Cheapest Auto Insurance: I Pay $18.07
I spent hours and hours researching to find the best deal so you don t have to. Here s how to get your price this low (no negotiating required)
Cheapest Auto Insurance Example
The 1 pay plan means I paid 6 months upfront instead of paying each month.
Price per Month: $18.07
Price per 6 Months: $108.41
Owner of Policy: Me, myself, and I.
Age, Gender: 23, male when I got the policy. I m 24 now. Still male.
Type of Insurance: State minimum liability. This means, if I crash into someone, GEICO takes care of all the damage except for what happens to my own car. The state minimum is the minimum amount of insurance coverage mandated. Nebraska is around $150,000 for vehicle, medical, property damage. So yes, if I make a heck of a mess by crashing into a few Ferrari s, I ll have to pay the rest myself. Worth the risk . I ll just keep clear of fancy neighborhoods haha. If you want more coverage than the minimum, GEICO quoted me 70 cents extra for another $75k in coverage.
Car: 99 Mitsubishi Eclipse GS. Clean title. Color doesn t matter. GEICO said if I had the faster (AWD Turbocharged) version of my car, the policy would still cost the same.
The Sponsored Marketing portion is because I belong to an honor society I joined in college. There are TONS of organizations which GEICO gives a discount. The Financial Responsibility portion is about an auto insurance credibility score. If you pay on time, you get this discount. Years Experienced means that this isn t my first time getting car insurance.
Negotiation: I called GEICO on multiple occasions and spoke with quite a few people. They will not negotiate with terrorists with anyone.
Cons on My record: My car insurance lapsed for over a year. It s like losing your credit score and having to rebuild. My price would be cheaper if I had never done that. It was a double-whammy because the reason I let it lapse for a year was because I went without a car. I was without a car because someone totaled it. Although the accident was 100% the other drivers fault, it can still reflect negatively on your insurance quote. GEICO said it didn t affect my price but I can t be 100% sure that s true. I m also a young male and insurance companies love to stereotype.
Pros on My Record: I ve never had any traffic violations.
Get your price below $18 by being a student, staying on your parents policy, driving an older car, not lapsing on a previous insurance policy, and don t have any traffic violations.
Other Insurance Companies
- Allstate: $26 per month
- StateFarm: $27 (piggy-backing on my parents policy)
- Travelers/AAA: $33/month
- 21st Century: $45 per month
- American Family, Progressive, Nationwide all were in the $50-60 range
- Liberty insurance $74 per month
- MetLife: Would not cover me since I had a lapse in coverage
- The General and a few others: So high I won t even write it here. Like, seriously, into the hundreds per month.
A Few More Thoughts
I called A LOT of insurance companies and people in the business to pick their brains for this article. My biggest takeaway was: don t go with an insurance agent. Most of them are less than stellar (according to my sample pool) and you ALWAYS pay more when you go with one. How else do you think the insurance company pays them? YOU pay them. I would always ask them, So why do I need an agent? The answers they gave affirmed what I already knew.
I also found ALL cheap auto insurance comparison sites to be garbage. Yes, they will give you a rough idea of what each company charges but you never know the real amount until you call each company directly. I would call from my laptop using Google Voice. It s really slick for handling business calls since it s hands-free, free of charge, and the phone displays right on my screen.
Also, I rarely drive my car. With that in mind, I looked into plans that would reward me for limited miles. Still, no one competed with GEICO. Not even Progressive s Snapshot Discount program (did come close though).
Oh, and GEICO s customer service is top notch. If it wasn t, I would have gone with a different company. Car accidents tend to be less stressful when you ve got a good group of people on your side.
I know this post isn t as conversational as most of them. But I wanted to create a quick reference guide for anyone trying to save on car insurance. As I said earlier, I spent hours searching online and hopefully this saves a lot of people the trouble. I wanted to find the cheapest auto insurance policy because a little upfront research saves tons of money over the long haul.
Tell your friends!
Usmarine1975 on 07/11/2014 at 11:33 am
The only thing I would caution is that as you get older and garner a higher net worth. The premium that you save to self insure may or may not be worth the savings if you were to have an accident happen. Lawsuits and such. The benefit of dealing with a local agent is having someone local that you can work with. Although any more most agents do not handle the claim side of things, depends on the company. Having the Cheapest policy is great but not if it doesn t cover what you expect it to. Go over every aspect of your policy if you don t understand the coverage google it, ask questions etc This will become even more important when you purchase a home etc The no lapse is a very important detail and interestingly so is switching companies to often. Credit score also play s a part in the premium you pay. I was an agent with Metlife for 3 years and sold quite a few policies with them. I always treated my clients the same as I would have wanted to be treated. Meaning I tried to get them the coverage they expected at the best rate even if it meant I didn t get the sale. Good agents do exist but many won t waste their time if you tell them you are price shopping. Call Center employee s for the firms generally don t know as much about the policy s and coverage s they are selling you.
CEO William Lipovsky on 07/11/2014 at 11:57 am
First off, that is one killer comment! Much appreciated!
I ve checked every detail of what this policy covers and I m satisfied. True, if clip a few Ferrari s on my way home I ll be in a financial pickle. But here in Nebraska, expensive cars are rare so I m not worried. Also, I rarely even drive my car since I bike everywhere in town (most people should, too) so my chances of actually getting in an expensive accident are very, very low.
You re so right about insurance agents not responding to price shoppers. I basically told one guy, GEICO quoted me $18, can you do better? He told me he could give me a personal experience and I was like . Hmm, can t quantify No, thanks.
True, call center reps don t know nearly as much as an experienced agent. But who cares? They have doc. and a handy FAQ compiled by experts. You don t need to know everything, you just need quick access. In a digital world, the definition of expert is changing from someone who knows a lot to someone who can access a lot.
Thank you for your military service.
Lucas on 07/24/2014 at 1:46 am
Wow, here in LA state minimum is 15k/30k and GEICO quote me 115$/month for it. Mine is All State and I get 80$/month and everybody at the office wet their pants when they hear how low it is xD.
CEO William Lipovsky on 07/30/2014 at 8:11 am
I assume you re talking about Louisiana, not Los Angles. What makes Louisiana so expensive??