State Farm, Erie, and Geico Named Best Insurance Providers

Clearsurance.com recently released their highly anticipated list of the best and cheapest car insurance providers in 2024. Taking the top position as the cheapest company overall is State Farm.

Rounding out the top three are Erie Insurance for drivers with traffic tickets and Geico for the best discounts.

Insurance Rate Calculations

While Clearsurance.com names overall winners, they explain that the premiums individuals pay are based on factors unique to them. For example, insurance actuaries use the following information in calculations:

• Credit score – While a few states ban this practice, most of the U.S. insurance market participates in using credit ratings as an indication of insurance risk.
• Driving history – Tickets raise rates because they indicate the driver is a greater risk to the insurance company.
• Location – State requirements and local risks affect insurance premiums.

Many other factors are added to the equation, and while the companies at the top of the list may be best for some, not everyone will have the same experience.

Cheapest Insurance Companies

These providers have led the industry in writing low-cost policies and offering excellent customer service. 

State Farm Best Overall

As stated above, State Farm takes the top spot. They offer the lowest premiums on average in 29 states. They operate through a system of local agents enabling policyholders to build relationships and trust. 

They offer both liability and full coverage auto insurance plus the option to bundle policies with home and renters insurance. 

Erie Insurance for Traffic Tickets

Erie Insurance is a money-saving option for drivers with traffic tickets on their records. In fact, data reveals they raise rates by only 7% following a traffic ticket. The national average is a 22% increase in premiums following a ticket.

The downside to this company is that they don’t write policies nationwide. However, those who live in a state where Erie operates can compare quotes to see if Erie offers the best rates. 

Geico for Discounts

Geico is a top contender, especially for good drivers. Their good driver discount is 22%, more than double the national average of 10%. Antitheft devices can help drivers save 23%, considerably more than the national average of 15%.

Geico offers the cheapest rates in seven states. While State Farm is the cheapest in more states, Geico wins as the lowest-cost provider in the highly populated states of California and Florida.

Auto-Owners for Families

Teen drivers face the highest insurance rates of any age group. A teen who purchases their own policy in the U.S. can expect to pay around $345, which is the national average. Families who add a teen driver to an Auto-Owners policy can expect to pay about $152 a month, which is less than half the cost.

Auto-Owners has also built a reputation for offering policies and discounts for college students away from home.

Metromile for Safe Records

Drivers with clean driving records who also travel few miles each year may find the best rates for them with Metromile.

This usage-based company has a base rate and a per-mile rate, so monthly premiums will vary based on how many miles a policyholder drives.

Unfortunately, only drivers who live in the eight states where Metromile writes policies can qualify for coverage.

Farm Bureau for Poor Credit

Drivers with poor credit may be required to pay premiums twice as expensive as drivers with good credit with some car insurance providers. On average, drivers with poor credit will pay 12% less with Farm Bureau.

Clearsurance.com clarifies that policyholders need not be farmers to apply for coverage.

USAA for Military Personal

USAA is often the cheapest auto insurance provider across the U.S., but they do not write policies for the general public. USAA is only for current and former military members and their families.

In addition to offering low rates, USAA also receives high customer service ratings, making it a top contender for eligible families.

Individuals who want to save on car insurance premiums can compare rates to see how these companies can help them save.

Read Clearsurance.com’s entire report here: The Best and Cheapest Car Insurance Coverage in 2024