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Best Car Insurance Companies 2024 May

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Best Car Insurance Companies 2024 of May. In this article we will let you know Best Car Insurance Companies of May 2024 selected by Forbes. We’ve taken the guesswork out of finding the best car insurance companies by analyzing the key factors that will affect your customer experience. We evaluated the major auto insurance companies based on average rates for different drivers, available coverage features, complaint levels, grades for collision claims from auto body repair professionals and how understandable the insurers’ websites are. See our top picks below.

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Best Car Insurance Companies 2024 May

Car insurance is a contract between you and the insurance company that provides you with certain coverage in exchange for your premium payments. Your car insurance policy is the contract that outlines what you can claim.

The best car insurance policies cover your liability (if you damage and injure others), damage to your own vehicle and car accident injuries to you and your passengers. If you fail to pay your car insurance bill, the coverage lapses and any claims you make may be denied.

Best Car Insurance Companies 2023 August

The Best Car Insurance Companies:

  • American Family – Best for Low Level of Complaints
  • Auto-Owners – Best Cost for Drivers Who Have Caused an Accident
  • Nationwide – Good for Usage-based or Mileage-based Insurance
  • USAA – Best for Military Members & Veterans
  • Geico – Best Overall Car Insurance Rates
  • Travelers – Best Price for Gap Insurance
  • Westfield – Best Family Discounts
  • Erie – Best Grade from Collision Repair Professionals
  • Progressive – Best Price for Drivers With a DUI
  • State Farm – Best Renewal Discount

How much does car insurance cost?

Car insurance buyers often place the most importance on price. Here are the average annual and monthly costs for good drivers.

Car insurance cost by driving profile

Here’s a look at car insurance rates based on nationwide averages among the largest insurance companies.

Car insurance cost by age

Younger, inexperienced drivers will pay the most for auto insurance. Around the age of 25, car insurance rates begin to decline steadily. Once you hit your 70s, rates begin to rise again. Here are annual rates based on national averages for some of the largest car insurance companies.

Why do people shop for new car insurance?

Shopping around for car insurance can lead to savings, but many car owners renew their policies every year without checking prices from other insurance companies.

A May 2024 Forbes Advisor survey of 2,000 drivers asked what would motivate them to purchase a new car insurance policy. More than half said that any of these three reasons may have led to their purchase:

  • A bad experience with a car insurance claim (55%)
  • Looking for a good price (54%)
  • Current company type of coverage I don’t want (52%)

Older drivers (ages 58 to 76) chose price as the No. 1 reason to shop around, while poor claims experience and types of coverage were tops for younger drivers (ages 18 to 25).

Factors that affect car insurance costs

Your car insurance costs will usually vary depending on a number of factors including:
  • Your driving record
  • Your age and years of driving experience
  • where you live
  • Choosing car insurance coverage
  • Deductible amount (if you buy collision and comprehensive coverage)
  • Vehicle model
  • Your car insurance history, such as whether you have continuous coverage or defects
  • Your credit-based insurance score (using credit to calculate car insurance costs is prohibited in California, Hawaii, Massachusetts, and Michigan)

How can I find the best price on car insurance?

Once you’ve decided how much car insurance you need, it’s time to start shopping for a policy. Rates often vary widely between companies for the exact same coverage, so it’s smart to compare car insurance quotes from multiple insurers. For example, in California, rates for a good driver range from $1,668 (Wawanesa) to $3,940 (The Hartford) to about $2,270 for the exact same driver.

Here’s what you should do to find the cheapest car insurance.

1. Shop nearby

Unless you shop around, you won’t know if your rates are high or the cheapest. Getting multiple quotes will help you find the most affordable car insurance company. You can find free quotes online or by working with an auto insurance agent. Independent insurance agents can provide quotes from multiple companies. Insurance quotes are always free.

2. Ask about discounts

Ask about car insurance discounts when you are getting a car insurance quote. You can usually lower your car insurance costs with discounts for:
  • “Bundling” multiple insurance policies from the same company, such as auto and home insurance.
  • Insuring multiple cars with the same company.
  • Qualify for a good driver discount.
  • If you have a student on your policy, you will get a discount if they are a good student.
  • If you have college students on this policy, a discount is available if they are away from school without a car (usually at least 100 miles away).
  • Taking a defensive driving class if you’re 55 or older.
  • Paying your car insurance bill in full for the term instead of monthly.

3. Choose a high deductible

Collision and comprehensive coverage have a deductible. A deductible is the amount a car insurance company deducts from an insurance claim check. The higher your deductible, the less you’ll pay for insurance.

Here is an example. Let’s say you’re in an accident and your car is worth $2,000 worth of damage. If your collision deductible is $500, the insurer will deduct that from the settlement amount, so you’ll receive a $1,500 check to cover the repairs.

If you decide on a high deductible, try to set aside money for that deductible, so you have it available if you need to make a claim later.

4. Ask about a pay-per-mile policy if you don’t drive much

If you own a car but take public transportation to work and don’t drive your car much, look into a per-mile auto insurance policy. These policies also charge a monthly base rate and a per mile rate If you don’t spend a lot of time behind the wheel, they can be a more affordable option.

Let’s say your pay-per-mile insurance has a base rate of $40 per month and a 5-cent per mile rate. If you drive 500 miles a month, your monthly bill will be $65 ($40 plus 500 miles times $.05).

5. Ask about usage-based car insurance

Usage-based insurance (UBI), also called telematics, may sound like pay-per-mile, but it’s quite different. With a usage-based insurance policy, the car insurance company closely tracks your driving and creates a driving score.

For example, a usage-based insurance program can track your speed, braking, acceleration, miles driven and time of day. The program will use a smartphone app or a device attached to the car to track your driving.

These programs often come with an initial discount, and then you can save more based on your driving. But not all drivers can save money with UBI. These programs are best suited for excellent drivers.

What type of car insurance is needed?

Here are the main types of car insurance usually required by state. Liability Insurance: Required in all states when you buy car insurance. Vehicle liability insurance is the foundation of an auto insurance policy. Liability insurance pays you for accidental injuries and property damage to others in an auto accident. Liability insurance comes with limits per person and per accident for bodily injury and per accident for property damage. A good rule of thumb is to buy enough liability insurance that you can be charged in a lawsuit.

Uninsured motorist coverage (UM): Mandatory in some states and optional in others Uninsured motorist (UM) insurance covers medical bills and other expenses for you and your passengers if someone crashes with you and they don’t have liability insurance.

A related coverage, underinsured motorist coverage (UIM), pays for medical bills for you and your passengers if a driver with insufficient liability insurance causes an accident that results in your injuries. Some states bundle uninsured motorist and underinsured motorist coverage together.

Uninsured motorist coverage pays nothing to a driver who is not insured.

Personal Injury Protection (PIP): Required in some states. Some states use a no-fault car insurance system. In these states, you will use your own personal injury coverage to cover medical expenses for you and your passengers, regardless of who is responsible for the auto accident. PIP also pays for other expenses, such as lost wages and replacement services. PIP is required in no-fault conditions and optional in others.
Medical Payment (MedPay): Required in some states. Medical Payments coverage is similar to PIP in that it covers medical bills for both you and your passengers after an auto accident, regardless of fault. But MedPay does not pay for lost wages or other expenses not included in PIP’s coverage.

is sometimes necessary

Collision and Comprehensive Insurance: Required by lenders if you have a car loan or lease. Collision and comprehensive insurance pays for your vehicle’s repair bills or the value of your vehicle due to certain issues. These two separate coverages are usually sold together.
Collision insurance covers car accidents with other vehicles or objects, such as a building or pole, and pays regardless of fault. Comprehensive auto insurance covers car theft, fire, severe weather damage, flood, hail, falling objects, vandalism and injury to an animal.

Other types of auto insurance to consider

Sometimes getting the best car insurance means adding additional coverage to get more protection or protect against unexpected out-of-pocket expenses. Here are some other auto insurance types to consider.

Excuse the accident. It is standard operating procedure for car insurance companies to increase your car insurance rates after you have been in an accident. If you get “accident forgiveness” coverage from your insurer, you can avoid rate increases after your first at-fault accident. Some insurers go a step further and “forgive” a moving violation, such as a speeding ticket.

Gap insurance. Do you have a large car loan balance or lease? If your car is totaled, the insurance payment for the car may be much less than your balance. Gap insurance pays the difference.

New car replacement:

If you are the unlikely driver that your new car is totaled, this coverage can help. It will pay to replace your car with a like-new car, rather than just compensating you for the depreciated value of your car. New car replacement coverage rules can vary between insurers for what qualifies as a “new” car so check the details.

Pay-per-mile insurance. If you drive very little, pay-per-mile auto insurance may be a better bet for you. A portion of your premium depends on exactly how many miles you drive each month. The other part, called the base rate, does not change from month to month.

SR-22 Insurance. An SR-22 is definitely not something you want, but you may need an insurer that provides one. Your state may require you to get an SR-22 form to prove you have auto insurance. Your insurance company must send this form to the state to verify that you have coverage, but not all insurers perform this service. You may end up with an SR-22 requirement if, for example, you have a lot of moving violations or you cause an accident while driving without insurance.

Usage based insurance:

If you are a really good driver, this type of policy has the potential to reduce your car insurance bill. This usually means no speed, hard braking, hard cornering and other factors. Usage-based insurance (UBI) programs use an app or device that plugs into your car to track your driving habits.

But don’t count on savings from usage-based insurance. According to TransUnion’s 2022 Insurance Trends and Outlook report, less than half (48%) of drivers who choose a usage-based insurance program actually see savings. Premiums remained the same for 30% of drivers using UBI.

Expired deductibles. If you have a collision or comprehensive insurance claim, your insurance check will be reduced by your deductible. Some auto insurers take the sting out of deductibles by offering an invisible deductible. This usually means a set reduction (eg $100) for each year you don’t claim.

Complaints against auto insurance companies

Complaints collected nationwide against car insurance companies reveal trouble spots for some insurers. The National Association of Insurance Commissioners calculates a complaint ratio for each company that reflects the number of complaints relative to the size of the insurer’s business.

An inside look at car insurance claims

If you’re lucky, you’ll have very little experience with collision repair. This means you won’t necessarily know if you’re getting superior claims service compared to other insurers.

Collision repair professionals have the advantage of dealing with insurers every day and which companies try to cut corners on claims and which companies have processes that slow down the repair process.

That’s why we’ve included grades from collision repair professionals to insurance companies, provided by the CRASH Network. “Drivers pay their auto insurance premiums every month, yet they only know how much the insurer will care for them when they file a claim — which happens about once a decade for the average driver,” said Crash Network editor John Yoswick of Crash Network. Editor John Yoswick, who has a weekly newsletter covering the collision repair and auto insurance market segments.

“But auto body repair shops see everyday that insurance companies are prioritizing cost-savings by using cheaper parts and repair methods, and which insurers are prioritizing the quality of their policyholders’ repairs and using automaker-recommended repair methods and parts,” he said.

The Crash Network produces an annual Insurer Report Card that gives insurers insights into their claims processes that others don’t see. Auto body repair professionals across the country are asked, “How well do this company’s claims handling policies, attitudes and payment practices ensure quality repairs and customer service for motorists?”
“This knowledge gives body shops a unique perspective on which insurance companies consistently earn an ‘A’ when it comes to customer service and proper repairs for their policyholders, and which insurers deserve a ‘C’ or ‘D,'” Yoswick said. Of the 75 insurers scored by the CRASH Network, only North Carolina Farm Bureau, Chubb, Erie and Michigan Farm Bureau received grades in the “A” range.

More about Geico car insurance

Geico sells insurance for cars, motorcycles and classic cars. For those who enjoy a little more adventure, Geico sells insurance for RVs, ATVs and boats. Optional coverage types for auto insurance include emergency road service, rental reimbursement and mechanical breakdown insurance.

If you’re worried about rate hikes after an accident, Geico offers accident forgiveness insurance, which you can pay to add to your policy or earn by maintaining a clean driving record. Geico will waive the first at-fault accident caused by an eligible driver listed on your policy. If you plan to drive south of the border, Geico sells Mexico auto insurance.

Geico car insurance discounts

Geico offers many discounts, especially for drivers who practice safe driving habits. If you are in the military or part of an emergency deployment, you can get a 15% to 25% discount on your policy. And, if you’re a loyal customer, you can benefit from multi-car discounts or multiple policy discounts. Other auto insurance discounts include:
  • Discount on vehicle equipment: Does your vehicle have the latest safety features such as side airbags or front-seat full airbags, anti-lock brakes or anti-theft systems? If so, you can save up to 40% on the medical coverage or personal injury protection portion of your policy.
  • Discounts for driving history and habits: If you have a good driving record and have been accident-free for five years, you can get discounts of up to 26% on most coverages. Also, if you and your passengers wear seat belts, you can get up to 15% off the medical coverage or personal injury protection portion of your policy.
  • Driving course discount: If you complete a defensive driving course, you can save on your premium.
  • Driver Education Discount: If your policy includes a young driver who completes a driver’s education course, you may be eligible for discounts on most of your coverage types.
  • Good student discount: For drivers aged 16 to 24 and enrolled in full-time school, you can get a discount if they have a B average or better.

Federal Employee Discount:

Whether you’re an active or retired federal employee, you can get up to 8% off your auto insurance premium.

  • Membership and employee discounts: Geico has partnered with more than 500 alumni associations, fraternal organizations and professional organizations to offer discounts to its members.
  • Military Discount: For those who are on active duty, retired from the military, or a member of the National Guard or Reserve, you may qualify for a discount of up to 15% on your total car insurance premium.
  • Multi-Vehicle Discount: You can save if you insure two or more vehicles through Geico.
  • Multi-policy discount: You can save by bundling your auto insurance with other types of insurance purchased through Geico, such as homeowners, condo, renters or mobile home insurance. Although Geico itself does not underwrite these other insurance types, they are available through Geico agencies.

More about Nationwide auto insurance

Nationwide sells insurance for cars, classic cars, RVs, motorcycles, ATVs, scooters, golf carts and boats. For winter-enthusiasts, Nationwide sells insurance for snowmobiles. For drivers concerned about paying high deductibles in the event of an accident, Nationwide offers a vanishing deductible. So, For each year you go without an accident, you can increase your deductible by $100 up to a total of $500.

Nationwide also offers accident forgiveness, which helps drivers avoid rate increases due to at-fault accidents. Although you will have to pay to add this coverage to your policy, it can help offset premium increases that typically apply after an at-fault accident.

Nationwide pay-per-mile and usage-based auto insurance

Nationwide has two options for consumers looking to lower their car insurance bills through lower mileage or higher driving skills.

For low-mileage drivers, Nationwide offers SmartMiles, which offers the same coverage as a traditional Nationwide auto insurance policy but essentially bases your premium on actual mileage. Your rate consists of two components: a base rate and a variable rate (cost per mile). Since your variable rate is determined by how much you drive, your monthly rate will vary from month to month.

Nationwide also offers savings potential with its SmartRide usage-based insurance program. You can earn up to 10% when you sign up. Then, if your driving habits are good enough, you can earn up to 40% off your auto insurance.

Nationwide auto insurance discounts

Nationwide offers various discounts, especially for drivers with safe driving habits. If you have a driver in high school or college, check out the nationwide discount for good students.

Other car insurance discounts from Nationwide include:

  • Multi-policy discount: You can save on both your home and auto insurance policies when you bundle them together.
  • Accident-free and safe driver discount: You can get a discount if you have a clean driving record.
  • Defensive Driving Discount: This is a discount for completing a state-approved safety course.
  • Good student discount: If you are a young driver between the ages of 16 and 24 with a “B” average or better in high school or college, you may qualify for savings.
  • Anti-Theft Discount: Ask about this discount if your vehicle is equipped with certain anti-theft devices.
  • Easy Pay Sign Up Discount: This is a one-time discount for setting up an automatic payment from your bank
  • Paperless Discount: You can get a discount for receiving your insurance documents and bills electronically.

More about travelers car insurance

Travelers sells car, boat and yacht insurance (for those who prefer to travel by water). Optional auto insurance add-ons include roadside assistance coverage and rental reimbursement coverage. For drivers who want to protect themselves while financing or leasing a vehicle, Travelers offers loan/lease gap insurance. If your vehicle is totaled, this coverage can pay you the difference between the vehicle’s actual cash value and the remaining balance on your loan or lease.

Travelers car insurance discounts

Travelers offer many possible discounts. If you enjoy getting your bills early, check out the EFT and pay-in-full discounts. Travelers car insurance discounts include:

  • Multi-policy discount: You can save up to 13% on your auto insurance policy if you bundle your auto insurance with another type of insurance (such as homeowners insurance).
  • Multi-Car Discount: This is a discount for customers who have more than one car on an auto insurance policy.
  • Home Ownership Exemption: Do you own a home or condo? If so, you can save up to 5% on your auto insurance discount.
  • Safe Driver Discount: For drivers with no accidents, violations or major comprehensive claims in the past three years, you can save up to 10% or 23% over the past five years.
  • Continuous Insurance Discounts: Drivers who have no gaps in auto insurance coverage can save up to 15%.
  • Hybrid or Electric Vehicle Exemption: Ask about this if you own or lease a hybrid or electric vehicle.
  • New Car Discount: You can save up to 10% on owning a new model car that is three years old or less.
  • ETFs Offered in Full and Good Payer Discount: You can get up to 15% discount for setting up automatic payments, paying in full or always paying on time.

Early quote discount:

  • You can save between 3% and 10% if you get a Travelers auto insurance quote before your current policy with another company expires.
  • Good student discount: Does your policy have a high school or college student who maintains a “B” average or better? If so, you may qualify for an 8% insurance discount.
  • Student away from home discount: If your policy includes a college student who attends school at least 100 miles away and won’t drive your car, you can save up to 7%.
  • Driver training discount: In an effort to encourage young drivers to work on their driving skills, Travelers offers up to 8% discount if your young driver takes a qualified training course.

More about USA car insurance

USAA sells insurance for cars, motorcycles, ATVs, motorhomes, boats and classic cars. And, flight insurance for those who fly to their destination. Optional coverage types include roadside assistance and rental reimbursement. Current and former US military members, and spouses and children of US military members are eligible for USAA insurance.

For drivers concerned about rate hikes after an accident, USAA offers accident forgiveness insurance. If you have been accident-free for five years, your premium will not increase after an accident. USA also offers rideshare coverage for drivers with Uber, Lyft and other services.

USA auto insurance discounts

If you’ve had USAA auto insurance for a few years, you can benefit from “length of member savings.” And if you add auto insurance to a USAA homeowner’s or renter’s insurance policy, you can save up to 10%. Other USAA car insurance discounts include:
  • Safe Driver Discount: Do you have a clean driving record for the past five years? If so, you could save money.
  • Defensive Driver Discount: This is a discount for taking an approved course to improve your driving skills.
  • Driver Training Exemption: Are you under 21? Drivers under 21 can take a basic driving course and save money on their USAA auto insurance policy.
  • Good Student Discount: Ask about this discount if your high school or college age child maintains good grades.
  • New Car Discount: Cars that are three years old or new, you may be eligible for this discount
  • Multi-Vehicle Discount: Look for this price break if you have two or more vehicles on your policy.
  • Annual Mileage: Based on how many miles you drive each year, you may qualify for a discount.
  • Vehicle Storage: When you store your vehicle, you can save up to 60% on your auto insurance. This is especially useful for deployed military members.
  • Family discount: If your parents have USAA insurance, you can save on your premiums.
  • Military Installation Discount: You can save up to 15% on comprehensive coverage when you garage your vehicle on base.
  • Length of membership savings: Look for this discount if you’ve maintained coverage with USAA for several years.

More about auto owners car insurance

Auto-Owners sells auto insurance for cars, ATVs and off-road vehicles, motorcycles, trailers and boats. For those who enjoy exploring the nation in a motorhome, Auto-Owners sells motorhome and RV coverage. Optional add-ons include roadside assistance coverage, excess expense coverage, and lease or loan gap coverage. If you decide to purchase the Personal Automobile Plus package from Auto-Owners, you’ll get 10 more coverage add-ons, including identity theft protection, rekeying locks and cell phone replacement.

Auto-owners also sell “diminished value” coverage. With this coverage, you get compensation if you get into an accident and the damage reduces the value of the car even after repairs.

Auto-owner insurance customers may be eligible for a few additional benefits, including “collision coverage benefits.” With this benefit, you get collision coverage if you get into an accident with another vehicle insured by Auto-Owners Insurance.

Auto owners car insurance discounts

Auto owners offer several discounts especially for students. If you have a young driver in school, look for auto owner discounts for good students and students away from school. If you are passionate about saving the environment, you can benefit from green rebates. Other discounts include:
  • Multi-policy discount: If you have other policies with auto-owners (such as a home insurance policy), you may qualify for a discount on your auto policy.
  • Payment history discount: You can get a discount if you have paid your policy on time for the last 36 months.
  • Green discount: If you are paperless and pay your bills online, you are eligible for this discount.
  • Life Multi-Policy Discount: You can get this discount if you bundle an eligible life insurance policy with your auto policy.
  • Paid-in-Full Discount: You are eligible for this discount if you pay your annual premium in full and on time.
  • Advance Quote Discount: This discount is for new customers who request a quote before the effective date of their policy.
  • Multi-car policy: You can get discounts if you insure two or more cars under the same policy.
  • Safety feature discounts: You may be eligible for discounts if your vehicle is equipped with safety features such as airbags or anti-lock brakes.
  • Good Student Discount: You may qualify for a discount of up to 20% if your high school or college-age driver maintains at least a “B” average.
  • Student away from school exemption: If your student is at least 100 miles away from home and attends school without a car, you may qualify for an exemption.
  • Teen Driver Monitoring Discount: Ask about this if your car has a permanently installed GPS.

More on State Farm Car Insurance

State Farm is currently the largest auto and home insurer in the United States, selling auto insurance for cars, motorcycles, RVs, off-road vehicles and boats. For those who own antique and classic cars, State Farm offers vintage car coverage.

State Farm Auto Insurance Discount

Whether you’re a safe driver or have multiple vehicles under one policy, you may be able to save on State Farm auto insurance rates.
  • Safe Driver Discount: Whether you maintain an accident-free driving record or educate yourself on best driving practices, you can get a discount. For example, if you take a defensive driving course or go three years without an ongoing violation or at-fault accident, you may qualify for a discount.
  • Accident-Free Discount: If you drive for three consecutive years without an accident, you may be eligible for a discount.
  • Good student discount: Does your policy have a full-time student with a B average or better? If so, you can save up to 25%. And the exemption can stay with your student even after graduation (until they reach age 25).
  • Student Away From School Exemption: If a driver in your household is under the age of 25 and away at school, you may be eligible for an exemption.

Safe Vehicle Discount:

For drivers with newer vehicles with the latest safety features, State Farm offers insurance premiums. For example, if your car was manufactured in 1994 or later (depending on the make and model of the car), you can save up to 40% on medical-related coverage.

  • Anti-theft discount: You can get a discount if your car has an alarm or other type of anti-theft device.
  • Multi-Vehicle Discount: Check this out if two or more vehicles in your household are insured by State Farm.
  • Multi-policy discounts: You can save by combining your auto insurance with other types of insurance, such as homeowners, renters, condo or life insurance.
  • Loyal customer discounts. Customers who insure more than one car or have other types of insurance can get a loyalty discount. For example, drivers who insure at least two cars on the same policy can save up to 20%, and drivers who bundle home, condo or life insurance with an auto insurance policy can save up to 17%.
  • Defensive Driving Course Discount: If you complete an approved defensive driving class, you can get a discount of around 10% to 15%.
  • Driver Training Discount: Ask about this if your young driver (under 21) completes a driver training course.

More about Allstate car insurance

Allstate sells car insurance for cars, motorcycles, classic cars and boats. For those who enjoy the outdoors and adventure, Allstate also offers coverage for ATVs and RVs. Optional coverages that can be added to an Allstate policy include roadside assistance, rental reimbursement and sound system insurance. Allstate also offers add-on coverage for gap insurance, new car replacement and diminishing deductibles.

Gap insurance helps if your car is in an accident and you owe more than the car is worth. Allstate’s new car replacement coverage will pay to replace your car with a new car of the same make and model if it’s two model years or less and you’re enrolled in the total and reduced deductibles in an accident covered by your policy immediately after your collision. to $100 off, and if you’re claim-free you can lower your deductible each year, up to a maximum $500 off.

Allstate Auto Insurance Discount

Allstate offers a variety of car insurance discounts, especially for safe drivers. Teen drivers and their parents can take advantage of discounts like the SMART student discount and the teenSMART driver education program. Vehicle features such as anti-lock brakes and anti-theft devices can also lead to discounts. Other discounts include:
  • Early Signing Discount: You can get a discount if you sign up for your policy seven or more days before the start date.
  • Responsible Payer Exemption: You may be eligible for a reduction if you have not received notice of cancellation within the last year.
  • Multiple Policy Discount: If you have multiple Allstate policies, such as auto and homeowners insurance.
  • New Car Exemption: If you are the first owner of a vehicle of the current model year or a year earlier, you can avail this exemption.
  • Anti-lock brake discounts: Driving with anti-lock brakes can save you money on your auto insurance.
  • Anti-Theft Discount: Discounts may apply if your vehicle has an anti-theft device.
  • Allstate e-Smart Discount: Save by going paperless by signing up for an e-policy.
  • FullPay Discount: Get a discount when you pay your annual premium in full.
  • EZ Plan Pay Discount: Get discounts by setting up an automatic payment plan.
  • Safe Driving Club Discount: Your driving may qualify you for the Safe Driving Club and get you a discount.

Erie ore about car insurance

Car insurance in Erie is available for cars, motorcycles, recreational vehicles, classic cars and boats. You can also buy insurance for snowmobiles, RVs, ATVs and golf carts. Optional add-ons include:
  • Roadside service
  • Transportation expenses and rental car coverage
  • Lease loan protection
  • Ride sharing coverage
For drivers who have recently purchased a new car, Erie sells new car protection. With this coverage, your vehicle will be replaced with the latest model if it is deemed a total loss due to an accident covered by your policy. This Erie also offers “Enhanced Car Protection” which pays to replace your car with a new car for two years.

The Erie Auto Insurance Discounts

Erie offers several auto insurance discounts, especially for safe drivers. If you have a driver under 21 on your policy, check out Erie’s discounts for young drivers. If you don’t use your car for a long time, you can benefit from reduced usage discounts. Other discounts include:
  • Safe Driving Discount: This is for safe drivers with a clean driving record.
  • Discount on vehicle safety equipment: You may receive a discount if your vehicle has safety features such as factory-installed airbags, passive restraints or anti-theft devices.
  • Multi-Car Discount: Drivers who insure two or more vehicles under the same policy may be eligible for this discount.
  • Multi-policy discount: Check this out if you bundle other insurance types (like homeowners insurance) with your Erie auto insurance.
  • Reduced Use Discount: You may be eligible for this discount if you do not use your vehicle for at least 90 consecutive days during your policy term.
  • Young Driver Discount: Do you have a driver who is under 21, single and living with you? If so, you can save your auto insurance policy.
  • Annual Payment Plan: Look for savings if you pay your annual auto premium in a lump sum.
  • College credit: If your college driver is away at school without access to your car, you may qualify for a discount.

Most and least affordable states for auto insurance

Where you live can help or hurt how much you pay for car insurance. The Insurance Research Council (IRC), an industry-funded research group, recently determined car insurance affordability by state. The IRC’s Auto Insurance Affordability Study calculated the percentage of median household income toward auto insurance in each state. The nationwide average household spends on car insurance is 1.6%.

Average Cost of Car Insurance by Type of Coverage

Forbes Advisor analyzed auto insurance costs and broke down costs to see how much each component costs for full coverage car insurance. The main parts of a full coverage car insurance policy are liability insurance (bodily injury and property damage), collision coverage and comprehensive coverage. We found the national annual average:
  • $424 for bodily injury liability
  • $259 for property damage liability
  • $339 for comprehensive coverage
  • $788 for collision coverage

Cost savings by raising your auto insurance deductible

According to Forbes Advisor’s analysis of car insurance costs, drivers who increase their insurance deductibles can save an average of 7% to 28% annually. A car insurance deductible is the amount deducted from an insurance claim check. A deductible is usually related to collision and comprehensive coverage, which pays for damages to your vehicle. Say your car is hailed to the tune of $2,500 and you make a comprehensive insurance claim. If you have a $500 deductible, your claim check will be $2,000.

Although $500 is the highest deductible, you can choose a higher deductible amount and get a lower car insurance bill because the insurance company will pay a little less if you make a claim.

State laws to ban auto insurance rate credits have proven unsuccessful

Car insurance companies routinely use your credit as a major factor in setting auto insurance rates. In fact, a Forbes Advisor analysis found that a driver with poor credit pays an average of 76% more than the same driver with good credit. Currently only California, Hawaii, Massachusetts and Michigan have laws that prohibit the use of credit-based insurance scores in car insurance rates. So far this year, more state efforts to ban the use of credit on auto insurance have failed. The American Property Casualty Insurance Association (APCIA), a trade group for property/casualty insurers, is tracking 14 bills in 2022. It reports that none of the bills have been enacted, nine have failed and five are still pending.

State legislation to ban auto insurance rate credits in 2024

APCIA’s Jeffrey Brewer said, “Not all companies use the same underwriting and rating factors, but we support companies’ right to choose which factors will work best for them and their customers. Insurers have collected data on auto loss experience for decades, and many have determined that credit information, marital status, age, gender, and education level are among the most effective variables in predicting the likelihood and severity of insurance claims. By using different rating factors, insurers can more accurately assess drivers’ risk and price their products more fairly. If credits were banned from insurance rates, auto insurance companies would likely redistribute the cost. Drivers with good credit will see their rates drop if these costs are redistributed.

Although some consumers view insurers’ use of credit as fundamentally discriminatory, Brewer expresses the industry view that “consumers benefit significantly when insurers can use accurate loss forecasts and compete in underwriting. This provides for more consumer choice and lower costs.”

States with the most conflicted drivers

According to a Forbes Advisor survey of 5,000 drivers, Utah has the most confrontational drivers. Utah has the highest percentage of drivers who are depressed (76%). Drivers in the Beehive State were second most likely to report that another driver had tailgated their vehicle (73%). And more than half (58%) of Utah drivers surveyed said they’ve experienced rude or offensive gestures toward other drivers while driving in their home state. Missouri ranks second for most confrontational drivers. The most frequently reported collision incidents included aggressive gestures (54%) and being intentionally cut off by another driver (54%).

Half of Missouri drivers say another driver yelled, insulted or cursed at them while driving. Missourians also had the highest rate of drivers who said another driver had pointed a gun or shot at them (8%).

Use of mobile apps for auto insurance claims

The past few years have pushed car insurance companies to streamline auto accident claims through more accessible means like mobile apps.

Tech-savvy drivers seem happy to engage with insurance companies to speed up their claims and facilitate repairs via mobile apps, but what about injury claims? CCC Information Services, an automotive industry data and technology provider, surveyed more than 500 drivers over the past two years who suffered minor injuries in a low-impact auto accident. CCC found that 91% of respondents used a mobile app during their auto insurance claim process. More than half of respondents (55%) used a car insurance app for the first time after their accident.

Almost three-quarters (72%) of drivers have a positive perception of the claims process. Most respondents, 89%, said they would both use a mobile app to submit a claim and select an insurance company that offers an expedited mobile payment option if these items speed up the claims process.

While the majority of injured drivers surveyed used a mobile app for some part of their claims process, only 37% submitted their injury claims using their auto insurance company’s mobile app. If you’ve been injured in an accident, consider using your insurer’s mobile app to stay informed of the status and progress of your claim during the process.

Here are the mobile app features survey respondents used for their claims:

  • Photographed vehicle damage (50%)
  • Contacted insurance companies (46%)
  • File a claim (43%)
  • Researched what my policy covers (38%)
  • Reviewed my policy benefits (36%)
  • Scheduled an appointment at a repair shop (33%)
  • Updated personal contact information (31%)
  • Nearest repair shop contacted (27%)
  • Start a text or chat with an insurance representative (26%)
  • Nearest repair shop found (26%)
  • Exchanged information with another driver (23%)
  • Contacted a towing truck (20%).