Finding the best cheap insurance rates for your home, automobile, and life is difficult. Not only do you need to decide what type of coverage you want, and how much, but you need to dig around until you find the best deals.
Unfortunately, insurance prices can be based on highly personal factors such as age, sex, health or credit history. Because of the many personal factors that affect your premium, the cheapest insurance company for your friend or neighbor could be the most expensive for you. Start your search today by typing your zip code into the comparison tool below and see who might give you cheap insurance quotes based on your unique circumstances.
We tracked life, auto and home insurance metrics to assess which are the best cheap insurance companies. Using our SimpleScore model, we analyzed discounts, coverage options, customer service, accessibility and support.
We also reviewed such third-party analysis as that of J.D. Power and Consumer Reports to analyze more deeply what customers had to say about the insurance carriers we study. For example, Consumer Reports looks at policy reviews, claims satisfaction, as well as pricing satisfaction.
The best affordable insurance companies
- Great Cheap Insurance for Policy Options: MetLife and State Farm
- Great Cheap Insurance for Customer Service: USAA
- Great Cheap Insurance for Bundling: Nationwide
- Great Cheap Insurance for Homeowners Discounts: Allstate
- Great Cheap Insurance for Auto Discounts: Farmers
Great Cheap Insurance for Policy Options: State Farm and MetLife
Both State Farm and MetLife offer all major policy types — home, auto, and life — with an impressive range of customization. They also earn good marks for value.
State Farm is also among the highest-ranked companies for claims and service, and you have the option of doing business with more than 19,000 agents or buying direct online.
If you do work with an agent, be aware that State Farm agents only sell State Farm insurance products. That’s fine if you’re sure you want a policy with State Farm, but they won’t help you shop around. The company also offers few breaks on home insurance.
Customers should note that the company offers few discounts compared to its competitors, however. It also falls behind the pack with weaker educational articles and tools that help prospective customers make wiser policy choices.
The company offers home and car insurance, as well as life insurance, and a range of other policies, too, including business and travel coverage. Customers also benefit from a clear, well-organized website and smooth online quote tools, including for life insurance — a rarity.
USAA doesn’t have local agents, though this may not be a con if you don’t want or need to do business in person. The company’s biggest downside is its limited availability: You or a close family member must be affiliated with the armed forces to get coverage from USAA.
Nationwide gets solid ratings for value and has an extensive range of other discounts, including less common homeowners insurance breaks for age and personal status.
The company also offers price breaks for other policy combos that might include motorcycle insurance, boat insurance, or several other kinds of specialty insurance.
There are 12,000 Allstate-only agents nationwide to provide personal service. We found that the number of coverage options for home insurance is strong, as well. However, it will only bundle auto and homeowners insurance or auto and life insurance. Customers gave Allstate solid or good marks for value overall, making the company one to investigate for budget-savvy shoppers.
There are 48,000 Farmers agents nationwide who can do business face to face and help you maximize your ways to save. While customers rate this company a 3 out of 5 with J.D. Power’s claims customer service survey for car insurance, they give Farmers at 4 out of 5 for home insurance.
Selecting your coverage: What you should know
Whether you’re in search of cheap insurance rates for your home, auto, or life, it’s important to understand the factors that influence pricing, as well as pitfalls to watch out for. Here are details about each type of coverage you should know inside and out:
When shopping for cheap auto insurance rates, you’ll encounter a wide range of factors that affect pricing and the type of coverage you can buy. This can be both a good thing and a bad thing for the consumer. While having the ability to patch together a unique policy that meets your individual needs is usually seen as a good thing, the multiple layers of detail to consider can be absolutely overwhelming and confusing for the consumer.
Before we go any further, let’s look at some of the factors that can drive up — or decrease — your auto insurance rates:
- Type of coverage: You can buy several different types of coverage as part of your auto policy, including full or “comprehensive” coverage, liability coverage, and collision coverage. Since each type offers a different tier of coverage, pricing for different policies tends to vary drastically.
- Your policy limits: While individual states choose minimum coverage standards for their residents, many shoppers prefer to buy more coverage for greater protection. As a general rule, the more coverage you buy, the more expensive your policy becomes.
- Where you live: Auto insurance rates can vary drastically based on geographical factors, including not just the state but even the neighborhood you live in.
- The age and condition of your vehicle: Newer vehicles usually cost more to insure, while older and less expensive vehicles may be insured at a discount.
- Your credit score: Many insurance companies consider your personal credit score when determining your auto insurance rates. The better your credit score, the better chance you have at the most affordable rates.
- Your driving history: If you’ve had several accidents or tickets in the last few years, your auto insurance rates will likely be higher to reflect the increased risk.
- Your deductible: A policy with a high deductible — the amount you have to pay out of pocket before insurance kicks in — will generally cost less than a policy with a low deductible.
Details to consider as you shop around for car insurance
- Consider bundling your policies. Some insurance providers will offer a large discount if you buy more than one policy, or “bundle” your policies together. When shopping for cheap auto insurance rates, make sure to check pricing on other types of insurance you may need to buy, such as homeowners or renter’s insurance.
- Don’t let low prices tempt you into buying less coverage than you need. While buying minimum coverage on your automobile might definitely save you money in the short term, your agent may advise against it.
- Don’t buy too much coverage, either. While you don’t want to buy less coverage than you need, it’s also possible to buy more coverage than what is reasonable for your situation.
- If your situation changes, you can always switch plans in the future. If bad credit or a poor driving history are driving your rates up at the moment, you may be in a better position to get cheaper rates if you wait it out. Consider taking steps to improve your credit and be especially careful to obey traffic signals and follow all the rules of the road when you’re driving.
Home insurance is a lot like auto insurance in that several key factors affect pricing. Most of the time, finding the best home insurance rates is a matter of shopping around among several companies until you find the best quote for the exact level of coverage you hope to attain.
Here are some of the main factors that will impact the price of your homeowner’s insurance policy:
- Your home’s age and type of construction: Older homes tend to have more problems with their major components, and may be built with materials that are especially expensive to repair or replace. The increased costs associated with older homes may be reflected in your home insurance rates.
- Your credit score: Many insurance companies look at your credit score when determining your rates.
- Your claims history: If you’ve made several claims on previous homeowner’s insurance policies, you may pay higher rates down the line.
- Risk factors: Risk factors that can drive up the cost of your policy can include a swimming pool or a large trampoline in the back yard.
- The location of your home: Where you live may affect your home insurance rates.
- Your deductible: As with auto insurance, if you choose a policy with a high deductible, you will generally pay lower premiums. Likewise, a policy with a low deductible will often cost more.
- The level of coverage you buy: Buying additional coverage on your home will often add to the total cost of your policy.
America’s top-rated home insurance
- Policies starting at just $25/month
- Sign up in seconds, claims paid in minutes
- Zero hassle, zero paperwork
Details to consider as you shop around for home insurance
- Consider bundling your policies. Many insurance companies offer discounts if you sign up for multiple policies with them, or “bundle” your policies. When shopping for insurance for your home, make sure to check prices on auto and life as well.
- Make sure to choose a deductible you can live with. While policies with a high deductible can definitely be more affordable, you want to make sure you choose a deductible you can actually afford to pay if you needed to make a claim.
- Control your risk factors. While you might be able to control the location of your home, you can limit some of your risk factors like having an on-site pool without a fence.
- Ask for discounts. Some home insurance companies will offer discounts if you prepay your premium for the year, sign up for multiple policies, agree to receive your statements electronically, or have never filed a claim. Make sure to ask about any discounts that might be available for your policy before signing up.
Shopping around for life insurance can be downright stressful. Not only can the type of insurance you buy affect your rate, but there are plenty of other factors that will influence the cost of your policy over the years.
Here are the main factors that will dictate how much your life insurance premiums will cost on a monthly or annual basis:
- The type of coverage you buy: While you can buy several different types of life insurance coverage, most policies either fall under the umbrella of term coverage or whole life. Term policies only provide coverage for a specified length of time, which is why they can be generally more affordable. Whole life policies, on the other hand, offer lifetime coverage but can cost more.
- How much coverage you buy: The price of your life insurance policy can climb considerably based on the amount of coverage you buy.
- Your age and health: Your age and overall health will play a huge role in the price you’ll pay for life insurance coverage. Health conditions such as obesity, heart disease, or diabetes can drive up the cost of your coverage considerably.
- Lifestyle factors: If you smoke or participate in risky activities or sports on a regular basis, you may pay a premium for your life insurance coverage.
- Your family history: A family history of early death or chronic illness will drive up the cost of your premiums.
- Your location: Where you live plays a role in the cost of your life insurance premiums, although your geographic location is often out of your control.
Details to consider as you shop around for life insurance
- Consider bundling. If you bundle your life insurance policy with other insurance policies you must purchase, you could earn a multiple policy discount.
- Work on your health. While some health conditions are out of your control, you may be able to secure cheaper rates if you’re able to lose weight, lower your blood pressure, or get chronic health conditions under control.
- Drop bad habits. Bad habits such as smoking can drive up the cost of your policy.
- Consider a term policy to save money. Although term life insurance only offers coverage for a set length of time — usually 10-30 years — it can be more affordable.
Four tips for getting cheap insurance quotes
No matter what company you choose, you won’t get the cheapest insurance without knowing what you can do to get and keep a low rate. Some strategies are specific to the type of insurance you need, so if you’re exclusively looking for the best car insurance companies, the best homeowners insurance, or the best life insurance companies, be sure to check out our other articles on how to save.
1. Shop around
Consider this the golden rule of finding cheap insurance quotes: It always pays to shop around.
Regardless of what type of insurance you need, never assume a certain provider will be the cheapest insurance company because that was the case for your family or friends. So many factors affect your rate that you’ll never know which company will come out on top until you compare apples to apples.
Save time by using an online quote tool like those at the beginning of this article. Online quote tools help you get a quick snapshot of potential rates from several insurance companies at once.
2. Lower your risk
If every person who bought an insurance policy actually used it, insurance companies would go out of business fast. So it follows that insurers want customers who pose the least risk of actually making a claim. The less risky you are, the better your rate may be.
In case of auto insurance, eschew powerful, sporty luxury cars in favor of family-friendly sedans, minivans and SUVs, because data models have shown those cars can be less expensive to repair, as well as other factors.
You can also hedge your risk by driving safer and driving less. Fewer black marks on your driving record and fewer miles on your car can mean more dollars in your pocket.
To stand out as a low-risk customer for home insurance, insurers prefer a new, well-maintained home. Companies also want to see safety features such as smoke alarms, deadbolts, security systems and even sprinkler systems.
If you’re in an area prone to natural disasters, features such as stronger roofs and windows can help you save. Also, consider avoiding swimming pools and trampolines.
You’ll appear less risky to a life insurance company if you’re in good health. Though you can’t control family history of certain health conditions, you can keep your weight under control and refrain from smoking. Also, the younger you are, the lower the rate you might snag.
3. Keep your credit pristine
For the most part, your credit score won’t affect your life insurance rates except for the hardest-to-get policies. But it’s another story entirely for car and home insurance. It may seem unfair, but the vast majority of car and home insurance companies look at your credit score to help determine your rate. If you have poor credit, you may pay more — sometimes much more.
Unfortunately, building good credit can be a time-consuming process, and it won’t be something you can do at the last minute before you buy insurance. However, given the range of financial dealings your credit can impact, it’s worth it for the long haul.
4. Think discounts
A common kind of insurance discount is the one you’ll get for bundling your policies. It’s worth checking to see whether you’ll get a discount for getting your home, auto and life insurance through the same company. Be sure to compare whether you’ll actually be paying less overall with the same company than you would with policies elsewhere, though.
If you’re shopping for car insurance, your discount options can be numerous: You can get a break for getting good grades as a student, taking defensive driving courses, going several years without a ticket and installing a car alarm, among other possibilities.
Homeowners insurers typically offer fewer discounts, but you might save with certain home-safety features.
Price breaks on life insurance will be few and far between, but be sure to check whether membership in any professional or alumni groups can nab you a better rate. Paying in full or automating payments may also save you money on all insurance types.
The bottom line? Ask companies for a full list of discounts while you’re shopping since they may not publicize all of them.