Truth Is, You’re Paying Way Too Much for Car Insurance: What No One Told You (And Can Save You a Ton)

The Car Insurnace sector has seen extremely sharp changed since 2020. Not a lot of people know that they currently pay way more than they need to insure their vehicle and that they no longer have to. Before you rush off to get connected to the car insurance company that’ll cut your rate significantly, stop here to learn everything you need to know about car insurance.

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Car insurance is a must-have if you’re going to drive but there are a lot of different factors involved that can drive up the cost of car insurance. Your car insurance company, past driving behavior, age, and experience can affect the cost.

Good drivers and new car insurance companies generally provide better rates when compared to premium ones but the coverage offered by them can also hugely vary.

We have analyzed the best car insurance companies in 2023 and have selected each niche that offers the best experience at the best prices. We suggest contacting a shortlist of the best ones and comparing the rates offered by them.

The Hidden Costs Associated with Car Insurance

When considering the best car insurance companies around, we found that Geico stands out the most as they offer the best rates for different drivers and have no hidden charges or fees associated with their plans.

Other popular choices included USAA, State Farm, American Family, Farmers, and Progressive. As all the insurance companies offer similar plans, we’ve selected the best ones depending on the segment of drivers they best cater to.

Before we discuss the individual segments let’s discuss hidden costs that can be associated with getting car insurance. Some car companies install a clause in the contract that drives up the cost if you’re DUI.

Other such hidden costs include premium pricing if negligence is proven or charging a higher rate if you’re driving in the city (that’s why you’ll find most insurance company offices in the city).

In addition, if you drive an autonomous car that has safety features that can avoid accidents, like a Tesla, your overall cost of insurance goes down but because of the high cost of purchase associated with the vehicle, you might not feel the difference.

As the chance of coming into an accident apparently goes down if you’re driving out in the countryside, the rates associated with such driving are also lower. Other factors that can affect the pricing and rates include the type of car you’re driving (exotic classics generally attract a higher rate of insurance when compared to common sedans), electric drivetrain, and even the torque rating of the car.

A car with a higher horsepower rating and torque generally translates to reckless driving in the books of car insurance companies, whereas boring sedans and station wagons are the cheaper options as they are considered ‘safer’.

Note that different companies offer different rates depending on the various factors involved and the extreme results were omitted to ensure that the results are as close to the common US citizen as possible.

Types of Fees

In addition to knowing the hidden fees related to car insurance, you must also know the different types of fees you might encounter in this journey.

Renewal Fees

Even though not all providers charge the renewal fees but some including the online dealers, require a small amount to renew your insurance policy.

Cancellation Fees

It is the fee you pay when you enroll yourself in a policy and later decide to opt-out. Some providers give a relaxation period and allow customers to cancel it within a specific timeframe. Note that you still need to pay a small cancellation fee.

Adjustment Fees

This applies when you want to make modifications in your policy, for example, the change of name or including a second driver’s name in the policy.

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Best Car Insurance Companies

Car insurance rates highly vary and are highly individualized so two similar drivers might not be offered the same insurance rate based on past driving behavior, DUI record, or accident frequency.

So, without further ado, let’s look at the best car insurance companies for each segment out there.

USAA – Clean Record Veterens

For all military community motorists that boast a clean driving record, USAA offers the best rates, has the best ratings for people looking for minimum coverage. Military community individuals that have a speeding ticket will also find it to be the cheapest.

The downside? USAA is limited to people associated with military service only. Therefore, if you’re linked to the military role you should try getting a quote from USAA.

Geico – Multiple Segments

You’ll be seeing a lot of Geico mentions in this list thanks to the excellent rates offered by the car insurance company that was only beaten by the USAA. We found Geico to be the best for people with a poor credit rating, new drivers, and those with a clean record.

Geico’s wide user base is also made possible because they are offering the best rates for teenagers. As teenagers buy the policy they don’t opt for other companies thanks to the excellent service offered by Geico.

Geico doesn’t just stop at offering the best rates for teenagers, in our survey, we found Geico to be the most affordable option for women (the next option was at least $400 more expensive) and even for senior citizens.

Senior drivers are not offered very good rates because of a number of factors but our survey found Geico’s rates to be as much as 18% lower. The rates were lower than the national average for senior drivers but were nowhere close to the cheap rates offered by USAA.

State Farm – Drivers with Bad History

In our survey, we found State Farm to be offering the best rates when it comes to people that don’t have a stellar driving record. Also, if you have a speeding ticket or were involved in a past accident State Farm can prove to be the most affordable option.

Our Take

So now you know about the best car insurance companies that cater to the needs of different segments.

It is worth mentioning that USAA is by far the most affordable and most convenient option out there but the limited user base and refusal to cater to the needs of any other consumer has set it back quite a bit.

For the usual driver with a clean, stellar record Geico is the best. Also, for people that have a bad credit score, Geico stands out the most with as much as $1000 of savings.

People that have been found guilty of driving under influence or were unfortunately involved in some accident State Farm can be an excellent choice.

To conclude, we still suggest approaching the car insurance companies and asking them for an individual quote. This is because car insurance quotes are highly individualized and even the suburb you usually drive in can affect the premium that will be charged.

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