reviewed some of the key factors that influence car insurance rates, let’s look at specific strategies drivers can use to find the cheapest car insurance quotes in 2024:
Shop and Compare Quotes
The single most important step in finding cheap car insurance is to shop around and compare quotes from multiple insurers. Car insurance rates can vary dramatically from one provider to the next, so it’s crucial to get quotes from at least 3-5 companies before making a decision.
Websites like Forbes Advisor make it easy to compare car insurance quotes by allowing you to enter your information and receive personalized quotes from top insurers. This allows you to quickly compare rates side-by-side and find the most affordable option.
When comparing quotes, be sure to look at the coverage levels, deductibles, and any available discounts to ensure you’re getting the best overall value. The cheapest quote may not always be the best option if the coverage levels are inadequate.
Raise Your Deductible
Choosing a higher deductible is one of the simplest ways to lower your car insurance premiums. Deductibles are the amount you pay out-of-pocket before your insurance coverage kicks in. By opting for a $500 or $1,000 deductible instead of a $250 deductible, you can often save 10-20% on your annual premium.
Just be sure you have enough savings set aside to cover the higher deductible if you do need to file a claim. Raising your deductible too high could leave you vulnerable if you’re in an accident.
Take Advantage of Discounts
Car insurance companies offer a wide variety of discounts that can help drivers save money. Some common discounts include:
- Safe driver discount: For drivers with clean records free of accidents and violations
- Good student discount: For full-time students with a B average or higher
- Defensive driving course discount: For completing an approved defensive driving course
- Low mileage discount: For drivers who log fewer than 7,500 miles per year
- Anti-theft device discount: For vehicles equipped with qualifying anti-theft systems
- Paperless discount: For opting to receive documents electronically rather than by mail
- Bundling discount: For insuring your home and auto with the same provider
Be sure to ask your insurance provider about all available discounts and take advantage of any that you qualify for. Combining multiple discounts can lead to substantial savings.
Consider Usage-Based Insurance
Another way to potentially save on car insurance in 2024 is to opt for a usage-based insurance (UBI) program. These programs, offered by companies like Progressive, Allstate, and Geico, use telematics technology to track your driving habits and adjust your rates accordingly.
By allowing your insurer to monitor metrics like your speed, braking, cornering, and mileage, you can qualify for discounts of up to 50% if you demonstrate safe and low-mileage driving habits. This can lead to significant savings compared to a traditional car insurance policy.
The tradeoff is that you’ll be giving your insurer access to more personal driving data. But for many drivers, the potential savings outweigh the privacy concerns.
Explore Specialty and Non-Standard Insurers
In addition to the major national car insurance providers, there are also a number of specialty and non-standard insurers that may be able to offer cheaper rates, especially for high-risk drivers.
These include companies like The General, Direct Auto, and SafeAuto, which specialize in coverage for drivers with poor credit, accidents, or other risk factors that make them ineligible for standard insurance policies. While the coverage may not be as comprehensive, the rates are often significantly lower.
Non-standard insurers may also be more willing to work with drivers to find affordable coverage, even if they don’t qualify for the best rates with the biggest providers.
Consider Usage-Based Insurance
Another way to potentially save on car insurance in 2024 is to opt for a usage-based insurance (UBI) program. These programs, offered by companies like Progressive, Allstate, and Geico, use telematics technology to track your driving habits and adjust your rates accordingly.
By allowing your insurer to monitor metrics like your speed, braking, cornering, and mileage, you can qualify for discounts of up to 50% if you demonstrate safe and low-mileage driving habits. This can lead to significant savings compared to a traditional car insurance policy.
The tradeoff is that you’ll be giving your insurer access to more personal driving data. But for many drivers, the potential savings outweigh the privacy concerns.
Bundle Home and Auto Insurance
Many car insurance providers offer discounts of 5-25% for bundling your auto insurance with a homeowners, renters, or other property insurance policy. By insuring multiple assets with the same company, you can take advantage of these multi-policy discounts and save money overall.
When bundling, be sure to compare quotes from your current insurer as well as other providers that offer both auto and home/rental insurance. The bundling discount may not always offset the potential savings of going with a different insurer for one or both policies.
Conclusion
Finding cheap car insurance in 2024 requires a combination of shopping around, taking advantage of available discounts, and choosing the right coverage levels for your needs and budget. By following the strategies outlined above, drivers can save hundreds or even thousands of dollars per year on their car insurance costs.
Remember, the cheapest option isn’t always the best – be sure to balance affordability with adequate coverage limits and customer service. With a little time and effort, you can find high-quality car insurance at the lowest possible price.