There is no such thing as “the best car insurance.” Rather, what you should look for when seeking a policy is “the best car insurance for you.” That’s because rates, deals, and benefits will vary depending on what part of the country you call home and what your driving record looks like.
Still, if you’re trying to narrow your options, consider things like average annual rate, customer service ratings, and individual perks. With that in mind, here are some of the best car insurance deals in 2021. We’ll have quick links to each at the bottom of this article.
USAA is widely considered as one of the best car insurance companies, though coverage is limited to current and former military members and their families. Still, if you qualify, don’t miss the opportunity to take advantage of this excellent insurer. With an average annual premium of $1,169, the cost can’t be beat. Plus, customers regularly give USAA high marks for its simple claim-filing process.
Geico frequently appears on the top of insurance ranking lists, and for good reason. The average annual rate for a Geico policy is about $1,268, which is one of the best deals you’ll find from a national insurer. NerdWallet reports that Geico offers the cheapest minimum coverage and is the best choice for drivers with poor credit.
State Farm also has an affordable annual rate, with customers paying $1,491/year on average. But State Farm also offers the cheapest rates for drivers after an at-fault accident. That means, in the unfortunate case of a collision, your State Farm rates will not inflate out of control. U.S. News & World Report also notes that State Farm customers find the claim-filing process quite simple to navigate.
With an average annual rate of $1,562, Progressive still has one of the lowest yearly premiums. But what sets it apart from its competitors is that it is the cheapest option if you have a previous DUI. (Of course, you should never drink and drive, but if you have made the mistake in the past, Progressive might be your best choice). Progressive is also known for high customer service ratings as well as intuitive online tools to help you make the most of your policy.
Farmers stands out because it offers many customizable options through its website. Offering home coverage in addition to car insurance, Farmers lets you choose specific add-ons to your policy to best fit your needs. Such options include new car replacement, accident forgiveness and loss of use, which covers the cost of public transit or a rental when your car is in the shop. Each of these add-ons will cost you more, but you can choose which ones to bundle with your insurance policy. As for an annual rate, Farmers charges as average of $1,830/year.
Don’t Forget Discounts!
When looking for the best car insurance deals in 2021, be aware that most companies offer discount rates if you do one of the following:
- Multi-policy discount (bundling things link home/renters insurance with your policy)
- Multi-car discount
- New car discount
- Anti-theft features in the car
- Good driver discount
- Good student discount
- Pay-in-full discount
- EFT discount (paying via electronic transfer which saves the company on banking fees)
- Online quote discount (if you got the quote online before talking to someone)
- Occupational discounts (military, first-responders, etc.)
- Alumni association/professional organizations
- Usage discount (if you don’t drive often)
Bottom line? Always ask if discounts are available and what you may qualify for.